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OracleFinancials CloudImplementing Accounting Hub

Release 13 (update 17D)

Oracle Financials CloudImplementing Accounting Hub

Release 13 (update 17D)Part Number E89130-01Copyright © 2011-2017, Oracle and/or its affiliates. All rights reserved.

Authors: Angie Shahi, Ashita Mathur, Barbara Kostelec, Barbara Snyder, Essan Ni Jirman, Kathryn Wohnoutka, Mary Kalway, Michael Laverty, P. S. G. V. Sekhar, Sanjay Mall, Sweta Puthal

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Contents

Preface i

1 Oracle Fusion Accounting Hub Overview 1Define Fusion Accounting Hub Configuration for Rapid Implementation: Overview ..................................................... 1

Creating an Oracle Fusion Accounting Hub Rapid Implementation Project: Worked Example .................................... 2

Oracle Fusion Accounting Hub Features: Overview ................................................................................................... 2

Oracle Fusion Accounting Hub: How It Works .......................................................................................................... 3

Accounting Configuration Offerings: Overview ........................................................................................................... 7

Implementation Options for Oracle Fusion Accounting Hub: Overview ....................................................................... 7

Setup Data Import and Export for Oracle Fusion Accounting Hub: Explained .......................................................... 10

Understanding Implementation Structures ............................................................................................................... 15

Managing an Implementation .................................................................................................................................. 18

2 Define Enterprise Structures for Fusion Accounting Hub 23Enterprise Structures: Overview .............................................................................................................................. 23

Enterprise Structures Business Process Model: Explained ...................................................................................... 25

Global Enterprise Configuration: Points to Consider ................................................................................................ 27

Modeling Your Enterprise Management Structure in Oracle Fusion: Example .......................................................... 28

Running Diagnostic Tests for Enterprise Structures Setup Data: Explained .............................................................. 32

Define Common Financials Configuration for Rapid Implementation ........................................................................ 32

Define Initial Configuration with the Enterprise Structures Configurator .................................................................... 41

FAQs for Define Initial Configuration ........................................................................................................................ 45

Define Enterprise for Fusion Accounting Hub .......................................................................................................... 46

Define Legal Jurisdictions and Authorities ............................................................................................................... 46

Define Geographies ................................................................................................................................................. 49

Define Legal Entities ................................................................................................................................................ 50


3 Define Financial Reporting Structures 59Representing Your Enterprise Structure in Your Financial Reporting Structure: Overview ......................................... 59

Financial Enterprise Structure: How It Fits Together ................................................................................................ 59

Modeling Your Financial Reporting Structure in Oracle Fusion: Example .................................................................. 62

Manage Chart of Accounts ..................................................................................................................................... 65

FAQs for Manage Charts of Accounts .................................................................................................................... 78

Manage Value Sets ................................................................................................................................................. 78

Manage Account Hierarchies .................................................................................................................................. 84

Maintain Segment Value Attributes ....................................................................................................................... 103

FAQs for Maintain Segment Values Attributes ....................................................................................................... 110

Deploy Flexfields ................................................................................................................................................... 110

Manage Cross-Validation Rules ............................................................................................................................. 120

Manage Chart of Accounts Mapping .................................................................................................................... 130

FAQ for Manage Chart of Accounts Mapping ....................................................................................................... 131

Define Calendars ................................................................................................................................................... 132

FAQs for Define Calendars ................................................................................................................................... 134

Manage Currencies ............................................................................................................................................... 135

FAQs for Manage Currencies ................................................................................................................................ 136

Manage Conversion Rate Types ........................................................................................................................... 137

FAQs for Manage Conversion Rate Types ............................................................................................................ 140

Manage Daily Rates .............................................................................................................................................. 140


4 Define Ledgers 147Ledgers and Subledgers: Explained ...................................................................................................................... 147

Ledgers: Points to Consider ................................................................................................................................. 147

Financial Ledgers: How They Fit Together ............................................................................................................ 151

Creating Primary Ledgers: Example ...................................................................................................................... 154

Specify Ledger Options ........................................................................................................................................ 155

FAQs for Specify Ledger Options ......................................................................................................................... 157

Review and Submit Accounting Configuration ....................................................................................................... 157

FAQs for Review and Submit Accounting Configuration ........................................................................................ 175

Assign Access to Ledger ...................................................................................................................................... 176

Manage General Ledger Security .......................................................................................................................... 177

FAQs for Manage General Ledger Security ........................................................................................................... 199

Manage Reporting Currencies ............................................................................................................................... 200

Manage Ledger Sets ............................................................................................................................................ 203

Manage Accounting and Reporting Sequences .................................................................................................... 203

FAQs for Manage Accounting and Reporting Sequences ...................................................................................... 207

Manage Journal Approval Rules ............................................................................................................................ 207

Manage AutoPost Criteria Sets ............................................................................................................................. 213

FAQs for Manage AutoPost Criteria Sets .............................................................................................................. 214

Manage Journal Reversal Criteria Sets .................................................................................................................. 215

Manage Clearing Accounts Reconciliation ............................................................................................................. 217

5 Define Period Close Components 225Manage Period Close ........................................................................................................................................... 225

FAQs for Manage Period Close ............................................................................................................................ 228

Manage Allocations and Periodic Entries .............................................................................................................. 229

Manage Recurring Entries ..................................................................................................................................... 237

Manage Allocation Entries ..................................................................................................................................... 243

FAQs for Manage Allocations and Periodic Entries ................................................................................................ 249

Define Allocation Rules ......................................................................................................................................... 250

FAQs for Define Allocation Rules .......................................................................................................................... 260

Define Allocation Rule Sets ................................................................................................................................... 261

FAQs for Define Allocation Rule Sets .................................................................................................................... 269

Working with Point of View and Allocation Components ....................................................................................... 271

FAQs for Working with Point of View and Allocations Components ....................................................................... 279

Generate Allocations and Periodic Entries ............................................................................................................. 280

Manage Revaluations ............................................................................................................................................ 281


6 Define Accounting Transformation 287Accounting Transformation Configuration: Overview .............................................................................................. 287

Analyze Source Systems ....................................................................................................................................... 289

Register Source Systems ...................................................................................................................................... 293

Manage Accounting Rules .................................................................................................................................... 308

Migrate the Configuration ...................................................................................................................................... 335

Secure Accounting Transformations ...................................................................................................................... 335

Create and Process Subledger Journal Entries ..................................................................................................... 337

7 Manage Subledger Accounting 339Manage Subledger Accounting: Overview ............................................................................................................. 339

Upload Transaction Data for Accounting ............................................................................................................... 339

Create Accounting ................................................................................................................................................ 344

Create Subledger Journal Adjustment ................................................................................................................... 352

Review Subledger Journal Entry ........................................................................................................................... 355

Subledger Balances .............................................................................................................................................. 358

Advanced Features ............................................................................................................................................... 360

Manage Subledger Accounting Reporting ............................................................................................................. 375

8 Define and Maintain Intercompany Processing Rules 383Manage Intercompany System Options ................................................................................................................ 383

Manage Intercompany Organizations .................................................................................................................... 384

Define Invoicing Options ....................................................................................................................................... 385

Manage Intercompany Balancing Rules ................................................................................................................ 386

Manage Secondary and Clearing Company Balancing Options ............................................................................. 400

Manage Intercompany Transactions ...................................................................................................................... 402

FAQs for Manage Intercompany Transactions ....................................................................................................... 412

Manage Intercompany Reconciliation .................................................................................................................... 413


9 Define Consolidations 417Consolidation Method: Overview ........................................................................................................................... 417

Reporting Only Consolidation Method: Explained .................................................................................................. 417

Balance Transfer Consolidation Method: Explained ............................................................................................... 419

Reporting Only Versus Balance Transfer: Points to Consider ................................................................................ 420

Balance Transfers: Overview ................................................................................................................................. 421

Reporting Consolidation with Multiple Levels: Examples ........................................................................................ 421

Preparing Elimination Entries: Examples ................................................................................................................ 423

Mapping Segments to Financial Management Dimensions: Explained ................................................................... 429

FAQs for Define Consolidations ............................................................................................................................ 430

10 Define Budget Configuration 431Budget Uploads: Overview .................................................................................................................................... 431

Importing Budget Data from a Flat File: Explained ................................................................................................ 432

Loading Data to the Budget Interface Table: Explained ......................................................................................... 434

Importing Budget Data from a Spreadsheet: Explained ......................................................................................... 434

Budget Correction with Oracle ADF Desktop Integrator: Explained ........................................................................ 435

Oracle Hyperion Planning: Overview ..................................................................................................................... 435

Integration with Oracle Enterprise Planning and Budgeting Cloud Service: Overview ............................................. 436

11 Define Financial Reporting 439Financial Reporting Center Implementation: Points to Consider ............................................................................. 439

Financial Reporting Center: How It Works ............................................................................................................. 439

Setting Up Your Financial Reporting Center: Critical Choices ................................................................................ 442

Migrating Financial Reports: Instructions ............................................................................................................... 445

Financial Reporting Permissions in BI Catalog: Example ....................................................................................... 447

Oracle General Ledger Predefined Reports ........................................................................................................... 448

General Ledger Subject Areas, Folders, and Attributes: Explained ........................................................................ 451

FAQs for Define Financial Reporting ...................................................................................................................... 452

Create Financial Repots ........................................................................................................................................ 453

12 Define Extensions for Fusion Accounting Hub 469Define Custom Enterprise Scheduler Jobs for Fusion Accounting Hub .................................................................. 469


Preface

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Preface

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Chapter 1Oracle Fusion Accounting Hub Overview

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1 Oracle Fusion Accounting Hub Overview

Define Fusion Accounting Hub Configuration for RapidImplementation: OverviewUse the Define Fusion Accounting Hub Configuration for Rapid Implementation task list to streamline your set-upconfigurations. The rapid implementation task list minimizes the time used to complete your key configurations and enablesthe day-to-day use of Oracle Fusion Accounting Hub applications.

The rapid implementation task list includes tasks that are:

• Critical setup tasks.

• Setup steps that are required by most users.

To create an implementation project that includes the Define Fusion Accounting Hub Configuration for RapidImplementation task list, use the Manage Implementation Projects page in the Setup and Maintenance work area.You can modify the task list as needed and assign and track each task.

Note: You are not restricted to only the set-up configuration in the rapid implementation task list. You canmanually add the standard Fusion Accounting Hub offering task lists and tasks to your rapid implementationproject.

Task ListsThis table contains the task lists included in the Define Fusion Accounting Hub Configuration for RapidImplementation task list.

Task List Description

Define Enterprise StructuresConfiguration for Rapid Implementation

Define the enterprise structures configuration that includes financial and enterprise structures.

Define Accounting Entry Configurationfor Rapid Implementation

Define the accounting entry configuration includes that accounting transformation rules fortransactions sourced from external applications.

Define Ledger Configuration for RapidImplementation

Define the configuration that includes general ledger and intercompany.

Define Financial Reporting CenterConfiguration for Rapid Implementation

Define the configuration that includes set up for financial reporting and integration with planning andfinancial management applications.

Define Financials Security Configurationfor Rapid Implementation

Define the configuration for user and data roles set up.



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Note: The Open First Period task is a required task and is part of the Define Fusion Accounting HubConfiguration for Rapid Implementation task list.

Creating an Oracle Fusion Accounting Hub RapidImplementation Project: Worked ExampleThis example shows how to create an implementation project using the Oracle Fusion Accounting Hub rapid implementationtask list.

This table contains a summarization of key decisions.

Decision to Consider In This Example

What Oracle Fusion Applications are included in this implementation? The Oracle Fusion applications being implemented are:

• General Ledger• Subledger Accounting• Financial Reporting Center

Are the set-up requirements unique to this organization?

No

Can the rapid implementation task lists and tasks be used for thisimplementation?

Yes

Creating the Implementation ProjectTo create an implementation project, follow these steps:

1. Select Navigator > Setup and Maintenance work area to open the Setup page. You must have the ManageImplementation Project privilege.

2. From the Setup page, open the panel drawer and select Manage Implementation Projects.3. Click the Create icon.4. Enter a meaningful name and a brief description to describe your project.5. Optionally, assign the project to a user and specify a start date.6. Click Next. All offerings and functional areas that you previously enabled are listed.7. Select the offering Define Fusion Accounting Hub Configuration for Rapid Implementation, and its functional areas

you want to use to generate the task list for this project.8. Click Save and Open Project when you complete your selection.9. The default task list for the implementation project is generated based on your offering and functional area selection.

You can modify the task list if required, and begin to assign the tasks to the appropriate users.



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Oracle Fusion Accounting Hub Features: OverviewOracle Fusion Accounting Hub (FAH) provides a complete set of accounting tools and unparalleled access to financial data,including:

• Oracle Fusion General Ledger features that provide:

◦ Journal entry import and creation

◦ Real time balances from a balances cube

◦ Accounting controls

◦ Close functionality

◦ Cross-ledger intercompany balancing

◦ Calculation Manager for the definition of allocation rules using complex formulas

◦ Automatic generation of allocation journals

◦ Enhanced journal approval

◦ Year-end process management

• Oracle Fusion Financial Reporting that provides:

◦ Embedded balances cube functionality

◦ Multidimensional, online analytical processing (OLAP) of financial information

◦ Ability to slice and dice data across dimensions

◦ Drill up, down, and across on any parent level within the chart of accounts

• Oracle Fusion Subledger Accounting rules that provide flexible transformation of transaction and referenceinformation from diverse, non-Oracle, industry applications into accurate, detailed, auditable accounting. SubledgerAccounting is embedded in the Oracle Fusion subledgers such as Payables, Receivables, Assets, and Inventory.

• Oracle Hyperion Data Relationship Management (DRM) integration that provides

◦ Ability to perform charts of accounts and hierarchies maintenance

◦ Corporate wide accounting structures for Oracle and non-Oracle ledgers

◦ Updates of charts of accounts and hierarchies across multiple ledgers

• Applications coexistence integration with the Oracle E-Business Suite (EBS) and Oracle PeopleSoft General Ledgersthat provides the opportunity to use the Oracle Fusion Accounting Hub with minimal implementation effort. Continueto use your EBS or PeopleSoft applications for transaction processing, while taking advantage of the Oracle FusionAccounting Hub for financial reporting and analysis.

• Oracle Hyperion Planning and Oracle Hyperion Financial Management integration that provides the opportunity toperform your planning, budgeting, and consolidation functions in an integrated accounting environment.

Note: Oracle Hyperion Data Relationship Management, Planning, and Financial Management products allrequire licensing.



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Oracle Fusion Accounting Hub: How It WorksThe Oracle Fusion Accounting Hub process begins by using financial data from any or all of the following:

• Non-Oracle external applications including transaction and reference information from industry-specific applications.

• Oracle Fusion subledgers including subledger journals.

• Oracle E-Business Suite (EBS), Oracle PeopleSoft, and Oracle JD Edwards General Ledgers including accountbalances.

The Accounting Hub process ends with complete reporting and analysis solutions.

The Oracle Fusion Accounting Hub ComponentsThe Accounting Hub contains the following components:

• Oracle Fusion Subledger Accounting to perform accounting transformations on external system data.

• Oracle Fusion General Ledger to enter and post journals including allocations.

• Oracle Fusion Financial Reporting Center for reporting and analysis.

• Integration with Oracle Hyperion Data Relationship Management (DRM) for chart of accounts and hierarchymaintenance.

• Applications coexistence integration with the EBS and PeopleSoft General Ledgers.

• Integration with Oracle Hyperion Planning and Oracle Hyperion Financial Management.



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This figure illustrates the Oracle Fusion Accounting Hub components.

Oracle Fusion Accounting Hub

Oracle Fusion Subledger Accounting Oracle Fusion General Ledger

Accounting Repository

Accounting Engine

Journal Entries

Balances

Financial Reporting Center

Real Time ReportingAnalytics

Allocation Manager

Applications Coexistence Integrations

Oracle E-Business Suite General

Ledger

Oracle Hyperion Planning

Oracle Hyperion Financial Management

Non-OracleExternal

Applications

Oracle Fusion Subledgers

Oracle Hyperion Data Relationship

Management

Oracle JD Edwards and Other General

Ledgers

Oracle PeopleSoft

General Ledger

Oracle Fusion Subledger Accounting for External SystemsThe Oracle Fusion Accounting Hub enables Subledger Accounting to perform accounting transformations on external, non-Oracle system data. Subledger Accounting is also used to flexibly create accounting for Oracle subledgers such as OraclePayables and Receivables. Subledger Accounting includes:

• Registration of your external systems, indicating what types of transactions or activities require accounting fromthose systems.

• Create a library of transaction and reference information that is used for defining accounting treatments.

• Configurable accounting rules to define accounting treatments for transactions.

• Accounting engine that combines transaction and reference information from source systems with accounting rulesto create detailed journals stored in an accounting repository.

• Detailed subledger accounting journal entry repository to audit and reconcile accounting balances.

• Reports and user interface inquiries for analyzing accounting transformations.

• Configurable analytical balances based upon source system or reference attributes.



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Oracle Fusion General LedgerThe Oracle Fusion General Ledger combines traditional general ledger functionality with embedded Oracle Hyperion Essbasefunctionality. The General Ledger functionality includes:

• Journal entry creation, including updating of account balances cubes and tables.

• Date effective trees for chart of accounts maintenance and financial reporting, including What If analysis.

• Automatic balances cube creation from the chart of accounts configuration, simplifying implementation.

• Preaggregated balances at every summarization level across each dimension of the chart of accounts andaccounting periods to improve reporting performance.

• Multidimensional analysis using dimensions, such as the chart of accounts, periods, and currency, to provide drilldown and drill through functionally.

• Drill to details and source ledger balances from summary balances.

• Intelligence and analytics embedded within the context of a journal entry, enabling quick and accurate completion ofthe journal entry process. As journal entries are entered, a What If analysis to determine the impact of the unpostedjournals on account balances is displayed in the user interface. The What If analysis eliminates navigating to aninquiry page or running a report to verify the results.

• Three balancing segments available in your chart of accounts for more detailed reporting.

• Automatic intercompany balancing journal creation in both Subledger Accounting and General Ledger applications,ensuring proper recording of transactions across legal entities.

• Calculation Manager rules using complex formulas to distribute revenue and costs throughout the organization forconsistent periodic generation of allocation journal entries.

Financial Reporting CenterThe Oracle Fusion General Ledger provides a Financial Reporting Center with robust financial reporting and analysis usingdata from your balances cubes. The dimensions contained in your chart of account segments become the direct source ofmultidimensional analysis. Direct links are maintained to your transactional data permitting comprehensive drill-down fromjournals to transaction details. Use the following tools for your reporting and analysis:

• Financial Reporting to generate your reports.

• Smart View to generate spreadsheet reports.

• Oracle Fusion Transaction Business Intelligence to report using embedded analytics

• General Accounting and Journals dashboards to perform online inquiry and dashboard publication

• Account Monitor and Account Inspector to perform online multidimensional analysis of accounting balances

The Oracle Fusion Accounting Hub fits into Oracle's broader enterprise performance management framework throughintegration with Oracle Hyperion Planning and Oracle Hyperion Financial Management.

You can perform:

• Financial consolidations using Financial Management.

• Planning and budgeting using Planning.

Integration with Hyperion Data Relationship ManagementOracle Fusion Accounting Hub is integrated with DRM, which is a master data management solution for creating andmaintaining hierarchies across your enterprise. This integration maintains your charts of accounts values and hierarchies



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in one central location. DRM synchronizes your hierarchies in Oracle Fusion and EBS General Ledgers. With licensing andintegration of DRM, you can:

• Update and change DRM versions and hierarchies. The results of these changes are exported to the values sets inthe Oracle Fusion and EBS General Ledgers, EBS parent child hierarchies, and Oracle Fusion Account Hierarchies(Trees).

• Synchronize charts of accounts and hierarchies across multiple Oracle general ledger instances.

• Store segment value attributes, such as account type, start date, and end date. Storing the values, provides theability to enter these values in DRM and integrate them to Oracle Fusion and EBS General Ledgers.

• Submit standardized EBS standard requests and Oracle Fusion Enterprise processes from both the EBS and theOracle Fusion General Ledgers to import values from DRM.

Integration with E-Business Suite and PeopleSoft General LedgersIntegration between the EBS, Oracle PeopleSoft, and Oracle Fusion General Ledgers can be used to support an applicationscoexistence strategy. This strategy permits you to continue to use your EBS or PeopleSoft applications while also using theOracle Fusion Accounting Hub. Application coexistence provides the ability to:

• Expand your reporting and analytical capabilities using the Financial Reporting Center and dashboard features ofthe Oracle Fusion Accounting Hub. This functionality includes the ability to drill down to EBS or PeopleSoft accountbalances and transactions reflected in the Oracle Fusion reports and dashboards.

• Continue to use your EBS or PeopleSoft applications for your procurement, payables, receivables, and any otherEBS or PeopleSoft subledger processes without disruptions.

Accounting Configuration Offerings: OverviewUse the Setup and Maintenance work area in Oracle Fusion Applications to manage the configuration of legal entities,ledgers, and reporting currencies. To create a legal entity or ledger, first create an implementation project. Thisimplementation project can be populated by either adding a financials-related offering or one or more task lists.

Note: Setup tasks that are not related to the ledger or legal entity setup tasks are opened from either animplementation project or directly from the Setup and Maintenance work area.

The financial applications have two predefined implementations:

• The Fusion Accounting Hub offering is used to add the General Ledger and Subledger Accounting applicationfeatures to an existing Enterprise Resource Planning (ERP) system to enhance reporting and analysis.

• The Financials offering includes the General Ledger and Subledger Accounting application features and one or moresubledger financial applications.

When adding an offering to an implementation project, update the tasks displayed by adding additional tasks.

Related Topics

• What's an implementation project?

• What's a functional area?

• What's an offering?

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Implementation Options for Oracle Fusion Accounting Hub:OverviewThe Oracle Fusion Accounting Hub has three possible implementation scenarios that can be used separately or in conjunctionwith each other. These three scenarios are:

• Coexistence with Oracle E-Business Suite and other general ledgers providing enhanced allocations, reporting, andanalytical functionality.

• Accounting for diverse business system events and transactions with configurable and auditable rule-basedaccounting transformations.

• Expansion of financial reporting enabling creation of multidimensional, self-service reporting and analytics with real-time accounting information from a single source with flexible formatting options.

This figure illustrates Accounting Hub implementation scenarios.


Oracle Fusion Subledger Accounting Oracle Fusion General Ledger

Accounting Repository

Accounting Engine

Journal Entries

Balances

Financial Reporting Center

Real Time ReportingAnalytics

Allocation Manager

Applications Coexistence Integrations

Oracle E-Business Suite General

Ledger


Oracle Hyperion Financial Management

Non-OracleExternal

Applications

Oracle Fusion Subledgers

Oracle Hyperion Data Relationship

Management

Oracle JD Edwards and Other General

Ledgers

Oracle PeopleSoft

General Ledger



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Coexistence with E-Business Suite and PeopleSoftOracle Fusion Accounting Hub provides embedded integration with the Oracle E-Business Suite and Oracle PeopleSoftGeneral Ledgers. The integration has three main components:

• Transfer of accounting balances from the E-Business Suite and PeopleSoft General Ledgers to the Oracle FusionAccounting Hub General Ledger.

• Drill down from the Oracle Fusion Accounting Hub General Ledger to the E-Business Suite and PeopleSoft GeneralLedgers.

• Synchronization of charts of accounts segment values and hierarchies using Oracle Hyperion Data RelationshipManagement, with E-Business Suite and Oracle Fusion General Ledger. Licensing of Data Relationship Managementis required.

See the following guides for details on implementing this scenario:

• Oracle General Ledger Implementation Guide Release 12.2 for Oracle E-Business Suite General Ledger

• Oracle Hyperion Data Relationship Management Administrator's Guide

• Oracle Hyperion Data Relationship Management Users Guide

Accounting for Diverse TransactionsThe Oracle Fusion Accounting Hub provides accounting for diverse business system events and transactions usingconfigurable and auditable rule-based accounting transformations. The Accounting Hub process:

• Begins with transactions and data from your non-Oracle, industry-specific subledgers and other general ledgers.

• Generates accounting events using the Create Accounting process to create journals that can be posted to theOracle Fusion General Ledger from specific subledgers and other general ledgers.

• Ends with complete reporting and analysis solutions.

See the following for details on implementing this scenario: Define Accounting Transformation Configuration chapter in theOracle Fusion Accounting Hub Implementation Guide.

Expansion of Financial ReportingOracle Fusion Accounting Hub enables creation of multidimensional, self-service reporting and analytics with real timeaccounting information from a single source with flexible formatting options. The Financial Reporting Center includes:

• Predefined financial reports

• Ability to create reports,

• Flexible options for dissemination of such reports

• Account Monitor and Account Inspector providing drill-down and pivot views of your balances

• Oracle Hyperion Smart View providing spreadsheet analytics

• Oracle Transaction Business Intelligence Oracle Business Intelligence Publisher provide key performance indicators(KPI), dashboards, and flexible reporting



10

For more information see the Oracle Hyperion Financial Reporting Studio User's Guide.

Related Topics

• Oracle Hyperion Data Relationship Management User's Guide

• Financial Reporting Center: How It Works

Setup Data Import and Export for Oracle Fusion AccountingHub: ExplainedThee sections describe the manual tasks that you must complete as part of the setup data export and import processes forthe Oracle Fusion Accounting Hub offering.

This table contains manual tasks that must be completed as part of the setup data export and import processes for theOracle Fusion Accounting Hub offering.

Section Description

Setup tasks performed before export

You must perform these tasks prior to initiating export processes for the Fusion Accounting Huboffering.

Setup tasks performed before import

You must perform these tasks prior to initiating import processes for the Fusion Accounting Huboffering.

Setup tasks performed after import

Setup data for these tasks is not imported from the source instance. Review and perform themanual setups steps on the target instance as required.

Refer to the Oracle Fusion Functional Setup Manager User's Guide for the steps to perform setup data export and importprocesses.

Setup Tasks Performed Before ExportPrior to initiating export processes from the source instance, you must verify and update setup for this task. This is required toensure that data is correctly imported into the target instance.

This table contains setup tasks performed before export.

Activity Name Task Name Setup Steps

Define Chart of Accounts

Manage Account Combinations

Account combinations are not exportedfrom the source instance. Before exporting,navigate to the Manage Chart of AccountsInstance page on the source instance andverify that dynamic insertion is enabled foryour charts of accounts. As long as dynamicinsertion is enabled, account combinationsare created automatically as needed on thetarget instance.

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Setup Tasks Performed Before ImportPrior to initiating import processes into the target instance, you must verify and update setup for this task.

This table contains setup tasks performed before import.


Define Common Applications Configurationfor Fusion Accounting Hub

Define Implementation Users

The import process does not includeimplementation users and roles associatedwith them. For more information, see Oracle FusionMiddleware Enterprise Deployment Guide forOracle Identity Management (Oracle FusionApplications Edition).

Setup Tasks Performed After ImportSetup data for the following tasks are not imported. Review these tasks for relevance to your implementation. For relevanttasks, open the corresponding setup pages from your implementation project to create the setup on the target instance asneeded.

This table contains setup tasks performed after import.

Activity Name Task Name

Define General Ledger Options

• Manage Journal Approval Rules• Manage Document Sequences

Define Document Sequences

Manage Document Sequences

Define Approval Management forFinancials

• Manage Task Configurations for Financials• Manage Approval Groups for Financials

Setup data for the following tasks are not imported from the source instance. Review the steps in the following table to createthe setup on the target instance as needed.

This table contains steps to create the setup on the target instance as needed.


Define Accounting TransformationConfiguration

Import Supporting Reference Initial Balances

This task enables upload of initial subledgerbalances for supporting references. Thesebalances are not imported from the sourceinstance, but can be loaded directly to thetarget instance. For more information, see Oracle FusionAccounting Hub Implementation Guide,Define Accounting Transformation.



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Define Financial Reporting

Configure Smart View Client for Users Manually reconfigure the Smart View client to

point to the production instance.

For more information about configuring theSmart View client for users, see:

• Oracle Fusion Accounting HubImplementation Guide, DefineFinancial Reporting

• Oracle Enterprise PerformanceManagement System Installationand Configuration Guide for OracleEnterprise Performance Management,Installing Smart View and other topics

• Oracle Hyperion Smart View for OfficeUser's Guide for Oracle HyperionSmart View

Define Financial Reporting CenterConfiguration

Define Essbase Database Connection inWorkspace

Manually reconfigure the Essbase databaseconnection in Hyperion Workspace. For more information about configuringthe Hyperion Workspace DatabaseConnection, see Oracle Fusion AccountingHub Implementation Guide, Define FinancialReporting,

Define Financial Reporting CenterConfiguration

Configure Financial Reporting Studio Clientfor Users

Manually reconfigure the Financial ReportingStudio client to point to the productioninstance.

For more information about configuring theFinancial Reporting Studio client for users,see:

Oracle Fusion Accounting HubImplementation Guide, Define FinancialReporting.

Oracle Enterprise Performance ManagementSystem Installation and ConfigurationGuide for Oracle Enterprise PerformanceManagement. Refer to the following topics:

• Installing Financial Reporting Studioand Financial Reporting Print Server

• Configuring the Financial ReportingPrint Server

• Administrative Information for FinancialReporting

Define Financial Reporting

Create Financial Statements Export the financial report definitions from

Workspace in the source environment.



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When exporting, you can export a singlereport, multiple reports in a .zip file, or anentire folder structure in a .zip file.

1. Navigator > General Accounting:Financial Reporting Center > selectlink: Open Workspace for FinancialReports.

2. Navigate to Applications > BI Catalog.3. Navigate to File > Export.4. Save the file to the local desktop.

Import the file into Workspace in the targetenvironment.

1. Navigator > General Accounting:Financial Reporting Center > selectlink: Open Workspace for FinancialReports.

2. Navigate to Application > BI Catalog.3. Navigate to File > Import.4. Select the file you had saved during

the export.

If you import the folder structure, the entirestructure from the source instance isimported into the existing structure on thetarget instance. This could result in someredundant folders. In this case, you canreorganize child folders in the structure onthe target instance and delete any unneededfolders.

Define Period Close Components

Manage Allocations and Periodic Entries Export the allocation rules, rule sets,

variables, and runtime prompt definitionsfrom Calculation Manager in the sourceenvironment.

When exporting, you can export at theapplication level or at a single rule or rule setlevel.

Note: You must exportand import rules for eachapplication on the Essbaseserver separately.

1. Navigator > General Accounting:Journals > select link: CreateAllocation Rules.

2. Navigate to File > Export.3. Save the file to the local desktop.



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Import the file into Calculation Manager in thetarget environment.

1. Navigator > General Accounting:Journals > select link: CreateAllocation Rules.

2. Select the specific application in whichto import the rules.

3. Navigate to File > Import.4. Select the file you saved during the

export.

Define Applications CoexistenceConfiguration for E-Business Suite

Manage Calendar Mappings for E-BusinessSuite

The import process does not include thecalendar mappings of source Oracle E-Business Suite accounting calendars totarget Oracle Fusion accounting calendars.If you use a calendar mapping, you mustcreate it manually in your production OracleE-Business Suite instance. For more information, see OracleFusion Accounting Hub ImplementationGuide, Define Applications CoexistenceConfiguration.


Manage Ledger Mappings for E-BusinessSuite

The import process does not include themappings of source Oracle E-Business Suiteledgers to target Oracle Fusion ledgers. Youmust create the ledger mappings manuallyin your production Oracle E-Business Suiteinstance. For more information, see OracleFusion Accounting Hub ImplementationGuide, Define Applications CoexistenceConfiguration.


Register Applications Coexistence Instancesfor E-Business Suite

The import process does not include theregistration of source Oracle E-BusinessSuite instances. You must manually registeryour source Oracle E-Business Suite instanceor instances in the Oracle Fusion targetinstance. For more information, see OracleFusion Accounting Hub ImplementationGuide. Define Applications CoexistenceConfiguration.

Define Hyperion Financial ManagementIntegration

Define Hyperion Financial ManagementConfiguration

Manually import the rules using the OracleEnterprise Performance Management LifeCycle Management tool. For more information, see the OracleHyperion Artifact Life Cycle ManagementUtility User's Guide.



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Define Hyperion Financial ManagementIntegration

Define ERP Integrator Configuration forHyperion Financial Management


Define Budget Configuration

Define Budget Configuration in HyperionPlanning


Define Budget Configuration

Define ERP Integrator Configuration forHyperion Planning


Understanding Implementation Structures

Functional Setup Manager: OverviewOracle Functional Setup Manager provides an integrated, end-to-end process for functional administrators to manage theimplementation and maintenance of Oracle Applications Cloud.

Functional Setup Manager offers the following:

• Standardized application configuration and setup experience

• Feature opt-in for a best fit configuration

• Flexible processes for managing setup:

◦ Setup by functional areas for an adopt-as-you-go approach

◦ Implementation projects to manage setup

◦ Upload file to enter setup data in bulk

• Guided task list for end-to-end setup requirements

• Export and import services for setup data migration between environments

• Comprehensive reporting on setup data



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Who Uses the Functional Setup Manager: Points to ConsiderBusiness users who are responsible for configuring feature opt-in and managing setup data are the primary users ofFunctional Setup Manager.

Security AccessThe Application Implementation Consultant job role has full access to perform all Functional Setup Manager-related activities.Other user must include the Functional Setups User role in addition to other roles or privileges needed to perform specificsetup activities.

For more detailed information about security requirements for Functional Setup Manager, refer to the Oracle ApplicationsCloud Security Reference for Common Features guide in the All Books for Oracle Cloud page of the Oracle Help Center(docs.oracle.com).

Related Topics

• Oracle Applications Cloud Security Reference for Common Features

Functional Setup Manager Components: How They Work TogetherOfferings, functional areas, features, and setup tasks work together in your implementation.

OfferingsAn offering represents a collection of business processes that are supported by Oracle Applications Cloud. Each subscriptionof Oracle Cloud provides license to use one or more offerings and they are the starting point of all implementations. Anoffering consists of multiple functional areas and features.

Functional AreasA functional area represents one or more business subprocesses and activities within its parent offering. It may representa core operation of the offering or may represent an optional activity which may or may not be applicable to your business.When you start to implement an offering by enabling it, core functional areas are enabled automatically. You have a choiceto opt into and enable an optional functional area or to opt out of it. A functional area may be divided into smaller functionalareas creating a hierarchy to help you to decide what to opt into one step at a time. Some of the functional areas may beapplicable to more than one offering. Once you set up a shared functional area, you do not have to set it up again whenimplementing another parent offering. However, Oracle recommends that during successive implementation of the otherparents you verify if there are any offering-specific tasks that may still require your attention.

FeaturesFeatures are optional business practices or methods applicable to the functional areas. Like functional areas, you can decideto opt into or opt out of features depending on the requirements of your business processes. Features can be one of threedifferent types:

• Yes or No: These features allow you either to opt into or to opt out of them and are represented by a single checkbox. You select them to opt into or deselect them to opt out.

• Single Choice: These features offer multiple choices but allow you to select only one option. Select the optionapplicable to your business processes.

https://docs.oracle.com/cloud/latest/common/OACSM/toc.htm



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• Multi-Choice: These features offer multiple choices but allow you to select more than one of the choices. Eachchoice is presented with a check box. Select all that apply to your business processes by checking the appropriatechoices.

Setup TasksSetup tasks represent the work necessary to set up an offering and the business processes and activities that the offeringrepresents to make them ready for transaction processing. Perform these tasks to enter setup data when you implement anoffering.

Tasks representing setup requirements of the offerings and the functional areas are grouped into task lists and are organizedin a hierarchy. For example, all setup tasks of an offering are grouped into a task list which includes subtask lists thatrepresent setup of functional areas within the offering. This helps you gain visibility into setup data that are related to eachother, helping you to manage setup.

Functional Setup Manager Work Areas: How They Work TogetherUse the My Enterprise and Setup and Maintenance work areas to manage feature opt-in and setup of your subscribedofferings.

My Enterprise Work Area GroupThe following work areas are part of My Enterprise:

• Offerings: This work area shows all available offerings. Review and opt into your subscribed offerings when you areready to implement. Oracle Applications Cloud are available for use only after the relevant offerings and their relatedfeatures are opted into by enabling them. This helps you to configure Oracle Applications Cloud according to whatyour enterprise needs to use and exclude any irrelevant features. Get started by reviewing the description of theofferings and the related documents, which helps you to determine what features to opt into and how to plan forimplementation.

• New Features: This work area highlights the new features that have been introduced in the latest release version togive more visibility to what is new in Oracle Applications Cloud. After upgrade, review this page to get a quick view ofthe newly introduced features and to decide whether to opt into any of them.

• Enterprise: This work area allows you to enter your enterprise-specific information related to your Oracle ApplicationsCloud.

• Subscriptions: This work area shows your subscriptions for Oracle Applications Cloud.

Setup and Maintenance Work AreaThe Setup and Maintenance work area is for managing setup data required by Oracle Applications Cloud. After you opt intoand enable one or more offerings in the Offerings work area, use this work area to manage setup.

Implementation Process: ExplainedA functional implementation of Oracle Applications Cloud typically includes the following steps.

• Plan

• Configure

• Setup



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• Deploy

• Maintain

PlanIdentify the offerings you want to implement. Evaluate what functional areas and features to opt into and prepare accordinglyfor their setup requirements.

For more detailed information, refer to the Planning an Implementation chapter in the Using Functional Setup Manager guide.

ConfigureOpt into the offerings, functional areas, and features that best fit your business requirements by enabling them.

For more detailed information, refer to the Configuring Offerings chapter in the Using Functional Setup Manager guide.

SetupUse setup tasks to enter setup data necessary for your enabled offerings and functional areas. Typically, you set up and verifyyour transaction processes in a test environment before starting to transact in a production environment.

For more detailed information, refer to the following chapters in the Using Functional Setup Manager guide:

• Managing Offering Setup

• Managing Setup Using Implementation Projects

• Managing Setup Using Alternative Processes

DeployMove your verified setup data from the test environment to a production environment and deploy to all users to starttransaction processing.

For more detailed information, refer to the Exporting and Importing Setup Data chapter in the Using Functional SetupManager guide.

MaintainUpdate setup data or opt into configuration of the functional areas and features as necessary when your businessrequirements change over time.

Related Topics

• Using Functional Setup Manager

Managing an Implementation

Enabling Offerings: ExplainedOfferings and their functional areas are presented in an expandable and collapsible hierarchy to facilitate progressive decisionmaking regarding whether or not you want to implement them. An offering or its functional areas can either be opted into ornot opted into for implementation. Implementation managers decide which offerings to enable for implementation. Although

https://docs.oracle.com/cloud/latest/common/OAFSM/toc.htm



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all of the functional areas that represent core functionality of an offering are automatically enabled for implementation whena parent offering is enabled for implementation, you can select which of the optional functional areas are enabled. You canidentify which functionality is already opted into by looking at the check box in the Enable column.

Configuring Offerings: ProcedureEnable offerings to modify functionality so that it matches the services you plan to implement.

Enable OfferingsTo enable offerings, follow these steps:

1. Select Navigator > My Enterprise > Offerings work area to open the Offerings page. You need the ConfigureOracle Fusion Applications Offering privilege.

2. Select the offering you want to implement.3. Click Opt In Features button to go to the Opt In page.4. In the Opt In page, select the Enable check box for the offering.5. Review functional area hierarchy. Select the Enable check box to opt into functional areas as applicable to your

business operations.6. Click the Edit icon in the Features column for the functional area you enabled to opt into and enable applicable

features.

◦ Depending on the feature type, a check box for Yes or No features or an Edit icon for single and multiplechoice features is displayed in the Enable column.

◦ To enable a feature, select the check box for Yes or No types or click Edit and select the appropriate choicesfor single and multiple choice features.

7. Click Done when you're finished to return to the Opt In page.8. Click Done to return to the Offerings page.

Repeat the same steps for each offering you want to implement or if you must change the opt-in configuration of anyfunctional areas or features of an enabled offering.

Related Topics• Configuring Offerings

Adopting New Functionality: ExplainedAs your business needs change or expand, you may need to adopt new functionality not included in your initialimplementation. You can adopt any new functionality for your subscribed offerings to satisfy your business needs. Allfunctionality available for an offering is listed in the Opt In page whether or not you have opted into it. In order to opt into newfunctionality, make sure that its parent in the hierarchy is already selected. Additionally, Functional Setup Manager providesyou easy access to learn more about any feature by clicking the feature's Help icon.

Opting into New Features After Upgrade: ExplainedNew functional areas and features for an offering you implemented are often introduced in the later revisions of OracleApplications Cloud. You can use the New Features work area to explore and learn about what has been introduced in the lastupgrade of your applications and decide whether to opt into them.

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=074691E014E77B02E05362C3F00A7598



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You can review the new functional areas and features of all your enabled offerings or focus on only one of them. For eachfunctional area or feature, you can view its opt-in status, check whether it requires setup, and access additional help topics tolearn more details.

Managing Offering Setup: ExplainedAfter you enable an offering and configure the opt-in selection of its functional areas and features, you can set up the offeringby using its functional areas as a guide. This adopt-as-you-go approach to functional setup gives you the flexibility to setup different functional areas of the offering at different times. For example, you can begin with setup of the functional areasyou require immediately to start transactions. You can then set up other functional areas as you adopt additional offeringfunctionality over time. This setup process is ideal for an enterprise looking for a simpler implementation approach that followssetup best-practices.

For example, you can begin with setup of the functional areas you require immediately to start transactions. You can then setup other functional areas as you adopt additional offering functionality over time. This setup process is ideal for an enterpriselooking for a simpler implementation approach that follows setup best practices.

Functional AreasWhen using this method, you start by selecting one of the offerings you enabled. Based on your opt-in configuration, all itsenabled functional areas, which include core and optional functional areas, are automatically displayed in a list to guide youthrough the setup tasks. The display order reflects the sequence in which the functional areas should be set up becausesetup data of the functional areas listed higher up in the list are usually prerequisite for those shown lower in the list. Anyfunctional area for which setup is mandatory is marked with an asterisk.

Functional areas that are applicable to more than one of your enabled offerings is marked as shared to allow you to evaluatewhether they were previously set up during the implementation of another offering. Even if a shared functional area was set uppreviously, you may still need to evaluate if it requires additional setup data for the offering you are presently implementing.

For some functional areas, Quick Setup may be available to implement its basic functionality quickly. A Quick Setup iconnext to a functional area indicates if Quick Setup is available. You can use this task instead of the setup task list to set upthose functional areas.

Setup TasksFor each functional area, a sequenced list of tasks representing the setup best practices according to your opt-inconfiguration of the features is shown to guide you through optimal implementation requirements. Use the tasks to enter thesetup data they represent. Like functional areas, the display order of the tasks always reflects the sequence in which theyshould be performed to address setup data dependencies.

Required Tasks

Only the required setup tasks are shown by default to minimize your setup effort and to make the offering ready fortransactions sooner. However, you can also review the rest of the tasks in the list, which are typically optional or havepredefined default values based on common use cases, and decide whether your implementation must change their defaultsetup data.

Tasks with Scope

If any setup data is segmented by a specific attribute or scope, you may need to perform the task iteratively. If so, you mustselect a qualifying scope value prior to performing the task. You can pick a scope value that was previously selected, select anew scope value, or create a new scope value and then select it. The selected value is a qualifying attribute of the setup dataand therefore, different setup data can be entered for the different scope values.



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Note: You cannot perform a task if you do not have the proper security privileges.



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Chapter 2Define Enterprise Structures for Fusion Accounting Hub

23

2 Define Enterprise Structures for FusionAccounting Hub

Enterprise Structures: OverviewOracle Fusion Applications have been designed to ensure your enterprise can be modeled to meet legal and managementobjectives. The decisions about your implementation of Oracle Fusion Applications are affected by your:

• Industry

• Business unit requirements for autonomy

• Business and accounting policies

• Business functions performed by business units and optionally, centralized in shared service centers

• Locations of facilities

Every enterprise has three fundamental structures that describe its operations and provide a basis for reporting.

• Legal

• Managerial

• Functional

In Oracle Fusion, these structures are implemented using the chart of accounts and organization hierarchies. Many alternativehierarchies can be implemented and used for reporting. You are likely to have one primary structure that organizes yourbusiness into:

• Divisions

• Business Units

• Departments

Aligned these structures with your strategic objectives.



24

This figure illustrates a grid with Business Axis, representing the enterprise division, Legal Axis representing the companies,and the Functional Axis representing the business functions.

Business Axis

Legal

Axis

Func

tiona

l Axi

s

Legal StructureThe figure illustrates a typical group of legal entities, operating various business and functional organizations. Your ability tobuy and sell, own, and employ comes from your charter in the legal system. A corporation is:

• A distinct legal entity from its owners and managers.

• Owned by its shareholders, who may be individuals or other corporations.

Many other kinds of legal entities exist, such as sole proprietorships, partnerships, and government agencies.

A legally recognized entity can own and trade assets and employ people in the jurisdiction in which the entity is registered.When granted these privileges, legal entities are also assigned responsibilities to:

• Account for themselves to the public through statutory and external reporting.

• Comply with legislation and regulations.

• Pay income and transaction taxes.

• Process value added tax (VAT) collection on behalf of the taxing authority.

Many large enterprises isolate risk and optimize taxes by incorporating subsidiaries. They create legal entities to facilitate legalcompliance, segregate operations, optimize taxes, complete contractual relationships, and isolate risk. Enterprises use legalentities to establish their enterprise's identity under the laws of each country in which their enterprise operates.

The figure illustrates:

• A separate card represents a series of registered companies.



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• Each company, including the public holding company, InFusion America, must be registered in the countries wherethey do business.

• Each company contributes to various divisions created for purposes of management reporting. These are shown asvertical columns on each card.

For example, a group might have a separate company for each business in the United States (US), but have its UnitedKingdom (UK) legal entity represent all businesses in that country.

The divisions are linked across the cards so that a business can appear on some or all of the cards. For example, the airquality monitoring systems business might be operated by the US, UK, and France companies. The list of business divisionsis on the Business Axis.

Each company's card is also horizontally striped by functional groups, such as the sales team and the finance team. Thisfunctional list is called the Functional Axis. The overall image suggests that information might, at a minimum, be trackedby company, business, division, and function in a group environment. In Oracle Fusion Applications, the legal structure isimplemented using legal entities.

Management StructureSuccessfully managing multiple businesses requires that you segregate them by their strategic objectives, and measure theirresults. Although related to your legal structure, the business organizational hierarchies do not have to be reflected directly inthe legal structure of the enterprise. The management structure can include divisions, subdivisions, lines of business, strategicbusiness units, profit, and cost centers. In the figure,, the management structure is shown on the Business Axis. In OracleFusion Applications, the management structure is implemented using divisions and business units as well as being reflected inthe chart of accounts.

Functional StructureStraddling the legal and business organizations is a functional organization structured around people and their competencies.For example, sales, manufacturing, and service teams are functional organizations. This functional structure is represented bythe Functional Axis in the figure. You reflect the efforts and expenses of your functional organizations directly on the incomestatement. Organizations must manage and report revenues, cost of sales, and functional expenses such as research anddevelopment and selling, general, and administrative expenses. In Oracle Fusion Applications, the functional structure isimplemented using departments and organizations, including sales, marketing, project, cost, and inventory organizations.

Enterprise Structures Business Process Model: ExplainedIn Oracle Fusion Applications, the Enterprise Performance and Planning Business Process Model illustrates the majorimplementation tasks that you perform to create your enterprise structures. This process includes:

• Set Up Enterprise Structures business process, which consists of implementation activities that span many productfamilies.

• Information Technology, a second Business Process Model which contains the Set Up Information TechnologyManagement business process.

• Define Reference Data Sharing, which is one of the activities in this business process and is important in theimplementation of the enterprise structures. This activity creates the mechanism to share reference data sets across



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multiple ledgers, business units, and warehouses, reducing the administrative burden and decreasing the time toimplement.

The following figure and tablet describe the Business Process Model structures and activities.

Define Reference Data Sharing

Activities

Define Legal Jurisdictions and Authorities

Define Business Units

Define Legal Entities

Define Enterprise

Define Facilities


Set Up EnterpriseStructures

Define Financial Reporting Structures

Define Accounting Configurations

Set Up Information Technology Management

Define Enterprise Structures

Define Ledgers

Enterprise Planning and Performance Management

Information Technology

Business Process Model (BPM)

The table describes each BPM activity.

BPM Activities Description

Define Enterprise

Define the enterprise to get the name of the deploying enterprise and the location of theheadquarters.



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BPM Activities Description

Define Enterprise Structures

Define enterprise structures to represent an organization with one or more legal entities undercommon control. Define organizations to represent each area of business within the enterprise.

Define Legal Jurisdictions andAuthorities

Define information for governing bodies that operate within a jurisdiction.


Define legal entities and legal reporting units for business activities handled by the Oracle FusionApplications.

Define Business Units

Define business units of an enterprise to perform one or many business functions that can be rolledup in a management hierarchy. A business unit can process transactions on behalf of many legalentities. Normally, it has a manager, strategic objectives, a level of autonomy, and responsibility forits profit and loss.

Define Financial Reporting Structures

Define financial reporting structures, including organization structures, charts of accounts,organizational hierarchies, calendars, currencies and rates, ledgers, and document sequenceswhich are used in organizing the financial data of a company.


Define chart of accounts including hierarchies and values to enable tracking of financial transactionsand reporting at legal entity, cost center, account, and other segment levels.

Define Ledgers

Define the primary accounting ledger and any secondary ledgers that provide an alternativeaccounting representation of the financial data.

Define Accounting Configurations

Define the accounting configuration that serves as a framework for how financial records aremaintained for an organization.

Define Facilities

Define your manufacturing and storage facilities as Inventory Organizations if Oracle Fusion tracksinventory balances there and Item Organizations if Oracle Fusion only tracks the items used in thefacility but not the balances.

Define Reference Data Sharing

Define how reference data in the applications is partitioned and shared.

Note: Some product-specific implementation activities are not listed here and depend on the applicationsyou are implementing. For example, you can implement Define Enterprise Structures for Human CapitalManagement, Project Management, and Sales Management.

Global Enterprise Configuration: Points to ConsiderStart your global enterprise structure configuration by discussing what your organization's reporting needs are and how torepresent those needs in the Oracle Fusion Applications. The following are some questions and points to consider as youdesign your global enterprise structure in Oracle Fusion.

• Enterprise Configuration

• Business Unit Management



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• Security Structure

• Compliance Requirements

Enterprise Configuration• What is the level of configuration needed to achieve the reporting and accounting requirements?

• What components of your enterprise do you need to report on separately?

• Which components can be represented by building a hierarchy of values to provide reporting at both detail andsummary levels?

• Where are you on the spectrum of centralization versus decentralization?

Business Unit Management• What reporting do I need by business unit?

• How can you set up your departments or business unit accounts to achieve departmental hierarchies that reportaccurately on your lines of business?

• What reporting do you need to support the managers of your business units, and the executives who measurethem?

• How often are business unit results aggregated?

• What level of reporting detail is required across business units?

Security Structure• What level of security and access is allowed?

• Are business unit managers and the people that report to them secured to transactions within their own businessunit?

• Are the transactions for their business unit largely performed by a corporate department or shared service center?

Compliance Requirements• How do you comply with your corporate external reporting requirements and local statutory reporting requirements?

• Do you tend to prefer a corporate first or an autonomous local approach?

• Where are you on a spectrum of centralization, very centralized or decentralized?

Modeling Your Enterprise Management Structure in OracleFusion: ExampleThis example uses a fictitious global company to demonstrate the analysis that can occur during the enterprise structureconfiguration planning process.



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ScenarioYour company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the UnitedKingdom (UK). InFusion has purchased an Oracle Fusion Enterprise Resource Planning (ERP) solution including Oracle FusionGeneral Ledger and all of the Oracle Fusion subledgers. You are chairing a committee to discuss creation of a model for yourglobal enterprise structure including both your US and UK operations.

InFusion CorporationInFusion Corporation has 400 plus employees and revenue of 120 million US dollars. Your product line includes all thecomponents to build and maintain air quality monitoring (AQM) applications for homes and businesses. You have twodistribution centers and three warehouses that share a common item master in the US and UK. Your financial servicesorganization provides funding to your customers for the initial costs of these applications.

AnalysisThe following are elements you must consider in creating your model for your global enterprise structure.

• Your company is required to report using US Generally Accepted Accounting Principles (GAAP) standards and UKStatements of Standard Accounting Practice and Financial Reporting Standards. How many ledgers do you want toachieve proper statutory reporting?

• Your managers need reports that show profit and loss (revenue and expenses) for their lines of business. Do youuse business units and balancing segments to represent your divisions and businesses? Do you secure data by twosegments in your chart of accounts which represents each department and legal entity? Or do you use one segmentthat represents both to produce useful, but confidential management reports?

• Your corporate management requires reports showing total organizational performance with drill-down capability tothe supporting details. Do you need multiple balancing segment hierarchies to achieve proper rollup of balances forreporting requirements?

• Your company has all administrative, account payables, procurement, and Human Resources functions performed attheir corporate headquarters. Do you need one or more business units in which to perform all these functions? Howis your shared service center configured?

Global Enterprise Structure ModelThe following figure and table summarize the model that your committee has designed and uses numeric values to provide asample representation of your structure. The model includes the following recommendations:

• Creation of three separate ledgers representing your separate legal entities:

◦ InFusion America Inc.

◦ InFusion Financial Services Inc.

◦ InFusion UK Services Ltd.



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• Consolidation of results for application components, installations, and maintenance product lines across theenterprise

• All UK general and administrative costs processed at the UK headquarters

• US Systems' general and administrative costs processed at US Corporate headquarters

• US Financial Services maintains its own payables and receivables departments

InFusion Corporation

InFusion Financial Services Inc.

Primary Ledger (USD)

Average Balancing May-April

InFusion America Inc.Primary Ledger (USD)Standard, Jan - Dec

InFusion UK Systems Ltd.Primary Ledger (GBP)

with Reporting Currency (USD)

Standard, Jan - Dec

InFusion United Kingdom (UK) Division

InFusion United States (US) Division

US LE 2Bal Seg 201,

202, 203

UK LE 4Bal Seg 103, 301,

302, 303

US Warehouse East

US Warehouse West

US Distribution Center

UK Warehouse

UK Distribution Center

BU 3 UK Systems

BU 2Fin Services

BU 1 US Systems

US LE 3Bal Seg 102

BU 4 Corporate Administration, Procurement, and HR Shared Services Center

Common Item Master

US LE 1Bal Seg 101



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In this chart, the green globe stands for required and gold globe stands for optional setup. The following statements expandon the data in the chart.

• The enterprise is required because it serves as an umbrella for the entire implementation. All organizations arecreated within an enterprise.

• Legal entities are also required. They can be optionally mapped to balancing segment values or representedby ledgers. Mapping balancing segment values to legal entities is required if you plan to use the intercompanyfunctionality. The InFusion Corporation is a legal entity but is not discussed in this example.

• At least one ledger is required in an implementation in which you record your accounting transactions.

• Business units are also required because financial transactions are processed in business units.

• A shared service center is optional, but if used, must be a business unit.

• Divisions are optional and can be represented with a hierarchy of cost centers or by a second balancing segmentvalue.

• Departments are required because they track your employees.

• Optionally, add an item master organization and inventory organizations if you are tracking your inventorytransactions in Oracle Fusion Applications.



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Note: Some Oracle Fusion Human Capital Management and Oracle Sales Cloud implementations do notrequire recording accounting transactions and therefore, do not require a ledger.

Running Diagnostic Tests for Enterprise Structures SetupData: ExplainedYou can run diagnostic tests to perform a health check and data validation on the following enterprise structures setup data:

• Chart of Accounts

• Value Sets and Values

• Account Hierarchies Versions

• Accounting Calendars

• Legal Entities and Legal Reporting Units

• Ledgers Setup

• To access the Diagnostic Dashboard and execute the diagnostic tests, you must be granted the ApplicationDiagnostics Regular User job role.

• Once you have been granted the role, then you can view the link to run the diagnostics tests under theTroubleshooting on Settings and Actions menu on your Welcome page.

• If you have the Application Diagnostics Viewer job role, you can view the diagnostic test results, but not run tests.

Use the following steps:

• To access the Diagnostic Dashboard and execute the diagnostic tests, you must be granted the ApplicationDiagnostics Regular User job role.

• To view the link to run the diagnostics tests under the Troubleshooting on Settings and Actions menu on yourWelcome page after you have been granted the user role.

Note: If you have the Application Diagnostics Viewer job role, you can view the diagnostic test results, butnot run tests.

Define Common Financials Configuration for RapidImplementation

Enterprise Structures Rapid Implementation: OverviewYou can use the Rapid Implementation spreadsheet template to rapidly implement enterprise structures and set up thefollowing objects:

• Chart of accounts, including value sets, value set values, structures, and structure instances

• Account hierarchies including trees and tree versions



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• Accounting calendars (monthly type only)

• Legal entities including legal addresses, jurisdictions, and identifiers

• Primary ledgers with legal entity assignments to primary balancing segment values

• Business units

• Document and journal sequencing

Perform the following tasks in the Functional Setup Manager to rapidly implement Oracle Fusion General Ledger:

1. Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet: Downloads the RapidImplementation for General Ledger spreadsheet template.

2. Upload Chart of Accounts: Starts the Upload Enterprise Structures and Hierarchies process, which uses the datafile you upload as a parameter. You must upload the ChartOfAccounts.xml file.

3. Upload Ledger, Legal Entities, and Business Units: Starts the Upload Enterprise Structures and Hierarchiesprocess, which uses the data file you upload as a parameter. You must upload the FinancialsCommonEntities.xmlfile.

Here are some best practices and recommendations.

• Design your chart of accounts carefully, including the number and sequence of segments.

• Identify the aspects of your business that you want to track and analyze, such as company, division, cost center,department, account, and line of business.

• Anticipate future growth and reporting requirements by defining one or more future segments. Assign thosesegments with a default value to streamline data entry.

• Create account hierarchies to reflect managerial, legal, or geographical relationships between your value set values.Your financial balances are preaggregated at each parent level in the hierarchy, allowing fast and robust accountinquiry and drill down.

Note: After you begin using your chart of accounts, making changes to the segments is neither recommendednor supported.

Create Chart of Accounts, Ledger, Legal Entities, and Business Unitsin Spreadsheets: ExplainedRepresent enterprise structures of your chart of accounts, ledger, legal entities, and business unit configuration to track andreport on your financial objectives and meet your reporting requirements. These components are the underlying structure fororganizing financial information and reporting.

The chart of accounts within the ledger facilitates:

• Aggregating data from different operations, from within an operation, and from different business flows

• Consistent definitions to your stakeholders in compliance with legislative and corporate reporting standards and aidsin management decisions

Rapid implementation is a way to configure a financial enterprise and financial reporting structures quickly using sheets in aworkbook that upload lists of:

• Companies (legal entities)

• Ledgers by country

• Business units



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• Chart of accounts and segment values

• Segment value hierarchies

• Financial sequences

• Required subledger accounts

Once the sheets have been uploaded, the application creates your:

• Chart of accounts structure and instance

• Segment value hierarchies

• Key accounts such as retained earnings

• Required subledger accounts

• Calendar

• Primary ledgers by country

• Legal entities and their locations

• Business units

• Document and journal sequences

The following figure illustrates the flow of the enterprise structure setup. Legal entities (companies) incur transactions thatare identified by business units with business functions. Transactions that are recorded in subledgers are transferred to theledger. A ledger consists of a calendar, a currency, and a chart of accounts. A chart of accounts consists of segments, some



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of which are assigned segment labels, such as cost center, natural account, and balancing segment. Legal entities can beassigned balancing segment values.

Legal Entities (Companies) Incurred

Transactions

Business Units with Business

Functions

Cost Centers

Balancing Segments

Ledger

Subledgers

Natural Accounts

Recorded in

Chart of Accounts

Other Segments

Calendar

Currency

Identified by

Transferred toSubledger Accounting

Method

Here's additional information for some of the common setup objects that are created:

• Legal Entity: Identifies a recognized party with rights and responsibilities given by legislation, which has the right toown property and the responsibility to account for themselves.

• Chart of Accounts: Configures accounts consisting of components called segments that are used to recordbalances and organize your financial information and reporting.

• Segment: Contains a value set that provides formatting and validation of the set of values used with that segment.When combined, several segments create an account combination for recording your transactions and journalentries.

• Segment Label: Identifies certain segments in your chart of accounts and assigns special functionality to thosesegments. The required segment labels are:

◦ Balancing Segment: Ensures that all journals balance for each balancing segment value or combination ofmultiple balancing segment values to use in financial processes and reporting. The three balancing segment



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labels are: Primary balancing segment, Second balancing segment, and Third balancing segment. ThePrimary balancing segment label is required and must be the first segment in the Rapid Implementationspreadsheet.

◦ Natural Account: Facilitates processes in the General Ledger application, such as retained earnings posting.For each child value, you must assign an Account Type. You can select from one of the general choices tomark the account value as an Asset, Liability, Owner's Equity, Revenue, or Expense account.

If the account is used by the rapid implementation solution to provide accounts for setup objects, selectthe appropriate Expanded Account Type value for the child account. Examples of expanded account typesrequired for setup objects are:

• Owner's Equity - Retained Earnings: To set up General Ledger ledgers.• Liability - Accounts Payable: To set up Payables common options.• Asset - Accounts Receivable: To set up Receivables receipt methods.

Accounts tagged with expanded account types are automatically assigned a financial category. You canoverride the default category in the Financial Category field, or leave it out.

◦ Cost Center: Facilitates grouping of natural accounts by functional cost types, accommodating tracking ofspecific business expenses across natural accounts.

• Ledger: Maintains the records and is a required component in your configuration. The rapid implementationprocess:

◦ Creates your primary ledgers by combining your chart of accounts, calendar, and currency as well as otherrequired options defined in the sheets.

◦ Assigns a default value for the fourth component, which is the subledger accounting method. The subledgeraccounting method is used to group subledger journal entry rule sets together to define a consistentaccounting treatment.

Note: The standard accrual method is the default subledger accounting method assigned to theprimary ledger.

◦ Creates a General Ledger balances cube for each ledger with a unique chart of accounts and calendarcombination. Each segment is created as a dimension in the balances cube along with the standard cubedimensions.

• Business Units with Business Functions: Identifies where subledger transactions are posted and providesaccess to perform subledger business processes. When configured, business units are assigned to a primary ledgerand a default legal entity.

• Subledger: Captures detailed transactional information, such as supplier invoices, customer payments, and assetacquisitions. Uses subledger accounting to transfer transactional balances to the ledger where they are posted.



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Note: Segment Value Hierarchies: You can create more than one hierarchy for any of your chart of accountssegments during initial setup. You can also create additional hierarchies after the initial setup is done byuploading the rapid implementation spreadsheet data. Document and Journal Sequences: You can createsequences for each legal entity or ledger based on the predefined country defaults. Document sequences arecreated for:

• Payables invoices• Payments• Receivables invoices• Receivables credit memos• Receivables adjustment activities

Reporting and accounting journal sequences are created for subledger journals and General Ledger journals.

Related Topics

• Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheets: How They're Processed

Preparing and Loading Enterprise Structures Rapid ImplementationTemplates: Worked ExampleYour company is implementing Oracle Fusion General Ledger using the rapid implementation methodology to create yourenterprise structures.

Use the Microsoft Excel template to rapidly implement the following enterprise structures: chart of accounts, hierarchies, legalentities, accounting calendar, primary ledgers, business units, and journal and document sequences.

Gathering the DataStart your implementation carefully, by first gathering the necessary data:

1. Determine your chart of accounts segments.2. Compile your segment values and hierarchies data.3. Identify your legal entities and business units.4. Determine your retained earnings account.

Preparing the Template Data SheetsComplete the data sheets for each enterprise structure. Character and word limitations exist and apply to Essbase and allOracle Fusion General Ledger configurations. See topic: Essbase Character and Word Limitations.

1. Complete the COA, Calendar, and Ledger data sheet with the setup data for your chart of accounts, calendar, andledger, as shown in this table.

Field Values

Name Enter the name of the primary ledger. A primary ledger is created for each unique country entered

on the Companies and Legal Entities sheet. For example:

◦ One of the legal entities is based in United States and another in Canada.

◦ The name provided is Vision Ledger.

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Field Values

◦ Two primary ledgers, Vision Ledger US and Vision Ledger CA, are created.

Currency

Select the primary ledger currency from the list of values.

Period Frequency Select from the following values:

◦ Monthly

◦ 4/4/5

◦ 4/5/4

◦ 4 week

Adjusting Periods Select from the following values.

◦ None

◦ Once at year end

◦ Once at beginning of year and once at end of the year

◦ Once at mid of year and once at year end

◦ Quarterly

Fiscal Year Start Date

Enter the start date of the accounting calendar using the format mm/dd/yyyy.

Segment

Enter the segment name for each segment.

Segment Label Assign one of the following segment labels from the list of values to your segments.

◦ Primary, Second, and Third Balancing

◦ Second Balancing and Cost Center

◦ Cost Center

◦ Natural Account

◦ Intercompany

◦ Local Use

Other considerations:

◦ Primary Balancing and Natural Account are required.

◦ Assign segment labels once.

◦ The Intercompany segment is optional. If specified, the segment reuses the value setcreated for the Primary Balancing segment.

◦ The Second and Third Balancing are optional. Second balancing segment may beassigned with the cost center segment.

Short Prompt

Enter a short prompt for each segment.

Display Width

Enter a display width for each segment.



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Field Values

Add Segment Sheets button

After entering all your segments, click this button. A data sheet is created for each additionalsegment where you can enter the segment values and hierarchies. The segment value andhierarchies data entry sheets for your primary balancing segment and natural account segmentare provided.

2. Complete the Business Units data entry sheet if needed, as shown in this table.

Field Values

Name Enter the name of your business units (BUs).The process enables all the functions and sets the

following:

◦ Reference Data Set is Common.

◦ The primary ledger created in this process is the default ledger for all BUs.

◦ First entered legal entity on the Companies and Legal Entities data sheet is the default legalentity for all BUs.

Default Legal Entry Name

Determines the primary ledger assigned to the business unit.

3. Complete the Companies and Legal Entities data entry sheet for your companies, hierarchies, and legal entity data,as shown in this table.

Field Values

Parent9 to Parent1

To define hierarchies, enter the parent values in Parent9 to Parent1 column. The first-level parentis entered in the Parent1 column. The parent of Parent1 is entered in the column Parent2 and soon.

Child Enter all the child values or level0 values which are your postable account values in this column.

No parent values are entered in this column.

◦ Duplicate values are not allowed.

◦ Enter a required value and description on each row until the last row.

◦ Plan the hierarchies before you start entering them in this template.

Company Description

Name of the company. For example, Vision Corporation, Vision US, and Vision UK.

Legal Entity: Name

Optionally enter a legal entity name.

Legal Entity: Identifier

Legal identifier such as a tax ID or government registration number.

Legal Entity: Country

Select from the list of values provided. The identifying jurisdiction is derived from the country youselect.

Legal Entity: Address Line

Enter the address in comma-separated format.

Legal Entity: City, State, County,Province, and Postal Code

Address for the legal entity.



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Field Values

Legal Entity: Registration Number

Identifies legal entities registered for your company and recognized in law for which you want torecord and perform transactions.

Legal Entity: Reporting UnitRegistration Number

Identifier for the lowest level component of a legal structure that requires registrations. Map thelegal entity details to the primary balancing segment value. If the legal entity maps to multipleprimary balancing segment values consecutively, only specify the legal entity for the first primarybalancing segment value.

4. Complete the Natural Accounts data entry sheet, as shown in this table.

Field Values

Parent9 to Parent1 and Child

Enter your parent values in these columns. First-level parents are entered in the column Parent1and so on. Duplicate values are not allowed.

Description

Provide descriptions for each of the parent values as well as the child values.

Account Type

Categorizes the accounts. Account type is used to determine which account to use in applicationprocesses such as retained earnings calculation at the end of the year. The account type is alsoused in the upload processes to create general ledger and subledger (Payables and Receivables)accounts in some setup pages. Select the appropriate values from the list for each account.

Financial Category

An optional field that is used with Oracle Business Intelligence applications. The predefined valuesconsist of the standard financial categories. For example: Accounts payable, Accounts receivable,Accrued liabilities, Accumulated depreciation, Cash, and Common stock.

5. To create more than one hierarchy for any of your chart of accounts segments during the initial setup.a. Click the Generate Additional Hierarchy button on the segment's worksheet. This creates a new worksheet

and populates it with the data already entered for that segment.b. Change this data as required for the new hierarchy.

Note: For the company segment, adding legal entity information is not supported on this sheet.

Note: With this button you can create hierarchies, but not new versions of existing hierarchies.

6. Complete the Financial Sequences data entry sheet, as shown in this table.

Field Values

Enabled

Enter Yes to enable the sequence.

Restart Enter the period of time used to restart the sequence. Select:

◦ Annually

◦ Monthly

◦ Never



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Field Values

Initial Value

Enter a whole number greater than 1. All versions of the sequence start with the same number.

7. Click the Step 1: Validate button to validate the workbook data.

Loading the Templates1. After you finish preparing the data in the sheets, click the Step 2: Generate Chart of Accounts File button on the

COA, Calendar, and Ledger sheet. The process generates an XML data file called ChartOfAccounts.xml.2. Save the file in a local directory.3. Click the Step 3: Generate Ledger, LE, and BU File button on the COA, Calendar, and Ledger sheet. The

process generates an XML data file called FinancialsCommonEntities.xml.4. Save the file in a local directory.5. On the Setup and Maintenance page in the Functional Setup Manager, search for and select the Upload Chart of

Accounts task. This task runs the Upload Enterprise Structures process.6. Click the Upload File button and select the first file you saved, which is ChartOfAccounts.xml.7. Click Submit. The Scheduled Processes page opens.8. Verify that the process completes without errors or warnings.9. Click Done.

10. Select the Deploy Chart of Accounts task on the Setup and Maintenance page. Select the Deploy button for theaccounting flexfield.

11. Refresh the page until the green check mark appears and verifies that the deployment was successful.12. On the Setup and Maintenance page, select the Upload Ledger, Legal Entities, and Business Units task. This

runs the Upload Enterprise Structures process.13. Click the Upload File button and select the second XML file you saved, which is FinancialsCommonEntities.xml.14. Click Submit. The Scheduled Processes page opens.15. Verify that the process completed without errors or warnings.16. Click Done.

Running Automatic Processes1. The following processes are run automatically during the rapid implementation flow to configure the ledger and

associated setup and create the balances cubes:

◦ Submit Account Configuration, which includes general ledger balances cube creation

◦ Online Audit of Hierarchy Data of tree and tree versions

◦ Row and Column Flattening of hierarchy data

◦ Publish Hierarchies

Related Topics

• Essbase Character and Word Limitations

Define Initial Configuration with the Enterprise StructuresConfigurator



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Establishing Enterprise Structures Using the Enterprise StructuresConfigurator: ExplainedThe Enterprise Structures Configurator is an interview-based tool that guides you through the process of setting up a basicenterprise structure. By answering questions about your enterprise, the tool creates a structure of divisions, legal entities,business units, and reference data sets that reflects your enterprise structure. After you create your enterprise structure, youalso follow a guided process to determine whether to use positions, and whether to set up additional attributes for jobs andpositions. After you define your enterprise structure and your job and position structures, you can review them, make anynecessary changes, and then load the final configuration.

This figure illustrates the process to configure your enterprise using the Enterprise Structures Configurator.

Establish Enterprise Structures

Business UnitSet Assignment

Assign Reference Data Sets to

Locations

Reference Data Sets

Business Units

Legal Entities

Establish Job and Position Structures

Load Configuration

Review Configuration

Determine Position UsageDivisions

Define Enterprise-Level

Attributes

Define Contextual Attributes

To be able to use the Enterprise Structures Configurator, you must select the Enterprise Structures Guided Flow feature foryour offerings on the Configure Offerings page in the Setup and Maintenance work area. If you don't select this feature, thenyou must set up your enterprise structure using individual tasks provided elsewhere in the offerings, and you can't createmultiple configurations to compare different scenarios.



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Establish Enterprise StructuresTo define your enterprise structures, use the guided flow within the Establish Enterprise Structures task to enter basicinformation about your enterprise, such as the primary industry. You then create divisions, legal entities, business units,and reference data sets. The Establish Enterprise Structures task enables you to create multiple enterprise configurationsso that you can compare different scenarios. Until you load a configuration, you can continue to create and edit multipleconfigurations until you arrive at one that best suits your enterprise.

Establish Job and Position StructuresYou also use a guided process to determine whether you want to use jobs only, or jobs and positions. The primary industrythat you select in the Establish Enterprise Structures task provides the application with enough information to make aninitial recommendation. You can either accept the recommendation, or you can answer additional questions about how youmanage people in your enterprise, and then make a selection. After you select whether to use jobs or positions, you areprompted to set up a descriptive flexfield structure for jobs, and for positions if applicable. Descriptive flexfields enable you toget more information when you create jobs and positions.

Review ConfigurationYou can view a result of the interview process prior to loading the configuration. The review results, show the divisions, legalentities, business units, reference data sets, and the management reporting structure that the application will create when youload the configuration.

Load ConfigurationYou can load only one configuration. When you load a configuration, the application creates the divisions, legal entities,business units, and so on. After you load the configuration, you then use individual tasks to edit, add, and delete enterprisestructures.

Designing an Enterprise Configuration: ExampleThis example illustrates how to set up an enterprise based on a global company operating mainly in the US and the UK with asingle primary industry.

ScenarioInFusion Corporation is a multinational enterprise in the high technology industry with product lines that include all thecomponents that are required to build and maintain air quality monitoring systems for homes and businesses. Its primarylocations are in the US and the UK, but it has smaller outlets in France, Saudi Arabia, and the United Arab Emirates (UAE).

Enterprise DetailsIn the US, InFusion employs 400 people and has company revenue of 120 million US dollars. Outside the US, InFusionemploys 200 people and has revenue of 60 million US dollars.

AnalysisInFusion requires three divisions.

• The US division covers the US locations.

• The Europe division covers UK and France.

• Saudi Arabia and the UAE are covered by the Middle East division.



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InFusion requires legal entities with legal employers, payroll statutory units, tax reporting units, and legislative data groups forthe US, UK, France, Saudi Arabia, and UAE, to employ and pay its workers in those countries.

InFusion requires a number of departments across the enterprise for each area of business, such as sales and marketing, anda number of cost centers to track and report on the costs of those departments.

InFusion has general managers responsible for business units within each country. Those business units may share referencedata. Some reference data can be defined within a reference data set that multiple business units may subscribe to. Businessunits are also required for financial purposes. Financial transactions are always processed within a business unit.

Resulting Enterprise ConfigurationBased on this analysis, InFusion requires an enterprise with multiple divisions, ledgers, legal employers, payroll statutory units,tax reporting units, legislative data groups, departments, cost centers, and business units.



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This figure illustrates the enterprise configuration that results from the analysis of InFusion Corporation.


USDivision

Legal Entity

Legislative Data Group

Tax ReportingUnit

Business Unit

SalesDepartment

(US)

MarketingDepartment

(US)

Cost Center

Cost Center

EuropeDivision

Legal Entity


Tax ReportingUnit

Business Unit

Legal Entity


Tax ReportingUnit

Business Unit

US UK France

MarketingDepartment

(UK)

Cost Center

SalesDepartment

(France)

Cost Center

Middle East Division

Extensions for Localization

Support

- UAE- Saudi Arabia

FAQs for Define Initial Configuration



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What happens if I don't use the Enterprise Structures Configurator toset up my enterprise structures?The Enterprise Structures Configurator is an interview-based tool that guides you through setting up divisions, legal entities,business units, and reference data sets. If you do not use the Enterprise Structures Configurator, then you must set up yourenterprise structure using the individual tasks that correspond to each enterprise component. In addition, you can't set upmultiple configurations and compare different scenarios. Using the Enterprise Structures Configurator is the recommendedprocess for setting up your enterprise structures.

What's an ultimate holding company?The legal entity that represents the top level in your organization hierarchy, as defined by the legal name entered for theenterprise. This designation is used only to create an organization tree, with these levels:

• Ultimate holding company as the top level

• Divisions and country holding companies as the second level

• Legal employers as the third level

Define Enterprise for Fusion Accounting Hub

Enterprise: ExplainedAn enterprise is a collection of legal entities under common control and management.

Enterprise DefinedWhen implementing Oracle Fusion Applications you operate within the context of an enterprise that has already been createdin the application for you. This is either a predefined enterprise or an enterprise that has been created in the application bya system administrator. An enterprise organization captures the name of the deploying enterprise and the location of theheadquarters. In Oracle Fusion Applications, an organization classified as an enterprise is defined before defining any otherorganizations in the HCM Common Organization Model. All other organizations are defined as belonging to an enterprise.

Managing Enterprise Information for Non-HCM Users: ExplainedThe Manage Enterprise HCM Information task includes default settings for your enterprise such as the employment model,worker number generation, and so on. If you are not implementing Oracle Fusion Human Capital Management (HCM), thenthe only action you may need to perform using this task is to change the enterprise name, if necessary. The other settings areHCM-specific and are not relevant outside of Oracle Fusion HCM.

Define Legal Jurisdictions and Authorities



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Jurisdictions and Legal Authorities: ExplainedYou are required to register your legal entities with legal authorities in the jurisdictions where you conduct business. Registeryour legal entities as required by local business requirements or other relevant laws. For example, register your legal entitiesfor tax reporting to report sales taxes or value added taxes.

Define jurisdictions and related legal authorities to support multiple legal entity registrations, which are used by Oracle FusionTax and Oracle Fusion Payroll. When you create a legal entity, the Oracle Fusion Legal Entity Configurator automaticallycreates one legal reporting unit for that legal entity with a registration.

Jurisdictions: ExplainedJurisdiction is a physical territory such as a group of countries, country, state, county, or parish where a particular piece oflegislation applies. French Labor Law, Singapore Transactions Tax Law, and US Income Tax Laws are examples of particularlegislation that apply to legal entities operating in different countries' jurisdictions. Judicial authority may be exercised within ajurisdiction.

Types of jurisdictions are:

• Identifying Jurisdiction

• Income Tax Jurisdiction

• Transaction Tax Jurisdiction

Identifying JurisdictionFor each legal entity, select an identifying jurisdiction. An identifying jurisdiction is your first jurisdiction you must registerwith to be allowed to do business in a country. If there is more than one jurisdiction that a legal entity must register withto commence business, select one as the identifying jurisdiction. Typically the identifying jurisdiction is the one you use touniquely identify your legal entity.

Income tax jurisdictions and transaction tax jurisdictions do not represent the same jurisdiction. Although in some countries,the two jurisdictions are defined at the same geopolitical level, such as a country, and share the same legal authority, they aretwo distinct jurisdictions.

Income Tax JurisdictionCreate income tax jurisdictions to properly report and remit income taxes to the legal authority. Income tax jurisdictions bylaw impose taxes on your financial income generated by all your entities within their jurisdiction. Income tax is a key source offunding that the government uses to fund its activities and serve the public.

Transaction Tax JurisdictionCreate transaction tax jurisdictions through Oracle Fusion Tax in a separate business flow, because of the specific needsand complexities of various taxes. Tax jurisdictions and their respective rates are provided by suppliers and require periodicmaintenance. Use transaction tax jurisdiction for legal reporting of sales and value added taxes.

Legal Authorities: ExplainedA legal authority is a government or legal body that is charged with powers to make laws, levy and collect fees and taxes, andremit financial appropriations for a given jurisdiction.



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For example, the Internal Revenue Service is the authority for enforcing income tax laws in United States. In some countries,such as India and Brazil, you are required to print legal authority information on your tax reports. Legal authorities are definedin the Oracle Fusion Legal Entity Configurator. Tax authorities are a subset of legal authorities and are defined using the samesetup flow.

Legal authorities are not mandatory in Oracle Fusion Human Capital Management (HCM), but are recommended and aregenerally referenced on statutory reports.

Creating Legal Jurisdictions, Addresses and Authorities: ExamplesDefine legal jurisdictions and related legal authorities to support multiple legal entity registrations, which are used by OracleFusion Tax and Oracle Fusion Payroll.

Legal JurisdictionsCreate a legal jurisdiction by following these steps:

1. Navigator > Setup and Maintenance > Manage Legal Jurisdictions > Go to Task.2. Select Create.3. Enter a unique Name, United States Income Tax.4. Select a Territory, United States.5. Select a Legislative Category, Income tax.6. Select Identifying, Yes. Identifying indicates the first jurisdiction a legal entity must register with to do business in a

country.7. Enter a Start Date if desired. You can also add an End Date to indicate a date that the jurisdiction may no longer

be used.8. Select a Legal Entity Registration Code, EIN or TIN.9. Select a Legal Reporting Unit Registration Code, Legal Reporting Unit Registration Number.

10. Optionally enter one or more Legal Functions.11. Save and Close.

Legal Addresses for Legal Entities and Reporting UnitsCreate a legal address for legal entities and reporting units by following these steps:

1. Navigator > Setup and Maintenance > Manage Legal Address > Go to Task.2. Select Create.3. Select Country.4. Enter Address Line 1, Oracle Parkway.5. Optionally enter Address Line 2, and Address Line 3.6. Enter or Select the postal code, 94065.7. Select Geography 94065 and Parent Geography Redwood Shores, San Mateo, CA.8. Optionally enter a Time Zone, US Pacific Time.9. OK.

10. Save and Close.

Legal AuthoritiesCreate a legal authority by following these steps:

1. Navigator > Setup and Maintenance >Manage Legal Authorities > Go to Task.2. Enter the Name, California Franchise Tax Board.



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3. Enter the Tax Authority Type, Reporting.

Note: Create an address for the legal authority.

4. Select Create.5. The Site Number is automatically assigned.6. Optionally enter a Mail Stop.7. Select Country, United States8. Enter Address Line 1, 121 Spear Street, Suite 400.9. Optionally enter Address Line 2, and Address Line 3.

10. Enter or Select the postal code, 94105.11. Select Geography 94105 and Parent Geography San Francisco, San Francisco, CA.12. OK.13. Optionally enter a Time Zone, US Pacific Time.14. Optionally click the One-Time Address check box.15. The From Date displays today's date. Update if necessary.16. Optionally enter a To Date to indicate the last day the address can be used.

Note: You can optionally enter Address Purpose details.

17. Select Add Row.18. Select Purpose.19. The Purpose from Date will default to today's date.20. Optionally enter a Purpose to Date.21. OK.22. Save and Close.

Define Geographies

Define Geographies: OverviewSetting up your geography structure and master geographies correctly in the Trading Community Model is critical to theproper utilization and management of Oracle Enterprise Resource Planning (ERP) Cloud applications.

The geography structure and master geography data is shared across multiple product families and applications. Addressvalidation ensures complete and valid master address data across all location entities across product applications. In addition,complete and valid master data is critical to ensure accurate transaction tax calculation.

You can either define your geography structure and corresponding master geographies manually or import these geographyentities. Options include using the:

1. Manage Geographies page2. Manage File Import Activities task

For more information about managing your geographies, see the Define Geographies section in the Define EnterpriseStructures chapter in the Oracle Financials Cloud Implementing Common Features guide on Oracle Help Center (https://docs.oracle.com).



50

Manage GeographiesUse the Manage Geographies page to manually define your geography structure, hierarchy, mapping, and validation.Manually define your geographies when you have a simple geography requirement with a limited number of geographieswithin an individual country.

Manage File Import ActivitiesYou can upload the geography structure and hierarchy using the Manage File Import Activities task. Once you upload yourgeography data successfully, you can use the Manage Geographies page to:

• Validate your data

• Enable geography validation

• Enable tax validation

Set the address validation for applicable countries to Error to ensure that no invalid or incomplete master address data iscreated for any location entities. The accuracy of master address data is critical to successful implementations.

Use data import when you have more complex geography requirements, such as for the United States and Canada.

Related Topics

• Geography Structure, Hierarchy, and Validation: How They Fit Together

• Managing Geography Structures, Hierarchies, and Validation: Worked Example

• Importing Geographies Using File-Based Import: Explained

• Oracle Financials Cloud Implementing Common Features


Creating Legal Entities, Registrations, and Reporting Units: ExamplesDefine a legal entity for each registered company or other entity recognized in law for which you want to record assets,liabilities, and income, pay transaction taxes, or perform intercompany trading.

Legal EntityCreate a legal entity by following these steps:

1. Navigator > Setup and Maintenance > Manage Legal Entity > Go to Task.2. Accept the default Country, United States.3. Enter Name, InFusion USA West.4. Enter Legal Entity Identifier, US0033.5. Optionally enter Start Date. When the start date is blank the legal entity is effective from the creation date.6. Optionally enter an End Date.7. Optionally, if your legal entity should be registered to report payroll tax and social insurance, select the Payroll

statutory unit check box.8. Optionally, if your legal entity has employees, select the Legal employer check box.

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=9CCF0A3D421BFD25E040D30A68810CE2

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=AF964C5F5E4D2ED0E040D30A688137B0

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=CD59CCB377D5F156E040D30A688158BC

https://docs.oracle.com/cloud/latest/financialscs_gs/FAFCF/toc.htm



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9. Optionally, if this legal entity is not a payroll statutory unit, select an existing payroll statutory unit to report payroll taxand social instance on behalf of this legal entity.

10. Enter the Registration Information11. Accept the default Identifying Jurisdiction, United States Income Tax.12. Search for and select a Legal Address, 500 Oracle Parkway, Redwood Shores, CA 94065.

The legal address must have been entered previously using the Manage Legal Address task.13. OK.14. Optionally enter a Place of Registration.15. Enter the EIN or TIN.16. Enter the Legal Reporting Unit Registration Number.17. Save and Close.18. Navigator > Setup and Maintenance > Define Legal Entries > Manage Legal Entity > Select to set scope.19. Select the Manage Legal Entity.20. In the *Legal Entity list, select Select and Add.21. Click Apply and Go to Task.22. Select your legal entity.23. Save and Close.

This sets the scope for your task list to the selected legal entity.24. Save and Close.

Legal Entity RegistrationsA legal entity registration with the same name as that of the legal entity is created by default. To verify this, locate the ManageLegal Entity Registrations task and then select Go to Task. To create another registration for the legal entity follow thesesteps:

1. Navigator > Setup and Maintenance > Manage Legal Entity Registrations: Verify that the Legal Entity scopevalue is set correctly.

2. Go to Task.3. Select Create.4. Enter Jurisdiction.5. Enter Registered Address.6. Enter Registered Name.7. Optionally enter Alternate Name, Registration Number, Place of Registration, Issuing Legal Authority, and

Issuing Legal Authority Address, Start Date, and End Date.8. Save and Close.

Legal Reporting UnitWhen a legal entity is created, a legal reporting unit with the same name as that of the entity is also automatically created. Tocreate more legal reporting units or modify the settings follow these steps:

1. Navigator > Setup and Maintenance > Define Legal Reporting Unit. > Manage Legal Reporting Unit. Verify thatthe Legal Entity scope value is set correctly.

2. Go to Task3. Select Create.4. Enter Territory, United States.5. Enter Name.6. Optionally enter a Start Date.7. Enter Registration Information.8. Search for and select Jurisdiction.9. Enter Main Legal Reporting Unit information.



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10. Select the value Yes or No for the Main Legal Reporting Unit. Set value to yes only if you are creating a new main(primary) legal reporting unit.

11. Enter the Main Effective Start Date, 1/1/11.12. Save and Close.

Related Topics

• Planning Legal Reporting Units: Points to Consider

Legal Entities: ExplainedA legal entity is a recognized party with rights and responsibilities given by legislation.

Legal entities have the following rights and responsibilities to:

• Own property

• Trade

• Repay debt

• Account for themselves to regulators, taxation authorities, and owners according to rules specified in the relevantlegislation

Their rights and responsibilities may be enforced through the judicial system. Define a legal entity for each registered companyor other entity recognized in law for which you want to record assets, liabilities, expenses and income, pay transaction taxes,or perform intercompany trading.

A legal entity has responsibility for elements of your enterprise for the following reasons:

• Facilitating local compliance

• Minimizing the enterprise's tax liability

• Preparing for acquisitions or disposals of parts of the enterprise

• Isolating one area of the business from risks in another area. For example, your enterprise develops property andalso leases properties. You could operate the property development business as a separate legal entity to limit risk toyour leasing business.

The Role of Your Legal EntitiesIn configuring your enterprise structure in Oracle Fusion Applications, the contracting party on any transaction is always thelegal entity. Individual legal entities:

• Own the assets of the enterprise

• Record sales and pay taxes on those sales

• Make purchases and incur expenses

• Perform other transactions

Legal entities must comply with the regulations of jurisdictions, in which they register. Europe now allows for companies toregister in one member country and do business in all member countries, and the US allows for companies to register in onestate and do business in all states. To support local reporting requirements, legal reporting units are created and registered.

You are required to publish specific and periodic disclosures of your legal entities' operations based on different jurisdictions'requirements. Certain annual or more frequent accounting reports are referred to as statutory or external reporting. Thesereports must be filed with specified national and regulatory authorities. For example, in the United States (US), your publicly

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owned entities (corporations) are required to file quarterly and annual reports, as well as other periodic reports, with theSecurities and Exchange Commission (SEC), which enforces statutory reporting requirements for public corporations.

Individual entities privately held or held by public companies do not have to file separately. In other countries, your individualentities do have to file in their own name, as well as at the public group level. Disclosure requirements are diverse. Forexample, your local entities may have to file locally to comply with local regulations in a local currency, as well as beingincluded in your enterprise's reporting requirements in different currency.

A legal entity can represent all or part of your enterprise's management framework. For example, if you operate in a largecountry such as the United Kingdom or Germany, you might incorporate each division in the country as a separate legalentity. In a smaller country, for example Austria, you might use a single legal entity to host all of your business operationsacross divisions.

Creating Legal Entities in the Enterprise Structures Configurator:Points to ConsiderUse the Enterprise Structures Configurator (ESC), to create legal entities for your enterprise automatically, based on thecountries in which divisions of your business operate, or you can upload a list of legal entities from a spreadsheet.

Automatically Creating Legal EntitiesIf you are not certain of the number of legal entities that you need, you can create them automatically. To use this option, youfirst identify all of the countries in which your enterprise operates. The application opens the Map Divisions by Country page,which contains a matrix of the countries that you identified, your enterprise, and the divisions that you created. You selectthe check boxes where your enterprise and divisions intersect with the countries to identify the legal entities that you wantthe application to create. The enterprise is included for situations where your enterprise operates in a country, acts on behalfof several divisions within the enterprise, and is a legal employer in a country. If you select the enterprise for a country, theapplication creates a country holding company.

The application automatically creates the legal entities that you select, and identifies them as payroll statutory units and legalemployers. For each country that you indicated that your enterprise operates in, and for each country that you created alocation for, the application also automatically creates a legislative data group.

Any legal entities that you create automatically cannot be deleted from the Create Legal Entities page within the EnterpriseStructures Configurator. You must return to the Map Divisions by Country page and deselect the legal entities that you nolonger want.

Example: Creating Legal Entities AutomaticallyInFusion Corporation is using the ESC to set up its enterprise structure. The corporation has identified two divisions, one forLighting, and one for Security. The Lighting division operates in Japan and the US, and the Security division operates in theUK and India.



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This figure illustrates InFusion Corporation's enterprise structure.

EnterpriseInFusion Corporation

DivisionInFusion Lighting

DivisionInFusion Security

Japan UK IndiaUS

This table represents the selections that InFusion Corporation makes when specifying which legal entities to create on theMap Divisions by Country page.

Country Enterprise InFusion Lighting InFusion Security

Japan

No

Yes

No

US

No

Yes

No

UK

No

No

Yes

India

No

No

Yes

Based on the selections made in the preceding table, the ESC creates the following four legal entities:

• InFusion Lighting Japan LE

• InFusion Lighting US LE

• InFusion Security UK LE

• InFusion Security India LE

Creating Legal Entities Using a SpreadsheetIf you have a list of legal entities already defined for your enterprise, you can upload them from a spreadsheet. To use thisoption, you first download a spreadsheet template, then add your legal entity information to the spreadsheet, and thenupload directly to your enterprise configuration. You can export and import the spreadsheet multiple times to accommodaterevisions.

Related Topics

• HCM Organization Models: Examples

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• Payroll Statutory Units, Legal Employers, and Tax Reporting Units: How They Work Together

• Using Desktop Integrated Excel Workbooks: Points to Consider

Legal Entity in Oracle Fusion: Points to ConsiderOracle Fusion Applications support the modeling of your legal entities. If you make purchases from or sell to other legalentities, define these other legal entities in your customer and supplier registers. These registers are part of the Oracle FusionTrading Community Architecture.

When your legal entities are trading with each other, represent them as legal entities and as customers and suppliers inyour customer and supplier registers. Use legal entity relationships to determine which transactions are intercompany andrequire intercompany accounting. Your legal entities can be identified as legal employers and therefore, are available for use inHuman Capital Management (HCM) applications.

Several decisions you should consider when you create legal entities.

• The importance of using legal entity on transactions

• Legal entity and its relationship to business units

• Legal entity and its relationship to divisions

• Legal entity and its relationship to ledgers

• Legal entity and its relationship to balancing segments

• Legal entity and its relationship to consolidation rules

• Legal entity and its relationship to intercompany transactions

• Legal entity and its relationship to worker assignments and legal employer

• Legal entity and payroll reporting

• Legal reporting units

The Importance of Using Legal Entities on TransactionsAll of the assets of the enterprise are owned by individual legal entities. Oracle Fusion Financials allow your users to enter legalentities on transactions that represent a movement in value or obligation.

For example, a sales order creates an obligation on the legal entity that books the order to deliver the goods on theacknowledged date. The creation also creates an obligation on the purchaser to receive and pay for those goods. Undercontract law in most countries, damages can be sought for both:

• Actual losses, putting the injured party in the same state as if they had not entered into the contract.

• What is called loss of bargain, or the profit that would have made on a transaction.

In another example, if you revalued your inventory in a warehouse to account for raw material price increases, the revaluationand revaluation reserves must be reflected in your legal entity's accounts. In Oracle Fusion Applications, your inventory withinan inventory organization is managed by a single business unit and belongs to one legal entity.

Legal Entity and Its Relationship to Business UnitsA business unit can process transactions on behalf of many legal entities. Frequently, a business unit is part of a single legalentity. In most cases, the legal entity is explicit on your transactions. For example, a payables invoice has an explicit legalentity field. Your accounts payables department can process supplier invoices on behalf of one or many business units.

In some cases, your legal entity is inferred from your business unit that is processing the transaction. For example, BusinessUnit ACM UK has a default legal entity of InFusion UK Ltd. When a purchase order is placed in ACM UK, the legal entity

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InFusion UK Ltd is legally obligated to the supplier. Oracle Fusion Procurement, Oracle Fusion Project Portfolio Management,and Oracle Fusion Supply Chain applications rely on deriving the legal entity information from the business unit.

Legal Entity and Its Relationship to DivisionsThe division is an area of management responsibility that can correspond to a collection of legal entities. If wanted, you canaggregate the results for your divisions by legal entity or by combining parts of other legal entities. Define date-effectivehierarchies for your cost center or legal entity segment in your chart of accounts to facilitate the aggregation and reporting bydivision. Divisions and legal entities are independent concepts.

Legal Entity and Its Relationship to LedgersOne of your major responsibilities is to file financial statements for your legal entities. Map legal entities to specific ledgersusing the Oracle Fusion General Ledger Accounting Configuration Manager. Within a ledger, you can optionally map a legalentity to one or more balancing segment values.

Legal Entity and Its Relationship to Balancing SegmentsOracle Fusion General Ledger supports up to three balancing segments. Best practices recommend one segment representsyour legal entity to ease your requirement to account for your operations to regulatory agencies, tax authorities, and investors.Accounting for your operations means you must produce a balanced trial balance sheet by legal entity. If you account formany legal entities in a single ledger, you must:

1. Identify the legal entities within the ledger.2. Balance transactions that cross legal entity boundaries through intercompany transactions.3. Decide which balancing segments correspond to each legal entity and assign them in Oracle Fusion General

Ledger Accounting Configuration Manager. Once you assign one balancing segment value in a ledger, then allyour balancing segment values must be assigned. This recommended best practice facilitates reporting on assets,liabilities, and income by legal entity.

Represent your legal entities by at least one balancing segment value. You may represent it by two or three balancingsegment values if more granular reporting is required. For example, if your legal entity operates in multiple jurisdictions inEurope, you might define balancing segment values and map them to legal reporting units. You can represent a legal entitywith more than one balancing segment value. Do not use a single balancing segment value to represent more than one legalentity.

In Oracle Fusion General Ledger, there are three balancing segments. You can use separate balancing segments to representyour divisions or strategic business units to enable management reporting at the balance sheet level for each. This solution isused to empower your business unit and divisional managers to track and assume responsibility for their asset utilization orreturn on investment. Using multiple balancing segments is also useful when you know at the time of implementation that youare disposing of a part of a legal entity and want to isolate the assets and liabilities for that entity.

Implementing multiple balancing segments requires every journal entry that is not balanced by division or business unit, togenerate balancing lines. You cannot change to multiple balancing segments after you begin using the ledger because yourhistorical data is not balanced by the new balancing segments. Restating historical data must be done at that point.

If your enterprise regularly spins off businesses or holds managers accountable for utilization of assets, identify the businesswith a balancing segment value. If you account for each legal entity in a separate ledger, no requirement exists to identify thelegal entity with a balancing segment value.

While transactions that cross balancing segments don't necessarily cross legal entity boundaries, all transactions that crosslegal entity boundaries must cross balancing segments. If you make an acquisition or are preparing to dispose of a portion ofyour enterprise, you may want to account for that part of the enterprise in its own balancing segment even if the portion is nota separate legal entity. If you do not map legal entities sharing the same ledger to balancing segments, you cannot distinguishthem using intercompany functionality or track individual equity.



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Legal Entity and Its Relationship to Consolidation RulesIn Oracle Fusion Applications you can map legal entities to balancing segments and then define consolidation rules usingyour balancing segments. You are creating a relationship between the definition of your legal entities and their role in yourconsolidation.

Legal Entity and Its Relationship to Intercompany TransactionsUse Oracle Fusion Intercompany feature to create intercompany entries automatically across your balancing segments.Intercompany processing updates legal ownership within the enterprise's groups of legal entities. Invoices or journalsare created as needed. To limit the number of trading pairs for your enterprise, set up intercompany organizations andassign then to your authorized legal entities. Define processing options and intercompany accounts to use when creatingintercompany transactions and to assist in consolidation elimination entries. These accounts are derived and automaticallyentered on your intercompany transactions based on legal entities assigned to your intercompany organizations.

Intracompany trading, in which legal ownership isn't changed but other organizational responsibilities are, is also supported.For example, you can track assets and liabilities that move between your departments within your legal entities by creatingdepartmental level intercompany organizations.

Tip: In the Oracle Fusion Supply Chain applications, you can model intercompany relationships using businessunits, from which legal entities are derived.

Legal Entity and Its Relationship to Worker Assignments and Legal EmployerLegal entities that employ people are called legal employers in the Oracle Fusion Legal Entity Configurator. You must enterlegal employers on worker assignments in Oracle Fusion HCM.

Legal Entity and Payroll ReportingYour legal entities are required to pay payroll tax and social insurance such as social security on your payroll. In Oracle FusionApplications, you can register payroll statutory units to pay and report on payroll tax and social insurance for your legalentities. As the legal employer, you might be required to pay payroll tax, not only at the national level, but also at the locallevel. You meet this obligation by establishing your legal entity as a place of work within the jurisdiction of a local authority.Set up legal reporting units to represent the part of your enterprise with a specific legal reporting obligation. You can alsomark these legal reporting units as tax reporting units, if the legal entity must pay taxes as a result of establishing a place ofbusiness within the jurisdiction.



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Chapter 3Define Financial Reporting Structures

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3 Define Financial Reporting Structures

Representing Your Enterprise Structure in Your FinancialReporting Structure: OverviewRepresent your enterprise structures in your chart of accounts to track and report on your financial objectives and meetyour reporting requirements. The benefit of representing your enterprise in the chart of accounts is the functionality whichincludes multidimensional reporting with its Essbase tool. Segments included in the chart of accounts become dimensions inEssbase. The recorded data is automatically loaded into the Essbase cube when you post your journal entries. The Essbasetool includes powerful functionality for analysis and reporting on your financial data.

Financial Enterprise Structure: How It Fits TogetherOracle Fusion Applications are an integrated suite of business applications that connects and automates the entire flow of thebusiness process across both front and back-office operations and addresses the needs of a global enterprise. The processof designing the enterprise structure, including the accounting configuration, is the starting point for an implementation. Thisprocess often includes determining financial, legal, and management reporting requirements and examining consolidationconsiderations.



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This figure illustrates the enterprise structure components, including legal entities, ledgers, balancing segments, accounts,cost centers, business units and departments, and their relationships to each other.

Legal Entities (Companies)

Made up of

Incur

Post

Transactions

Business Units

DepartmentsCost Centers

Enterprise (Group)

Balancing Segments

Consolidation

Corporate Ledger

Subsidiary Ledger

Accounts

Accounting Configuration ComponentsThe accounting configuration components are:

• Ledgers: The main record-keeping structure. A ledger records the transactional balances by defining a chart ofaccounts with a calendar and currency, and accounting rules, implemented in an accounting method. The ledger isassociated with the subledger transactions for the business units that are assigned to it, and provides context andaccounting for them.

• Balancing Segments: Use these chart of accounts element to represent and track both legal and managemententities. The primary balancing segment is used to represents your legal entities. The Second and Third balancing



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segments are used to implement management reporting and analysis. Balancing segments provide automaticbalancing functionality by legal entity for journal entries, including intercompany and intracompany entries, suspenseposting, and rounding imbalances.

• Cost Centers: The component that aggregates elements of natural expenses to identify functional costs. A costcenter can be the smallest segment of an organization for which costs are collected and reported. Not all costcenters represent organizations. A manager is assigned responsibility for cost control and is assigned both adepartment and a cost center; in which case the cost center and department might be identified with each other.However, a finance department manager might have separate cost centers for finance cost and audit costs and aResearch and Development department manager might have separate cost centers for research and development.

Cost centers are represented by segment values in the chart of accounts that indicate the functional areas of yourbusiness, such as accounting, facilities, shipping, or human resources. You might keep track of functional areas ata detailed level, but produce summary reports that group cost centers into one or more departments. Cost centervalues are also used by Oracle Fusion Assets to assist the managers in tracking locations and accounting for assetsassigned to their departments.

• Accounts: The code in the chart of accounts that uniquely identifies each type of transactions recorded in the ledgerand subledgers. The account segment is mapped to a dimension in the GL Balances Cube to enable reporting andinquiry. This functionality uses Oracle Fusion Business Intelligence to analyze and drill into expense and revenuetransactions.

Representing Legal Entities, Business Units, Departments in Chart ofAccountsThe following list provides information about how to represent legal entities, business units, and departments in chart ofaccounts.

• Representing Legal Entities in the Chart of Accounts: Legal entity is the term used in Oracle Fusion Applications forregistered companies and other organizations recognized in law as having a legal existence and as parties with givenrights and responsibilities.

Legal entities are created in the applications and then assigned balancing segment values, sometimes calledcompany codes in your ledgers during accounting configuration.

• Representing Business Units in the Chart of Accounts: A business unit (BU) is part of an enterprise managedby a manager with profit and loss responsibility. The business unit is generally tracked in the chart of accounts.A business unit can be represented by a single ledger. For example, in countries where you need documentsequencing for unique transaction sequencing within a legal entity, you can have a single ledger with a singlebusiness unit and legal entity.

A business unit can also be identified in the chart of accounts as a:

◦ Management segment value

◦ Balancing segment value

◦ Roll up of cost center segments using hierarchies

For example, a business unit manager is responsible for working capital utilization or overall asset utilization.You identify the business unit as a balancing segment value, to enable calculation of ratios for various utilizationmeasurements.



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A business unit is assigned to a primary ledger, as well as a default legal entity when the business unit is configured.A BU identifies the primary ledger that subledger transactions are posted to, facilitating the use of more than one BUper general ledger. Each business unit posts transactions to a single primary ledger. For example, a shared servicecenter handles all the procurement functions for the entire company. The procurement transactions are posted tothe business unit's ledger with intercompany entries to other ledgers as needed.

• Representing Departments in the Chart of Accounts: A department is an organizational structure with one or moreoperational objectives or responsibilities that exist independently of its manager and that has one or more employeesassigned to it. The manager of a department is typically responsible for business deliverables, personnel resourcemanagement, competency management, and occasionally, for cost control and asset tracking.

In Oracle Fusion Applications, departments can be set up in Oracle Fusion Human Capital Management (HCM).If wanted, they can also be represented by a unique segment in the chart of accounts or a group of cost centervalues.

Modeling Your Financial Reporting Structure in OracleFusion: ExampleThis example uses a fictitious global company to demonstrate the analysis that can occur during the financial reportingstructure planning process.

ScenarioYour company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the UnitedKingdom (UK). InFusion has purchased an Oracle Fusion Enterprise Resource Planning (ERP) solution including Oracle FusionGeneral Ledger and all of the Oracle Fusion subledgers. You are chairing a committee to discuss creation of a model for yourglobal financial reporting structure including your chart of accounts for both your US and UK operations.

InFusion CorporationInFusion Corporation has 400 plus employees and revenue of 120 million US dollars. Your product line includes all thecomponents to build and maintain air quality monitoring systems for homes and businesses. You have two distributioncenters and three warehouses that share a common item master in the US and UK. Your financial services organizationprovides funding to your customers for the start-up costs of these systems.

AnalysisThe following are elements you must consider in creating your model for your financial reporting structure.

• Your company is required to report using US Generally Accepted Accounting Principles (GAAP) standards and UKStatements of Standard Accounting Practice and Financial Reporting Standards. How many ledgers do you plan tohave to achieve proper statutory reporting?



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• Your financial services line of business has a different year end. Do you need a different calendar? Your financialservices entity must report with average balance sheets. This feature of Oracle Fusion General Ledger providesyou with the ability to track average and end-of-day balances, report average balance sheets, and create your ownreports using both standard and average balances.

• Your corporate management requires reports showing total organizational performance with drill-down capability tothe supporting details. Do you need multiple balancing segment hierarchies to achieve proper rollup of balances forreporting requirements?

• Legal entity balancing options: Do you produce financial statements by one or more than one legal entity? Can yourecord multiple legal entities in one ledger or do you require multiple ledgers? Are you upgrading to Oracle FusionApplications or a new install? If an upgrade, is your current financial reporting structure meeting your reportingneeds?

Global Financial Reporting ModelThe following figure and table summarize the model that your committee has designed and uses number values to provide asample representation of your financial reporting structure. The model includes the following recommendations:

• Creation of three separate ledgers representing your separate legal entities:

◦ InFusion America Inc.

◦ InFusion Financial Services Inc.

◦ InFusion UK Services Ltd.

• Data security is controlled by balancing segment values using Oracle Fusion General Ledger data access sets

Recommendations for the chart of accounts design include:

• Segments required for cost centers with hierarchical rollups to departments providing reporting at both the detail(cost center) and summary (department) level.

• Accounts configured to provide drill down capability to the subledger transactions, enabling analysis of data.



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This figure illustrates a an example of your financial reporting structure.


InFusion Financial Services Inc.

Primary Ledger (USD)

Average Balancing May-April

InFusion America Inc.Primary Ledger (USD)Standard, Jan - Dec

InFusion UK Systems Ltd.Primary Ledger (GBP)

with Reporting Currency (USD)

Standard, Jan - Dec

InFusion United Kingdom (UK) Division

InFusion United States (US) Division

US LE 2Bal Seg 201,

202, 203

UK LE 4Bal Seg 103, 301,

302, 303

US Warehouse East

US Warehouse West

US Distribution Center

UK Warehouse

UK Distribution Center

BU 3 UK Systems

BU 2Fin Services

BU 1 US Systems

US LE 3Bal Seg 102

BU 4 Corporate Administration, Procurement, and HR Shared Services Center

Common Item Master

US LE 1Bal Seg 101

This table contains a summarization of the plan that your committee has designed, and uses number values to provide asample representation of your financial reporting structure.

Decision InFusion America, Inc. InFusion Financial Services, Inc. InFusion UK Systems, Ltd.

Type of Ledgers

Primary

Primary

Primary with the use ofReporting Currency functionality

Legal Entity Codes

US Legal Entity 1: US Corporate

US Legal Entity 3: US FinancialServices

UK Legal Entity 4: UK Systems



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Decision InFusion America, Inc. InFusion Financial Services, Inc. InFusion UK Systems, Ltd.

US Legal Entity 2: US Systems

Balancing Segments

101: US Corporate 201: US Systems Components 202: US Systems Installations 203: US Systems Maintenance

102: US Financial Services

103: UK Systems 301: Components 302: UK Systems Installations 303: UK Systems Maintenance

Currencies for Reporting

US Dollar (USD)

US Dollar (USD)

Great Britain Pounds Sterling(GBP) US Dollar (USD)

Calendar Ending Date

December 31st

April 30th

December 31st

Business Units (BU)*

BU 1: US Systems BU 4: Corporate (Shared ServiceCenter)

BU 2: Financial Services

BU 3: UK Systems

Balances Storage Method

Standard Balances

Average and Standard Balances

Standard Balances

Locations represented by costcenters in the chart of accounts.

Headquarters US DistributionCenter (BU 1) US Warehouse West US Warehouse East

Headquarters

UK Distribution Center (BU 3) UK Warehouse

Note: In the chart of accounts, cost centers, with hierarchical rollups, represent business units. InFusionCorporation is also a legal entity but is not discussed in this example.

Manage Chart of Accounts

Chart of Accounts: ExplainedThe chart of accounts is the underlying structure for organizing financial information and reporting. An entity recordstransactions with a set of codes representing balances by type, expenses by function, and other divisional or organizationalcodes that are important to its business.

A well-designed chart of accounts provides the following benefits:

• Effectively manages an organization's financial business.

• Supports the audit and control of financial transactions.

• Provides flexibility for management reporting and analysis.



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• Anticipates growth and maintenance needs as organizational changes occur.

• Facilitates an efficient data processing flow.

• Enables delegation of responsibility for cost control, profit attainment, and asset utilization.

• Measures performance against corporate objectives by your managers.

The chart of accounts facilitates aggregating data from different operations, from within an operation, and from differentbusiness flows, thus enabling the organization to report using consistent definitions to their stakeholders in compliance withlegislative and corporate reporting standards and aiding in management decisions.

Best practices include starting the design from external and management reporting requirements and making decisions aboutdata storage in the general ledger, including thick versus thin general ledger concepts.

Chart of Accounts: How Its Components Fit TogetherThe important elements in a basic chart of accounts in Oracle Fusion Applications included a structure that defines theaccount values, segments and their labels, and rules (security and validation). Account combinations link the values in thesegments together and provide the accounting mechanism to capture financial transactions.

This figure illustrates the main components in the chart of account structure and the way they fit together. The chart ofaccounts consists of segments which have value sets attached to them to determine the values from each used in creatingaccount combinations. Segments also have segment labels attached to them to point to the correct segment to use in



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general ledger processing, such as intercompany balancing or retained earning summarization. Segments are secured bysecurity rules and accounts are secured by cross validation rules.

Segments

Chart of Accounts

Primary Balancing

Value Sets

Values

Segment Labels

Account Combinations

Management

Intercompany

Natural Account

Cost Center

Rules

Security

Cross Validation

Third Balancing

Second Balancing

Chart of AccountsThe chart of accounts defines the number and attributes of various segments, including:

• Order of segments

• Width of segments

• Prompts

• Segment labels, such as balancing, natural account, and cost center.

The chart of accounts further defines:

• Combination of value sets associated with each segment

• Type of segment

• Default values for the segments

• Additional conditions designating the source of the values using database tables

• Required and displayed properties for the segments



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SegmentsA chart of accounts segment is a component of the account combination. Each segment has a value set attached to it toprovide formatting and validation of the set of values used with that segment. The combination of segments creates theaccount combination used for recording and reporting financial transactions. Examples of segments that may be found in achart of accounts are company, cost center, department, division, region, account, product, program, and location.

Value Sets and ValuesThe value sets define the attributes and values associated with a segment of the chart of accounts. You can think of a valueset as a container for your values. You can set up your flexfield so that it automatically validates the segment values thatyou enter against a table of valid values. If you enter an invalid segment value, a list of valid values appears automatically sothat you can select a valid value. You can assign a single value set to more than one segment, and you can share value setsacross different flexfields.

Caution: You must use Independent validation only for the Accounting Key Flexfield value sets. Othervalidations prevent you from using the full chart of accounts functionality, such as data security, reporting, andaccount hierarchy integration. Dependent values sets are not supported.

Segment LabelsSegment labels identify certain segments in your chart of accounts and assign special functionality to those segments.Segment labels were referred to as flexfield qualifiers in Oracle E-Business Suite. Here are the segment labels that areavailable to use with the chart of accounts.

• Balancing: Ensures that all journals balance for each balancing segment value or combination of multiple balancingsegment values to use in trial balance reporting. The three balancing segment labels are: primary, second, and thirdbalancing. The primary balancing segment label is required.

• Cost Center: Facilitates grouping of natural accounts by functional cost types, accommodating tracking of specificbusiness expenses across natural accounts. As cost centers combine expenses and headcount data into costs,they are useful for detailed analysis and reporting. Cost centers are optional, but required if you are accounting fordepreciation, additions, and other transactions in Oracle Fusion Assets, and for storing expense approval limits inOracle Fusion Expense Management. If you are implementing Oracle Fusion Procurement, you can use cost centersfor business intelligence reporting and to route transactions for approval.

• Natural Account: Determines the account type (asset, liability, expense, revenue, or equity) and other informationspecific to the segment value. The natural account segment label is required.

• Management: Optionally, denotes the segment that has management responsibility, such as the department, costcenter, or line of business. Also can be attached to the same segment as one of the balancing segments to makelegal entity reporting more granular.

• Intercompany: Optionally, assigns the segment to be used in intercompany balancing functionality.

Note: All segments have a segment qualifier that enables posting for each value. The predefined setting is Yesto post.

Account CombinationsAn account combination is a completed code of segment values that uniquely identifies an account in the chart of accounts,for example 01-2900-500-123, might represent InFusion America (company)-Monitor Sales (division)-Revenue (account)-AirFilters (product).



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RulesThe chart of accounts uses two different types of rules to control functionality.

• Security rules: Prohibit certain users from accessing specific segment values. For example, you can create asecurity rule that grants a user access only to his or her department.

• Cross-validation rules: Control the account combinations that can be created during data entry. For example, youmay decide that sales cost centers 600 to 699 should enter amounts only to product sales accounts 4000 to 4999.

Essbase Character and Word LimitationsThe following is a comprehensive list of character and word limitations that apply to Essbase. All of the limitations apply to allof the Oracle General Ledger configurations summarized in the table.

The following table shows how the General Ledger configuration maps to Essbase.

General Ledger Configuration Maps to Essbase

Chart of Account Name

Cube Name

Chart of Account Segment Name

Dimension Name

Chart of Accounts Segment Value

Dimension Member Name

Chart of Accounts Segment ValueDescription

Alias for Member

Tree and Tree Version Name

Dimension Member Name

Primary Ledger Name

Dimension Member Name in Ledger Dimension

Secondary Ledger Name


Reporting Currency Name


Ledger Set Name


Accounting Calendar Period Names

Dimension Member Name in Accounting Period Name

Scenario Name Defined in PredefinedValue Set Called Accounting Scenario

Dimension Member Name in Scenario Dimension

Even if case sensitivity is enabled in an aggregate storage outline for which duplicate member names is enabled, do not usematching dimension names with only case differences. For example, do not:

• Name two dimensions Product and product.

• Use quotation marks or brackets.



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• Use tabs in dimension, member, or alias names.

• Use accent characters.

• Use the characters for dimension or member names.

Restricted CharactersThe following table lists the characters that are restricted and cannot be used at the beginning of dimension, member, or aliasnames.

Character Meaning

@

at sign

\

backslash

,

comma

-

dash, hyphen, or minus sign For the accounting calendar period names, you can use a hyphen or an underscore in the middle ofan accounting calendar period name. For example: Jan-15 or Adj_Dec-15 can be used successfully.

=

equal sign

<

less than sign

()

parentheses

.

period

+

plus sign

'

single quotation mark

_

underscore For the accounting calendar period names, you can use a hyphen or an underscore in the middle ofan accounting calendar period name. For example: Jan-15 or Adj_Dec-15 can be used successfully.

|

vertical bar

Other Restrictions• Don't place spaces at the beginning or end of names. Essbase ignores such spaces.

• Don't use the following types of words as dimension or member names:

◦ Calculation script commands, operators, and keywords.

◦ Report writer commands.



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◦ Function names and function arguments.

◦ Names of other dimensions and members (unless the member is shared).

◦ Generation names, level names, and aliases in the database.

The following table lists additional words that should not be used.

List 1 List 2 List 3

ALL

AND

ASSIGN

AVERAGE

CALC

CALCMBR

COPYFORWARD

CROSSDIM

CURMBRNAME

DIM

DIMNAME

DIV

DYNAMIC

EMPTYPARM

EQ

EQOP

EXCEPT

EXP

EXPERROR

FLOAT

FUNCTION

GE

GEN

GENRANGE

GROUP

GT

ID

IDERROR

INTEGER

LE

LEVELRANGE

LOOPBLOCK

LOOPPARMS

LT

MBR

MBRNAME

MBRONLY

MINUS

MISSING, #MISSING

MUL

MULOP

NE

NON

NONINPUT

NOT

OR

PAREN

PARENPARM

PERCENT

PLUS

RELOP

SET

SKIPBOTH

SKIPMISSING

SKIPNONE

SKIPZERO

TO



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List 1 List 2 List 3

TOLOCALRATE

TRAILMISSING

TRAILSUM

UMINUS

UPPER

VARORXMBR

XMRONLY

$$$UNIVERSE$$$

#MI

Chart of Accounts Structure and Instances: Critical ChoicesIn Oracle Fusion General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure,under which one or more chart of accounts structure instances can be created. Consider the critical choices list here whencreating your hart of accounts instances and structures.

Chart of Accounts StructureWhen creating the segments for the chart of accounts structure, you must enter segment sequence numbers that areconsecutive and begin with the number one.

Chart of Accounts Structure InstanceFor segments in your chart of account structure instance that you expect to contain a large number of distinct values, youmust perform the following steps:

• In the chart of accounts definition, mark the segment query required option as selectively required. To performsearches in the transactional user interface, you have to specify the following segment as a mandatory searchcriteria.

• Create required indexes in the GL_CODE_COMBINATIONS table for segments that are selectively required.

Caution: For the Accounting Key Flexfield value sets used in your chart of accounts structure and instance, youmust use independent validation only. If you use other validations, you may not be able to use the full chart ofaccounts functionality, such as data security, reporting, and account hierarchy integration.

Creating Chart of Accounts Structure and Instances: ExamplesIn Oracle General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure, underwhich one or more chart of accounts structure instances can be created. A chart of accounts structure defines the keyattributes for your chart of accounts. These attributes include the number of segments, the segment sequences, the segmentnames, segment prompts, segment labels, for example natural account and primary balancing, and default value sets.

The chart of accounts instance is exposed in user interfaces and processes. By default, a chart of accounts instance inheritsall of the attributes of the chart of accounts structure, meaning that all instances of the same structure share a commonshape and have the same segments in the same order. However, at the chart of accounts instance level, you can override thedefault value set assignments for your segments and assign a unique account hierarchy that determines the parent and childrelationships between the value set values. At the chart of accounts instance level, you can determine whether to generatenew account combinations dynamically instead of creating them manually.



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Chart of Account StructureYou are creating a chart of accounts structure as you set up a chart of accounts for your enterprise, InFusion America, Inc.Follow these steps:

1. From the Setup and Maintenance work area, navigate to the Manage Chart of Accounts task.2. Select the General Ledger module and click Search.3. Click Manage Structures to open the Manage Key Flexfield Structures page.4. Select the General Ledger row and click the Create icon to open the Create Key Flexfield Structure page.5. Enter a unique structure code, INFUSION_AM_COA_STRUCTURE, and name, InFusion America COA

Structure. Provide an optional description, InFusion America Inc. chart of accounts structure.6. Select a delimiter to visually separate the segment values.7. Click Save.8. To create a new segment, click the Create icon to open the Create Key Flexfield Segment page.

a. Complete the fields, as shown in this table.

Field Value

Segment Code

INFUSION_AM_CO

Name

InFusion America Company

Description

InFusion America Inc.

Sequence Number

1

Prompt

Company

Short Prompt

CO

Display Width

2

Column Name

Segment1

Default Value Set Code

INFUSION_ AM_COMPANY

b. Select a segment label, Primary Balancing Segment, to indicate its purpose within your chart of accounts.

Note: Two segment labels are required: primary balancing segment and natural account segment.These labels are not used with each other or with other labels in a specific segment.

c. Click Save and Close.d. Click Done.e. Define additional segments following the same process.



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Chart of Account InstanceYou are creating a chart of accounts instance as you set up your chart of accounts for your enterprise, InFusion America, Inc.Follow these steps:

1. From the Setup and Maintenance work area, navigate to the Manage Chart of Accounts task.2. Select the General Ledger module and click Search.3. Select the General Ledger row and click Manage Structure Instances to open the Manage Key Flexfield

Structure Instance page.4. Click the Create icon to open the Create Key Flexfield Structure Instance page.5. Enter a unique structure instance code, INFUSION_AM_COA_INSTANCE, and name, InFusion America COA

Instance. Provide an optional description, InFusion America Inc. chart of accounts structure instance.6. Select the Dynamic combination creation allowed option to indicate that you want to dynamically generate

account combinations.7. Associate your instance with the structure InFusion America Structure.

Note: By default, an instance inherits the key attributes of the associated structure. Some attributes, suchas the value set assigned to each the segment, can be modified.

8. Click Save.9. To modify an instance segment, select the segment row and click Edit.

10. Select the Required, Displayed, and BI enabled options.

Note: Select the Required and Displayed options for all segments including those intended for futureuse. The recommended best practice is to define one segment for future use and set a default value.This ensures room for expansion in your chart of accounts and that the extra segment is populated in theaccount combinations. Select the BI (Business Intelligence) enabled option to use key flexfield segmentsin Oracle Fusion Transactional Business Intelligence. The business intelligence option is only valid whenenabled on segments with segment labels. The second step is to populate the BI Object Name field foreach of the segment labels on the Manage Segment Label page opened from the Manage Key Flexfieldspage.

11. Click OK.12. Click Save and Close.13. Define additional instances following the same process.

Note: Alternatively, proceed directly with creating your value set values by selecting the correspondingValue Set Code in the Segment Instances table.

14. Click Done.15. Click Deploy Flexfield.16. Click OK.

Related Topics

• Enabling Key Flexfield Segments for Business Intelligence: Points to Consider

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Creating One Chart of Accounts Structure with Many Instances:ExampleIn Oracle Fusion General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure,under which one or more chart of accounts structure instances can be created.

ScenarioYour company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the UnitedKingdom (UK). InFusion has purchased an Oracle Fusion enterprise resource planning (ERP) solution including Oracle FusionGeneral Ledger and all of the Oracle Fusion subledgers. You are chairing a committee to discuss creation of a model for yourglobal financial reporting structure including your charts of accounts for both your US and UK operations.

InFusion CorporationInFusion Corporation has 400 plus employees and revenue of $120 million. Your product line includes all the components tobuild and maintain air quality monitoring (AQM) systems for homes and businesses.

AnalysisIn Oracle Fusion General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure,under which one or more chart of accounts structure instances can be created.

Chart of Accounts ModelThe chart of accounts structure provides the general outline of the chart of accounts and determines the number ofsegments, the type, the length, and the label (qualifier) of each segment. This forms the foundation of the chart of accountsdefinition object.

For each chart of accounts structure, it is possible to associate one or more chart of accounts structure instances. Chart ofaccounts structure instances under the same structure share a common configuration with the same segments, in the sameorder, and the same characteristics. Using one chart of accounts structure with multiple instances simplifies your accountingand reporting.

At the chart of accounts structure instance level, each segment is associated with a value set that conforms to thecharacteristic of that segment. For example, you assign a value set with the same segment type and length to each segment.You are using hierarchies with your chart of accounts segments. Each structure instance segment is assigned a tree codeto indicate the source of the hierarchy information for the associated value set. The same value set can be used multipletimes within the same or across different chart of accounts instances within the same structure or in different structures. Thisfunctionality reduces your segment value creation and maintenance across your charts of accounts.

The collective assignment of value sets to each of the segments forms one chart of accounts instance. At the chart ofaccounts structure instance level, you can select to enable dynamic insertion. Dynamic insertion allows the creation ofaccount code combinations automatically the first time your users enter that new account combination. The alternative isto create them manually. By deciding to enable dynamic insertion, you save data entry time and prevent delays caused bythe manual creation of new code combinations. Well defined cross validation rules help prevent the creation of inappropriateaccount code combinations.

Perform deployment after a new chart of accounts structure and structure instances are defined or any of their modifiableattributes are updated. Deployment validates and regenerates the necessary objects to enable your charts of accounts andchart of accounts structure instances. By unifying and standardizing you organization's chart of accounts, you are positionedto take full advantage of future functionality in Oracle Fusion General Ledger.



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In summary, you are recommending to your company to unify the organization's chart of accounts in a single chart ofaccounts structure based on chart of accounts commonalities across ledgers. You have also decided to use the chart ofaccounts structure instance construct to serve different accounting and reporting requirements by using value sets specific toeach of your entities.

Configuring Chart of Account Segments for Business Intelligence:ExplainedTo map the Oracle General Ledger accounting flexfield in the Oracle Fusion Transaction Business Intelligence (BI) Repositoryfile (RPD) for Oracle Fusion Financials, populate values in the Manage Key Flexfields user interface. These values enable thechart of accounts segments for Oracle Fusion Transactional BI. The values also provide the mapping with BI Object namesthat are used as dimensions for each of the chart of accounts segments.

Follow these steps to select the BI enabled option for all chart of account segments that you intend to map in the RPD.

1. From your implementation project or the Setup and Maintenance page, query for Manage Key Flexfields > Goto Task.

2. Enter GL# in the Key Flexfield Code field.3. Click Search.4. Click Manage Structure Instances.5. Click Search.6. Click the specific chart of accounts and click the Edit icon.7. Click the specific segment and click the Edit icon.8. Select the BI enabled option.9. Click Save. This should be done for all segments in every chart of accounts structure instance that you intend to be

mapped in the RPD.10. Click Save and Close.11. Click Done.

Follow these steps to specify a BI object name for each segment label. This name is the logical table name in the RPD that isused as the dimension for the corresponding segment.

1. From your implementation project or the Setup and Maintenance page, query for Manage Key Flexfields > Goto Task.

2. Enter GL# in the Key Flexfield Code field.3. Click Search.4. Select the Actions menu and click Manage Segment Labels.5. Populate the BI Object Name field for all the segment labels that must be mapped in the RPD. Complete the fields,

as shown in this table.

Segment Label Code BI Object Name

FA_COST_CTR

Dim - Cost Center

GL_BALANCING

Dim - Balancing Segment

GL_ACCOUNT

Dim - Natural Account Segment

6. Click Save.



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Note: For all the nonqualified segment labels, populate the BI Object Name with one of the following values:

• Dim - GL Segment1










Deploy the flexfield using the Deploy Flexfield button on the Manage Key Flexfields page. For more information aboutusing both key and descriptive flexfields in Oracle Fusion Transactional BI, refer to the Oracle Fusion Transactional BusinessIntelligence Administrator's Guide.

Cost Centers and Departments: ExplainedThe two important components to be considered in designing your enterprise structure are cost centers and departments.

A cost center represents the smallest segment of an organization for which you collect and report costs. A department is anorganization with one or more operational objectives or responsibilities that exist independently of its manager and has one ormore workers assigned to it.

Cost CentersA cost center represents the destination or function of an expense rather than the nature of the expense which is representedby the natural account. For example, a sales cost center indicates that the expense goes to the sales department.

A cost center is generally attached to a single legal entity. To identify the cost centers within a chart of accounts structure useone of these two methods:

• Assign a cost center value in the value set for each cost center. For example, assign cost center values of PL04 andG3J1 to your manufacturing teams in the US and India. These unique cost center values allow easy aggregation ofcost centers in hierarchies (trees) even if the cost centers are in different ledgers. However, this approach requiresdefining more cost center values.

• Assign a balancing segment value with a standardized cost center value to create a combination of segment valuesto represent the cost center. For example, assign the balancing segment values of 001 and 013 with cost centerPL04 to represent your manufacturing teams in the US and India. This creates 001-PL04 and 013-PL04 as the costcenter reporting values. The cost center value of PL04 has a consistent meaning. This method requires fewer costcenter values to be defined. However, it prevents construction of cost center hierarchies using trees where onlycost center values are used to report results for a single legal entity. You must specify a balancing segment value incombination with the cost center values to report on a single legal entity.



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DepartmentsA department is an organization with one or more operational objectives or responsibilities that exist independently of itsmanager. For example, although the manager may change, the objectives do not change. Departments have one or moreworkers assigned to them.

A manager of a department is typically responsible for:

• Controlling costs within their budget

• Tracking assets used by their department

• Managing employees, their assignments, and compensation

The manager of a sales department may also be responsible for meeting the revenue targets.

The financial performance of departments is generally tracked through one or more cost centers. In Oracle FusionApplications, departments are defined and classified as Department organizations. Oracle Fusion Human CapitalManagement (HCM) assigns workers to departments, and tracks the headcount at the departmental level.

The granularity of cost centers and their relationship to departments varies across implementations. Cost center anddepartment configuration may be unrelated, identical, or consist of many cost centers tracking the costs of one department.

FAQs for Manage Charts of Accounts

How can I use future accounting segments?To plan for future growth in the business organization that requires additional segments in the chart of accounts. Extrasegments can be added to the chart of accounts structure during your original implementation. All segments of the chart ofaccounts are required and have to be enabled. The unused segments can be assigned value sets that have a single valuein the chart of accounts structure instance. The value is set as a default for that segment so that the extra segments areautomatically populated when an account account combination is used.

Manage Value Sets

Value Sets: ExplainedA value set is a group of valid values that you assign to a flexfield segment to control the values that are stored for businessobject attributes.

A user enters a value for an attribute of a business object while using the application. The flexfield validates the value againstthe set of valid values that you configured as a value set and assigned to the segment.

For example, you can define a required format, such as a five-digit number, or a list of valid values, such as green, red, andblue.

Flexfield segments are usually validated, and typically each segment in a given flexfield uses a different value set. You canassign a single value set to more than one segment, and you can share value sets among different flexfields.



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Note: Ensure that changes to a shared value set are compatible with all flexfields segments using the value set.

The following aspects are important in understanding value sets:

• Managing value sets

• Validation

• Security

• Precision and scale

• Usage and deployment

• Protected value set data

Managing Value SetsTo open the Manage Value Sets page, use the Manage Value Sets task. You can also use the Manage Descriptive Flexfieldsand Manage Extensible Flexfields tasks for configuring a segment, including its value set. To open the Manage Values page,select the value set from the Manage Value Sets page, and click Manage Values. Alternatively, click Manage Values fromthe Edit Value Set page.

ValidationThe following types of validation are available for value sets:

• Format only, where users enter data instead of selecting values from a list

• Independent, a list of values consisting of valid values you specify

• Dependent, a list of values where a valid value derives from the independent value of another segment

• Subset, where the list of values is a subset of the values in an existing independent value set

• Table, where the values derive from a column in an application table and the list of values is limited by a WHEREclause

A segment that uses a format only value set doesn't present a list of valid values to users. If required, you may add tablevalidated value sets to the list of available value sets available for configuration.

Note: For the Accounting Key Flexfield value sets, you must use independent validation only. If you use othervalidations, you can't use the full chart of accounts functionality, such as data security, reporting, and accounthierarchy integration.

SecurityValue set security only works in conjunction with usage within flexfield segments. You can specify that data security beapplied to the values in flexfield segments that use a value set. Based on the roles provisioned to users, data security policiesdetermine which values of the flexfield segment users can view or modify.

The application of value set security has the following conditions:

• At the value set level: The value set is the resource secured by data security policies. If a value set is secured, everyusage of it in any flexfield is secured. Disabling security for individual usages of the same value set isn't possible.

• Applies to independent, dependent, or table-validated value sets.

• Applies mainly when data is being created or updated, and to key flexfield combinations tables for query purposes.Value set security doesn't determine which descriptive flexfield data is shown upon querying.



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• Security conditions defined on value sets always use table aliases. When filters are used, table aliases are alwaysused by default. When predicates are defined for data security conditions, make sure that the predicates also usetable aliases.

For key flexfields, the attributes in the view object corresponding to the account combination ID, structure instance number(SIN), and data set number (DSN) can't be transient. They must exist in the database table. For key flexfields, the SINsegment is the discriminator attribute, and the account combination segment is the common attribute.

Precision and ScaleIf the data type of a value set is Number, you can specify the precision (maximum number of digits user can enter) or scale(maximum number of digits following the decimal point).

Usage and DeploymentThe usage of a value set is the flexfields where that value set is used. The deployment status of flexfields in which the valueset is used indicates the deployment status of the value set instance.



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The following figure shows a value set used by a segment in a key flexfield and the context segmentof a descriptive flexfield.

For most value sets, when you enter values into a flexfield segment, you can enter only values that already exist in the valueset assigned to that segment.

Global and context-sensitive segment require a value set. You can assign a value set to a descriptive flexfield contextsegment. If you specify only context values, not value sets for contexts, the set of valid values is equal to the set of contextvalues.

Protected Value Set DataApplication developers may mark some value sets as protected, indicating that you can't edit them.

You can edit only value sets that are not marked as protected. You can't edit or delete protected value sets. If the value settype supports values (such as independent, dependent or subset value sets), then you can't add, edit, or delete values.



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Note: References to protected value sets aren't restricted. Value sets, protected or not, may be assignedto any flexfield segment. Likewise, other value sets may reference protected value sets; for example, anunprotected dependent value set may reference a protected independent value set.

Related Topics• Flexfields and Value Sets: How They Work Together

• Why can't I edit my flexfield or value set configuration?

• What's the difference between a lookup type and a value set?

• Deriving and Setting Default Segment Values: Explained

Chart of Accounts Values Sets: Critical ChoicesA value set is the collection of account values that are associated with a segment of a chart of accounts structure instance.When creating values sets, consider the following critical choices:

• Module Designation

• Validation Type

• Format Assignments

• Security Rules

• Values Definition

Module DesignationThe module designation is used to tag value sets in Oracle Fusion Applications and sets the value sets apart during upgradesand other processes. Chart of accounts value sets upgraded from Oracle E-Business Suite Release 12 generically bearthe module value of Oracle Fusion Middleware. When creating value sets for a chart of accounts, the module can bespecified as Oracle Fusion General Ledger to distinctly identify its intended use in an accounting flexfield, basically a chartof accounts.

Validation TypeAssign one of the following validation types to chart of accounts value sets:

• Independent: The values are independently selected when filling out the segment in the account combination.

• Table Validated: The values are stored in an external table to facilitate maintenance and sharing of the referencedata.

Caution: You must use Independent validation only for the Accounting Key Flexfield value sets. Othervalidations prevent you from using the full chart of accounts functionality, such as data security, reporting, andaccount hierarchy integration. Dependent values sets are not supported.

Format AssignmentsValue sets for chart of accounts must use the Value Data Type of Character. The Value Subtype is set to Text. Thesetwo setting support values that are both numbers and characters, which are typical in natural account segment values. Setthe maximum length of the value set to correspond to the length of the chart of accounts segment to which it is assigned.Best practices recommend restricting values to Upper Case Only or Numeric values that are zero filled by default.

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Security RulesIf flexfield data security rules are to be applied to the chart of accounts segment associated with the value set, the EnableSecurity option for the assigned value set must be selected. In addition, assign a data security resource name to enablecreation of a data security object automatically for the value set. The data security object is used in the definition of flexfielddata security rules.

Value DefinitionOnce these basic characteristics are defined for the value set, values can be added to the set on the Manage Values page.

• Set the values to conform to the value set length and type.

• Enter the value, its description, and its attributes including the Enable check box, Start Date, and End Date.

• Assign the following attributes: Parent or Summary check box, Posting is allowed, and Budgeting is allowed.

If the value set is used with a natural account segment, you must assign the Natural Account Type, with one of thefollowing values: Asset, Liability, Owner's Equity, Revenue, or Expense.

Caution: Assign account types carefully. If you assign an incorrect account type to a natural account segmentvalue, accounting entries are recorded incorrectly and financial statements are inaccurate. Misclassifiedaccounts are also potentially handled incorrectly at year end, with actual balances either getting zeroed out toretained earnings, or accumulating into the next year.

Other attributes used are Third-Party Control Account, Reconciliation indicator, and Financial Category, which is usedwith Oracle Transaction Business Intelligence reporting.

Tip: Best practice is to define the values for the value set after the value set is assigned to a chart of accountsstructure instance. Otherwise you aren't able to define the mandatory value attributes, such as the summaryindicator, posting allowed, and account type for natural account segments. The attributes must be added afterthe value set is assigned to a chart of accounts structure instance.

Creating a Value Set for Your Chart of Accounts: ExampleCreate your value sets before creating your chart of accounts. A value set can be shared by different charts of accounts oracross different segments of the same chart of accounts.

ScenarioYou are creating a company value set to be used in your chart of accounts for your enterprise, InFusion America, Inc. Followthese steps:

1. Navigator > Setup and Maintenance > Manage Chart of Accounts Value Sets >Go to Task.2. Click the Create icon on the toolbar of the Search Results table. The Create Value Set page opens.3. Enter a unique Value Set Code, InFusion America Company, and an optional Description, Company values for

InFusion America Inc.4. Select General Ledger from the list in the Module field.5. Select Independent as Validation Type.

Note: You must use Independent validation only for the Accounting Key Flexfield value sets. Othervalidations prevent you from using the full chart of accounts functionality, such as data security, reporting,and account hierarchy integration. Dependent values sets are not supported.



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6. Select Character as the Validation Data Type.7. Save and Close.

Manage Account Hierarchies

Trees: OverviewTrees are hierarchical data models that you can use to organize data, apply business rules, control data access, and improveperformance while querying. For example, an application maintains data of an organization called Vision Corporation that hastwo departments: Marketing and Finance. The Finance department has two functional divisions: Receivables and Payables.You can define a tree for Vision Corporation to establish a hierarchy across its departments, and their respective functionaldivisions. You can use the hierarchy to manage data at various levels of the organization.

In the Setup and Maintenance work area, open the panel tab and click Search to search for and use the following tasks towork with trees:

• Manage Tree Structures: To create and update tree structures. You must first define a tree structure to create a tree.

• Manage Trees and Tree Versions: To create and update trees and their versions.

• Manage Tree Labels: To create and update tree labels.

Tree StructuresAs the name suggests, tree structures provide you the framework to organize data such that you can establish a hierarchy foruse by the tree. So, similar to a template, a tree structure guides the creation of a tree.

TreeA tree is an instance of the tree structure. The root node is the highest nodal point of a tree. Child nodes branch off from theroot node. Child nodes at the same level, branching off from a common parent node, are called siblings. Leaves are detailsbranching off from a node but not extending further down the tree hierarchy. You can create trees for multiple data sourcesand share them across applications.

Tree VersionsA tree by default has only one version. If required, you can create and maintain more than one editable tree version. At anypoint, only one tree version must be active. If you edit an existing version, it changes from active to draft. To use it again, youmust set it to active. Similar to any other version control system, versions of trees are maintained to track all the changes thata tree undergoes in its life cycle.

Tree LabelsTree labels are short names given to trees and tree structures. You can label the tree versions for better accessibility andinformation retrieval. When nodes are created in a tree, the existing tree labels are automatically assigned to the new treenodes. You can use any table to store the labels and register the label data source with the tree structure.



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Importing Segment Values and Hierarchies: ExplainedUse the Import Segment Values and Hierarchies process to load segment values and hierarchies if you maintain chart ofaccounts reference data outside Oracle Fusion applications. You can load the segment values and hierarchies by populatingtwo tables: GL_SEGMENT_VALUES_INTERFACE and GL_SEGMENT_HIER_INTERFACE, and by running the ImportSegment Values and Hierarchies process.

Note: You can load data to interface tables using predefined templates and the Load Interface File for Importscheduled process, which are both part of the External Data Integration Services for Oracle Cloud. For moreinformation about file-based data import, see the File Based Data Import guide for your cloud services.

You can use the GL_SEGMENT_VALUES_INTERFACE table to load segment values and theGL_SEGMENT_HIER_INTERFACE table to load segment value hierarchies to Oracle Fusion applications. For moreinformation about tables, see the Tables and Views for Oracle Financials Cloud guide.

Assigning Values for Columns in the GL_SEGMENT_VALUES_INTERFACE tableYou must enter values in all columns of the interface table that require values for the Import Segment Values and Hierarchiesprocess to be successful.

The following table describes the columns that require values.

Name Value

STATUS_CODE Enter the value NEW to indicate that you are bringing new segment value data.

VALUE_SET_CODE

Enter the value set code for the segment values.

VALUE

Enter the segment value.

SUMMARY_FLAG Select N if the segment value is a child value or Y if the segment value is a parent value.

ENABLED_FLAG: Select Y to enable the segment value. Enter N to disable the segment value.

ACCOUNT_TYPE: Enter the natural account type if the segment value is for a natural account segment.

• A: Asset• L: Liability• E: Expense• O: Owner's Equity• R: Revenue

ALLOW_ POSTING_FLAG Select Y if posting is allowed for this segment value. Select N if posting is not allowed.

OBJECT_ VERSION_ NUMBER Enter default value of 1.

The following table describes the columns that are optional.



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Name Value

START_ DATE_ACTIVE

Enter the start date of the segment value.

END_ DATE_ACTIVE

Enter the end date of the segment value.

THIRD_ PARTY_ CTRL_ACCOUNT Enter the third-party control account value. Valid values are: CUSTOMER, SUPPLIER, R for restrict

manual journals, Y, and N.

FINANCIAL_ CATEGORY

Enter a financial category value for Oracle Transactional Business Intelligence reporting. Valid valuesare values defined for the FINANCIAL_ CATEGORY lookup type.

DESCRIPTION

Different description columns exist for different languages. To see segment value description in adifferent language installation, you populate the segment description for that language too.

The following columns should remain blank. The Import Segment Values and Hierarchies process uses them for internalprocessing, or doesn't currently use them.

• CREATION_DATE

• CREATED_BY

• LAST_UPDATE_DATE

• LAST_UPDATE_LOGIN

• LAST_UPDATED_BY

• SEGMENT_VALUE_INTERFACE_ID

• REQUEST_ID

• LOAD_REQUEST_ID

Assigning Values for Columns in the GL_SEGMENT_HEIR_INTERFACE tableYou must enter values in all columns of the interface table that require values for the Import Segment Values and Hierarchiesprocess to be successful.


Name Value

STATUS_CODE Enter the value NEW to indicate that you are loading new hierarchy data.

VALUE_SET_CODE

Enter the value set code for the segment values.

TREE_CODE

Enter the hierarchy name (tree code).

TREE_VERSION NAME

Enter the hierarchy version name (tree version name).

TREE_ VERSION_ START_DATE_ACTIVE

Enter the date that the tree version is activated.

TREE_ VERSION_ END_ DATE_ACTIVE

Enter the date that the tree version is inactivated.



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Name Value

VALUE

Enter the segment value.

PARENT_VALUE Select N if the segment value is a child value or Y if the segment value is a parent value.

DEPTH

Enter the depth of the hierarchy that shows the many ancestors the segment value has in thehierarchy.

OBJECT_ VERSION_ NUMBER Enter default value of 1.

The following columns should remain blank. The Import Segment Values and Hierarchies process uses them for internalprocessing or doesn't currently use them.

• CREATION_DATE

• CREATED_BY



• LAST_UPDATED_BY

• SEGMENT_VALUE_INTERFACE_ID

• REQUEST_ID

• LOAD_REQUEST_ID

Related Topics• External Data Integration Services for Oracle Cloud: Overview

• Loading Data to the Segment Value and Hierarchies Interface Tables: Explained

• Tables and Views for Oracle Financials Cloud

• File-Based Data Import for Oracle Financials Cloud

Publishing an Account Hierarchy: ExamplePublish an account hierarchy to finalize a new or edited account hierarchy. Account hierarchies organize data and enablethe creation of groups and rollups of information that exist within an organization. After creating or editing an accountinghierarchy, run the Publish Account Hierarchies, Maintain GL Value Sets, and Maintain Chart of Account Hierarchies processesbefore using the new or changed account hierarchy.

ScenarioYou have made changes to your InFusion America account hierarchy. Follow these steps to publish your account hierarchy.

1. Navigator > Setup and Maintenance.2. Enter the Publish Account Hierarchies into the Name field. Click Search.3. Click the Go to Task to open the Publish Account Hierarchies page.4. Search for your InFusion America account hierarchy.5. Expand to open the versions of your hierarchy.6. Click the Publish button on the tool bar.

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Note: For a new hierarchy, scroll over to verify the Publish check box is checked.

Hierarchies for Cross Validations, Revaluations, and Chart ofAccounts Mapping: ExplainedHierarchies you create for reporting or allocations may not be suitable for setting up cross validations, revaluation, and chartof accounts mapping rules.

For example, if you must enforce a cross validation rule that a set of 20 departments is applicable only to a certain company,then you can group the 20 departments under a hierarchy node and refer to that hierarchy node in the cross validation rule.

Cross Validations, Revaluations, and Chart of Accounts MappingFor hierarchies for cross validations, revaluations, and chart of accounts mapping:

• Create hierarchies for cross validations, revaluation, or chart of accounts mapping within one hierarchy. Associatethis hierarchy to the chart of accounts segment instance in the chart of accounts instance setup page. You can onlyassociate one hierarchy with the chart of accounts instance. You can create separate root nodes for each segmentof the hierarchy.

• Create an account hierarchy for each of the segments that are used in the rule set ups. Depending on yourrequirements, not all segments may need a hierarchy.

• Use the same child to roll up to different parents if you need different roll ups for cross validations, revaluations, andchart of accounts mapping.

• Flatten and audit the hierarchy after the hierarchies are complete and set it to an active status.

• Associate the hierarchy to the chart of accounts segment instance.

• Redeploy the accounting flexfield after the chart of accounts instance is updated.

If you have the duplicate segment values in a hierarchy, you should not publish the hierarchies to Oracle Essbase.

Naming Financial Reporting and Allocations Hierarchies: Points toConsiderYou must publish hierarchies for financial reporting and allocations to Oracle Essbase cubes. When a hierarchy is published toan Essbase cube, a fully qualified member name is generated for each node in the hierarchy. This fully qualified member nameis used to refer to the node in the hierarchy in financial reports and allocation rules.

Each combination of tree plus tree version is published as a different account hierarchy to Essbase cubes.

When a chart of accounts child or parent value is assigned to multiple hierarchy versions, the fully qualified member nameincludes the hierarchy version name.



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Member Names and Financial Reporting and Allocations HierarchiesYou must consider the implications to your financial reports, allocation rules, and Smart View templates if the member namechanges due to hierarchy changes. The points to considered are:

• The member name for a member can change if you originally published a single hierarchy to a cube and laterpublished another hierarchy. The change happens if the member includes the same chart of accounts value.

• If the fully qualified member name changes, you must update existing financial reports, allocation rules, and SmartView templates that refer to that member. Otherwise, such processes have errors.

For example, only a single hierarchy version, V1, existed when you defined a financial report. The hierarchy version includesthe chart of accounts value of 500 for a cost center. The path does not include a hierarchy version name, since there is onlyone hierarchy version in the cube. The fully qualified name path is 500.

Later, you publish a new hierarchy version, V2. The fully qualified member name changes since there are now two versionsand cost center 500 is associated with two hierarchy versions, V1 and V2. When selecting the value 500, the cube has logicto uniquely identify the member. The fully qualified member name for the two hierarchy versions is now:

• [All VF Cost Centers-V1].[999].[500]

• [All VF Cost Centers-V2].[999].[500]

Note: The fully qualified member can also be shortened by the cube logic, such as [Cost_Center]@[Cost CenterLevel 29 Code]|[500].

Update configurations, such as financial reports, allocation rules, or Smart View queries that referenced the original namepath of 500 with the correct name.

Related Topics

• Initial Publishing of Account Hierarchies: Points to Consider

Maintain Account Hierarchies: OverviewThis topic describes the best practices of maintaining and publishing the account hierarchies. Account hierarchies are usedthroughout Oracle Fusion General Ledger for creating financial reports, Smart View inquiries, allocation definitions, crossvalidation rules, and revaluation definitions.

Related Topics

• Account Hierarchy Trees: Explained

Maintenance of Hierarchies: ExplainedAs your organization changes or there are updates to your chart of accounts values, you can make updates to your hierarchyversions. Changes must be in the two hierarchy versions to minimize errors related to member name paths in financialreports, allocation rules, or Smart View queries. Both hierarchy versions must be published to the balances cube.

To keep an audit history, copy the hierarchy version and use the copy as the version for audit history. After you copy thehierarchy version, modify that same version to use as the latest version. You do not have to change reports.

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Hierarchy Versions ConfigurationPerform the following steps before updating the current hierarchy version:

1. Copy the current hierarchy version to create cost center 2011 to keep an audit history for year 2011.2. Update the effective date for the Current hierarchy version to the current period. Set the effective dates for the

copied hierarchy version to what the past dates were.3. Make all of your current hierarchy changes to the Current hierarchy version.4. Set the status to Active again.5. Delete the Baseline hierarchy version in the Manage Account Hierarchies page. You do not unpublish the

hierarchy from the cube, as long as you follow the naming conventions discussed in the following steps.6. Copy the Current hierarchy version and name it Baseline. You must name it the same exact name because

Baseline still exists in the cube. The procedures overwrite the hierarchy version named Baseline in the cube.7. Use effective dates that do not overlap and that are before periods used by previously active hierarchy versions.8. Set the status for the Baseline hierarchy version to Active.9. Publish both hierarchy versions, Current and Baseline, to their respective cube.

10. Publish the cost center 2011 to the cube if the version is still needed for financial reporting, Smart View queries, orallocation rules.

11. Review the published results using Smart View.

You have the following three versions:

1. The new copied version: This version is used to track the history of the old master version, for example, cost center2011 and have been end dated.

2. Current version: This version has been modified to reflect the new hierarchy and is now active.3. Baseline version: This version should continue to be the duplicate of the master version. Rather than modifying this

manually, delete the old baseline version and create another copy of the master. Modify the master version. Thesesteps should be followed each time when there are hierarchy changes that must be published.

Note: Best practices recommend that if there are changes, you update the hierarchies before completingperiod close and financial reporting.

Maintaining Hierarchies: ExamplesThe following example illustrates how to maintain your hierarchy.

ScenarioYour organization, Vision Operations:

• Decided in 2015 to begin using Oracle General Ledger, effective January 1, 2016.

• Uses a single chart of accounts named Corporate Chart of Accounts. Since you only have one chart of accounts,this is also the name of the cube.

• Uses a hierarchy to capture its cost center roll ups by line of business. The name of this hierarchy is Cost CentersHierarchy.

At the end of 2016, your organization, Vision Operations, makes organizational changes to its lines of business. You add newcost centers and a new line of business. As a result, you must update your cost center hierarchies to ensure that financialreporting reflects the new organization hierarchy.

Don't make changes to the Cost Center Master hierarchy version if no account value changes have been made and thecurrent hierarchies are working.



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However, since there are changes, you must:

1. Copy and backup the Cost Center Current hierarchy version to maintain history.2. Make changes to the Cost Center Current hierarchy version and change it to the new effective dates.3. Delete the hierarchy version named Baseline. You don't unpublish the hierarchy from the cube, as long as you

follow the naming conventions discussed in the following steps.4. Copy the Current hierarchy version after changes are completed, and name it Baseline.5. Publish the Current hierarchy version again.6. Publish the new Baseline hierarchy version again.

After publishing both versions, there are still only two hierarchy versions in the cubes. The version name must always be thesame across all periods. The name is referenced in financial reports, allocation rules, and Smart View queries. For example,Cost Center Current and Cost Center Baseline. Don't have a version named 2016 Cost Center, or 2017 Cost CenterCurrent, or 2017 Cost Center Baseline.

This example assumes an annual change. It can also be quarterly, monthly, or as needed. Follow these steps for anyhierarchy changes at any time for even regular maintenance, such as adding values or moving values in the hierarchy. Bestpractices recommend keeping your current and baseline hierarchy versions synchronized.

FAQs for Manage Account Hierarchies

How can I manage and review account hierarchies?View segment value descriptions when creating, editing, or reviewing account hierarchies online. You can also export accounthierarchies to a spreadsheet to review, analyze, and report offline.

To export all nodes in the hierarchies to a spreadsheet, expand all nodes first from View -> Expand All in the ManageAccount Hierarchies: Specify Nodes page.

When do I perform row and column flattening for tree versions manually?Row Flattening and Column Flattening for tree versions need to be manually submitted under the following scenarios.

• When a new tree or tree version is defined.

• If the tree or tree version has any change made to it that would alter the flattened hierarchy data. For example,adding, moving, and duplicating members. Basically, anything that impacts the flattened hierarchy data.

• If Data Relationship Management (DRM) is used with Oracle Fusion General Ledger, after running the Load AccountValues and Hierarchies process from the Scheduled Process work area to load chart of accounts reference datafrom DRM to Oracle Fusion General Ledger.

• When range based hierarchy assignments are supported, if new values are added that are within the account rangeassigned to the hierarchy.

Note: In this case, try submitting the flattening programs using the Online Mode first. If the newlyinserted child account value does not appear to be included in the flattened hierarchy data, then theflattening program has to be submitted using the Force Flattening Mode, instead of Online Flattening.An issue with the incremental flattening programs can prevent them from picking up this type of hierarchychange, so full flattening can be required.

Note: Column flattening processed data is primarily relevant to Oracle Fusion Transactional BusinessIntelligence, but there should not be any adverse impact to run both row and column flattening processes.



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Manage Tree Structures

Tree Structures: ExplainedA tree structure defines the hierarchy for creating trees and prescribes rules based on which trees are created, versioned, andaccessed. You can associate multiple data sources with a tree structure. A tree is an instance of this hierarchy. Every treestructure can contain one or more trees.

You can create tree structures specific to an application but you can share tree structures across applications. If you applyversion control to the tree structure, it is carried over to the trees that are based on the tree structure. Each tree versioncontains at least one root node. Occasionally, a tree version may have more than one root node.

An administrator controls the access to tree structures through a set of rules that are periodically audited for validity.

Tree Structure Definition: Points to ConsiderWhile creating a tree structure, you must specify important details on the Create Tree Structure: Specify Definition page. Asthe source of the tree structure, you may either select the predefined tree structures and proceed with the definition or createtree structures.

Tree Node SelectionThe data in Tree Node table maps to the data in nodes of the tree structure. You must select the correct and mostappropriate tree node table to define the tree structure, based on which you establish the tree hierarchy. This selection alsoaffects the level of security that is set on a tree node and its child entities.

Tree Sharing ModeUse the following options to determine the mode of sharing a tree structure across the applications.

• Open: Indicates that the tree is associated with all reference data sets.

• Set ID: Indicates that the tree is associated with a specific reference data set.

ModificationYou can modify the predefined tree structures as well as those you create. However, modifying a predefined tree structureis restricted and permitted through additional privileges. Modification is limited to specific tree nodes and lower in the treehierarchy.

Multiple Tree VersionsAlthough multiple tree versions can exist together, Oracle recommends only one version be active at any given time.However, if required, you can have more tree versions to be in the active state for the same date range. You can use thisflexibility to select the tree version you want to implement.

Managing Tree Structures: Points to ConsiderYou can create, edit, and delete tree structures. You can also change the status of a tree structure and audit the changes.

Creating and Editing Tree StructuresWhen you edit an active tree structure, the status of the tree structure and all associated trees and their versions changesto draft. To reuse a tree structure, create a copy of the tree without copying the associated trees and tree versions. Aftermaking changes, set the status again to active. If you delete a tree structure, all the associated trees and tree versions areautomatically deleted.



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For information about working with the offering-specific predefined tree structures, refer to the relevant productdocumentation.

StatusWhen you change the status of a tree structure, the status of the trees and tree versions associated with that tree structurealso changes.

The following table lists the different statuses of a tree structure.

Status Meaning

Draft

In a modified state, or not yet in use.

Active

In use, indicating that one or more trees or tree versions are created from the tree structure.

Inactive

Not in use.

Tree Structure Audit Results: ExplainedUse the tree structure audit results to verify the tree structure's correctness and data integrity. The audit results include thefollowing details:

• The name of the validator, which is a specific validation check

• The result of the validation, including a detailed message

• Corrective actions to take if there are any validation errors

Running an AuditSetting the status of a tree structure to active automatically triggers an audit of that tree structure. To manually trigger anaudit, select Audit from the Actions menu on the Manage Tree Structures page. The Tree Structure Audit Result table showsa list of validations that ran against the selected tree structure.

Audit ValidatorsThe following table lists the validators used in the audit process and describes what each validator checks for. It also listspossible causes for validation errors and suggests corrective actions.

Validator Page Description (what isvalidated)

Possible Cause forValidation Failure

Suggested CorrectiveAction

Restrict By Set ID

Manage Tree Structures:Specify Data Sources

If you select theReference Data Setcheck box for theRestrict Tree Node Listof Values Based onoption, each of its datasource view objects musthave a reference data setattribute.

Even when the checkbox is selected, one ormore data source viewobjects doesn't containa reference data setattribute.

If reference data setrestriction is requiredfor this tree structure,include a reference dataset attribute on all datasources. Otherwise,deselect the check box.

Available Label DataSources


If you select a list itemfrom Labeling Schemeto specify a labeling

• Any of thespecified labeldata source view

• Correct thespecified labeldata source viewobject.



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scheme, the label datasource view objectspecified for eachdata source must beaccessible. Also, theprimary keys must bevalid. This restrictiondoesn't apply if youselect None from the list.

objects doesn'texist.

• Any of thespecified labeldata source viewobjects doesn'thave primary keys.

• When a labeldata source viewobject is initiallydefined, thedatabase registersthe primary keysfor the viewobject. If the viewobject is latermodified suchthat its primarykeys no longermatch the primarykeys that wereregistered earlier,this validation fails.

• Correct theprimary keys ofthe specified labeldata source viewobject.

• Do one of thefollowing:

◦ Correctthe primarykeys in thelabel datasourceview objectto matchthe primarykeys thatwere earlierregisteredinFND_TS_DATA_SOURCE.

◦ Correctthe primarykeysregisteredin that tableto matchthe newview objectdefinition.

Row Flattened TableName

Manage Tree Structures:Specify PerformanceOptions

You must specify a validrow flattened table forthe tree structure. It caneither be the standardrow flattened table FND_TREE_NODE_RF oranother table.

• The specifiedtable doesn't existin the database.

• The specifiedtable doesn'tcontain the samecolumns as theFND_TREE_NODE_RFtable.

Correct the row flattenedtable definition.

Available Data Sources

Add Data Source

Each data source viewobject specified for thetree structure must beaccessible, and all itsprimary key attributesmust be valid.

• Any of thespecified datasource viewobjects doesn'texist.

• When you define adata source viewobject, keep theUse non-definedprimary keycolumns checkbox deselected.The databaseautomaticallyregisters theprimary keys forthe view object.Select this checkbox if you wantthe databaseto register the

• Correct thespecified datasource viewobject.

• Correct theduplicate columnin the registeredprimary keys.

• Correct theprimary keysof the specifieddata source viewobject.

• Correct anymismatch in datatypes.



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primary keysyou specify.However, if theregistered primarykeys contain anyduplicates, thisvalidation fails.

• The Use non-defined primarykey columnscheck box isselected in a datasource, but thelist of specifiedprimary keycolumns doesn'tmatch the primarykeys defined inthe correspondingdata source viewobject.

• Any commonattribute thatexists in both thedata source viewobject and thetree node viewobject isn't of thesame data type inboth view objects.

Column Flattened TableName

Manage Tree Structures:Specify PerformanceOptions

You must specify a validcolumn flattened table forthe tree structure. It caneither be the standardrow flattened table FND_TREE_NODE_CF oranother table.


• The specifiedtable doesn'tcontain the samecolumns as theFND_TREE_NODE_CFtable.

Correct the columnflattened table definition.

Restrict by Date


If you select the DateRange check box forthe Restrict Tree NodeList of Values Basedon option for a treestructure, each of its datasource view objects musthave effective start dateand end date attributes.This validation doesn'ttake place when thecheck box isn't selected.

Even when the checkbox is selected, one ormore of its data sourceview objects doesn'tcontain effective startdate and end dateattributes.

If the date restrictionis required for this treestructure, include theeffective start dateand effective end dateattributes on all datasources. Otherwise,deselect the check box.

Tree Node Table Name

Manage Tree Structures:Specify Definition

You must specify a validtree node table for thetree structure. It caneither be the standardrow flattened tableFND_TREE_NODE oranother table.

• No table isspecified in theTree Node Tablefield.


Correct the tree nodetable definition.



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• The specifiedtable doesn'tcontain the samecolumns as theFND_TREE_NODEtable.

Specifying Data Sources for Tree Structures: Points to ConsiderThe data sources provide the items for establishing hierarchy in a tree structure. In the tree management infrastructure, thesedata sources are Oracle ADF business components view objects, which are defined by application development.

Labeling SchemesSelecting a labeling scheme determines how the tree nodes are labeled. You may select a labeling scheme to assign at thedata source level, at the parent node level, or keep it open for customers assignment. You may also choose not to have anylabeling scheme. However, if you decide to use any of the labeling schemes, select the following additional options, to restrictthe list of values that appear under the selected tree node.

• Allow Ragged Nodes: To include nodes that have no child nodes, and are shorter than the remaining nodes in theentire hierarchy.

• Allow Skip Level Nodes: To include nodes that are at the same level but have parent nodes at different levels.

Restriction of Tree Node ValuesYou can decide the depth of the tree structure by selecting an appropriate value from the list. Keeping the depth limit openrenders an infinite list of values.

Using the following options, you can restrict the list of values that appear for selection under a specific tree node.

• Date Range: Specifies whether a selection of nodes should be restricted to the same date range as the treeversion.

• Allow Multiple Root Nodes: Allows you to add multiple root nodes when creating a tree version.

• Reference Data Set: Specifies whether a selection of nodes should be restricted to the same set as the tree.

Data Source Values and ParametersTree data sources have optional data source parameters with defined view criteria and associated bind variables. You canspecify view criteria as a data source parameter when creating a tree structure, and edit the parameters when creating a tree.Multiple data sources can be associated with a tree structure and can have well-defined relationships among them.

Note: Parameter values modified at the tree level override the default values specified at the tree-structure level.

The data source parameters are applied to any tree version belonging to that data source, when performing node operationson the tree nodes. Data source parameters also provide an additional level of filtering for different tree structures. The treestructure definition supports three data source parameter types.

• Bound Value: Captures any fixed value, which is used as part of the view criteria condition.

• Variable: Captures and binds a dynamic value that is being used by the data source view object. This value is usedby the WHERE condition of the data flow.

• View Criteria: Captures the view criteria name, which is applied to the data source view object.

You can also specify which of the data source parameters are mandatory while creating or editing the tree structure.



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View objects from the Oracle ADF business components are used as data sources. To associate the view object with the treestructure, you can pick the code from Oracle ADF business component view objects and provide the fully qualified name ofthe view object, for example, oracle.apps.fnd.applcore.trees.model.view.FndLabelVO.

Specifying Performance Options for a Tree Structure: Points to ConsiderTree structures are heavily loaded with data. As a tree management guideline, use the following settings to improveperformance of data rendering and retrieval.

• Row Flattening

• Column Flattening

• Column Flattened Entity Objects

• BI View Objects

Row FlatteningRow flattening optimizes parent-child information for run-time performance by storing additional rows in a table for instantlyfinding all descendants of a parent without initiating a CONNECT BY query. Row flattening eliminates recursive queries, whichallows operations to perform across an entire subtree more efficiently.

To store row flattened data for the specific tree structure, users can either use the central FND_TREE_NODE_RF table or they canregister their own row flattened table. For example, in a table, if Corporation is the parent of Sales Division (Corporation-SalesDivision), and Sales Division is the parent of Region (Sales Division-Region), a row-flattened table contains an additional rowwith Corporation directly being the parent of Region (Corporation-Region).

Column FlatteningColumn flattening optimizes parent-child information for runtime performance by storing an additional column in a table for allparents of a child.

To store column flattened data for the specific tree structure, users can either use the central FND_TREE_NODE_CF table orthey can register their own column flattened table. For example, in a table, if Corporation is the parent of Sales Division(Corporation-Sales Division), and Sales Division is the parent of Region (Sales Division-Region), a flattened table in additionto these columns, contains three new columns: Region, Sales Division, and Corporation. Although positioned next to eachother, the column Region functions at the lower level and Corporation at the higher level, retaining the data hierarchy.

Column Flattened Entity ObjectIn the absence of a column-flattened table, if you need to generate the business component view objects for your treestructure for the flattened table, use the tree management infrastructure to correctly provide the fully qualified name of theentity object for the column flattened table.

BI View ObjectView objects from Business Intelligence can be used as data sources, eliminating the need to create new types of datasources. This field is to store the fully qualified name for the BI view object generated by the tree management for businessintelligence reporting and usage The BI view object is a combination of the tree data source and column flattened entity.Using this option prevents data redundancy and promotes greater reuse of existing data, thereby improving the performanceof the tree structure.

Search View ObjectSpecify the full name of the view object for the tree node to ensure that search operations performed on the tree node areefficient.



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Manage Tree Labels

Tree Labels: ExplainedTree labels are tags that are stored on tree nodes. You can store labels in any table and register the label data source withthe tree structure. When a labeling scheme is used for trees, the selected labels are stored in the tree label entity, and eachtree node contains a reference to a tree label in the labeling scheme.

The following table lists the three ways in which tree labels are assigned to the tree nodes.

Labeling Scheme Description

Level

Labels that are automatically assigned based on the data source to which the tree node belongs.A level label points to a specific data source. For example, in a tree that reflects the organizationalhierarchy of an enterprise, all division nodes appear on one level and all department nodes onanother.

Group

Labels that you can arbitrarily assign to tree nodes.

Depth

Labels that are automatically assigned based on the depth of the tree node within the tree. Nomanual assignment is performed.

Note: In an unbalanced hierarchy, a level may not be equal to depth.

Manage Trees and Tree Versions

Managing Trees and Tree Versions: Points to ConsiderYou can create and edit trees and tree versions depending upon the requirement. A tree can have one or more tree versions.When changes are made to an existing tree, a new version is created and published.

Creating and Editing TreesTrees are created based on the structure defined in the tree structure. You can create trees, modify existing trees, and deletetrees. If you want to copy an existing tree, you can duplicate it. You can also select and copy the associated tree versions.

Creating a tree involves specifying the tree definition and specifying the labels that are used on its nodes. If the selected treestructure has data sources and parameters defined for it, they appear on the page allowing you to edit the parameter valuesat the tree node level.

Note: Parameter values modified at the tree level will override the default values specified at the tree-structurelevel.



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Creating and Editing Tree VersionsTree versions are created at the time of creating trees. Each tree must contain a version.

Editing an existing tree provides you with the option of updating the existing version. You can also edit the existing versionthat lies nested under the tree in the search results.

When you edit a tree version bearing Active status, the status changes to Draft until the modifications are saved or canceled.

Tree Version Audit Results: ExplainedUse the tree version audit results to verify the tree version's correctness and data integrity. The audit results include thefollowing details:

• The name of the validator, which is a specific validation check

• The result of the validation, including a detailed message

• Corrective actions to take if there are any validation errors

Running an AuditAn audit automatically runs whenever a tree version is set to active. You can also manually trigger an audit on the ManageTrees and Tree Versions page, using Actions > Audit. The Tree Version Audit Result table shows a list of validations that ranagainst the selected tree version.

Validation DetailsThe following table lists the validators used in the audit process and describes what each validator checks for. It also listspossible causes for validation errors and suggests corrective actions.

Validator Description (what is checked) Possible Cause for ValidationFailure

Suggested Corrective Action

Effective Date

The effective start and end datesof the tree version must be valid.

The effective end date is set to avalue that is not greater than theeffective start date.

Modify the effective start andend dates such that the effectivestart date is earlier than theeffective end date.

Root Node On the Manage Tree Structures:

Specify Data Sources page, ifthe Allow Multiple Root Nodescheck box for the Restrict TreeNode List of Values Based onoption is not selected, and if thetree structure is not empty, thetree version must contain exactlyone root node. This validationdoes not take place if the checkbox is selected.

Even if the check box isdeselected, the tree version hasmultiple root nodes.

Modify the tree version such thatthere is exactly one root node.

Data Source Maximum Depth For each data source in the tree

structure, on the Data Sourcedialog box, if the data sourceis depth-limited, the data in thetree version must adhere tothe specified depth limit. Thisvalidation doesn't apply to datasources for which the MaximumDepth field is set to Unlimited.

The tree version has data at adepth greater than the specifieddepth limit on one or more datasources.

Modify the tree version suchthat all nodes are at a depth thatcomplies with the data sourcedepth limit.



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Duplicate Node On the Data Source dialog

box, if the Allow Duplicatescheck box isn't selected, thetree version must not containmore than one node with thesame primary key from thedata source. If the check box isselected, duplicate nodes arepermitted.

Even when the check box isdeselected, the tree versioncontains duplicate nodes.

Remove any duplicate nodesfrom the tree version.

Available Node

All nodes in the tree versionmust be valid and available in theunderlying data source.

• A node in the tree versiondoesn't exist in the datasource. Deleting dataitems from the datasource without removingthe corresponding nodesfrom the tree version canresult in orphaned nodesin the tree version. Forexample, if you addednode A into your treeversion, and subsequentlydeleted node A fromthe data source withoutremoving it from the treeversion, the validationfails.

• The tree version containsa tree reference node,which references anothertree version that does notexist.

Remove any orphaned nodesfrom the tree version. Updatetree reference nodes so that theyreference existing tree versions.

Node Relationship

All nodes must adhere to therelationships mandated by thedata sources registered in thetree structure.

The tree structure has datasources arranged in a parent-child relationship, but the nodesin the tree don't adhere to thesame parent-child relationship.For example, if the tree structurehas a Project data source witha Task data source as its child,Task nodes must always beunder Project nodes in the treeversion. This validation fails ifthere are instances where aProject node is added as thechild of a Task node.

Modify the tree version such thatthe nodes adhere to the sameparent-child relationships as thedata sources.

SetID Restricted Node On the Manage Tree Structures:

Specify Data sources page, ifthe Set ID check box is selectedto enable the Restrict TreeNode List of Values Basedon option for each tree node,the underlying node in the datasource must belong to the samereference data set as the treeitself. This restriction doesn't

Even when the check box isselected, the tree version hasnodes whose data source valuesbelong to a different referencedata set than the tree.

Modify the tree version such thatall nodes in the tree have datasources with reference data setmatching that of the tree.



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apply when the check box is notselected.

Label Enabled Node On the Manage Tree Structures:

Specify Data Sources page, if alabeling scheme is specified forthe tree structure by selectinga list item from the LabelingScheme list box, all nodes musthave labels. This restrictiondoesn't apply when you selectNone from the LabelingScheme list box.

The tree structure has a labelingscheme but the tree version hasnodes without labels.

Assign a label to any node thatdoesn't have a label.

Date Restricted Node On the Manage Tree Structures:

Specify Data Sources page, ifthe Date Range check box isselected to enable the RestrictTree Node List of ValuesBased on option for a treestructure, each node in theunderlying data source musthave an effective date rangesame as the effective daterange of the tree version. Thisrestriction doesn't apply if thecheck box isn't selected.

Even when the check boxis selected, there are datasource nodes that have adate range beyond the treeversion's effective date range.For example, if the tree versionis effective from Jan-01-2012to Dec-31-2012, all nodesin the tree version must beeffective from Jan-01-2012 toDec-31-2012 at a minimum. Itis acceptable for the nodes tobe effective for a date range thatextends partly beyond the treeversion's effective date range(for example, the node datasource value is effective fromDec-01-2011 to Mar-31-2013).It isn't acceptable if the nodesare effective for none or only apart of the tree version's effectivedate range (for example, thenode data source value areeffective only from Jan-01-2012to June-30-2012).

Ensure that all nodes in the treeversion have effective date rangefor the effective date range forthe tree version.

Multiple Active Tree Version On the Manage Tree Structures:

Specify Definition page, if theAllow Multiple Active TreeVersions check box isn'tselected for the tree structure,there must not be more thanone active tree version under atree at any time. This restrictiondoesn't apply if the check box isselected.

Even when the check box isn'tselected, there is more than oneactive tree version in the tree forthe same date range.

Set no more than one treeversion to Active within the samedate range and set the others toinactive or draft status.

Range Based Node On the Data Source dialog box,

if the Allow Range Childrencheck box isn't selected, range-based nodes are not permittedfrom that data source. Thisrestriction doesn't apply if thecheck box is selected.

Even when the check box isn'tselected, there are range-basednodes from a data source.

Ensure that any range nodesin your tree version are from adata source that allows rangechildren.



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Terminal Node On the Data Source dialog box,

if the Allow Use as Leavescheck box isn't selected, valuesfrom that data source can'tbe added as leaves (terminalnodes) to the tree version. Thisrestriction doesn't apply if thecheck box is selected.

Even when the check box isn'tselected, values from a datasource are added as leaf nodes(terminal nodes).

Modify the tree version such thatall terminal nodes are from datasources for which this check boxis selected.

Usage Limit On the Data Source dialog box,

if the Use All Values optionis selected to set the UsageLimit for the data source, everyvalue in the data source mustappear as a node in the tree.This restriction doesn't apply ifNone option is selected.

Even if the Use All Valuesoption is selected, there arevalues in the data source thataren't in the tree version.

For each data source value thatisn't yet available, add nodes tothe tree version.

Trees and Data Sources: How They Work TogetherData sources are the foundation of tree management. Tree structures, trees, and tree versions establish direct and real-time connectivity with the data sources. Changes to the data sources immediately reflect on the Manage Trees and TreeVersions page and wherever the trees are being used.

Metadata and Data StorageTree structures contain the metadata of the actual data and the core business rules that manifest in trees and tree versions.You can select and enable a subset of trees to fulfill a specific purpose in that application.

Access ControlSource data is mapped to tree nodes at different levels in the database. Therefore, the changes you make to the tree nodesaffect the source data. Access control set on trees prevents unwanted data modifications in the database. Access controlcan be applied to the tree nodes or anywhere in the tree hierarchy.

Adding Tree Nodes: Points to ConsiderTree nodes are points of data convergence where a tree branches into levels. Nodes are the building blocks of a treestructure and are attached to tree versions. Whenever you create or edit a tree version, you need to specify its tree node.

In the Setup and Maintenance work area, open the panel tab and click Search to search for the Manage Trees and TreeVersions task.

Managing Tree NodesYou can create, modify, or delete tree nodes on the Tree Version: Specify Nodes page. To add a tree node, ensure thatthe tree structure with which the tree version is associated is mapped to a valid data source. You can also duplicate a treenode if the multiple root node feature is enabled.

Node LevelsUsually, the nodes at a particular level represent similar information. For example, in a tree that reflects the organizationalhierarchy, all nodes representing divisions appear at one level and all the department nodes on another. Similarly, in a treethat organizes a user's product catalog, the nodes representing individual products might appear at one level and the nodesrepresenting product lines on the immediate higher level.



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The following node levels are in use:

• Root node: The highest node in the tree structure

• Parent node: The node that branches off into other nodes

• Child node: The node that is connected to a node higher in hierarchy (parent node)

• Sibling node: Nodes that are at the same level and belong to the same parent node

• Leaf node: Entities branching off from a node but not extending further down the tree hierarchy

Node TypesA tree node has the following node types.

• Single: Indicates that the node is a value by itself.

• Range: Indicates that the node represents a range of values and possibly could have many children. For example, atree node representing account numbers 10000 to 99999.

• Referenced Tree: Indicates that the tree node is actually another version for the tree based on the same treestructure, which is not physically stored in the same tree. For example, a geographic hierarchy for the United Statescan be referenced in a World geographic hierarchy.

Maintain Segment Value Attributes

Segment Labels: ExplainedSegment labels identify certain segments in your chart of accounts structure and assign special functionality to thosesegments. Segment labels were referred to as flexfield qualifiers in Oracle E-Business Suite (EBS). Best practice is to assigneach segment label one time within the chart of accounts structure. Here are the segment labels that are available to use withthe chart of accounts structure.

Caution: Validations are not performed when segment labels are assigned, so verify that all are assigned correctly beforeusing your chart of accounts.

BalancingEnsures that all journals balance for each balancing segment value or combination of multiple balancing segment values. Youcan secure access to your primary balancing segment values only with data access sets. The General Ledger applicationautomatically calculates and creates balancing lines as required in journal entries. For example, recognizing an entity'sreceivable and the other entity's payable. The three balancing segment labels are primary, second, and third balancing. Theprimary balancing segment label is required.

Cost CenterRepresents the smallest segment of an organization for which costs are collected and reported. Facilitates grouping of naturalaccounts by functional cost types, accommodating tracking of specific business expenses across natural accounts. As costcenters combine expenses and headcount data into costs, they are useful for detailed analysis and reporting. Cost centersare optional, but required for:

• Tracking depreciation, additions, and other transactions in Oracle Fusion Assets.

• Storing expense approval limits in Oracle Fusion Expense.



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Natural AccountDetermines the account type (asset, liability, expense, revenue, or equity), whether posting is allowed, and other informationspecific to the segment value. The natural account segment is mapped to the Financial Category dimension in the balancescube to enable ad hoc reporting and transactional dashboards. This functionality uses Oracle Fusion Business IntelligenceEnterprise Edition to analyze and drill into expense and revenue transactions. The natural account segment label is required.

IntercompanyOptionally, assign the segment to be used in intercompany balancing functionality. You cannot use the primary balancing ornatural account segments as the intercompany segment. You can assign the same values to both the primary balancing andintercompany value sets. You can also assign the same value set to the primary balancing segment and the intercompanysegment. The sharing of the value set or values:

• Enables clear visibility of the due to and due from relationships inherent in intercompany accounting across the entireorganization.

• Saves maintenance and ensure completeness.

However, sharing value sets can cause problems when applying segment value security rules as the rules applied to bothsegments. The rules can restrict access to certain values which may complicate entering intercompany entries. For example,you might have access to company 01 at the balancing segment level but not company 02. As a result, you would not betable to enter an intercompany entry for transactions between 01 and 02.

ManagementOptionally, denote the segment that has management responsibility, such as the department, cost center, or line of business.Can be any segment, except the primary balancing or natural account segments. By designating a chart of accountssegment to the management segment, you can secure access to the management segment values with data access sets. Byproviding segment values to represent the lowest level of your organization, you can roll up results by line of business or othermanagement criteria.

Note: Available in a future release.

Segment Labels: ExampleFor a chart of accounts, each segment can be qualified by a label to distinctly indicate its purpose. The label designation isused by Oracle Fusion General Ledger processes to determine how to display and process transactions and balances thatare recorded.

ScenarioYou are creating your chart of accounts with six segments. General Ledger permits selection of up to thirty segments for yourchart of accounts. You must have a minimum of three required segments, as determined by the number of required segmentlabels (qualifiers). Required segment labels are:

• Primary Balancing Segment: Main balancing segment typically used to represent the company dimension of theorganization. The segment set with this label can't be set with another label.

• Cost Center Segment: Smallest segment of an organization for which you collect and report costs. You are requiredto create this segment if you're implementing Oracle Fusion Assets.

• Natural Account Segment: Classification of transactions and balances according to distinct account types: asset,liability, equity, revenue, and expense accounts. The segment set with this label can't be set with another label.



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The following optional segment labels are available, and you are implementing all except for the Management Segment:

• Second Balancing Segment: Used to balance transactions, as needed, by an additional dimension beyond theprimary balancing segment.

• Third Balancing Segment: Used to balance transactions, as needed, by an additional dimension beyond the primaryand second balancing segments.

• Management Segment: Used in a future release. For Oracle Fusion Version 1, do not enable this qualifier.

• Intercompany Segment: Used to track intercompany due to and due from balances by identifying the specific tradingcompany. The intercompany qualified segment cannot be set with any of the three balancing segment qualifiers. Thevalues in this segment's value set must be the same as the primary balancing segment.

Segment labels can only be assigned once within a chart of accounts. The following table shows the segment labels that areassigned to each segment in the chart of accounts.

Segment Label

Company

Primary Balancing Segment

Cost Center

Cost Center and Second Balancing Segment

Location

Third Balancing Segment

Account

Natural Account Segment

Product Line

Not Applicable

Intercompany

Intercompany Segment

Note: Validations aren't performed when segment labels are assigned, so verify that all are assigned correctlybefore using your chart of accounts.

For Oracle Transactional Business Intelligence reporting, all labeled segments of the chart of accounts are automaticallymaintained in the data that reporting is based on. The granularity of information stored in the nonqualified segments issummarized and Oracle Transactional Business Intelligence isn't able to provide detailed reporting by segments. To maintainthe ability to perform detailed reporting on such segments, create user-defined labels to qualify these segments.

For example, one of the segments of the chart of accounts is based on product line, and none of the segment labels areapplicable. The organization must derive product line-based Oracle Transactional Business Intelligence reports. Create auser-defined label called Product Line to use to qualify the Product Line segment of the chart of accounts.

Balancing Segments: ExplainedBalancing segments ensure that all journals balance for each balancing segment value or combination of multiple balancingsegment values. You can secure access to your primary balancing segment values only with data access sets. The GeneralLedger application automatically calculates and creates balancing lines as required in journal entries.



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The three balancing segment labels are:

• Primary

• Second

• Third

Note: The primary balancing segment label is required.

By enabling multiple balancing segments for your chart of accounts, you can produce financial statements for each uniquecombination of segment values across one, two, or three qualified balancing segments. This ability provides you greaterinsights into your operations as it affords you visibility along the critical fiscal dimensions you use to plan, monitor, andmeasure your financial performance.

The following explains processes that use balancing segments.

• Intercompany balancing: Adds lines to unbalanced journals using intercompany rules.

• Opening first period of the accounting year: Calculates retained earnings amounts at the level of granularity thattotals revenue and expense account balances for multiple balancing segment value combinations. This applies tostandard and average balances.

• Importing journals: Adds lines using the suspense account on unbalanced journals.

• Posting journals: Adds additional lines to unbalanced journals for the following enabled account types:

◦ Suspense

◦ Rounding

◦ Net income

◦ Retained earnings

◦ Cumulative translation adjustments from replication of revaluation journals to reporting currencies and formultiple reporting currency account type specific conversion

• Posting prior period journals: Calculates any income statement impact and posts to the appropriate retainedearnings account.

• Translating balances: Supports multiple balancing segments for the following accounts:

◦ Retained earnings: Calculated translated retained earnings are post to the retained earnings accounts bybalancing segment. Retained earnings accounts represent the summing of the translated revenue andexpense accounts across multiple balancing segment values.

◦ Cumulative translation adjustment: Amounts posted by balancing segment to these accounts representscurrency fluctuation differences between ranges of accounts which use different rate types. For example,period end rates are used for asset and liability accounts and historical rates for equity accounts.

• Revaluing Balances: Supports multiple balancing segments when calculating gain or loss accounts.

• Creating Opening Balances: Initializes reporting currency balances by converting from the total primary currency. Anydifference in the reporting currency amounts is offset by populating retained earnings accounts.

• Closing year end: Supports multiple balancing segments when calculating the income statement offset and closingaccount in the closing journals.



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Multiple Balancing Segments: Points to ConsiderOracle Fusion General Ledger supports tracking financial results at a finer level of granularity than a single balancing segment.In addition to the required primary balancing segment for the chart of accounts, which is typically associated with thecompany dimension of a business organization, two additional segments of the chart of accounts can be optionally qualifiedas the second and third balancing segments respectively. Possible chart of accounts segments that can be tagged asthese additional balancing segments include cost center or department, additional aspects of a business commonly used inmeasuring financial results.

Several points must be consider when using multiple balancing segments:

• Journal entry processing

• Implementation timing

• Change options

• Migration adjustments

Journal Entry ProcessingMultiple balancing segments ensure that account balances come from journal entries where the debits equal the credits.The financial reports are properly generated for each unique instance of account value combinations across the balancingsegments. Consider this option carefully as it provides more granular reporting but requires more processing resources.

Implementation TimingWhen using optional second and third balancing segments, remember that these chart of accounts segment labels are setfrom the beginning of time. Ensure that balances are immediately maintained in accordance with the necessary balancingactions to produce consistent financial reporting for the wanted business dimensions. Multiple balancing segment ledgersthat are not maintained from the beginning of time, require extensive manual balance adjustments to catch up and realign thebalances.

Note: Do not set a segment already qualified as a natural account or intercompany segment as any of the threebalancing segments. Validations are not performed when segment labels are assigned, so verify that all areassigned correctly before using your chart of accounts.

Change OptionsOnce a segment has been enabled and designated as a balancing segment, you must not change the segment. Do notdisable the segment or remove the segment labels. These settings must be consistently maintained throughout the life of thechart of accounts to control the accuracy and integrity of the financial data.

Migration AdjustmentsFor charts of accounts migrated from Oracle E-Business Suite to Oracle Fusion General Ledger that uses a second and thirdbalance segments, steps must be taken to ensure the proper transition. The required adjustments are extensive.

For ledgers associated with a migrated chart of accounts, the balances must be adjusted manually. The manual adjustmentis to ensure that the second and third balancing segments are consistent as though these segment labels have been in placesince the beginning of entries for these ledgers. Recomputing and updating of the following processes is required to reflectthe correct balancing for each account using the second and third balancing segments.

• Intercompany balancing

• Suspense posting



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• Rounding imbalance adjustments on posting

• Entered currency balancing

• Revaluation gains or losses

• Retained earnings calculations at the opening of each new fiscal year

• Cumulative translation adjustments during translation

Note: All previously translated balances must also be purged. New translations must be run to properly accountfor translated retained earnings and cumulative translation adjustments with the correct level of balancing.

Using Multiple Balancing Segments: ExampleThis simple example illustrates balancing along two balancing segments for a simple chart of accounts with three segments.

ScenarioYour company has a chart of accounts with two balancing segments and three segments, qualified as follows:

• Company: Primary balancing segment

• Cost Center: Second balancing segment

• Account: Natural account segment

The following table shows a journal that was entered to transfer advertising and phone expense from company 1, cost centerA to company 2, cost center B.

Line Account Debit Credit

1

Company 1-Cost Center A-Advertising Expense Account

600

2

Company 2-Cost Center B-Advertising Expense Account

600

3

Company 1-Cost Center A-Phone Expense Account

800

4

Company 2-Cost Center B-Phone Expense Account

800

The posting process creates journal lines to balance the entry across the primary and second balancing segments, companyand cost center. The following table shows all of the journal lines, including balancing lines 5 through 8, which wereautomatically created.


1

Company 1-Cost Center A-Advertising Expense Account

600



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2

Company 2-Cost Center B-Advertising Expense Account

600

3

Company 1-Cost Center A-Phone Expense Account

800

4

Company 2-Cost Center B-Phone Expense Account

800

5

Company 1-Cost Center A-Balancing Account

600

6

Company 2-Cost Center B-Balancing Account

600

7

Company 1-Cost Center A-Balancing Account

800

8

Company 2-Cost Center B-Balancing Account

800

Segment Value Inheritance: ExamplesThe Inherit Segment Value Attributes process simplifies the chart of accounts maintenance. When the characteristics ofvalues in the value sets are updated, such as changes to enabled status, effective date, posting allowed status, or naturalaccount type, all previously created account combinations that referenced such values aren't automatically updated by thesechanges. The Inherit Segment Value Attributes process lets you run a controlled process to update such existing accountcombinations. This process maintains and corrects the current attribute settings for those account combinations that containthe account values that were changed.

For account combinations where the present settings must be retained and not impacted by account attribute changes,activate the option to preserve the account combination's attributes. The Preserve Attributes option can be found on theManage Account Combinations page. Activating the option prevents those account combination's attributes from beingupdated when the Inherit Segment Value Attributes process is run.

ScenarioFor example, there are three inactive account combinations that share a common inactive cost center value of 110. Thefollowing table lists each account combination, indicates whether the account combination is enabled, and indicates how thePreserve Attributes option is set.

Company-Cost Center-Account Account Combination Enabled Preserve Attributes

01-110-5210

No

Disabled

04-110-4310

No

Enabled



110


03-110-6810

No

Disabled

Cost center 110 is enabled and the segment value inheritance process is run. The following table shows how the status of theaccount combinations changes.


01-110-5210

Yes

Disabled

04-110-4310

No

Enabled

03-110-6810

Yes

Disabled

Note: After you disable a segment value and sign out of the application and back in, all account combinationscontaining that segment no longer work, even if the account combination still shows enabled in the accountcombination page. Use the Inherit Segment Value Attribute process to correctly set the enable option on theaffected account combinations.

FAQs for Maintain Segment Values Attributes

How can I change segments in an existing chart of accountsstructure?The chart of accounts structure and structure instance are fundamental constructs in General Ledger accounting setupand cannot be altered once they are used. The number of segments, the segments' order, each segment's label, length,type, and value set assignment cannot be updated. These components set the foundation upon which accounting data isrecorded for ledgers that use them. Careful and thoughtful planning must precede all decisions pertaining to defining the chartof accounts.

Deploy Flexfields



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Financials Deployment Options: OverviewThe following deployment options are offered:

Public CloudServices are available to the general public and offered on a subscription basis, with no requirements to buy additionallicenses or support. The services are hosted over the internet by Oracle or Oracle business partners that offer businessprocess outsourcing solutions.

Private CloudApplication-managed and technology-managed services that are offered for Oracle software and hardware, are availableinternally behind a firewall, and are hosted over the Internet by Oracle or Oracle business partners that offer business processoutsourcing solutions. Oracle provides management, monitoring, patching, security, and upgrade services.

On PremisesHardware, software licenses, and support that you buy and host at one or more of your sites. You are responsible formonitoring, security, patching, and upgrades.

HybridYou can maintain your existing legacy applications on premise and buy products that are hosted in private or public cloud, orany combination of these options.

Run Deployment: ExamplesAfter uploading the Chart of Accounts spreadsheet, deploy the accounting flexfield

Scenario

1. (N) Setup and Maintenance > Deploy Chart of Accounts task > (B) Deploy the Accounting Flexfield.2. (I) Refresh until the green check mark appears and verifies that the deployment is successful.

Note: This action deploys all instances of the accounting flexfield. If there are errors in any instance the processstops. Correct the errors and run the process again.

Flexfield Deployment: ExplainedDeployment generates or refreshes the Application Development Framework (ADF) business component objects that renderthe flexfield in a user interface. The deployment process adds user-defined attributes to the Web Services DescriptionLanguage (WSDL) schemas exposed by Oracle ADF services and used by SOA composites. Flexfields are deployed for thefirst time during the application provisioning process. After you configure or change a flexfield, you must deploy it to make thelatest definition available to users.



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If a descriptive flexfield is enabled for business intelligence, the deployment process redeploys the flexfield's businessintelligence artifacts.

You can deploy a flexfield to a sandbox for testing or to the mainline metadata for use in a test or production run timeenvironment. You can deploy extensible flexfields as a background process.

After deployment, the user-defined attributes are available for incorporating into the SOA infrastructure, such as businessprocess and business rule integration. For example, you can now write business rules that depend on the user-definedattributes. You must sign out and sign back in to Oracle Applications Cloud to see the changes you deployed at run time.

The following aspects are important in understanding flexfield deployment:

• Deployment Status

• Initial Deployment Status

• Metadata Validations

• Metadata Synchronization

• Deployment as a Background Process

• Export of Artifacts from Flexfield MDS

Deployment StatusEvery flexfield has a deployment status. The following table lists the different deployment statuses.

Deployment Status Meaning

Edited

The flexfield metadata definition hasn't been deployed yet. Updates of the metadata definition aren'tapplied in the run time environment yet.

Patched

The flexfield metadata definition has been modified through a patch or a data migration action,but the flexfield hasn't yet been deployed. So, the updated definition isn't reflected in the run timeenvironment.

Deployed to Sandbox

The current metadata for the flexfield is deployed in ADF artifacts and available as a flexfield-enabledsandbox. The status of the sandbox is managed by the Manage Sandboxes task available to theAdministrator menu of the Setup and Maintenance work area.

Deployed

The current metadata for the flexfield is deployed in ADF artifacts and available to users. No changeshave been made to the flexfield after being deployed to the mainline metadata.

Error

The deployment attempt in the mainline metadata failed.

Note: Whenever a value set definition changes, the deployment status of a flexfield that uses that value setchanges to edited. If the change results from a patch, the deployment status of the flexfield changes to patched.

Initial Deployment Status of FlexfieldsThe Oracle Applications Cloud implementation loads flexfield metadata into the database. This initial load sets the flexfieldstatus to Edited. During installation, the application provisioning process deploys the flexfields of the provisioned applications,setting their status to Deployed if no errors occur.



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In a provisioned application, deployed flexfields are ready to use. In some cases, flexfield availability at run time requiressetup, such as defining key flexfields.

Metadata ValidationUse the Validate Metadata command to view possible metadata errors before attempting to deploy the flexfield. Metadatavalidation is the initial phase of all flexfield deployment commands. By successfully validating metadata before running thedeployment commands, you can avoid failures in the metadata validation phase of a deployment attempt. The deploymentprocess ends if an error occurs during the metadata validation phase. Metadata validation results don't affect the deploymentstatus of a flexfield.

Metadata SynchronizationWhen an extensible or descriptive flexfield is deployed, the deployment process regenerates the XML schema definition(XSD). As a result, the user-defined attributes are available to web services and the SOA infrastructure.

After deploying a flexfield configuration, you must synchronize the updated XML schema definition (XSD) files in the MDSrepositories for each SOA application.

Note: To synchronize the updated XSD files in the MDS repositories in Oracle Cloud implementations, log aservice request using My Oracle Support at http://support.com/

Deployment as a Background ProcessYou can deploy extensible flexfields offline as a background process and continue working in the session without having towait for the deployment to complete. You can queue up several extensible flexfields and deploy as a background process.The flexfields are deployed, one at a time, in the order that you deploy them to the queue. You must deploy extensibleflexfields with more than 30 categories as a background process.

You can remove an extensible flexfield from the deployment queue with the Cancel Background Deployment command.When an extensible flexfield is deployed in a background process, its offline status indicates that the flexfield is in abackground deployment process. A flexfield's offline status is cleared and its deployment status updated when thebackground deployment process has completed.

Export of Artifacts from Flexfield MDSYou can export business components from MDS for descriptive, extensible, or key flexfields, mainly for use in troubleshootingissues with flexfields. Use Download Flexfield Archive on the Manage Flexfields page to export MDS artifacts of theselected flexfield, and import them to an archive on your local computer. You can use these archived business componentsof flexfields for troubleshooting purposes.

Alternatively, export the deployed artifacts using exportMetadata WLST.

Related Topics

• Flexfields and Oracle Applications Cloud Architecture: How They Work Together

• Why did my flexfield changes not appear in the run time UI?

Flexfield Deployment Status: How It's CalculatedFlexfield deployment status indicates how the flexfield metadata definition in the Oracle Applications Cloud database relatesto the Application Development Framework (ADF) business components residing in an Oracle Metadata Services (MDS)Repository.

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The following aspects are important in understanding how flexfield deployment status is calculated:

• Settings that affect flexfield deployment status

• How deployment status is calculated

Settings That Affect Flexfield Deployment StatusIf you have made a change to a flexfield and expect a changed deployment status, ensure that you have saved your changes.No settings affect flexfield deployment status.

How Deployment Status Is CalculatedIf the flexfield definition has been edited through the Define Flexfields activity task flows, the status is Edited. The latestflexfield metadata definition diverges from the latest deployed flexfield definition. Any change, including if a value set used in aflexfield changes, changes the deployment status to Edited. If a flexfield has never been deployed, its status is Edited.

Note: When an application is provisioned, the provisioning framework attempts to deploy all flexfields in thatapplication.

If you deploy the flexfield to a sandbox successfully, the status is Deployed to Sandbox. The latest flexfield metadata definitionin the application matches with the metadata definition that generated ADF business components in a sandbox MDSRepository. Whether the sandbox is active or not doesn't affect the deployment status. If the flexfield was deployed to asandbox and hasn't been edited or redeployed to the mainline metadata since then, the status remains Deployed to Sandboxindependent of whether the sandbox is active, or who is viewing the status.

If you deploy the flexfield successfully to the mainline metadata, the status is Deployed. The latest flexfield metadata definitionin the application matches the metadata definition that generated ADF business components in a mainline MDS Repository.Change notifications are sent when a flexfield is deployed successfully to the mainline metadata. If either type of deploymentfails and that the current flexfield definition isn't deployed, the status is Error. The deployment error message gives detailsabout the error. The latest flexfield metadata definition in the application likely diverges from the latest successfully deployedflexfield definition.

If the flexfield definition has been modified by a patch, the status is Patched. The latest flexfield metadata definition in theapplication diverges from the latest deployed flexfield definition. If the flexfield definition was Deployed before the patch andthen a patch was applied, the status changes to Patched. If the flexfield definition was Edited before the patch and then apatch was applied, the status remains at Edited to reflect that there are still changes (outside of the patch) that aren't yet ineffect.

When a deployment attempt fails, you can access the Deployment Error Message for details.

Related Topics• Flexfields and Oracle Applications Cloud Architecture: How They Work Together

• Managing Extensible Flexfields: Points to Consider

Deploying a Flexfield-Enabled Sandbox: How It Works With MainlineMetadataThe flexfield definition in a sandbox corresponds to the flexfield metadata definition in the Oracle Applications Cloud databaseat the time the flexfield was deployed to the sandbox. When the flexfield is ready for end users, the flexfield must be deployedto the mainline metadata.


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A flexfield-enabled sandbox uses the following components.

• Flexfield metadata in the Oracle Applications Cloud database

• Flexfield business components in a sandbox Oracle Metadata Services (MDS) repository

• User interface modifications for the flexfield in the mainline MDS repository

The following figure shows the two types of deployment available in the Manage Flexfield tasks of the Define Flexfields activity.Deploying a flexfield to a sandbox creates a sandbox MDS Repository for the sole purpose of testing flexfield behavior. Thesandbox is only accessible to the administrator who activates and accesses it, not to users generally. Deploying a flexfield tothe mainline metadata applies the flexfield definition to the mainline MDS Repository where it is available to end users. Afterdeploying the flexfield to the mainline metadata, modify the page where the flexfield segments appear. Modifications done tothe page in the sandbox MDS Repository cannot be published to the mainline MDS Repository.

Test in sandbox?

Deploy flexfield to sandbox.

Define Flexfields

Access sandbox to

test flexfield.

Deploy flexfield.

MDS Modifications?

Access mainline.

Flexfield Business Components in Metadata

Services (MDS) Repository Sandbox

Flexfield Business Components in Metadata

Services (MDS) Repository Mainline

Modifications in Metadata Services Repository

(MDS) Mainline

Deploy flexfield for other users?

Flexfield Definition

Flexfield-enabled Sandbox

Deployed Flexfield

Yes

Yes

YesFlexfield

Metadata in Oracle Fusion Applications

Database



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Sandbox Metadata Services Repository DataDeploying the flexfield to a sandbox generates the Application Development Framework (ADF) business components of aflexfield in a sandbox MDS Repository for testing in isolation.

Caution: Don't modify flexfield segment display properties using Page Composer in a flexfield-enabled sandboxas these changes will be lost when deploying the flexfield to the mainline metadata.

Mainline Metadata Services Repository DataThe Oracle Fusion Applications database stores the single source of truth about a flexfield. When the flexfield is deployed, theADF business component objects that implement the flexfield in the run time user interface are generated in the mainline MDSRepository from this source.

Related Topics

• Managing Configurations Using Sandboxes: Explained

Deploying a Flexfield to a Sandbox: Points to ConsiderDeploying a flexfield to a sandbox creates a flexfield-enabled sandbox. Each flexfield-enabled sandbox contains only oneflexfield.

You can test the run time behavior of a flexfield in the flexfield-enabled sandbox. If changes are needed, you return to theDefine Flexfield tasks to change the flexfield definition.

When you deploy a flexfield to sandbox, the process reads the metadata about the segments from the database, generatesflexfield Application Development Framework (ADF) business component artifacts based on that definition, and stores in thesandbox only the generated artifacts derived from the definition.

When you deploy a flexfield sandbox, the process generates the name of the flexfield sandbox, and that flexfield sandbox isset as your current active sandbox. When you next sign in to the application, you can see the updated flexfield configurations.The Oracle Applications Cloud global header displays your current session sandbox.

Note: Unlike a standalone sandbox created using the Manage Sandboxes tool, the sandbox deployed fora flexfield contains only the single flexfield. You can manage flexfield sandboxes, such as setting an existingflexfield sandbox as active or deleting it, using the Manage Sandboxes tool.

When you deploy a flexfield to the mainline metadata after having deployed it to the sandbox, the sandbox-enabled flexfield isautomatically deleted.

Sandbox MDS Repository DataThe sandbox data lets you test the flexfield in isolation without first deploying it in the mainline metadata where it could beaccessed by users.

Caution: Don't modify flexfield segment display properties using Page Composer in a flexfield-enabled sandboxas these changes will be lost when deploying the flexfield to the mainline metadata.

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Managing a Flexfield-Enabled SandboxWhen you deploy a flexfield as a sandbox, that flexfield-enabled sandbox automatically gets activated in your user session.When you sign back in to see the changes, the sandbox is active in your session.

You can only deploy a flexfield to a sandbox using the Define Flexfields task flow pages.

You also can use the Manage Sandboxes feature in the Administration menu of the Setup and Maintenance work area toactivate and access a flexfield-enabled sandbox.

Note: Whether you use the Define Flexfields or Manage Sandboxes task flows to access a flexfield-enabledsandbox, you must sign out and sign back in before you can see the changes you deployed in the run time.

You cannot publish the flexfield from the sandbox to the mainline metadata. You must use the Define Flexfields task flowpages to deploy the flexfield for access by users of the mainline metadata because the flexfield configuration in the mainlinemetadata is the single source of truth.

Related Topics

• Flexfields and Oracle Applications Cloud Architecture: How They Work Together

• Why did my flexfield changes not appear in the run time UI?

• Managing Configurations Using Sandboxes: Explained

Deploying Flexfields Using the Command Line: ExplainedYou can use the Manage Key Flexfields, Manage Descriptive Flexfields, and Manage Extensible Flexfields tasks to deployflexfields. You can also use WebLogic Server Tool (WLST) commands for priming the Oracle Metadata Services (MDS)Repository with predefined flexfield artifacts and for deploying flexfields.

The following table describes the available commands.

WebLogic Server Tool Command Description

deployFlexForAppDeploys all flexfields for the specified enterprise application. Only flexfields whose status is otherthan deployed are affected by this command, unless the option is enabled to force all flexfields to bedeployed, regardless of deployment status. Initial application provisioning runs this command to prime the MDS Repository with flexfieldartifacts.

deployFlexDeploy a single flexfield regardless of deployment status

deployPatchedFlexDeploys flexfield changes that have been delivered using a flexfield Seed Data Framework (SDF)patch. Deploys flexfields that have a Patched deployment status.

deleteFlexPatchingLabelsDisplays MDS label of flexfield changes for viewing and deleting patching labels.

validateFlexDeploymentStatusDisplays list containing flexfields that aren't deployed or failed deployment.



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Executing these commands outputs a report at the command line. The report provides the following information for everyflexfield that is processed.

• Application identity (APPID)

• Flexfield code

• Deployment result, such as success or error

In case of errors, the report lists the usages for which errors occurred. If a run time exception occurs, the output displays thetrace back information. For each WLST flexfield command, adding the reportFormat='xml' argument returns the report as anXML string.

Consider the following aspects of command-line deployment.

• Preparing to use the WLST flexfield commands

• Using the deployFlexForApp command

• Using the deployFlex command

• Using the deployPatchedFlex command

• Using the deleteFlexPatchingLabels command

• Using the validateFlexDeploymentStatus command

• Closing WLST and checking the results

Preparing To Use the WLST Flexfield CommandsYou can only execute the WLST flexfield commands on a WebLogic Administration Server for a domain that has a runninginstance of Oracle Fusion Middleware Extensions for Oracle Application.

For more information about deploying the Oracle Fusion Middleware Extensions for Oracle Application to the server domains,see the Oracle Fusion Applications Developer's Guide.

Ensure that the AppMasterDB data source is registered as a JDBC data source with the WebLogic Administration Server andpoints to the same database as the ApplicationDB data source.

Start the WebLogic Server Tool (WLST) if not currently running.

UNIX:

sh $JDEV_HOME/oracle_common/common/bin/wlst.sh

Windows:

wlst.cmd

Connect to the server, replacing the user name and password arguments with your WebLogic Server user name andpassword.

connect('wls_username', 'wls_password', 'wls_uri')

The values must be wrapped in single-quotes. The wls_uri value is typically T3://localhost:7101.

For more information about the WLST scripting tool, see the Oracle Fusion Middleware Oracle WebLogic Scripting Tool.

Using the deployFlexForApp CommandThe deployFlexForApp command translates the product application's predefined flexfield metadata into artifacts in the MDSRepository.



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Note: This command is run automatically when you provision applications. However, if you configureapplications, you have to manually run it as per the order of tasks given here:

1. Configure your application to read the flexfield artifacts from the MDS Repository.2. Run the deployFlexForApp command.3. Sign in to the application.

This sequence of steps is required even if there is no predefined flexfield metadata.

This command doesn't deploy flexfields that have a status of Deployed unless the force parameter is set to 'true' (the defaultsetting is 'false').

For more information about priming the MDS partition with configured flexfield artifacts, see the Oracle Fusion ApplicationsDeveloper's Guide.

From the WLST tool, execute the following commands to deploy the artifacts to the MDS partition, replacingproduct_application_shortname with the application's short name wrapped in single-quotes.

deployFlexForApp('product_application_shortname'[, 'enterprise_id'] [,'force'])

In a multi-tenant environment, replace enterprise_id with the Enterprise ID to which the flexfield is mapped. Otherwise,replace with 'None' or don't provide a second argument.

To deploy all flexfields regardless of their deployment status, set force to 'true' (the default setting is 'false'). To deploy allflexfields in a single-tenant environment, you either can set enterprise_id to 'None', or you can use the following signature:

deployFlexForApp(applicationShortName='product_application_shortname',force='true')

The application's short name is the same as the application's module name. For more information about working withapplication taxonomy, see the Oracle Fusion Applications Developer's Guide.

Using the deployFlex CommandFrom the WLST tool, execute the following command to deploy a flexfield, replacing flex_code with the code that identifiesthe flexfield, and replacing flex_type with the flexfield's type, either descriptive flexfield, key flexfield, or extensible flexfield.The values must be wrapped in single-quotes.

deployFlex('flex_code', 'flex_type')

Optionally, execute the following command if the flexfield is an extensible flexfield, and you want to deploy all the flexfield'sconfigurations.

Note: By default, extensible flexfields are partially deployed. That is, only the pages, contexts, or categories thathad recent changes, are deployed.

deployFlex('flex_code', 'flex_type', ['force_Complete_EFF_Deployment'])where, forceCompleteEFFDeployment=None

Using the deployPatchedFlex CommandUse the deployPatchedFlex command for situations where the patching framework doesn't initiate the command, such aswhen an application has been patched offline.

If the installation is multi-tenant enabled, the command deploys all patched flexfields for all enterprises. This command isn'tintended to be initiated manually.

Check with your provisioning or patching team, or the task flows for managing flexfields, to verify that the flexfield has aPatched deployment status.



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From the WLST tool, execute the following command to deploy the artifacts to the MDS partition.

deployPatchedFlex()

Execute the following command to deploy all flexfields that have either a READY status or an ERROR status.

deployPatchedFlex(mode='RETRY')

Using the deleteFlexPatchingLabels CommandWhenever you deploy flexfield changes to MDS using the deployPatchedFlex() WLST command, an MDS label is created inthe format FlexPatchingWatermarkdate+time. Use the deleteFlexPatchingLabels command to inquire about and delete theselabels.

From the WLST tool, execute the deleteFlexPatchingLabels () command with no arguments to delete the flexfield patchinglabels.

To output a list of flexfield patching labels, execute the command with the infoOnly argument, as follows:

deleteFlexPatchingLabels(infoOnly='true')

Using the validateFlexDeploymentStatus CommandThe validateFlexDeploymentStatus() WLST command checks the deployment status of all flexfields in an Oracle FusionApplications deployment.

validateFlexDeploymentStatus()

Use this command to verify that all flexfields in the current instance of provisioned Java EE applications are deployed.

Closing WLST and Checking the ResultsTo close the tool, execute the command: disconnect().

Optionally, sign in the application, open user interface pages that contain flexfields, and confirm the presence of flexfields forwhich configuration exists, such as value sets, segments, context, or structures.

Manage Cross-Validation Rules

Cross-Validation Rules in General Ledger: OverviewYou can use cross-validation rules to determine the valid account combinations that can be dynamically created as usersenter transactions or journal entries. Once enabled, a cross-validation rule determines whether a selected value for aparticular segment of an account combination can be combined with specific values in other segments to form a newaccount combination.

For example, your organization has determined that the company Operations can't use the cost center Marketing. You candefine a cross-validation rule such that, if the company is Operations, then validate that the cost center isn't Marketing. Newaccount combinations have to satisfy all of the cross-validation rules enabled for the chart of accounts before they can becreated.



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Entry and MaintenanceYou can create cross-validation rules using the Create Cross Validation Rules in Spreadsheet task or the Manage Cross-Validations Rules task. Use the spreadsheet task to quickly enter large volumes of rules during implementation. Use theManage Cross-Validation Rules task to add a one-off rule or edit existing rules.

To edit error messages for cross-validation rules, use the Manage Messages for General Ledger task.

Tip: When you export or import cross-validation rules to a new instance using an export or import project in theFunctional Setup Manager, you must add the Manage Messages for General Ledger task before the ManageCross-Validation Rules task. You must export or import the messages before exporting or importing the cross-validation rules.

Existing Account CombinationsIf account combinations already exist that violate newly enabled cross-validation rules, those account combinations continueto be valid. Before disabling existing account combinations that violate your rules and that you no longer use, move thebalances in those accounts to the correct accounts. Then disable the account combinations manually to prevent furtherposting. Best practice is to define and enable cross-validation rules before: account combinations are created, transactions orjournal entries are imported or entered, balances are loaded.

Related Topics

• Managing Cross-Validation Rule Violations: How It Works

Cross-Validation Rules: ExplainedYou can control the creation of new key flexfield code combinations by defining cross-validation rules. A cross-validationrule defines validation across segments and enforces whether a value of a particular segment can be combined with specificvalues of other segments to form a new combination.

The following table compares segment validation to cross-segment validation:

Type of validation Type of control

Segment validation

Controls the values you can enter for a particular segment

Cross-segment validation

Controls the combinations of values that administrators and end users can create for key flexfields

Note: You can use cross-validation rules for any key flexfield that has cross-validation enabled. See thedocumentation for your key flexfield to determine if it supports cross validation.

Cross-validation rules prevent the creation of combinations with values that can't coexist in the same combination.For example, your company requires that all revenue accounts must have a specific department. Therefore, accountcombinations that have revenue account values, such as all values between 4000 and 5999, must have a correspondingdepartment value other than 000, which indicates no department is specified. You can define cross-validation rules thatdisallow creation of combinations with incompatible segments, such as 4100-000 or 5000-000.

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Alternatively, suppose your accounting key flexfield has an Organization segment with two possible values, 01 and 02. Youalso have a Natural Account segment with many possible values, but company policy requires that Organization 01 uses thenatural account values 001 to 499 and Organization 02 uses the natural account values 500 to 999. You can create cross-validation rules to ensure that users cannot create a general ledger account with combinations of values such as 02-342 or01-750.

The following aspects are important to understanding cross-validation rules:

• Rule Definitions

• Enforcement

• Timing

Rule DefinitionsThe following table contains definitions used in cross-validation rules:

Rule Definition Purpose

Name

Uniquely identifies cross-validation rules in a deployment.

Description

Helps administrators identify the purpose of the rule.

Error message

Explains why the attempted combination violates the rule.

Start Date, End Date

Indicates the period of time when the rule is in effect.

Enabled

Determines whether the rule is enforced.

Condition filter

Determines the conditions under which an enabled cross-validation rule should be evaluated.

Validation filter

Determines the validation that the rule enforces when that condition is met.

When the event specified in the condition filter is applicable, the validation filter condition must be satisfied before thecombination can be created. If the event specified in the condition filter isn't applicable, then the combination is considered topass the rule and the rule won't be evaluated even if it is enabled.

Note: If you don't specify any statement in the condition filter, then the condition is always true and the rule isalways evaluated.

EnforcementCross-validation prevents creation of invalid combinations by administrators using maintenance pages and end users usingdynamic insertion in foreign key pages.

Enabled rules are enforced when there is an attempt to create a new combination of segment values. Disabled rules areignored. Deleting the rule has the same effect, but you can re-enable a disabled rule.



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TimingWhen users attempt to create a new combination, the key flexfield evaluates any cross-validation rules that are enabled and ineffect.

Note: Cross-validation rules have no effect on combinations that already exist. The flexfield treats any existinginvalid combinations that pre-date the rule as valid.

If you want to prevent users from using previously existing combinations that are no longer valid according to your cross-validation rules, manually disable those combinations using the combinations page for that key flexfield.

When defining a cross-validation rule, specify a start and end date to limit the time when the rule is in effect. The rule is validfor the time including the From and To dates.

Cross-Validation Rules: Points to ConsiderTo validate the key flexfield combinations of segment values across segments, optimize your cross-validation rules to improvethe experience of administrators and users.

Consider the following when defining cross-validation rules:

• Filters

• Rule Complexity

• Maintenance

FiltersA cross-validation rule includes a condition filter and a validation filter. The rule is evaluated using the following logical order: Ifthe condition filter is satisfied, then apply the validation filter.

The condition filter describes the event under which the rule is evaluated. If the event specified in the condition filter isn'tapplicable, then the rule isn't evaluated, even if enabled. When the event specified in the condition filter is applicable, thevalidation filter condition must be satisfied before the combination can be created.

For example, your organization has determined that a certain company value called Operations can't use a specific costcenter called Marketing. You can define a cross-validation rule to validate your combinations.

1. The rule evaluates the company condition filter.2. When company is equal to Operations, the rule evaluates the cost center validation filter.3. When cost center is equal to Marketing, the rule prevents a combination from being created.4. The error message you defined for the rule displays to inform the user that the attempted combination violates the

rule.

Such a rule doesn't affect the creation of combinations with Marketing cost center and company values other thanOperations.

Rule ComplexityFor optimal performance and ease of understanding, define several simple validation rules instead of using one complex rule.Simple validation rules let you provide a more specific error message and are easier to maintain over time.

Avoid rules that control validation across more than two segments, where possible. While you can define cross-validationrules that span two or more segments, it becomes difficult to interpret cross-validation error messages and rectify invalid keyflexfield combinations.



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MaintenanceTo maintain consistent validation, review existing key flexfields when you update your cross-validation rules. Regardless ofyour current validation rules, you can use an existing key flexfield combination if it's enabled. Therefore, to ensure accuratevalidation, you must review your existing combinations and disable any combinations that don't match the criteria of your newrules.

Tip: To keep this type of key flexfield maintenance to a minimum, decide upon your cross-validation rules whenyou first set up your key flexfield structure. Define cross-validation rules before creating combinations and beforecombinations are used in transactions.

To prevent users from using existing combinations that are no longer valid according to your cross-validation rules, disablethem using the combinations page.

Cross-Validation Rules Spreadsheet: ExplainedThe rapid implementation solution provides a template for defining cross-validation rules in a spreadsheet. Cross-validationrules determine whether a selected value for a particular segment of an account combination can be combined with specificvalues in the other segments to form a new account combination.

You can download the spreadsheet using the Create Cross Validation Rules in a Spreadsheet task. This task is included inthe following task lists:

• Define Common Financials Configuration for Rapid Implementation

• Define Enterprise Structures Configuration for Rapid Implementation

Note: The spreadsheet can only create cross-validation rules. To update existing cross-validation rules, use theManage Cross-Validation Rules task.

Spreadsheet OverviewThe cross-validation rules spreadsheet includes two sheets. One sheet provides the template for creating cross-validationrules and the other sheet has instructions. The Instructions sheet includes:

• An overview

• An explanation of the template

• Steps to fill in the template

• An example



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The following figure shows the Create Cross-Validation Rules sheet.

The following table describes each field and column on the sheet.

Field or Column Description

Worksheet Status

The upload results for the worksheet. The application updates this field when you submit thespreadsheet.

Chart of Accounts

The chart of accounts for which the cross-validation rules are defined.

Changed

The indicator that the row has been updated. The application updates this field.

Row Status

The upload results for the row. The application updates this field when you submit the spreadsheet.

Name

The name that uniquely identifies the cross-validation rules in a deployment.

Description

The purpose for the cross-validation rule.

Error Message

The explanation to users for why the attempted combination violates the cross-validation rule.

Condition Filter Segment

The segments of the chart of accounts that constitute the condition filter.

Condition Filter Values

The values of the condition filter segment that determine whether the cross-validation rule isevaluated.

Validation Filter Segment

The segments of the chart of accounts that constitute the validation filter.

Validation Filter Values

The values of the validation filter segment used to enforce a new account combination.



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Note: Cross-validation rules created from the spreadsheet are automatically enabled and don't have a start orend date.

Steps to Use the TemplateTo use the spreadsheet template:

1. Select the chart of accounts.2. Enter a suitable name, description, and error message in the respective columns.3. Select the condition filter segment. To add more than one segment to the condition filter, use the next row. Repeat

the rule name and select the condition filter segment.4. Provide the segment values that constitute the condition filter in the Condition Filter Values column.

◦ Enter detail values separated by commas for multiple detail values, for example: 5501,5502,5503.

◦ Enter detail values separated by a hyphen for a range of values. You can enter multiple ranges using thecomma as the range separator, for example: 3001-3030,3045-3200.

◦ Enter a parent value to select all of the detail values that are descendants of the specified parent. You canenter multiple parent values using commas as the separator, for example: 1000,2000.

◦ You could enter all of the previously listed values in the same cell, for example:1000,2000,3001-3030,3045-3200,5501,5502,5503.

5. Select the validation filter segment. To add more than one segment to the validation filter, use the next row. Repeatthe rule name and select the validation filter segment.

6. Provide the segment values that constitute the validation filter in the Validation Filter Values column in the sameway as specified for the condition filter.

7. Review the data that you entered and click Submit to publish the cross-validation rules.8. Review the upload results in the Worksheet Status and Row Status fields.

Creating Cross-Validation Rules in a Spreadsheet: Worked ExampleThis example shows how to create two cross-validation rules using the Cross-Validation Rules spreadsheet.

The following table summarizes key decisions for this scenario.

Decisions to Consider In This Example

What's the name of the chart of accounts?

US Chart of Accounts

What segments make up the chart of accounts?

• Company• Department• Account• Product

What cross-validation rules have to be created?

• Companies 131 and 151 have only one department,department 40. Department 40 produces only one product,represented by segment value 211. All account combinationsfor these two companies must have department 40 andproduct 211.

• Company 202 has three manufacturing departments: 10,20,30.All three departments work only with products 235 and 236. Allaccount combinations for company 202 must have only thesethree departments and these two products.



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Creating Cross-Validation Rules1. Navigate to the Setup and Maintenance work area and search for the Create Cross Validation Rules in Spreadsheet

task.2. Click the Create Cross Validation Rules in Spreadsheet link to open the spreadsheet.3. Complete the fields, as shown in this table, to create the rule for companies 131 and 151.

Row 1 Values

Name

Companies 131 and 151

Description

Valid department and product for companies 131 and 151.

Error Message

Companies 131 and 151 can only be used with department 40 and product 211.


Company


131,151


Department


40

4. Complete the fields, as shown in this table, to complete the rule for companies 131 and 151.

Row 2 Values

Name

Companies 131 and 151


Product


211

5. Complete the fields, as shown in this table, to create the rule for company 202.

Row 3 Values

Name

Company 202

Description

Valid products for company 202 manufacturing departments.

Error Message

Manufacturing departments 10, 20, and 30, of company 202, can only be used with products 235or 236.


Company

Condition Filter Values 202



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Row 3 Values


Product


235,236

6. Complete the fields, as shown in this table, to complete the rule for company 202.

Row 4 Values

Name

Company 202


Department


10-30

The following figure shows the Create Cross-Validation Rules spreadsheet with the rules that were entered followingsteps 3 through 6.

7. Click Submit to upload the cross-validation rules.8. Click OK on the Upload Options window to accept the default setting.9. Review the upload results.

Related Topics

• Managing Cross-Validation Rule Violations: How It Works

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Editing a Cross-Validation Rule: ExampleCross-validation rules prevent specific combinations of segment values in account combinations. You can use the ManageCross-Validation Rules task to edit existing rules or to create one-off rules.

ScenarioYour organization has a cross-validation rule called Companies 131 and 151, which restricts account combinations for thosecompanies to department 40 and product 211. Account combinations for both companies should now include department30. To edit the cross-validation rule, perform these steps.

1. Navigate to the Setup and Maintenance work area. Search for and select the Manage Cross-Validation Rules task.2. Select the chart of accounts for your organization and select the Companies 131 and 151 cross-validation rule.

The following figure shows the section of the Edit Cross-Validation Rules page with the condition and validation filter detailsfor companies 131 and 151. A condition is defined for company values equal to 131 or 151, and the validation specifies thedepartment value equals 40 and the product value equals 211.

3. Click the Validation Filter icon.4. Click Add Fields and select the Department segment.5. Accept the default operator, which is Equals, and select department 30.



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The following figure shows the Validation Filter window with three validations: department equals 40, department equals 30,and product equals 211.

6. Click OK.7. Click Save.

The following figure shows the details for the updated validation on the Edit Cross-Validation Rules page. The validationspecifies departments equal to 30 or 40, and the product equal to 211.

8. To update the error message, search for and select the Manage Messages for General Ledger task. Query the errormessage name for the cross-validation rule and edit the message to include department 30.

Manage Chart of Accounts Mapping

Mapping Chart of Accounts: ExplainedThe chart of accounts mapping feature supports the ability to correlate a source chart of accounts to a target chart ofaccounts to allow for the processing of balances or amounts. Use either segment rules, account rules, or a combination ofboth. A chart of accounts mapping is used by the posting process in propagating transactions from the primary ledger to its



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secondary ledger. The mapping feature is used by both balance transfer processes for balance level secondary ledgers aswell as cross ledger transfers. The balances are copied from one ledger to another ledger in both processes.

Segment RulesSegment rules serve to map each segment of the target chart of accounts to an account value or segment in the sourceaccount. Three different mapping actions are available:

• Assign a constant value for a segment in the target chart of accounts.

• Copy the value from the source segment to the corresponding target segment.

Note: To use this action, the paired target and source segments must share identical values in their valuesets.

• Use rollup rules to aggregate source accounts to a corresponding target segment or account

◦ Create a single value mapping when a specific detail source segment value is given a detail target segmentvalue.

◦ Use hierarchical rollup rules when a specific parent source value and all of its child segment values, aremapped to a given detail target segment value. This provides the ability to process groups of source segmentvalues in one single rollup rule.

◦ Define parent source values in rollup rules when date effective versions of the hierarchy are used with theaccounting date of the transactions by the processes that reference the chart of accounts mapping. Theadditional benefit of self-maintaining mappings is that if the hierarchies referenced change with time theapplicable child values are updated automatically.

Account RulesIn addition to segment rules, define account rules for the chart of accounts mapping. Account rules map a complete targetaccount combination against one or more source account combinations. The source account combinations can be definedsegment by segment using:

• Single detail account values.

• Detail account value ranges.

• Parent values for primary balancing and the natural account segments.

Note: When using parent values, its child values for the date effective version of the hierarchy, areprocessed when the mapping is called.

FAQ for Manage Chart of Accounts Mapping

What's the difference between mapping with segment rules andmapping with account rules?Segment rules map target chart of accounts segments to an account value or segment of the source account of a secondarychart of accounts. A segment is only one part of the account combination.



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Account rules map a complete target account combination against one or more source account combinations.

Note: Segment and account rules can be used alone or both types of mapping rules can be used in the samemapping set.

When do account rules override segment rules in the chart ofaccounts mapping?You can create a chart of accounts mapping using only segment rules, only account rules, or a combination of both segmentand account rules. If an overlap exists between the two types of rule, the account rule supersedes. Segment rules are used tobroadly define the relationship between two charts of accounts on a segment by segment basis. Account rules can be usedto more precisely map specific source account combinations to their target accounts.

Define Calendars

Defining Accounting Calendars: Critical ChoicesDefine an accounting calendar to create your accounting year and the periods it contains. Specify common calendar optionsthat the application uses to automatically generate a calendar with its periods. Specifying all the options makes defining acorrect calendar easier and more intuitive with fewer errors. The choices you make when specifying the following options arecritical, because it is difficult to change your accounting calendar after a period status is set to open or future enterable.

• Budgetary control only

• Start Date

• Period Frequency

• Adjusting Period Frequency

• Period Name Format

Note: To help create and maintain accounting calendars, the common calendar types of monthly, weekly,4-4-5, 4-5-4, 5-4-4, 4-week, quarterly, and yearly, are automatically generated. By using the period frequencyoption, you no longer have to go through the tedious task of defining each period manually.

Budgetary Control Only Check BoxSelect the check box for Budgetary control only to use the calendar for budgetary control only. Budgetary Control refers tothe group of system options and the validation process of determining which transactions are subject to validation againstbudgets and budget consumption to prevent overspending.

Start DateIf you plan to run translation, specify a calendar start date that is a full year before the start date of the year of the firsttranslation period for your ledger. Translation cannot be run in the first period of a calendar. Consider how many years ofhistory you are going to load from your previous application and back up the start date for those years plus one more. Youcannot add previous years once the first calendar period has been opened.



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Period FrequencyUse the period frequency to set the interval for each subsequent period to occur, for example, monthly, quarterly, or yearly.If you select the period frequency of Other, by default, the application generates the period names, year, and quarternumber. You specify the start and end dates. You must manually enter the period information. For example, select the periodfrequency of Other and enter 52 as the number of periods when you want to define a weekly calendar. For manually enteredcalendars, when you click the Add Year button, the application creates a blank year. Then, you must manually enter theperiods for the new year. The online validation helps prevent erroneous entries.

If the year has been defined and validated, use the Add Year button to add the next year quickly. Accept or change the newrows as required. For example, with the Other frequency type calendar, dates may differ from what the application generates.

Note: A calendar can have only one period frequency and period type. Therefore, if you have an existingcalendar with more than one period type associated with it, during the upgrade from Oracle E-Business Suite,separate calendars are created based on each calendar name and period type combination.

Adjusting Period FrequencyUse the adjusting period frequency to control when the application creates adjusting periods. For example, some of thefrequencies you select add one adjusting period at year end, two at year end, or one at the end of each quarter. The defaultis None which adds no adjusting periods. If you select the frequency of Other, the Number of Adjusting Periods field isdisplayed. Enter the number of adjusting periods you want, and then manually define them.

Period Name Format RegionIn the Period Name Format section, enter the following fields:

• User-Defined Prefix: An optional feature that allows you to enter your own prefix. For example, define a weeklycalendar and then enter a prefix of Week, - as the separator, and the period name format of Period numberYY fiscalyear. The application creates the names of Week1-11, Week2-11, through Week52-11.

• Format: A predefined list of values filtered on the selected separator, only displaying the options that match theselected separator.

• Year: The year displayed in the period names is based on the selected period name format and the dates the periodcovers or if the period crosses years, on the year of the start date of the period.

◦ For example, April 10, 2016 to May 9, 2016 has the period name of Apr-16 and December 10, 2016 toJanuary 9, 2017 has the name of Dec-16.

◦ If period frequency is Other, then the period format section is hidden. The application generates a temporaryperiod name for calendars with period frequency of Other, using a fixed format of Period numberYY. You canoverride this format with your own period names.

Note: For an accounting calendar that is associated with a ledger, changing period names or adding a yearupdates the accounting period dimension in the balances cubes.

Calendar Validation: How It Works with the Accounting CalendarCalendar validation is automatic and prevents serious problems when you begin using a calendar. Once you set a calendarperiod status to open or future enterable, you can't edit the period.



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Settings That Affect Calendar ValidationCalendar validation runs automatically after you save the calendar.

How a Calendar Is ValidatedThe following table lists the validation checks that are performed when an accounting calendar is saved.

Validation Data Example

Unique period number

2 assigned for two periods

Unique period name

Jan-17 entered twice

Period number beyond the maximumnumber of periods per year

13 for a 12 period calendar with no adjusting periods

Entered period name contains spaces

Jan 17

Single or double quotes in the periodname

Jan '17

Nonadjusting periods with overlappingdates

01-Jan-2017 to 31-Jan-2017 and 30-Jan-2017 to 28-Feb-2017

Period date gaps

01-Jan-2017 to 28-Jan-2017 and 31-Jan-2017 to 28-Feb-2017

Missing period numbers

Periods 1 through 6 are defined for a calendar with 12 months

Period number gaps

1, 3, 5

Period numbers not in sequential orderby date

Period 1 covers 01-Jan-2017 to 31-Jan-2017 and period 2 covers 01-Mar-2017 to 31-Mar-2017,and period 3 covers 01-Feb-2017 to 28-Feb-2017.

Quarter number gaps

1, 3, 4

Quarters not in sequential order byperiod

1, 3, 2, 4

Period start or end dates more than oneyear before or after the fiscal year

July 1, 2015 in a 2017 calendar

FAQs for Define Calendars



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How can I identify errors in my accounting calendar?Oracle Fusion General Ledger identifies erroneous entries online as you enter a new calendar or change data on an existingcalendar. The application also automatically validates the data when you save the calendar.

What's the difference between calendar and fiscal period naming?The period naming format determines the year that is appended to the prefix for each period in the calendar. For the example,your accounting year has a set of twelve accounting period with:

• Start date of September 1, 2014.

• End date is August 31, 2015.

• Period's date range following the natural calendar month date range.

Calendar period naming format: Select the calendar period format to append the period's start date's year to the prefix.For the period covering September 1, 2014 to December 31, 2014, then 2014 or just 14, depending on the period formatselected, is appended to each period's name. For the remaining periods covering January 1, 2015 to August 31, 2015, then2015 or 15, is appended to each period's name.

Fiscal period naming format: Select the fiscal period format to always append the period's year assignment to the prefix. Ifthe accounting periods in the set of twelve are all assigned the year of 2015, then 2015 or just 15, depending on the periodformat selected, is appended to the period name of all 12 periods.

When do I update an existing calendar?Update an existing calendar before the new periods are needed as future periods, based on the future period setting in youraccounting configuration. If a complete year has been defined and validated, use the Add Year button to add the next yearquickly. Accept or change the new rows as required. For example, with the Other frequency type calendar, dates may differfrom what the application generates.

What happens if I upgrade my calendar from Oracle E-Business SuiteRelease 12?The migration script assigns a period frequency that most closely matches your Oracle E-Business Suite Release 12calendar. When you use the Oracle Fusion applications Add Year functionality for the first time, you have an opportunity toreview and change the period frequency. The Calendar Options page opens only for calendars upgraded from Release 12 toallow one time modification.

Make your changes to the period frequency, adjusting period frequency, and period name format, including the prefix andseparator, as needed. Changes cannot conflict with the existing upgraded calendar definition. Update the calendar name anddescription in the calendar header, as needed, for all calendars. Period details for a new year are generated automaticallybased on the latest calendar options. You can also manually update the calendar. The modified calendar options affect futureyears only.



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Manage Currencies

Defining Currencies: Points to ConsiderWhen creating or editing currencies, consider these points relevant to entering the currency code, date range, or symbol forthe currency.

Currency CodesYou can't change a currency code after you enable the currency, even if you later disable that currency.

Date RangesYou can enter transactions denominated in the currency only for the dates within the specified range. If you don't enter a startdate, then the currency is valid immediately. If you don't enter an end date, then the currency is valid indefinitely.

SymbolsSome applications support displaying currency symbols. You may enter the symbol associated with a currency so that itappears along with the amount.

Euro Currency Derivation: ExplainedUse the Derivation Type, Derivation Factor, and Derivation Effective Date fields to define the relationship between the officialcurrency (Euro) of the European Monetary Union (EMU) and the national currencies of EMU member states. For each EMUcurrency, you define its Euro-to-EMU fixed conversion rate and the effective starting date. If you have to use a differentcurrency for Euro, you can disable the predefined currency and create a new one.

Derivation TypeThe Euro currency derivation type is used only for the Euro, and the Euro derived derivation type identifies nationalcurrencies of EMU member states. All other currencies don't have derivation types.

Derivation FactorThe derivation factor is the fixed conversion rate by which you multiply one Euro to derive the equivalent EMU currencyamount. The Euro currency itself must not have a derivation factor.

Derivation Effective DateThe derivation effective date is the date on which the relationship between the EMU currency and the Euro begins.

FAQs for Manage Currencies



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When do I create or enable currencies?Create or enable any currency for displaying monetary amounts, assigning currency to ledgers, entering transactions,recording balances, or for any reporting purpose. All currencies listed in the International Organization for Standardization(ISO) 4217 standard are supported.

The default currency is set to United States Dollar (USD).

What's the difference between precision, extended precision, andminimum accountable unit for a currency?Precision refers to the number of digits placed after the decimal point used in regular currency transactions. For example,USD would have 2 as the precision value for transactional amounts, such as $1.00.

Extended precision is the number of digits placed after the decimal point and must be greater than or equal to the precisionvalue. For calculations requiring greater precision, you can enter an extended precision value such as 3 or 4. That wouldresult in the currency appearing as $1.279 or $1.2793.

Minimum accountable unit is the smallest denomination for the currency. For example, for USD that would be .01 for a cent.

In Setup and Maintenance work area, search for the Manage Currencies task to set these values for a currency.

Manage Conversion Rate Types

Creating Conversion Rate Types: Critical ChoicesMaintain different conversion rates between currencies for the same period using conversion rate types. The followingconversion rate types are predefined:

• Spot

• Corporate

• User

• Fixed

You can use different rate types for different business needs. During journal entry, the conversion rate is providedautomatically based on the selected conversion rate type and currency, unless the rate type is User. For User rate types, youmust enter a conversion rate. You can define additional rate types as needed. Set your most frequently used rate type as thedefault. Conversion rate types can't be deleted.

Assign conversion rate types to automatically populate the associated rate for your period average and period end ratesfor the ledger. For example, you can assign the conversion rate type of Spot to populate period average rates, and theconversion rate type of Corporate to populate period end rates. Period average and period end rates are used in translationof account balances.

Conversion rate types are used to automatically assign a rate when you perform the following accounting functions:

• Convert foreign currency journal amounts to ledger currency equivalents.

• Convert journal amounts from source ledgers to reporting currencies or secondary ledgers.



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• Run revaluation or translation processes.

When creating conversion rates, decide whether to:

• Enforce inverse relationships

• Select pivot currencies

• Select contra currencies

• Enable cross rates and allow cross-rate overrides

• Maintain cross-rate rules

Enforce Inverse RelationshipsThe Enforce Inverse Relationship option indicates whether to enforce the automatic calculation of inverse conversion rateswhen defining daily rates. The following table describes the impact of selecting or not selecting the option.

Action Results

Selected

When you enter a daily rate to convert currency A to currency B, the inverse rate of currency B tocurrency A is automatically calculated and entered in the adjacent column. If either rate is changed,the application automatically recalculates the other rate. You can update the application calculated inverse rate, but once you do, the related rate is updated.The option enforces the inverse relationship is maintained but doesn't prevent you from updating therates.

Not Selected

The inverse rate is calculated, but you can change the rate and update the daily rates table withoutthe corresponding rate being updated.

Select Pivot CurrenciesSelect a pivot currency that is commonly used in your currency conversions. A pivot currency is the central currency thatinteracts with contra currencies. For example, you set up a daily rate between the US dollar (USD) and the Euro currency(EUR) and another between the USD and the Canadian dollar (CAD). USD is the pivot currency in creating a rate betweenEUR and CAD. EUR and CAD are the contra currencies. Select the pivot currency from the list of values which contains thosecurrencies that are enabled, effective, and not a statistical (STAT) currency. The description of the pivot currency is populatedautomatically based on the currency definition.

If you want the application to create cross rates against a base currency, define the base currency as the pivot currency.Selected pivot currencies can be changed in the Rate Types page.

Select Contra CurrenciesSelect currencies available on the list of values as contra currencies. The available currencies are those currencies which areenabled, effective, not STAT currency, and not the pivot currency selected earlier. The description of the contra currency ispopulated automatically based on the currency definition. Add or delete contra currencies in the Contra Currencies region ofthe Rate Types page.

Enable Cross Rates and Allow Cross Rate OverridesCheck the Enable Cross Rates check box to calculate conversion rates based on defined currency rate relationships.General Ledger calculates cross rates based on your defined cross rate rules. Associate your cross rate rules with aconversion rate type, pivot currency, and contra currencies. Cross rates facilitate the creation of daily rates by automaticallycreating the rates between contra currencies based on their relationship to a pivot currency. If the Enable Cross Ratesoption is deselected after entering contra currencies, the application stops calculating cross rates going forward for that



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particular rate type. All the earlier calculated cross rates for that rate type remain in the database unless you manually deletethem.

For example, if you have daily rates defined for the pivot currency, USD to the contra currency, EUR, and USD to anothercontra currency, CAD, the application automatically creates the rates between EUR to CAD and CAD to EUR. You don't haveto manually define the EUR to CAD and CAD to EUR rates.

Check the Allow Cross Rates Override check box to permit your users to override application generated cross rates. If youaccept the default of unselected, the application generated cross rates cannot be overridden

Maintain Cross Rate RulesDefine or update your cross rate rules at any time by adding or removing contra currency assignments. Add a contra currencyto a cross rate rule and run the Daily Rates Import and Calculation process to generate the new rates. If you remove a crossrate rule or a contra currency from a rule, any cross rates generated previously for that contra currency remain unless youmanually delete them. Changes to the rule aren't retroactive and don't affect previously stored cross rates. The Cross Rateprocess generates as many rates as possible and skips currencies where one component of the set is missing.

Note: With a defined web service that extracts daily currency conversion rates from external services, forexample Reuters, currency conversion rates are automatically updated for the daily rates and all cross currencyrelationships.

Using Rate Types: ExamplesThe four predefined conversion rate types are:

• Spot

• Corporate

• User

• Fixed

ScenarioYou are the general ledger accountant for Vision US Inc. You are entering a journal entry to capture three transactions thatwere transacted in three different foreign currencies.

• Canadian Dollar CAD: A stable currency

• Mexican Peso MXP: A fluctuating currency

• Hong Kong Dollar HKD: An infrequently used currency

You enter two journal lines with accounts and amounts for each foreign currency transaction. Based on your companyprocedures, you select the rate type to populate the rate for Corporate and Spot rate types from your daily rates table. Youmanually enter the current rate for the User rate type.

The following table lists the currency, the rate type that you select, and the reasons for the rate type selection.

Selected Currency Selected Rate Type Reason

CAD

Corporate

Entered a periodic type of transaction. Yourcompany has established a daily rate to usefor the entire month across divisions for alltransactions in Canadian dollars, a stable



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Selected Currency Selected Rate Type Reason

currency that fluctuates only slightly over themonth.

MXP

Spot

Entered a periodic type of transaction. Yourcompany enters daily rates each day forthe Mexican peso because the currency isunstable and fluctuates.

HKD

User

Entered a one time transaction. Yourcompany does not maintain daily rates forHong Kong dollars.

Your company does not currently use the Fixed rate type. From January 1, 1999, the conversion rate of the French francFRF against the Euro EUR was a fixed rate of 1 EUR to 6.55957 FRF. Your French operations were started in 2007, so youmaintain all your French business records in the Euro.

FAQs for Manage Conversion Rate Types

What's the difference between spot, corporate, user, and fixed ratetypes?Spot, corporate, user, and fixed conversion rate types differ based on fluctuations of the entered foreign currency and yourcompany procedures for maintaining daily rates.

• Spot: For currencies with fluctuating conversion rates, or when exact currency conversion is needed.

• Corporate: For setting a standard rate across your organization for a stable currency.

• User: For infrequent entries where daily rates for the entered foreign currency aren't set up.

• Fixed: For rates where the conversion is constant between two currencies.

If you have infrequent foreign currency transactions, the User rate type can simplify currency maintenance. The User rate typecan also provide an accurate conversion rate on the date of the transaction.

What's a statistical unit currency type?The statistical unit currency type denotes the Statistical (STAT) currency used to record financial statistics in the financialreports, allocation formulas, and other calculations.

Manage Daily Rates



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Load GL Currency Rates: OverviewOracle Cloud ERP has various options to load currency rates. In Oracle Cloud ERP, daily currency conversion rates can bemaintained between any two currencies. You can enter daily conversion rates for specific combinations of foreign currency,date, and conversion rate type. Oracle Cloud ERP automatically calculates inverse rates. You can override the inverse ratesthat are automatically calculated.

The three different methods of loading currency rates are:

1. Manual load using the Daily Rates spreadsheet2. Manual load using File Based Data Import process.3. Automatic load using web services.

Note: If you encounter errors loading currency rates, you can correct the errors and reload.

Entering Daily Rates Manually: Worked ExampleYou are required to enter the daily rates for currency conversion from Great Britain pounds sterling (GBP) to United Statesdollars (USD) for 5 days for your company InFusion America Inc.

In order to load rates using the Daily Rates Spreadsheet, you need to install Oracle ADF Desktop Integration client software.Oracle ADF Desktop Integration is an Excel add-in that enables desktop integration with Microsoft Excel workbooks. Userscan download the installation files from Navigator > Tools > Download Desktop Integrator Installer.

Entering Daily Rates1. Navigator > Period Close.

Use the Period Close work area to link to close processes and currency process.2. Click the Manage Currency Rates link.

Use the Currency Rates Manager page to create, edit, and review currency rate types, daily rates, and historicalrates.

3. Click the Daily Rates tab.

Use the Daily Rates tab to review and enter currency rates.4. Click the Create in Spreadsheet button.

Use the Create Daily Rates spreadsheet to enter daily rates in a template that you can save and reuse.5. Click in the From Currency field. Select the GBP - Pound Sterling list item.6. Click in the To Currency field. Select the USD - US Dollar list item.7. Click in the Conversion Rate field. Select the Spot list item8. Click in the From Conversion field. Enter a valid value: 10/1/2014.9. Click in the To Conversion Date field. Enter a valid value: 10/5/2014.

10. Click in the Conversion Rate field. Enter a valid value: 1.6.11. Click the Submit > OK twice.12. Review the Record Status column to verify that all rows were loaded successfully.13. Save template to use to enter daily rates frequently. You can save the spreadsheet to either a local drive or a shared

network drive.14. Optionally, edit the rates from the Daily Rates user interface or resubmit the spreadsheet.



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Related Topics• Using Desktop Integrated Excel Workbooks: Points to Consider

GL Currency Rates File Based Load: ExamplesOracle File Based Data Import (FBDI) is used when you must load high volume of daily rates data to Oracle Cloud ERP.

ScenarioYou are assigned the task to upload daily rates for your company. You have decided to use the File Based Data Import andperform the following steps.

Note: For more information about file-based data import, see the File Based Data Import for Oracle FinancialsCloud guide.

1. Download the Daily Rates template called DailyRatesImportTemplate.xlsm from the File Based Data Import for OracleFinancials Cloud guide.

2. Enter the rates data in the FBDI template. To prepare your data in a spreadsheet format, use XLS templates.

a. The first worksheet in each template provides instructions for using the template.b. Save a copy of the file.c. Enable macros using Options > Enable this content radio button.

3. Validate data.

You can use template design to perform extensive validations at the preliminary level.

◦ Checks data formats and other field checks. if a rate overlap is present for a particular combination of Fromand To Currency code and rate type. Errors are identified and presented in a separate sheet for the users toreview and correct

◦ Checks if a rate overlap is present for a particular combination of From and To Currency codes and ratetype.

◦ Identifies errors and presents them in a separate sheet for the users to review and correct them beforerevalidating.

4. Generate daily rates .zip file.

Generate daily rates .zip file containing the validated and formatted comma-separated values (.csv) file by selectingGenerate Daily Rates button within the template.

5. Upload file in Universal Content Management (UCM) system which is a single platform for managing contents acrossyour enterprise.

a. Use Navigator > File Import and Export to upload the file in the UCM server.b. Use the Account as fin/generalLedger/import when uploading.c. Save and Close.

6. Run Load Interface File for Import Process from Navigator -> Tools-> Scheduled processes->ScheduleNew Process. This process:

a. Validates the data before uploading the data to the GL Daily Rates Interface table.b. Allows review the error log and correction of errors before running the process again.c. Populate GL Daily Rates table automatically as a post import process once data is successfully validated.




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7. Review the imported rates by navigating to Manage Currency Rates page.

Note: For more information see: Load Currency Rates To Oracle Fusion ERP Cloud (Doc ID 1950660.1) on MyOracle Support.

Related Topics

• File Based Data Import for Oracle Financials Cloud

Automatic Load Using Web Services: ExamplesIf you have a rate subscription source that provides daily rates, use a web service to fully automate the loading of the ratesusing the File Based Data Import. The external web service FinancialUtilService enables you to upload data files toOracle Universal Content Management, and launch the processes to import the rates to Oracle Cloud ERP.

ScenarioYou are setting up an automatic process to load your company's daily rates.

Process Steps:

1. Get rates file from the designated external source.

If you have a rate subscription source that provides daily rates, then you can call web service to collect the file and tofeed into Oracle Data Integrator or alternatively to temporary storage in Oracle Universal Content Management that inturn can be fed into Oracle Data Integrator for further processing.

2. Prepare and validate data.

You would perform data transformation to fit the format of the spreadsheet template. These data processing stepscan be accomplished using Oracle Data Integrator.

The .csv data file has to be provided and transformed in the specific format, in the exact column sequence as inthe .xlsm file and data types as expected. For example, the .csv file provides columns such as from and to currency,dates in canonical format, conversion rate type, and the rate.

3. Call web service uploadFileToUcm.

Automatically upload the formatted, validated file from Oracle Data Integrator into Oracle Universal ContentManagement.

4. Call web service submitESSJobRequest.

Submit the Load Interface File for Import process to load data into GL Daily Rates interface table.5. Call web service getESSJobStatus.

Verify the status of request submitted in previous step. If the process ended in errors, you may have to correct themand then resubmit the process.

6. The process to submit the import rates from interface table to GL Daily Rates table happens automatically as apost process to the submit the Load Interface File for Import process performed in step four.

7. Once the Import and Calculate Daily Rates process completes successfully, you can verify and review the ratesfrom the Currency Rates Manager page.




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Security Required for Loading GL Currency Rates: ExplainedThe following tables lists the security privileges and duties that you must be assigned for tasks related to loading rates toOracle Cloud ERP.

Tasks Privilege Duties

Creating rate types

Define Conversion Rate Type

Daily Rates Administration, GeneralAccounting Manager

Maintaining daily conversion rates

Maintain Daily Conversion Rate


Importing rate to Cloud ERP

Run Daily Rates Import and CalculationProcess


Viewing daily conversion rates

View Daily Conversion Rate

Daily Rates Administration, GeneralAccounting Setup Review

Updating Currency Rates: Worked ExampleYou are required to change today's daily rates that were already entered. The rates you are changing are for currencyconversion from Great Britain pounds sterling (GBP) to United States dollars (USD) for your company InFusion America.

Currency conversion rates were entered by an automatic load to the Daily Rates table. They can also be entered through aspreadsheet.

Updating Currency Rates1. Navigate to the Period Close work area.

Use the Period Close work area to link to close processes and currency process.2. Click the Manage Currency Rates link.

Use the Currency Rates Manager page to create, edit, and review currency rate types, daily rates, and historicalrates.

3. Click the Daily Rates tab.

Use the Daily Rates tab to review and enter currency rates.4. Click the From Currency list. Select the GBP - Pound Sterling list item.5. Click the To Currency list. Select the USD - US Dollar list item.6. Enter the dates for the daily rates that you are changing. Enter today's date.7. Click the Rate Type list. Select the Spot list item.8. Click the Search button.9. Click in the Rate field. Enter the new rate of 1.7 in the Rate field.

10. Click in the Inverse Rate field. Enter the new inverse rate of 0.58822 in the Inverse Rate field.11. Click the Save button.



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Related Topics

• Using Desktop Integrated Excel Workbooks: Points to Consider




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Chapter 4Define Ledgers

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4 Define Ledgers

Ledgers and Subledgers: ExplainedOracle Fusion Applications reflect the traditional segregation between the general ledger and associated subledgers. Detailedtransactional information is captured in the subledgers and periodically imported and posted in summary or detail to theledger.

A ledger determines the currency, chart of accounts, accounting calendar, ledger processing options, and accountingmethod for its associated subledgers. Each accounting setup requires a primary ledger and optionally, one or moresecondary ledgers and reporting currencies. Reporting currencies are associated with either a primary or secondary ledger.

The number of ledgers and subledgers is unlimited and determined by your business structure and reporting requirements.

Single LedgerIf your subsidiaries all share the same ledger with the parent company or they share the same chart of accounts andcalendar, and all reside on the same applications instance, you can consolidate financial results in Oracle Fusion GeneralLedger in a single ledger. Use Oracle Fusion Financial Reporting functionality to produce individual entity reports by balancingsegments. General Ledger has three balancing segments that can be combined to provide detailed reporting for each legalentity and then rolled up to provide consolidated financial statements.

Multiple LedgersAccounting operations using multiple ledgers can include single or multiple applications instances. You need multiple ledgersif one of the following is true:

• You have companies that require different account structures to record information about transactions and balances.For example, one company may require a six-segment account, while another needs only a three-segment accountstructure.

• You have companies that use different accounting calendars. For example, although companies may share fiscalyear calendars, your retail operations require a weekly calendar, and a monthly calendar is required for yourcorporate headquarters.

• You have companies that require different functional currencies. Consider the business activities and reportingrequirements of each company. If you must present financial statements in another country and currency, considerthe accounting principles to which you must adhere.

SubledgersOracle Fusion Subledgers capture detailed transactional information, such as supplier invoices, customer payments, andasset acquisitions. Oracle Fusion Subledger Accounting is an open and flexible application that defines the accounting rules,generates detailed journal entries for these subledger transactions, and posts these entries to the general ledger with flexiblesummarization options to provide a clear audit trail.



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Ledgers: Points to ConsiderCompanies account for themselves in primary ledgers, and, if necessary, secondary ledgers and reporting currencies.Transactions from your subledgers are posted to your primary ledgers and possibly, secondary ledgers or reportingcurrencies based on balance, subledger, or journal level settings. Local and corporate compliance can be achieved throughan optional secondary ledger. Provide an alternate accounting method, or in some cases, a different chart of accounts.Your subsidiary's primary and secondary ledgers can both be maintained in your local currency. You can convert yourlocal currency to your parent's ledger currency to report your consolidated financial results using reporting currencies ortranslation.

Primary LedgersA primary ledger:

• Is the main record-keeping ledger.

• Records transactional balances by using a chart of accounts with a consistent calendar and currency, andaccounting rules implemented in an accounting method..

• Is closely associated with the subledger transactions and provides context and accounting for them.

To determine the number of primary ledgers, your enterprise structure analysis must begin with your financial, legal, andmanagement reporting requirements. For example, if your company has separate subsidiaries in several countries worldwide,enable reporting for each country's legal authorities by creating multiple primary ledgers that represent each country with thelocal currency, chart of accounts, calendar, and accounting method. Use reporting currencies linked to your country-specificprimary ledgers to report to your parent company from your foreign subsidiaries. Other considerations that affect the numberof primary ledgers required are:

• Corporate year end

• Ownership percentages

• Local government regulations and taxation

• Secondary ledgers

Secondary LedgersA secondary ledger:

• Is an optional ledger linked to a primary ledger for the purpose of tracking alternative accounting.

• Can differ from its primary ledger by using a different accounting method, chart of accounts, accounting calendar,currency, or processing options.

When you set up a secondary ledger using the Manage Secondary Ledger task, you select a data conversion level. The dataconversion level determines what level of information is copied to the secondary ledger. You can select one of the followinglevels: Balance, Journal, Subledger, or Adjustment Only.

• Balance: When you run the Transfer Balances to Secondary Ledger process, balances are transferred from theprimary ledger to the secondary ledger.

• Journal: When you post journals in the primary ledger, the posting process copies the journals to the secondaryledger for the sources and categories that you specify in the Journal Conversion Rules section on the Map Primary toSecondary Ledger page.



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In the Journal Conversion Rules section, you can do one of the following:

◦ Accept the default setting of Yes for the journal source and category combination of Other, and then specifythe source and category combinations to exclude from the conversion.

◦ Set the journal source and category combination of Other to No, and then specify the source and categorycombinations to include in the conversion.

• Subledger: When you run the Create Accounting process in the primary ledger, the process creates subledgerjournals for both the primary and secondary ledgers. When you run the Post Journals process in the primary ledgerfor journals that are created through methods other than the Create Accounting process, the posting process copiesthe primary ledger journals to the secondary ledger. For any journals that you don't want copied by posting, youcan change the settings in the Journal Conversion Rules section on the Map Primary to Secondary Ledger page. Toprevent duplication, posting doesn't copy any journal that originated from subledgers, regardless of the settings inthe Journal Conversion Rules section.

Caution: You don't have to specify journal conversion rules for your subledgers because journalconversion rules are applicable only to postings from Oracle Fusion General Ledger. The CreateAccounting process automatically produces accounting for both the primary and the secondary ledger,regardless of the journal conversion rule settings.

• Adjustment Only: This level is an incomplete accounting representation that holds only adjustments. Theadjustments can be manual adjustments or automated adjustments from subledger accounting. This type ofsecondary ledger must share the same chart of accounts, accounting calendar, period type, and currency as theassociated primary ledger.

Tip: To obtain a complete secondary accounting representation that includes both transactional data andadjustments, use ledger sets to combine the ledgers when running reports.

ExampleYour primary ledger uses US Generally Accepted Accounting Principles (GAAP) and you maintain a secondary ledger forInternational Financial Reporting Standards (IFRS) accounting requirements. You first decide to use the subledger conversionlevel for the IFRS secondary ledger. However, since most of the accounting between US GAAP and IFRS is identical,the adjustment only level is the better solution for the secondary ledger. The subledger level requires duplication of mostsubledger and general ledger journal entries and general ledger balances. The adjustment only level transfers only theadjustment journal entries and balances necessary to convert your US GAAP accounting to the IFRS accounting. Thus,requiring less processing resources.

Tip: To avoid difficult reconciliations, use the same currency for primary and secondary ledgers. Use reportingcurrencies or translations to generate the different currency views to comply with internal reporting needs andconsolidations.

Reporting CurrenciesReporting currencies maintain and report accounting transactions in additional currencies. Consider the following beforedeciding to use reporting currencies.

• Each primary and secondary ledger is defined with a ledger currency that is used to record your businesstransactions and accounting data for that ledger.



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• Best practices recommend that you maintain the ledger in the currency in which the majority of its transactions aredenominated. For example, create, record, and close a transaction in the same currency to save processing andreconciliation time.

• Compliance, such as paying local transaction taxes, is also easier using a local currency.

• Many countries require that your accounting records be kept in their national currency.

If you maintain and report accounting records in different currencies, you do this by defining one or more reporting currenciesfor the ledger. When you set up a reporting currency using the Manage Reporting Currency task, you select a currencyconversion level. The currency conversion level determines what level of information is copied to the reporting currency.

You can select one of the following levels: Balance, Journal, Subledger.

• Balance: When you run the Translate General Ledger Account Balances process, balances are transferred from thespecified ledger to the reporting currency and converted.

• Journal: When you post journals, the posting process copies the journals to the reporting currency for the sourcesand categories that you specify in the Journal Conversion Rules section on the Create or Edit Reporting Currencypages.

In the Journal Conversion Rules section, you can do one of the following:

◦ Accept the default setting of Yes for the journal source and category combination of Other, and then specifythe source and category combinations to exclude from the conversion.

◦ Set the journal source and category combination of Other to No, and then specify the source and categorycombinations to include in the conversion.

• Subledger: When you run the Create Accounting process in the primary ledger, the process creates subledgerjournals for both the primary ledger and the reporting currency. When you run the Post Journals process in theprimary ledger for journals that are created through methods other than the Create Accounting process, the postingprocess copies the primary ledger journals to the reporting currency. For any journals that you don't want copied byposting, you can change the settings in the Journal Conversion Rules section on the Edit Reporting Currency page.To prevent duplication, posting doesn't copy any journal that originated from subledgers, regardless of the settings inthe Journal Conversion Rules section.

Caution: You don't have to specify journal conversion rules for your subledgers because journalconversion rules are applicable only to postings from Oracle Fusion General Ledger. The CreateAccounting process automatically produces accounting for both the primary ledger and the reportingcurrency, regardless of the journal conversion rule settings.

Note: A full accounting representation of your primary ledger is maintained in any subledger level reportingcurrency. Secondary ledgers cannot use subledger level reporting currencies.

Do not use journal or subledger level reporting currencies if your organization translates your financial statements to yourparent company's currency for consolidation purposes infrequently. Standard translation functionality meets this need.Consider using journal or subledger level reporting currencies when any of the following conditions exist.

• You operate in a country whose unstable currency makes it unsuitable for managing your business. As aconsequence, you manage your business in a more stable currency while retaining the ability to report in theunstable local currency.

• You operate in a country that is part of the European Economic and Monetary Union (EMU), and you select toaccount and report in both the European Union currency and your National Currency Unit.



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Note: The second option is rare since most companies have moved beyond the initial conversion to the EMUcurrency. However, future decisions could add other countries to the EMU, and then, this option would again beused during the conversion stage.

Related Topics

• What's the difference between mapping with segment rules and mapping with account rules?

• When do account rules override segment rules in the chart of accounts mapping?

Financial Ledgers: How They Fit TogetherThe process of designing an enterprise structure, including the accounting configuration, is the starting point for animplementation. This process often includes determining financial, legal, and management reporting requirements, setting upprimary and secondary ledgers, making currency choices, and examining consolidation considerations.

Primary ledgers are connected to reporting currencies and secondary ledgers to provide complete reporting options.You map the chart of accounts for the primary ledger to the chart of accounts for the secondary ledger. Legal entities areassigned to ledgers, both primary and secondary, and balancing segments are assigned to legal entities. Business units mustbe connected to both a primary ledger and a default legal entity. Business units can record transactions across legal entities.



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The following figure provides an example of an enterprise structure with primary ledgers, secondary ledgers, a reportingcurrency, legal entities, business units, and balancing segments, and shows their relationships to one another.

Corporate Primary Ledger

Legal Entities

Secondary Ledgers

Subsidiary Primary Ledgers

Reporting Currency

Balancing Segments

Legal Entities

Balancing Segments

Mapping Chart of Accounts

Business Units

Transactions

Primary LedgersA primary ledger is the main record-keeping ledger. Create a primary ledger by combining a chart of accounts, accountingcalendar, ledger currency, and accounting method. To determine the number of primary ledgers, your enterprise structureanalysis must begin with determining financial, legal, and management reporting requirements. For example, if your companyhas separate subsidiaries in several countries worldwide, create multiple primary ledgers representing each country with thelocal currency, chart of accounts, calendar, and accounting method to enable reporting to each country's legal authorities.

If your company just has sales in different countries, with all results being managed by the corporate headquarters, createone primary ledger with multiple balancing segment values to represent each legal entity. Use secondary ledgers or reportingcurrencies to meet your local reporting requirements, as needed. Limiting the number of primary ledgers simplifies reportingbecause consolidation is not required. Other consideration such as corporate year end, ownership considerations, and localgovernment regulations, also affect the number of primary ledgers required.



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Secondary LedgersA secondary ledger is an optional ledger linked to a primary ledger. A secondary ledger can differ from its related primaryledger in chart of accounts, accounting calendar, currency, accounting method, or ledger processing options. Reportingrequirements, for example, that require a different accounting representation to comply with international or country-specificregulations, create the need for a secondary ledger.

If the primary and secondary ledgers use different:

• Charts of accounts, a chart of accounts mapping is required to instruct the application on how to propagate journalsfrom the source chart of accounts to the target chart of accounts.

• Accounting calendars, the accounting date, and the general ledger date mapping table are used to determine thecorresponding nonadjusting period in the secondary ledger. The date mapping table also provides the correlationbetween dates and nonadjusting periods for each accounting calendar.

• Ledger currencies, currency conversion rules are required to instruct the application on how to convert thetransactions, journals, or balances from the source representation to the secondary ledger.

Note: Journal conversion rules, based on the journal source and category, are required to provide instructionson how to propagate journals and types of journals from the source ledger to the secondary ledger.

Reporting CurrenciesReporting currencies are the currency you use for financial, legal, and management reporting. If your reporting currency is notthe same as your ledger currency, you can use the foreign currency translation process or reporting currencies functionalityto convert your ledger account balances in your reporting currency. Currency conversion rules are required to instructthe application on how to convert the transactions, journals, or balances from the source representation to the reportingcurrency.

Legal EntitiesLegal entities are discrete business units characterized by the legal environment in which they operate. The legal environmentdictates how the legal entity should perform its financial, legal, and management reporting. Legal entities generally havethe right to own property and the obligation to comply with labor laws for their country. They also have the responsibility toaccount for themselves and present financial statements and reports to company regulators, taxation authorities, and otherstakeholders according to rules specified in the relevant legislation and applicable accounting standards. During setup, legalentities are assigned to the accounting configuration, which includes all ledgers, primary and secondary.

Balancing SegmentsYou assign primary balancing segment values to all legal entities before assigning values to the ledger. Then, assign specificprimary balancing segment values to the primary and secondary ledgers to represent nonlegal entity related transactionssuch as adjustments. You can assign any primary balancing segment value that has not already been assigned to a legalentity. You are allowed to assign the same primary balancing segment values to more than one ledger. The assignment ofprimary balancing segment values to legal entities and ledgers is performed within the context of a single accounting setup.The Balancing Segment Value Assignments report is available to show all primary balancing segment values assigned to legalentities and ledgers across accounting setups to ensure the completeness and accuracy of their assignments. This reportallows you to quickly identify these errors and view any unassigned values.



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Business UnitsA business unit is a unit of an enterprise that performs one or many business functions that can be rolled up in a managementhierarchy. When a business function produces financial transactions, a business unit must be assigned a primary ledger, anda default legal entity. Each business unit can post transactions to a single primary ledger, but it can process transactions formany legal entities. Normally, it has a manager, strategic objectives, a level of autonomy, and responsibility for its profit andloss. You define business units as separate task generally done after the accounting setups steps.

The business unit model:

• Allows for flexible implementation

• Provides a consistent entity for controlling and reporting on transactions

• Enables sharing of sets of reference data across applications

For example, if your company requires business unit managers to be responsible for managing all aspects of their part of thebusiness, then consider using two balancing segments, company and business unit to enable the production of business unitlevel balance sheets and income statements.

Transactions are exclusive to business units. In other words, you can use business unit as a securing mechanism fortransactions. For example, if you have an export business that you run differently from your domestic business, use businessunits to secure members of the export business from seeing the transactions of the domestic business.

Creating Primary Ledgers: ExampleCreate a primary ledger as your main record-keeping ledger. Like any other ledger, a primary ledger records transactionalbalances by using a chart of accounts with a calendar, currency, and accounting rules implemented in an accountingmethod. The primary ledger is closely associated with the subledger transactions and provides context and accounting forthem.

ScenarioYou have been assigned the task of creating a primary ledger for your company InFusion America.

1. Navigator > Define Accounting Configurations > Manage Primary Ledgers > Go to Task.2. Click the Create icon.3. Complete the fields, as shown in this table.

Field Value

Name

InFusion America

Description

InFusion America primary ledger for recording transactions.

Chart of Accounts

InFusion America Chart of Accounts

Accounting Calendar

Standard Monthly



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Field Value

Currency

USD

Accounting Method

Standard Accrual

4. Click Save and Edit Task List to navigate back to the accounting configuration task list.

Note: You can't change the chart of accounts, accounting calendar, or currency for your ledger afteryou save the ledger.

Specify Ledger Options

Specifying Ledger Options: Worked ExampleThis example demonstrates specifying the ledger options for your primary ledger. Your company, InFusion Corporation, isa multinational conglomerate that operates in the United States (US) and the United Kingdom (UK). InFusion has purchasedan Oracle Fusion Enterprise Resource Planning (ERP) solution including Oracle Fusion General Ledger and all of the OracleFusion subledgers.

After completing your InFusion America Primary Ledger, select Specify Ledger Options under the Define AccountingConfiguration task list on the Functional Setup Manager page.

Note: Both primary and secondary ledgers are created in the same way and use the same user interface toenable their specific ledger options.

Reviewing General Options1. Accept the Name and Description defaults for the ledger selected.2. Review the Currency and Chart of Accounts for the specified ledger, which are automatically populated.

Setting Accounting Calendar Options1. Review the Accounting Calendar that defaults from your ledger.2. Select Jan-2017 as the First Open Period for your ledger.

Select a period after the first defined period in the ledger calendar to enable running translation. You cannot runtranslation in the first defined period of a ledger calendar. In this example, your calendar began with Jan-2016.

3. Enter 3 for the Number of Future Enterable Periods.

Any value between 0 and 999 periods can be specified to permit entering journals but not posting them in futureperiods. Minimize the number of open and future periods to prevent entries in the wrong period.

Selecting Subledger Accounting Options1. Accept the default Accounting Method from your ledger.2. Select US American English as your Journal Language.



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Completing the Period Close Options1. Enter your Retained Earnings Account: 101-00-31330000-0000-000-0000-0000.

This account is required for general ledger to move the revenue and expense account balances to this account atthe end of the accounting year.

2. Enter your Cumulative Translation Adjustment Account: 101-00-31350000-0000-000-0000-0000.

The Cumulative Translation Adjustment (CTA) account is required for ledgers running translation.3. Do not enter a Default Period End Rate Type or Default Period Average Rate Type.

The values entered here are used as the default for balance level reporting currency processing. InFusion AmericaPrimary Ledger is using the subledger level reporting currency processing.

Specifying Journal Processing Options1. Complete the fields, as shown in this table.

Field Value

Enable Suspense

General Ledger

Default Suspense Account

101-00-98199999-0000-000-0000-0000

Rounding Account

101-10-98189999-0000-000-0000-0000

Entered Currency Balancing Account

101-10-98179999-0000-000-0000-0000

Balancing Threshold Percent

10

2. Complete the fields, as shown in this table.

Field Value

Enable journal approval

Click to enable journal approval functionality. Approval rules must be created in the Oracle FusionApprovals Management.

Notify when prior period journal

Notify the user when a prior period date is selected on a journal entry.

Allow mixed and statistical journals

Enter both monetary and statistical amounts on the same line in a journal entry.

Validate reference date

Requires a reference date in an open or future enterable period.

3. Click the Separate journals by accounting date during journal import for the Import option to create individualjournal entries for each accounting date.

4. For the Reversal options, select InFusion America Accrual Set from the list of values in the Journal ReversalCriteria Set field and click the Launch AutoReverse after open period to reverse accrual journal entriesautomatically when a new period is opened.

5. Click the Enable intercompany accounting for the Intercompany option to enable automatic balancing forprimary, second, and third balancing segments) on intercompany journals and transactions.



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To complete the intercompany accounting functionality, you must define intercompany rules.

Related Topics

• Journal Posting Process: How Single Currency Journals Are Balanced

• Journal Posting Process: How Multicurrency Journals Are Balanced

FAQs for Specify Ledger Options

What happens if I change the cumulative translation adjustmentaccount?Changing the cumulative translation adjustment (CTA) account is a very significant revision to your accounting configurationand should be avoided if possible. To prevent data corruption, your CTA can only be changed if you delete translatedbalances.

Related Topics

• Deleting Translated Balances: How It Works

What happens if I change the retained earnings account?Changing the retained earnings account is a very significant revision to your accounting configuration and should be avoided ifpossible. To prevent data corruption, your retained earnings account can only be changed if you first perform the following setof steps:

1. To reverse what was closed out to the incorrect retained earnings account, enter and post journals to bring theending balances for your income statement accounts to zero at the end of each accounting year. Use a temporaryaccount, such as a suspense account, for the offsetting amount.

2. Update the retained earnings account.3. Reverse the journal entries used to bring the income statement accounts' ending account balances to zero to

reinstate each accounting year's profit and loss, and now close these out to the new retained earning's account inthe following accounting year.

Note: The recommended reversal method for the journals is Change Sign.

4. If you have translated balances for the ledger, follow the process of deleting translated balances for a change in theretained earnings account.

Related Topics

• Deleting Translated Balances: How It Works

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=33861799AA042272E05362C3F00A58E8

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=32BDA6C8554B6407E05362C3F00AF2CB

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=57FD57AF9CD75F0AE05362C3F00AB0B8

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=57FD57AF9CD75F0AE05362C3F00AB0B8



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Review and Submit Accounting Configuration

Oracle General Ledger Balances Cube: OverviewA balances cube stores financial balances in a multidimensional database for interactive reporting and analysis.

A ledger has a chart of accounts, calendar, currency, and accounting method. When the accounting configuration processis submitted for a primary or secondary ledger that uses a new unique combination of chart of accounts and calendar, abalances cube is created.

The following figure shows the components of a ledger and that the accounting configuration process creates the balancescube.

Accounting Configuration

Process

Chart of Accounts

Calendar

Currency

Accounting Method

Primary or Secondary Ledger

General Ledger Balances Cube

Balance cubes are named after the chart of accounts they contain.



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A balances cube:

• Stores financial balances in a multidimensional cube for real time, interactive financial reporting and analysis.

• Preaggregates balances at every possible point of summarization, ensuring immediate access to financial data andeliminating the need for an external data warehouse for financial reporting.

• Is uniquely identified by a combination of the chart of accounts and accounting calendar. Average balances aretracked in a separate balances cube.

• Is automatically synchronized by the following general ledger processes: posting, open period, and translation.

• Consists of a set of defining business entities called dimensions. Dimensions in a cube determine how data isaccumulated for reporting and analytical purposes.

• Are referred to as an application or database connection in the user interfaces for Financial Reports, Smart View, andCalculation Manager.

Standard Balances Cube Dimensions: ExplainedA balances cube consists of a set of defining business entities called dimensions. These dimensions are available for creatingfinancial reports, Smart View queries, and allocations using multidimensional cubes.

The following table describes the dimensions and provides example values.

Dimension Description Examples

Accounting Period

Based upon the calendar of the ledger orledger set. Report on years, quarters, orperiods.

• 2012• Quarter-1• Jan-12

Ledger or Ledger Set

Used to select a ledger for the reporting.Multiple ledgers may be in the same cube ifthey share a common chart of accounts.

• Vision North America Ledger Set• Vision US Primary Ledger

Chart of Accounts Segments

Uses a separate dimension for each of thesegments from the charts of accounts.Organized by hierarchy. A default hierarchyis provided that includes all detail segmentvalues. Hierarchies published in the PublishAccount Hierarchies user interface areincluded.

• Company: Vision America: 101• Cost Center: Sales: 400• Account: Cash: 1110

Scenario Indicates if the balances represented are

actual or budget amounts. Allocation-relateddimensions are predefined members andrequired for allocation solutions. Allocationdimensions are not used directly by endusers.

Budget scenario dimension membersare user-defined in the Oracle FusionApplications value set called AccountingScenario. The dimension members appear in

• Budget 2012• Actual• Forecast 2013



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Dimension Description Examples

the cube after running the Create ScenarioDimension Members process.

Balance Amount

Indicates if the value is the beginningbalance, period activity, or ending balance.Debit, Credit, and Net amounts are availablefor reporting.

• Beginning Balance (DR, CR, or Net)• Period Activity (DR, CR, or Net)• Ending Balance (DR, CR, or Net)

Amount Type

Indicates whether the amounts representBase, Period to Date, Quarter to Date, orYear to Date.

• Base• PTD: Period to Date• QTD: Quarter to Date• YTD: Year to Date

Currency

Used to select the wanted currency for thebalances.

• All ISO Currencies• USD: US Dollar• JPY: Japanese yen

Currency Type

Used to select the currency type of thebalances.

• Total• Entered• Converted From (for each ISO

currency)

Note: Dimensions are predefined and new ones cannot be added.

Creating GL Balances Cubes: ExamplesThere are two types of Oracle Fusion General Ledger Balances cubes: Standard Balances cubes and Average Balancescubes.

Standard Balances CubesA new standard balances cube is created whenever an accounting configuration is submitted for a ledger, either primary orsecondary, that uses a new unique combination of chart of accounts and accounting calendar. Cubes are named after thechart of accounts.

Two examples of standard balance cubes:

1. The chart of accounts, InFusion US Chart of Accounts has a related cube entitled, InFusion US Chart of Accounts.If a chart of accounts is used by multiple ledgers with different calendars, the cube names are distinguished byappending a number to their names.

2. The InFusion US Chart of Accounts is used by two different ledgers, each of which has a different accountingcalendar, one with a standard calendar year ending December 31st and the other with a fiscal year ending May 31st.Two cubes are created. The cubes are named InFusion US Chart of Accounts and InFusion US Chart of Accounts 2.

Average Balances CubesAverage balances cubes use different dimensions than the standard balances cubes therefore require their results be storedin separate cubes. If the average balances option is enabled for a ledger, a second average balances cube is automaticallycreated based upon the same criteria of a unique combination of chart of accounts and accounting calendar. Averagebalances cubes are named with ADB (average daily balances) plus the name of the associated chart of accounts.



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For example, for a chart of accounts, InFusion US Chart of Accounts, the average balances cube name is ADB InFusionUS Chart of Accounts. Numbers are appended to the name when more than one calendar is used by the same chart ofaccounts. The numbering is determined and shared with the related standard balances cubes. The standard cube calledInFusion US Chart of Accounts 3 has a corresponding average balance cube entitled ADB InFusion US Chart ofAccounts 3.

Customer Specific GL Balances Cube Dimension Values: Points toConsiderIn creating your cube, take in to consideration the dimensions that are you, the customer, define and those that are partiallyor completely predefined by Oracle Fusion Applications.

• Two dimensions, Chart of Accounts and Scenario, have customer specific dimension values and require userprocedures to populate the cube

• Accounting Period, Currency, and Ledger dimensions are customer specific, but are automatically created in thecubes from the changes made in the applicable user interfaces.

• Other dimensions, such as Amount Type and Balance Amount, have only predefined members.

The following are points to consider in setting up and populating cubes for the Chart of Accounts and Scenario dimensionmembers.

Create Account Hierarchies• Account hierarchies for your chart of account dimensions are created in the Manage Account Hierarchies page or

the Manage Trees and Trees Versions page after setting up your value sets, chart of accounts, and values.

• Create account hierarchies (trees) to identify managerial, legal, or geographical relationships between your value setvalues.

• Define date-effective tree versions to reflect organizational changes within each hierarchy over time.

• The tree version must be in an active or inactive status to be published. Draft versions cannot be published.

Note: From your implementation project, Navigate > Define Common Applications Configuration >Define Enterprise Structures > Define Financial Reporting Structures > Define Chart of Accounts >Manage Account Hierarchies > Go to Task.

Publish Account HierarchiesNext, after defining the tree versions, publish account hierarchies (tree versions) to the cube. Before publishing, set thefollowing profile option: GL: Set Cube Alias to Segment Value Description. Consider the following points when setting theprofile option.

• The member alias displayed in the Oracle Fusion General Ledger balances cubes.

◦ Yes displays only the segment value description, for example: Cash.

◦ No displays value plus the segment value description, for example: 1110 Cash.

• When you change the profile option setting, republish the hierarchy.

• Default value is No.



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• No is necessary when there are duplicate segment value descriptions in the same value set. The descriptions arestored in the Alias in the cube. Aliases must be unique in a dimension in the cube. For example, if the descriptionWest existed for more than two segment values in the Cost Center value set the entire cube creation process fails.

Note: Essbase cubes display only the first 80 characters in the description, so the first 80 characters inthe description must be unique.

• If duplicate segment value descriptions exist, the cube can be created with the profile set to No. At anytime the valueof the profile can be changed to Yes after the duplicates are removed. At that time, the account hierarchies (treeversions) must be published or republished to the cube.

• If you set the profile value to Yes, and then decide to rebuild a cube from a process run in Enterprise Scheduler orcreate a cube by submitting an accounting configuration and duplicate descriptions exist, the create cubes processerrors. You have two options at that point:

◦ Set the profile value to No and run the Create Cubes process. For a new ledger with a new chart of accountsand accounting calendar combination, submit the accounting configuration.

◦ Remove the duplicates across all dimensions, not just a single segment. Then run the Create Cubes orresubmit the accounting configuration.

From your implementation project, Navigate > Define Common Applications Configuration > Define EnterpriseStructures > Define Financial Reporting Structures > Define Chart of Accounts > Publish Account Hierarchies >Go to Task. Use the Publish Account Hierarchies page to search and publish account hierarchies.

• Select the Publish check box. This is indicator of what to include in balances cube by selecting the check box orwhat you don't want to include in balances cube by removing the check from the check box.

• Select the rows. Functionality allows for select multiple rows to be selected.

• Select the Publish button to update the balances cubes. A process is generated.

• Navigator > Tools > Scheduled Processes to monitor the process.

Note: Use Smart View to verify that the account hierarchies were correctly published.

Define Scenario Dimension MembersThe customer specific Scenario dimension members are defined in the Manage Value Sets and Manage Values pages inthe value set called Accounting Scenario. Any customer specific Scenario dimension is included in all balances cubes.

Best practice is to setup the customer specific Scenario members in this value set before you create your first ledger and runthe Accounting Configuration process. The Accounting Configuration process generates your balances cubes.

If the cubes already existed, you can run the Create Scenario Dimension Members process to update the balances cubesfor the new members.

Note: If you are on a release before the Create Scenario Dimension Members process is available, you haveto rebuild the cubes with the Create Cubes process to add the Scenario dimension in the cube. Follow theguidelines for creating cubes before running process.



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Default Dimension Values in Reporting: ExplainedFor Standard Balances Cube dimensions, there are default values that if used in Smart View and on financial reports createdin Financial Reporting Studio cause #MISSING to appear when balances are returned on a report output. If #MISSINGappears, check that all dimensions are properly set. Particularly, check the Accounting Period, Ledger, Scenario, andCurrency dimensions, which all must have a value selected other than the default highest level value called Gen1.

The following table lists dimensions, available and default dimension values, and provides guidance on selecting the correctdimension values.

Dimension Possible Values Default Value Additional Information

Accounting Period

Years, quarters, and period

Accounting Period = AccountingPeriod (Gen1)

You must always select anaccounting period for eachfinancial report including UserPoint of View, Smart View query,or allocation including Point ofView. If you do not specify a validAccounting Period, the financialreports, Smart View queries,and Account Inspector displays#MISSING.

Ledger

Includes ledgers and ledger sets

Ledger = Ledger (Gen1)

If you do not specify a specificLedger or Ledger Set, thefinancial reports, Smart Viewqueries, and Account Inspectorqueries display #MISSING

Chart of accounts dimensions

Not Applicable

Highest level (Gen1) There is a separate dimension

for each segment of the chartof accounts used by the cube.Each segment has a defaultaccount hierarchy that includesall the detail values for thesegment but not parent values.Only account hierarchies (treeversions) published from thePublish Account Hierarchiesuser interface are available in thecube.

Scenario

Not Applicable

Scenario = Scenario representsthe sum of all values: Actual +Allocated + Total for Allocations+ Budget + Forecast. Select avalue for this dimension.

Note: Must always select aScenario dimension.

Predefined values are Actual,Allocated, and Total forAllocated. Additional scenariovalues for Budget, ForecastQ1, and Forecast Q2 may beavailable if they have been addedto the Accounting Scenario valueset. These additional values arepublished to every cube.

Balance Amount

• Beginning Balance DR,CR, or Net

• Period Activity DR, CR, orNet

Balance Amount = BalanceAmount (Gen1) which is theequivalent of Ending Balance.

Not Applicable



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Dimension Possible Values Default Value Additional Information

• Ending Balance DR, CR,or Net

• Balance Amount (same asEnding Balance)

Amount Type

Base, PTD, QTD, YTD

Amount Type = Amount Type(Gen1) which is the equivalent ofBase.

Base is necessary because thisis the value used to store fromposting all balances at the lowestlevel. PTD, QTD, and YTD arecalculated values.

Currency

All ISO currencies (250+).

Highest level (Gen1)

Similar to Accounting Period andLedger, there may not be anappropriate default for Currencysince different Ledgers havedifferent ledger currencies. If youdon't specify a valid currency ina financial report, Smart Viewquery, or allocation, you get aresult of #MISSING.

Currency Type

Total, Entered, and Convertedfrom for each ISO currency =each ISO currency.

Currency Type = Currency Type(Gen1), which is the equivalent ofTotal.

Not Applicable

Average Balances Cubes DimensionsThe following dimensions are included in the average balances cube in this order. Most comments from standard cube areapplicable unless stated.

• Accounting Period: Valid values are years, quarters, accounting period and day, which is equivalent to accountingdate.

• Ledger

• Separate dimension for each Chart of accounts segment

• Scenario

• Amount Type valid values are: PATD, QATD, and YATD

• Currency

• Currency Type

GL Balances Cube Terminology: ExplainedLevels and generations are cube terminology used to describe hierarchies in Oracle Fusion General Ledger balances cubes.

LevelsLevels are used to describe hierarchy levels. Levels are numbered from the lowest hierarchy level. For example, the detailchart of accounts segment values are Level 0. The immediate parent is Level 1; the next parent is Level 2.



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GenerationsGenerations (Gen) describe hierarchy levels starting with the highest level of the hierarchy and moving down through thegenerations of the same.

An example for generations is as follows:

• Accounting Period = Accounting Period is Gen 0

◦ Year is Gen 1

• Quarter is Gen 2

◦ Period is Gen 3

• Ledger = Ledger is Gen 1

◦ All Ledgers is Gen 2

• VF USA is Gen 3

◦ Ledger Set (any ledger set) is Gen 2

• Company = Company is Gen 1

◦ All Company Values, for example detail values, is Gen 2

• 11010 is Gen 3

◦ Tree 1 V1 is Gen 2

• [Tree 1 V1].[10000] is Gen 3

◦ [Tree 1 V1].[10000].[11000] is Gen 4

◦ Tree 2 V1 is Gen 2

• [Tree 2 V1].[10000] is Gen 3

◦ [Tree 1 V1].[10000].[11000] is Gen 4

Note: Similar levels and generations apply to the other dimension, including chart of accounts dimensions andthose that are not chart of accounts dimensions.

Using Dimension Values in Reporting: ExamplesBy using combinations of values for the Accounting Period, Balance Amount, and Amount Type dimensions, you can derivedifferent amounts to meet financial reporting requirements. In some cases, more than one combination of query values canreturn the wanted information. Some duplication in the calculations for the balances cube exists to ensure complete reportingrequirements.

Reporting needs can be completed using the Balance Amount dimension, Amount Type equal to Base, and the AccountingPeriod equal to Year, Quarter, or Month.



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However, the Amount Type dimension is still required for the following reasons:

• To get the complete QTD (Quarter to Date) reporting requirements for the first and second month in a quarter.Complete QTD can only be achieved using QTD and Accounting Period = Month.

• PTD (Period to Date) and YTD (Year to Date) are also available to ensure more consistency reporting with the E-Business Suite Release 12.

Obtaining Quarter InformationThis example shows how to obtain quarter information.

• QTD for the first and second months of a quarter can only be achieved using Amount Type dimension equal to QTD.

• The end of quarter information can be derived from the Accounting Period dimension equal to Quarter or with theAmount Type equal QTD.

Obtaining End of Year InformationThis example shows how to obtain end of year information.

• Accounting Period equal to Year and Balance Amount equal to Ending Balance and Amount Type equal to Base orYTD.

• Accounting Period equal to a specific month and Balance Amount equal to Period Activity and Amount Type equal toYTD.

• When the Balance Amount equals the Balance Amount or the Balance Amount equals the Ending Balance, thisresults in an Ending Balance.

Note: Ending Balance is always the ending balance regardless of Amount Type member setting or AccountingPeriod member setting (period, quarter or year).

Standard Balances: ExampleYou have loaded your Oracle E-Business Suite Release 12 balances into your new Oracle Standard Balances Cube. Now youwant to query the results to verify that the data was loaded correctly.

ScenarioThe tables show the amounts loaded into the balances cube from your R12 balances and the calculated balances for:

• Ending balance

• Year to date (YTD)

• Quarter to date (QTD

The first table is the balance sheet-based balances and the second table is for income statement-based balances.

Oracle E-Business Suite R12 BalancesThe following table shows the beginning balance sheet balances, activity, ending balances, and YTD and QTD amounts, foreach month.



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Month Beginning BalanceLoaded to Cube

Activity Loaded toCube

Ending Balance Calculated YTD QTD

Jan

200

20

220

20

20

Feb

220

30

250

50

50

Mar

250

25

275

75

75

Apr

275

50

325

125

50

May

325

40

365

165

90

Jun

365

45

410

210

135

Jul

410

100

510

310

100

Aug

510

200

710

510

300

Sep

710

140

850

650

440

Oct

850

150

1000

800

150

Nov

1000

100

1100

900

250

Dec

1100

400

1500

1300

650

The following table shows the beginning income statement balances, activity, ending balances, and YTD and QTD amounts,for each month.




Jan

0

70

70

70

70

Feb

70

20

90

90

90

Mar

90

30

120

120

120

Apr

120

100

220

220

100

May

220

200

420

420

300

Jun

420

250

670

670

550

Jul

670

50

720

720

50



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Aug

720

300

1020

1020

350

Sep

1020

130

1150

1150

480

Oct

1150

110

1260

1260

110

Nov

1260

200

1460

1460

310

Dec

1460

500

1960

1960

810

AnalysisThese two tables show the results available from Oracle General Ledger from your R12 loaded and aggregated balances inthe balances cube.

Oracle General Ledger BalancesThe following table shows the results for the balance sheet balances in the balances cube.

Accounting Period Balance Amount Amount Type Value Comments R12 Amount TypeEquivalent

May

Beginning Balance

YTD

200

Jan BeginningBalance

Not Applicable

May

Period Activity

YTD

165

Jan to May Activity

YTD-Actual as ofMay

May

Ending Balance

YTD

365

May Ending Balance

YTD-Actual as ofMay

May

Beginning Balance

QTD

275

Apr BeginningBalance

Not Applicable

May

Period Activity

QTD

90

Apr-May Activity

QTD-Actual as ofMay

May

Ending Balance

QTD

365

May Ending Balance

QTD-Actual as ofMay

May

Beginning Balance

PTD

325

May BeginningBalance

Not Applicable

May

Period Activity

PTD

40

May Activity

PTD-Actual as ofMay



169


May

Ending Balance

PTD

365

May Ending Balance

PTD-Actual as ofMay

May

Beginning Balance

Base

325


Not Applicable

May

Period Activity

Base

40

May Activity

PTD-Actual as ofMay

May

Ending Balance

Base

365

May Ending Balance

YTD-Actual as ofMay

Q2

Beginning Balance

QTD

275

April BeginningBalance

Not Applicable

Q2

Period Activity

QTD

135

Always Apr-Jun

QTD-Actual as ofJun

Q2

Ending Balance

QTD

410

Ending Balancealways as of Jun

QTD-Actual as ofJun

Q2

Ending Balance

YTD

410


YTD-Actual as ofJun

Q2

Beginning Balance

Base

275


Not Applicable

Q2

Period Activity

Base

135

Always Apr-Jun

QTD-Actual as ofJun

Q2

Ending Balance

Base

410


YTD-Actual as ofJun

Year

Beginning Balance

YTD

200


Not Applicable

Year

Period Activity

YTD

1300

Jan-Dec Activity

YTD-Actual as ofDec

Year

Ending Balance

YTD

1500

Ending Balancealways as of Dec

YTD-Actual as ofDec

Year

Beginning Balance

Base

200


Not Applicable

Year

Period Activity

Base

1300

Jan-Dec Activity

YTD-Actual as ofDec



170


Year

Ending Balance

Base

1500


YTD-Actual as ofDec

The following table shows the results for the income statement balances.


May

Beginning Balance

YTD

0


Not Applicable

May

Period Activity

YTD

420

Jan to May Activity

YTD-Actual as ofMay

May

Ending Balance

YTD

420

May Ending Balance

YTD-Actual as ofMay

May

Beginning Balance

QTD

120


Not Applicable

May

Period Activity

QTD

300

Apr-May Activity

QTD-Actual as ofMay

May

Ending Balance

QTD

420

May Ending Balance

QTD-Actual as ofMay

May

Beginning Balance

PTD

220


Not Applicable

May

Period Activity

PTD

200

May Activity

PTD-Actual as ofMay

May

Ending Balance

PTD

420

May Ending Balance

PTD-Actual as ofMay

May

Beginning Balance

Base

220


Not Applicable

May

Period Activity

Base

200

May Activity

PTD-Actual as ofMay

May

Ending Balance

Base

420

May Ending Balance

YTD-Actual as ofMay

Q2

Beginning Balance

QTD

120


Not Applicable



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Q2

Period Activity

QTD

550

Period ActivityAlways Apr-Jun

QTD-Actual as ofJun

Q2

Ending Balance

QTD

670


QTD-Actual as ofJun

Q2

Ending Balance

YTD

670


YTD-Actual as ofJun

Q2

Beginning Balance

Base

120


Not Applicable

Q2

Period Activity

Base

550

Period Activityalways Apr-Jun

QTD-Actual as ofJun

Q2

Ending Balance

Base

670


YTD-Actual as ofJun

Year

Beginning Balance

YTD

0

Jan BeginningBalance (alwayszero for IncomeStatement)

Not Applicable

Year

Period Activity

YTD

1960

Jan-Dec Activity

YTD-Actual as ofDec

Year

Ending Balance

YTD

1960


YTD-Actual as ofDec

Year

Beginning Balance

Base

0

Jan BeginningBalance (alwayszero for IncomeStatement)

Not Applicable

Year

Period Activity

Base

1960

Jan-Dec Activity

YTD-Actual as ofDec

Year

Ending Balance

Base

1960


YTD-Actual as ofDec

Invalid Balance Cube Dimension Combinations: ExplainedBy using various combinations for the Accounting Period, Balance Amount, and Amount Type dimensions, you can derivedifferent amounts to meet financial reporting requirements.

The following table shows the combinations of the accounting period, balance amount, and amount type dimensions thatdon't return data.



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Accounting Period Balance Amount Amount Type

Year

Beginning Balance

QTD

Year

Period Activity

QTD

Year

Ending Balance

QTD

Year

Beginning Balance

PTD

Year

Period Activity

PTD

Year

Ending Balance

PTD

Q2

Beginning Balance

YTD

Q2

Period Activity

YTD

Q2

Beginning Balance

PTD

Q2

Period Activity

PTD

Q2

Ending Balance

PTD

GL Balance Cube Related Processes Run from User InterfacesOn application pages, you can run processes that create, rebuild, publish, and maintain Oracle General Ledger balancescubes, including automatically run child processes.

The Create Accounting Configuration process updates the underlying table and permanently saves the settings afterthe accounting configuration has been completed. The process also runs the Create Accounting Configuration: CreateCubes child process, which creates the accounting configuration and a balances cube when setup is completed. Bothstandard and average daily balances (ADB) cubes, if enabled, are processed in the same request. To run the accountingconfiguration process, navigate to the Review and Submit Accounting Configuration task.

The Publish Chart of Account Hierarchies process creates the structural hierarchy for the chart of accounts. Bothstandard and average daily balances (ADB) cubes, if enabled, are processed in the same request. The process also runs thePublish Chart of Account Hierarchy Versions child process, one child process runs for each combination of value set andchart of accounts. To run the publication process, navigate to the Publish Account Hierarchies task.

The Create Ledger Set process updates the underlying tables and creates a ledger set. It affects both standard and ADBcube types, if enabled, in the same request. To run the ledger set process, navigate to the Manage Ledger Sets task.

The following table describes the child processes for the Create Ledger Set process and indicates the affected cube types.



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Child Process Description Cube Type

Create Accounting Configuration: ProcessAccounting Configuration

Runs processes necessary to processaccounting configuration and ledger set data.

Not applicable to the cube

Create Ledger Set Dimension Members

Creates and updates ledger set members ina balances cube.

Standard and ADB, if enabled, in samerequest

The following table describes other cube parent and child processes and their related cube types that can be submitted fromother pages or processes.

Parent Process Child Process Description Cube Type Additional Information

Create Ledger DimensionMember for ReportingCurrency

Not Applicable

Creates ledger dimensionmember for reportingcurrency.

Standard and ADB, ifenabled, in same request

Navigate to the ManageReporting Currenciestask and the CreateReporting Currencypage. Run for newreporting currenciesadded after accountingconfiguration hascompleted.

Update LedgerDimension Member forReporting Currency

Not Applicable

Updates ledgerdimension member forreporting currency.


Navigate to the ManageReporting Currenciestask and the UpdateReporting Currenciespage. This processruns for new reportingcurrencies added afteraccounting configurationhas completed.

Not Applicable

Publish Chart ofAccounts DimensionMembers: DetailedValues Only

Publishes chart ofaccounts dimensionmember changes tobalances cubes andupdates dimensionmembers for any new orchanged segment values.


Runs only from thejournal posting processwhen detailed valuesdo not exist in the GLbalances cube duringposting.

GL Balance Cube Related Processes Run in Enterprise SchedulerServiceOn the Scheduled Processes page, you can run the processes to create, rebuild, publish, and maintain Oracle GeneralLedger balances cubes.

The Create Cube process creates or rebuilds a balances cube based on a combination of chart of accounts and accountingcalendar. The process automatically runs child processes for standard and average daily balance (ADB) cubes, if enabled.

The following table describes the child processes for creating a cube and also indicates the type of cube the process creates,whether standard or ADB.



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Child Process Description Cube Type

Create Cube: Initialize Cube

Starts the process to import data into thebalances cube.

Standard

Create Cube: Create Calendar DimensionMembers and Hierarchies

Creates the calendar dimension membersand hierarchies for a balances cube.

Standard

Create Cube: Create Ledger DimensionMembers

Creates the ledger dimension members for abalances cube.

Standard

Create Cube: Publish Chart of AccountsDimension Members and Hierarchies

Publishes chart of accounts and hierarchychanges to balances cubes and updatesdimension members for any new or changedsegment values.

Standard

Create Average Daily Balance Cube

Determines the amount required to manuallyadjust general ledger account averagebalances to reflect the differences betweenthe original and revalued customer openitems.

ADB

Create Cube: Initialize Average BalancesCube

Begins the process to import averagebalances into the balances cube.

ADB

Create Cube: Create Daily DimensionMembers and Hierarchies

Creates the daily calendar dimensionmembers and hierarchies for a balancescube.

ADB

Create Cube: Create Ledger DimensionMembers

Creates the ledger dimension members for abalances cube.

ADB

Create Cube: Publish Chart of AccountsDimension Members and Hierarchies

Publishes chart of accounts and hierarchychanges to balances cubes and updatesdimension members for any new or changedsegment values.

ADB

Create Cube: Transfer General LedgerBalances to Essbase

Transfer balances to balances cubes.


The Publish Chart of Accounts Dimension Members and Hierarchies process publishes chart of accounts dimensionmember and hierarchy changes to balances cubes and updates dimension members for any new or changed segmentvalues. The process affects both standard and ADB cubes in the same request, if ADB cubes are enabled. The processsubmits the child process Update Chart of Accounts Dimension Members and Hierarchies, which updates chart ofaccounts dimension member and hierarchy changes to Essbase.

The Transfer General Ledger Balances to Essbase process refreshes standard cube, and average balances cube ifenabled, in the General Ledger balances cube.

The following table describes other cube processes that are run in the Enterprise Scheduler Service, and indicates the type ofcube affected.



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Parent Process Description Cube Type

Create Accounting Period Dimension forStandard Cube

Creates the accounting period dimensionmembers.

Standard

Create Ledger Dimension Members

Creates and updates ledger dimensionmembers including primary ledgers,secondary ledgers, reporting currencies, andledger sets in the balances cubes.


Create Currency Dimension Members

Creates and updates all currencies in everybalances cube.


Create Scenario Dimension Members

Creates and updates all scenario dimensionmembers when new scenarios are created orexisting scenarios are changed.


Create Accounting Period Dimension forAverage Daily Balances Cube

Creates the accounting period dimensionmembers in the average daily balances cube.

ADB

Create Rules XML File for BI ExtenderAutomation

Creates rules XML file for a specific Essbasecube, used for BI extender automation.


To run the cube process, use the following steps in the Scheduled Processes work area from the Navigator menu.

1. Click Schedule New Process.2. Search the process name.3. Enter the parameters.4. Enter the process options and schedule.5. Click Submit.

FAQs for Review and Submit Accounting Configuration

How can I inquire on translated balances?You can query on Currency Type equal to Total and Currency equal to Translated Currency.

When do I rebuild the GL balances cubes?Carefully consider requirements and work with Oracle Support before rebuilding a balances cube. Use the on-demandprograms to rebuild dimension members for each dimension and to refresh balances to the cubes rather than rebuilding thecube. When you rebuild a cube, the process rebuilds both the standard and average balances cubes.

To rebuild cubes, run the Create Cubes process. Enter values for the following parameters:


• Accounting Calendar



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• Starting Period

How can I refresh balances in the GL balances cubes?Run the General Ledger Transfer Balances to Essbase process. Select your Ledger or Ledger Set and Starting Period asparameters

Assign Access to Ledger

Assigning Legal Entities and Balancing Segments: ExamplesOptionally, assign legal entities and balancing segments to your accounting configuration.

Assign Legal EntitiesAssign one or more legal entities to your configuration by following these steps:

1. Navigator > Setup and Maintenance work area > Define Ledgers > Define Accounting Configurations >Assign Legal Entities task.

2. If scope is:

◦ Not set: Select Scope link > Assign Legal Entities radio button > In the Primary Ledger drop down Selectand Add > Apply and Go To Task > Select your ledger > Save and Close.

◦ Set, click Go to Task

3. Click the Select and Add icon.4. Enter your legal entity.5. Apply > Done.6. Save and Close.

Assign Balancing Segments to Legal EntitiesAssign balancing segment values to your legal entities by following these steps:

1. Navigator > Setup and Maintenance work area > Define Ledgers > Define Accounting Configurations >Assign Balancing Segment Values to Legal Entities task.

2. If scope is:

◦ Not set: Select Scope link > Assign Balancing Segment Values to Legal Entities radio button > In thePrimary Ledger drop down Select and Add > Apply and Go To Task > Select your ledger > Save andClose.

◦ Set, click Go to Task.

3. Click the Create icon.4. Select the balancing segment value. Optionally, add a Start Date.5. Save and Close to close the create page.6. Save and Close.



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Assign Balancing Segments to LedgersAssign balancing segment values directly to your ledger by following these steps:

1. Navigator > Setup and Maintenance work area > Define Ledgers > Define Accounting Configurations >Assign Balancing Segment Value to Ledger task.

2. If scope is:

◦ Not set: Select Scope link > Assign Balancing Segment Value to Ledger radio button > In the PrimaryLedger drop down Select and Add > Apply and Go To Task > Select your ledger > Save and Close.

◦ Set, click Go to Task.

3. Select the balancing segment value.4. Optionally enter a start date.5. Save and Close.

Note: The balancing segment values that are assigned to the ledger represent nonlegal entity transactions,such as adjustments. If you use legal entities, you must assign balancing segment values to all legal entitiesbefore assigning values to the ledger. The only available balancing segment values that can be assigned toledgers are those not assigned to legal entities.

Related Topics

• Balancing Segments: Explained

Manage General Ledger Security

Implementing Financials Security: OverviewOracle Financials Cloud predefines common job roles such as Accounts Payable Manager and General AccountingManager. You can use these roles, modify them, or create job roles as needed. A user can be assigned more than one role,so don't define a role that includes all the accesses needed for every user.

For a listing of the predefined job roles in Oracle Financials Cloud and their intended purposes, see the Oracle FinancialsCloud Security Reference Manual in the Oracle Help Center (http://docs.oracle.com).

For more information on securing your applications, see the Oracle ERP Cloud Securing Oracle ERP Cloud guide in theOracle Help Center (http://docs.oracle.com).

Other Financials Security Considerations: ExplainedCommon functionality that is not job specific, such as creating expense reports and purchase requisitions, are granted toabstract roles like Employee, Line Manager, and Purchase Requester.

Oracle Financials Cloud includes the following roles that are designed for initial implementation and the ongoing managementof setup and reference data:

• Application Implementation Manager: Used to manage implementation projects and assign implementationtasks.



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• Application Implementation Consultant: Used to access all setup tasks.

Note: For the ongoing management of setup and reference data, the Financial Application Administrator, apredefined administrator role, provides access to all financial setup tasks.

Segregation of Duties Considerations

Segregation of duties (SOD) separates activities such as approving, recording, processing, and reconciling results so you canmore easily prevent or detect unintentional errors and willful fraud.

Oracle Financials Cloud includes roles that have been defined with a knowledge of a set of SOD policies that are included inthe Oracle Cloud Access Controls Governor product. The job roles are based on those commonly defined in business andthe duty definitions are defined using the Oracle Cloud SOD policies.

For example, the privilege Create Payments is incompatible with the privilege Approve Invoice. The predefined AccountsPayable Manager role has the privileges of Force Approve Invoices and Create Payments. When you assess andbalance the cost of duty segregation against reduction of risk, you may determine that the Accounts Payable Manager roleis not allowed to perform force approve invoices and remove this privilege.

To learn more about the policies and roles, see the Oracle Financials Cloud Security Reference Manual in the Oracle HelpCenter (http://docs.oracle.com).

Data Security Considerations

• Use segment value security rules to restrict access to transactions, journal entries, and balances based on certainvalues in the chart of accounts, such as specific companies and cost center values, to individual roles.

• Use data access set security for Oracle Fusion General Ledger users to control read or write access to entireledgers or portions of the ledger represented as primary balancing segment values, such as specific legal entities orcompanies.

For more information on securing your applications, see the Oracle ERP Cloud Securing Oracle ERP Cloud guide in theOracle Help Center (http://docs.oracle.com).

General Ledger Security: ExplainedGeneral ledger functions and data are secured through job roles, data access sets, and segment value security rules.

Functional SecurityFunctional security, which is what you can do, is managed using job roles. The following job roles are predefined for OracleFusion General Ledger:

• General Accounting Manager

• General Accountant

• Financial Analyst

Each job role includes direct privilege grants, as well as duty role assignments, to provide access to application functions thatcorrespond to their responsibilities. For example, the General Accounting Manager role grants comprehensive access to allGeneral Ledger functions to the general accounting manager, controller, and chief financial officer in your organization.



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Data SecurityData security, which controls what action can be taken against which data, is managed using:

• Data access sets

• Segment value security rules

Data access sets can be defined to grant access to a ledger, ledger set, or specific primary balancing segment valuesassociated with a ledger. You decide whether each data access set provides read-only access or read and write access tothe ledger, ledger set, or specific primary balancing segment values, which typically represent your legal entities that belong tothat ledger. Primary balancing segment values without a specific legal entity association can also be directly assigned to theledger.

Segment value security rules control access to data that is tagged with the value set values associated with any segment inyour chart of accounts.

Security Assignment

Use the Security Console to assign users roles (job roles, as well as roles created for segment value security rules or others).Use the Manage Data Access Set Data Access for Users task to assign users data access sets as the security context pairedwith their General Ledger job role assignments.

For more information about security assignments, see the Securing Oracle ERP Cloud guide.

Data Access Set Security: OverviewData Access Sets secure access to ledgers, ledger sets, and portions of ledgers using primary balancing segment values.If you have primary balancing segment values assigned to a legal entity, then you can use this feature to secure access tospecific legal entities.

You can combine ledger and ledger set assignments in single data access sets if the ledgers share a common chart ofaccounts and calendar. If you have primary balancing segment values assigned to a legal entity within the ledger, thenyou can use data access sets to secure access to specific legal entities. You can also secure access to primary balancingsegments assigned directly to the ledger.

When a ledger or ledger set is created, a data access set for that ledger or ledger set is automatically created, giving full readand write access to those ledgers. You can also manually create data access sets to give read and write access, or read-onlyaccess to entire ledgers or portions of the ledger represented as primary balancing segment values.



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The following figure shows that a data access set consists of an access set type and an access level. The access set typecan be set to full ledger or primary balancing segment value. The access level can be read only or read and write.

Data Access Set

Access Set Type

Primary Balancing

Segment Value

Access Level

Full Ledger Read Only Read and Write

The Full Ledger access set type provides access to the entire ledger or ledger set. This could be for read-only access orboth read and write access to the entire ledger.

The Primary Balancing Segment Value access set type provides access to one or more primary balancing segment valuesfor that ledger. This access set type security can be specified by parent or detail primary balancing segment values. Thespecified parent value and all its descendants, including middle level parents and detail values are secured. You can specifyread only, read and write access, or combination of both, for different primary balancing segment values for different ledgersand ledger sets.

Data Access Set Security: ExamplesThis example shows a data access set that secures access by using primary balancing segment values that correspond tolegal entities.

Scenario

The following figure shows a data access set for the US Financial Services Ledger. The access set type is Primary BalancingSegment Value, with each primary balancing segment value representing different legal entities. Read-only access has beenassigned to primary balancing segment value 131, which represents the Insurance legal entity. Read and write access hasbeen assigned to primary balancing segment values 101 and 102, which represent the Banks and Capital legal entities.

For this data access set, the user can:

• View the journals, balances, and reports for primary balancing segment value 131 for the Insurance legal entity.



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• Create journals and update balances, as well as view journals, balances and reports for primary balancing segmentvalue 101 and 102 for legal entities Banks and Capital.

US Financial Services Ledger

Access Level

Primary Balancing SegmentValues

Actions

Read and Write

View, Create, Post JournalsView and Update Balances

View and Run Reports

101 Banks

102 Capital

Read Only

131 Insurance

View JournalsView Balances

View and Run Reports

Note: In financial reporting, the list of ledgers isn't secured by data access sets when viewing a report inPreview mode. Users can view the names of ledgers they don't have privileges to view. However, the data froma secured ledger doesn't appear on the report.

Segment Value Security: ExplainedSet up segment value security rules on value sets to control access to parent or detail segment values for chart of accountssegments, also called flexfield segments. Segment value security rules restrict data entry, online inquiry, and reporting.

Secured Value SetsWhen you enable security on a value set, access to all values for that value set is denied. To control access to value setvalues, you enable security on the value set, create conditions, and then assign the conditions to roles. The roles should becreated solely for the purpose of segment value security. The roles are then assigned to users.

If a value set is secured, every usage of that value set in a chart of accounts structure instance is secured. For example thesame security applies if that value set is:

• Used for two or more segments in the same chart of accounts, such as the primary balancing and intercompanysegments

• Shared across different segments of different charts of accounts



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Secured Segment ValuesSegment value security applies mainly when data is created or updated, and when account combinations are queried.When you have access to secured account values, you can view and use those secured values across all modules of theapplications where there are references to accounting flexfields including:

• Transaction entry pages

• Balances and transactions inquiry pages

• Setup pages

• Reports

On setup pages, you can still view referenced account combinations with secured account values, even if you haven't beengranted access to those secured values. However, if you try to update such references, you can't use those secured values.On reports, you can view balances for secured account values only if you have access to those secured values.

Note: You can enforce segment value security for inquiries and reporting based on any hierarchy, evenhierarchies that aren't published to the reporting cube.

Segment Value Security ImplementationYou implement segment value security using the Security Console and these pages: Manage Value Sets, Manage Chart ofAccounts Structures, Publish Account Hierarchies.



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The following figure shows the steps for defining and implementing security rules for segment values.

Manage Chart of Accounts Structures Page

Security Console Manage Value Sets Page

Create roles for segment value

securityEnable security

Create conditions

Create policies

Deploy the flexfield

Assign roles to users

Publish Account Hierarchies Page

Publish account hierarchy version

To define segment value security roles:

1. Create segment value security roles.2. Enable security on the value set.

Note: You can enable security only on value sets with a type of Independent.

3. Create conditions for the rule.4. Create policies to associate the conditions with the role.5. Deploy the accounting flexfield.6. Publish the account hierarchies.



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7. Assign the role to users.

Whenever you assign segment value security roles to a user, the rules from the user's assigned roles can be applied together.All of the segment value security roles assigned to a user pertaining to a given value set are simultaneously applied when theuser works with that value set. For example, one rule provides access to cost center 110 and another rule provides accessto all cost centers. A user with both of these segment value security rules has access to all cost centers when working in acontext where that value set matters.

Segment Value Security ConditionsWhen you create a condition, you specify an operator. The following table describes the operators that you can use.

Operator Usage

Equal to

• Provides access to a specific detail or child value.• Don't use to provide access to a parent value.

Not equal to

• Provides access to all detail and child values, except the one that you specify.• Don't use to provide access to a parent value.

Between

• Provides access to a detail range of values.

Is descendant of

• Provides access to the parent value itself and all of its descendants including middle levelparents and detail values.

Is last descendant of

• Provides access to the last descendants for example, the detail values of a parent value.

Tip: For the operators Is descendant of and Is last descendant of:• Specify an account hierarchy (tree) and a tree version to use these operators.• Understand that the security rule applies across all the tree versions of the specified hierarchy, as well as all

hierarchies associated with the same value set of the specified hierarchy.

Segment Value Security: ExamplesYou can set up segment value security rules on value sets to control access to parent or detail segment values for chart ofaccounts segments. Segment value security rules restrict data entry, online inquiry, and reporting.

The following example describes why and how you might want to use segment value security.

Securing Values for the Cost Center and Account SegmentsFor this scenario, only certain users should have access to the Accounting cost center and the US Revenue account. Tocreate a complete data security policy that restricts segment value access to those users:

1. Plan for the number of roles that represent the unique segment value security profiles for your users. For thisscenario, you can create two roles, one for the cost center segment and one for the account segment.

2. Use the Security Console to create the roles. Append the text SVS-role to the role names so it's clear the roles aresolely for segment value security. For this scenario, you create roles Accounting Cost Center-SVS Role and USRevenue Account-SVS Role.

3. Use the Manage Segment Value Security Rules task to enable security on the cost center and account value setsassociated with the chart of accounts.



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4. Create a condition for each value set. For example, the condition for the Accounting cost center is that the costcenter is equal to Accounting.

5. Create a policy to associate the conditions to the roles. For example, create a policy to assign the condition for theAccounting cost center to the role Accounting Cost Center-SVS Role.

6. Use the Security Console to assign the appropriate role to the appropriate user. For example, assign the roleAccounting Cost Center-SVS Role to the users who should have access to the Accounting cost center.

Enabling Security on a Chart of Accounts: Worked ExampleThis example demonstrates how to enable security on a chart of accounts to control access to specific segment values.

The following table summarizes the key decisions for this scenario.

Decisions to Consider In This Example

Which segment in the chart of accounts must be restricted?

Cost center

Which cost center values have to be granted to different users?

• Child values 110 to 120• Child value 310• Parent value 400 and all its children• All cost centers

What's the name of the value set for the Cost Center segment?

Cost Center Main

What's the name of the user who can access cost centers 110 to120?

Casey Brown

What's the name of the tree for the accounting flexfield?

All Corporate Cost Centers

What version of the tree hierarchy does the condition apply to?

V5

Summary of the Tasks and PrerequisitesThis example includes details of the following tasks you perform when defining and implementing segment value security.

1. Define roles for segment value security rules.2. Enable segment value security for the value set.3. Define the conditions.4. Define the policies.5. Deploy the accounting flexfield.6. Publish the account hierarchies.7. Assign segment value security roles to users.

Perform the following prerequisites before enabling security on a chart of accounts:

• To work with the Security Console, you need the IT Security Manager role assigned to your user setup.

• To work with value sets and profile options, you need the Financial Application Administrator role.

• Set the Enable Data Security Polices and User Membership Edit profile to Yes.



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Defining Roles for Segment Value Security RulesTo create a complete data security policy, create the roles first so that they're available forassignment to the segment value security rules.

1. In the Tools work area, open the Security Console.2. Perform the following steps four times to create four roles.3. Click Create Role.4. On the Create Role page, complete the fields as shown in this table, and then click Next, Next, Next, Next, Next,

Save and Close.5. Click OK and complete the fields, as shown in this table.

Field Role 1 Role 2 Role 3 Role 4

Role NameCost Center 110-120SVS Role

Cost Center 310 SVSRole

Cost Center 400 SVSRole

Cost Center All SVSRole

Role CodeCC_ 110_120_SVS_ROLE

CC_ 310_SVS_ROLE

CC_ 400_SVS_ROLE

CC_ ALL_SVS_ROLE

Role CategoryDefault

Default

Default

Default

DescriptionAccess to cost centers110 to 120.

Access to cost center310.

Access to parent costcenter 400 and all itschildren.

Access to all costcenters.

The following figure shows the Create Role page for the first role, which is Cost Center 110-120 SVS Role. The rolecode, role category, and description fields are complete.



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Enabling Segment Value Security for the Value Set1. In the Setup and Maintenance work area, search for and select the Manage Segment Value Security Rules task.2. In the Value Set Code field, enter Cost Center Main and click Search.3. In the Search Results section, click Edit to open the Edit Value Set page.4. Select the Security enabled option.5. In the Data Security Resource Name field, enter Secure_Main_Cost_Center_Values.6. Click Save.

The following figure shows the Edit Value Set page for the Cost Center Main value set. Security is enabled and adata security resource name has been entered.

Defining the ConditionsUse conditions to specify the segment values that require security.Segment value security rules that provide access to all segment values, and segment value security rules that provide accessto single nonparent segment values, don't need a condition. Instead, you can define the policy to cover all values, and youcan define a policy to cover a single nonparent segment value provided that you know the internal ID for that segment value. Ifyou don't know the internal ID, you can create a condition for that single segment value.

In this scenario, the internal ID for segment value 310 isn't known, so the following steps create all of the conditions, exceptfor the access to all cost centers, which the policy definition can cover.

1. Click Edit Data Security to open the Edit Data Security page.2. On the Condition tab, click Create to open the Create Database Resource Condition window.3. Enter CC 110 - 120 in the Name field.4. Enter Cost Centers 110 to 120 in the Display Name field.



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5. Accept the default value of All for the Match field.Matching to all conditions means that all conditions apply simultaneously. Matching to any condition means that anyof the conditions would apply.

6. Click Add in the Conditions section.7. Select VALUE for the Column Name field.8. Select Between for the Operator field.

Note: You can select one of the following operators: Equal to, Not equal to, Between, Is descendant of,Is last descendant of.

9. Enter 110 in the first Value field and 120 in the second Value field.

The following figure shows the Create Database Resource Condition page for the condition named CC 110 - 120.The display name is Cost Centers 110 to 120, and one condition is defined. The condition has a column name ofVALUE, an operator of Between, and the specified values are 110 and 120.

10. Click Save.11. To create the next database resource condition for segment value 310, click Create on the Condition tab.12. Enter CC 310 in the Name field.13. Enter Cost Center 310 in the Display Name field.14. Click Add in the Conditions section.15. Select VALUE for the Column Name field.16. Select Equal to for the Operator field.17. In the Value field, enter 310.

The following figure shows the definition of the second condition.



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The following figure shows the Create Database Resource Condition page for the condition named CC 310. Thedisplay name is Cost Center 310, and one condition is defined. The condition has a column name of VALUE, anoperator of Equal to, and the specified value is 310.

18. Click Save.19. To create the next database resource condition for parent value 400, click Create on the Condition tab.20. Enter CC 400 in the Name field.21. Enter Parent Cost Center 400 in the Display Name field.22. In the Condition section, click Add.23. Select VALUE for the Column Name field.24. Select the Tree Operators option.25. For the Operator field, select Is a last descendant of, which restricts access to the parent cost center 400 and all of

its children, including intermediary parents.

Note: For the Tree Operators field, you can only select Is a last descendant of or Is a descendant of.

26. In the Value column, click the Select Tree Node icon to open the Select Tree Node window.



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The following figure shows the Select Tree Node window. Values are required for the Tree Structure, Tree, andActive Tree Version fields. The window also includes these Tree Node options: Specify primary keys, Select fromhierarchy.

27. In the Tree Structure field, select Accounting Flexfield Hierarchy. This signifies that you are choosing among treesthat are used as accounting flexfield, or charts of accounts, hierarchies.

28. In the Tree field, select All Corporate Cost Centers.29. In the Active Tree Version field, select V5.30. In the Tree Node field, select the Select from hierarchy button. The Tree Node section opens.31. In the Tree Node section, expand the nodes and select 400.



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The following figure shows the Select Tree Node window after completing the fields in steps 27 through 31.

32. Click OK.



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The following figure shows the resulting Create Database Resource Condition page for the condition named CC400. The display name is Parent Cost Center 400 and one condition is defined. The condition has a column name ofVALUE, an enabled Tree Operators option, an operator called Is a last descendant of, and a value of 400.

33. Click Save.

Defining the PoliciesCreate policies to assign conditions to segment value security roles.

1. On the Edit Data Security page, click the Policy tab.2. Click Create to open the Create Policy window.3. On the General Information tab, enter Policy for 110-120 in the Name field.4. Accept the default value of General Ledger in the Module field.5. Enter 9/1/16 in the Start Date field.



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The following figure shows the General Information tab on the Create Policy page for the policy named Policy for110-120. The start date for the policy is 9/1/16.

6. Select the Role tab and click Add to open the Select and Add window.7. Enter 110 in the Role Name field.8. Select hcm in the Application field.

Roles with the Default category are created in the hcm application.9. Click Search.

The following figure shows the Select and Add Roles window with the search results. The role retrieved by thesearch results is named Cost Center 110-120 SVS Role.

10. Select Cost Center 110-120 SVS Role and click OK.



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The following figure shows the Role tab on the Create Policy page with the role that was populated by the searchresults.

11. Select the Rule tab.12. Accept the default setting of Multiple Values in the Row Set field.

Note: The Row Set field determines the range of value set values affected by the policy.

◦ If Multiple Values is selected, a condition must be specified.

◦ If All Values is selected, then the policy grants access to all values in the value set and no condition isneeded.

◦ If Single Value is selected, then the internal Value ID for the segment value must be specified and nocondition is needed.

13. Click Search on the Condition field.14. Select Cost Centers 110 to 120 for the Condition field and click OK.

The following figure shows the Rule tab on the Create Policy page. The selected row set is Multiple Values and thecondition is Cost Centers 110 to 120.

15. Click Save and Close.16. Click OK to confirm.17. Repeat steps 2 through 13 to create the rest of the policies, using the values in the following table.



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Field Policy 2 Policy 3 Policy 4

General Information tab, Name

Policy for 310

Policy for 400

Policy for all cost centers

General Information tab, StartDate

9/1/16

9/1/16

9/1/16

Role tab, Role Name

Cost Center 310 SVS Role

Cost Center 400 SVS Role

Cost Center All SVS Role

Rule tab, Row Set

Multiple Values

Multiple Values

All Values

Rule tab, Condition

Cost Center 310

Parent Cost Center 400

Not Applicable

18. Click Done.

Deploying the Accounting FlexfieldYou must deploy the accounting flexfield for the segment value security changes to take effect.

1. In the Setup and Maintenance work area, search for and select the Manage Chart of Accounts Structures task.2. In the Module field, select General Ledger and click Search.3. Select the row for the Accounting Flexfield and click Deploy Flexfield.

The following figure shows the Manage Chart of Accounts Structure page after searching for General Ledgermodules. The search results display a row with a key flexfield named Accounting Flexfield.

4. Click OK.

Publishing the Account Hierarchies1. In the Setup and Maintenance work area, search for and select the Publish Account Hierarchies task.2. In the Hierarchy field, select All Corporate Cost Centers.3. In the Hierarchy Version field, select V5.4. Click Search.5. In the Search Results section, expand the hierarchy row.6. Select the row for the hierarchy version V5.7. Click Publish.



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8. Click OK.

Assigning Segment Value Security Roles to Users1. In the Tools work area, open the Security Console.2. Enter Cost Center 110-120 SVS Role in the Search field and click Search.3. In the Search Results section, select the down arrow icon and select Edit Role.

The following figure shows the Roles page and the available menu options, including Edit Role, for the role namedCost Center 110-120 SVS Role.

4. Click Next four times to navigate to the Edit Role: Users page.5. Click Add User.6. Enter Casey in the Search field and click Search.7. Click Add User to Role to add Casey Brown to the role.8. Click OK to confirm.



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The following figure shows the Edit Role page for the Cost Center 110-120 SVS Role with the user Casey Brownselected.

9. Repeat steps 2 through 8 to add the other roles to different users as needed.

Difference in Data Security for GL Features Directly and IndirectlyBased on the Balances CubeWhen a user is assigned multiple data access sets for the same balances cube with different security specifications for ledgeror primary balancing segment value access, a difference is manifested in the data security for those GL features baseddirectly on the cube and those that are not.

General Ledger features based directly on the balances cube are:

• Inquire on Detail Balances

• Account Monitor

• Account Inspector

• Financial Reporting

• Smart View

• Allocations

All other General Ledger features are indirectly based on the balances cube.

• When working on features not directly related to the balances cube, you select a specific data access set and youonly work with that one data access set at a time. The defined ledger and primary balancing segment value accessfor the selected data access set are enforced

• When working directly with the balances cube, the cumulative effects of your combined data access sets forthat cube are enforced. From your combined data access sets of that cube, balances cube security separatelyconstructs the access filter for the ledger dimension and primary balancing segment values dimension independentlyof the other dimensions. This means the specific combination of ledger and primary balancing segmentvalues access as defined in each distinct data access set are not enforced as such. Instead, you have accesssimultaneously to all the ledgers and all the primary balancing segment values granted to you through your combineddata access sets.



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Note: Balances cube security grants access to all values of the balancing segment value set for a data accessset defined as either of the following:

• Full ledger• All Values: Specific Balancing Segment Values Access Type

With segment value security rules assigned to you through your various roles, the security rules are in effect simultaneouslywhether working directly or indirectly with the balances cube.

Segment value security rules are specified for a particular value set. Therefore, as you are working on anything that referencesthe secured value set, all segment value security rules for that value set that are assigned to you through any of your roles arein effect at the same time, regardless of the specific role the rule was assigned to or the particular role that you are workingwith at the moment. In other words, segment value security rules are cumulative or the union of all the segment value securityrules you have assigned to you through your roles. If you have one role assigned to your user that only grants access to costcenter 200, and another role that grants access to cost centers 300 through 500, then you can access to cost centers 200and 300 through 500.

When working on features not directly based on the balances cube, such as journal entry pages, the primary balancingsegment values you can access are based on the intersection of:

• Primary balancing segment values granted to you through your current selected data access set.

• All your assigned segment value security rules pertaining to the primary balancing segment value set across all yourassigned roles.

So if a balancing segment value is only granted in either of the selected data access set or a segment value security rule, thisbalancing segment value is not available to you.

In contrast, for features directly based on the balances cube, your access is based on the cumulative union of:

• Primary balancing segment values granted to you through all your assigned data access sets related to the balancescube you are working with.

• Any segment value security rule grants to that primary balancing segment value set across all your role assignments.

ExampleIn contrast with the preceding discussion about using separate segment value security roles for segment value security ruleassignments, the following example shows the data access set and segment value security rules assignments both goingto the same role. This setup is used to more easily illustrate the difference in how security works for features directly andindirectly related to the balances cube.

In this example, you are assigned the DAS1 and DAS2 roles with different data access sets primary balancing segmentvalues.

The following table lists each role with its corresponding data set and primary balancing segment values.

Role Data Access Set Primary Balancing Segment Value

DAS1

Data Access Set 1

01

DAS2

Data Access Set 2

02

DAS3

Data Access Set 3

03



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The following table shows the same roles and primary balancing segment values that are also assigned to you through asegment value security rule.

Role Primary Balancing Segment Value

DAS1

01

DAS2

03

DAS3

02

Select Data Access Set 1

1. For features not directly based on balances cube: You can access Primary Balancing Segment 01 which is theintersection of values from:

◦ Data access set for Role DAS1.

◦ Security rules grants for Roles DAS1 and DAS2.

2. For features directly based on balances cube: You can access Primary Balancing Segments 01, 02, and 03 whichare the union of values from data access set and security rules for Roles DAS1 and DAS2

Select Data Access Set 2

1. For features not directly based on a balances cube: You can't access any primary balancing segment value becausethere is no intersection of values from:

◦ Data access set for Role DAS2.

◦ Security rules grants for Roles DAS1 and DAS2.

2. For features directly based on balances cube: You can access primary balancing segments 01, 02, and 03, whichare the union of values from data access set and security rules for Roles DAS1 and DAS2.

FAQs for Manage General Ledger Security

When does security take effect on chart of accounts value sets forbalances cubes?For new security policies to be effective, the security policies must be defined before the account hierarchies are published tothe cube. When you create segment value security rules or change an existing rule that is based on a hierarchical filter, youmust republish the tree version. Use the Publish Account Hierarchies page to republish the tree version and for the security tobecome effective.

Note: Changes to an account hierarchy previously published to the balances cube require that the hierarchy berepublished to the cube to reflect the updated hierarchy.



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What happens when changes are made to an account hierarchy thatis referenced in segment value security rules?The tree is set from an active to a draft state. The rules referencing the account hierarchy become ineffective.

After making changes to your hierarchy, you can submit the Process Account Hierarchies process to automatically run therequired steps for processing account hierarchies updates in one submission, including:

• Tree audit

• Tree activation

• Row flattening

• Column flattening

• Maintain value set

• Maintain account hierarchy

• Publish hierarchy

With a successful audit process, the hierarchy is set back to an active status. The rules referencing the account hierarchy goback to being effective using the updated hierarchy.

Run the row and column flattening processes for the updated hierarchy as the flexfield component in the application as wellas other hierarchy processes rely on the flattened hierarchy data to come up with the list of values available to the user toproperly secure the correct account values.

Run the Maintain Value Sets and Maintain Chart of Account Hierarchies processes, particularly for hierarchy changes tothe primary balancing segment value set if such values are referenced in your primary balancing segment value based dataaccess sets. These processes update the data that is required to regulate ledger and data access security by storing:

• Primary balancing segment values assigned to a ledger.

• Specific child balancing segment values assigned to a data access set through parent value assignments.

How can I secure the data in GL balances cubes?Use data access set and segment value security to secure dimension values such as ledger and chart of account values.For chart of accounts dimension values, security restricts the display of data associated with the secured values, but not theselection of the values themselves. For example, when submitting a report, you can select company value 100 in your reportdefinition when selecting the Point of View, even if you weren't granted access to that company value. However, you can'tsee the data associated with company 100 in your report.

Manage Reporting Currencies



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Reporting Currency Balances: How They're CalculatedReporting currency balances, set at the journal or subledger level, are updated when General Ledger journals are posted andconverted to your reporting currencies. This process includes:

• General Ledger manual journals, periodic journals, and allocations.

• At the subledger level, journals from Oracle Fusion Subledger Accounting.

• Other journals imported from sources other than your Oracle Fusion subledgers.

When you post a journal in a ledger that has one or more reporting currencies defined, the posting process:

• Creates journals converted to each of your reporting currencies.

• Includes them in the same batch as the original journal with a status of Posted.

Settings That Affect Reporting Currency BalancesReporting currencies share a majority of the ledger options with their source ledger. For example, the reporting currency usesthe same suspense account and retained earnings accounts as its source ledger. However, there are certain options thatmust be set specifically for reporting currencies, such as the currency conversion level. The currency conversion levels areBalance, Journal, and Subledger.

Note: Secondary ledgers can't use subledger level reporting currencies.

Multiple dependencies exist between a reporting currency and its source ledger. Therefore, complete your period openingtasks, daily journal or subledger level reporting currencies accounting tasks, and period closing tasks in the correct order. Thefollowing table describes some of the tasks for each task type.

Type Tasks

Period Opening

Open the accounting period in both your ledger and reporting currencies before you create orimport journals for the period. Converted journals are only generated in your reporting currency if theperiod is open or future enterable.

Daily

Enter daily conversion rates to convert journals to each of the reporting currencies.

Period Closing

• Finish entering all regular and adjusting journals for the period in your ledger.• Post all unposted journals in your ledger if not already done in the previous step.• Post all unposted journals in your reporting currencies if not already done in the previous

step.• Run revaluation in both your ledger and reporting currencies. Post the resulting revaluation

batches in each ledger.• As needed, translate balances in your ledger.• Generate needed reports from both your ledger and reporting currencies.• Close your accounting period in both your ledger and reporting currencies.

How Reporting Currencies Are CalculatedIf you use reporting currencies at the journal or subledger level, journals are posted in your reporting currency when you:

• Create accounting.

• Post journal entries.



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• Translate balances.

General Ledger and Subledger Accounting automatically generate journals in your reporting currencies where the enteredcurrency amounts are converted to the reporting currency amounts. Other factors used in the calculation of reportingcurrency balances are listed:

• Manual Journals: Enter a manual journal batch in your reporting currency at the journal or subledger level by usingthe Create Journals page. Select the journal or subledger level reporting currency from the ledger's list of values.Continue in the same manner as entering any other manual journal.

• Conversion Rounding: Use the reporting currency functionality to round converted and accounted amounts using thesame rounding rules used throughout your Oracle Fusion Applications. The reporting currency functionality considersseveral factors that are a part of the currencies predefined in your applications, including:

◦ Currency Precision: Number of digits after the decimal point used in currency transactions.

◦ Minimum Accountable Unit: Smallest denomination used in the currency. This might not correspond to theprecision.

• Converted Journals: Generate and post automatically journals in your reporting currencies when you post the originaljournals in the source ledger for the following types of journals:

◦ Manual journals

◦ Periodic and allocation journals

◦ Unposted journals from non-Oracle subledger applications

◦ Unposted journals from any Oracle Fusion subledger that does not support reporting currency transfer andimport

◦ Optionally, revaluation journals

• Unconverted Journals: Rely on the subledger accounting functionality to convert and transfer Oracle Fusionsubledger journals, for both the original journal and the reporting currency journal, to the General Ledger for importand posting. The reporting currency conversion for these journals is not performed by the General Ledger.

• Approving Journals: Use the journal approval feature to process reporting currency journals through yourorganization's approval hierarchy. You can enable journal approval functionality separately in your source ledger andreporting currencies.

• Document Numbers: Accept the default document numbers assigned by the General Ledger application to yourjournal when you enter a journal in your ledger. The converted journal in the reporting currency is assigned the samedocument number. However, if you enter a journal in the reporting currency, the document number assigned to thejournal is determined by the reporting currency.

• Sequential Numbering: Enable sequential numbering to maintain the same numbering in your reporting currency andsource ledger for journals, other than those journals for Oracle Fusion subledgers. Do not create separate sequencesfor your reporting currencies. If you do, the sequence defined for the reporting currencies is used. The sequencescan cause the document numbers not to be synchronized between the ledger and reporting currencies.

Note: General Ledger enters a document number automatically when you save your journal if:

◦ The Sequential Numbering profile option is set to Always Used or Partially Used.

◦ Automatic document numbering sequence is defined.

If you use manual numbering, you can enter a unique document number.

• Revaluation: Run periodically revaluation in your ledger and reporting currencies as necessary to satisfy theaccounting regulations of the country in which your organization operates.



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• Account Inquiries: Perform inquires in the reporting currency. You can:

◦ Drill down to the journal detail for the reporting currency balance.

◦ Drill down to see the source ledger currency journal amounts from any automatically converted journal thatwas created when the original journal posted.

Note: Be careful when changing amounts in a reporting currency, since the changes are not reflected in yoursource ledger. Making journal entry changes to a reporting currency makes it more difficult to reconcile yourreporting currency to your source ledger. In general, enter or change your journals in your source ledger, andthen allow posting to update the reporting currency.

Note: If you use journal or subledger level reporting currencies, statistical journals are generated for yourreporting currencies, but the journals are not converted.

Manage Ledger Sets

Ledger Sets: ExamplesWhen you use multiple ledgers, you can group all types of ledgers in a ledger set. For example, group primary ledger,secondary ledgers, and reporting currencies (journal and subledger levels) as long as they share the same chart of accounts,calendar and period type.

Ledger sets are used to manage ledgers, including:

• Opening and closing of periods.

• Running reports and processes for multiple ledgers simultaneously.

• Supporting adjustments and allocations.

Regulation Requirements ExampleYou have 26 registered companies in Vision Corporation. The regulations require that each company is to maintain a separateledger. All companies share the same chart of accounts and calendar.

You set up a ledger for each company and group them into a ledger set. You can then use the ledger set to perform allaccounting activities, while the data remains partition for reporting purpose for each company.

Multiple Countries ExampleYou have a parent company in one country. You operations in five other countries. Each country has its own legal entityand must report to both the parent company and the local government. All legal entities use the same chart of accountsand calendar. Currency is different and Reporting Currency ledgers have been created. You can group all of the primaryand reporting currencies ledgers into one Ledger Set. You can then perform all accounting activities as though you had oneworldwide ledger.

Manage Accounting and Reporting Sequences



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Accounting and Reporting Sequences: OverviewWhen you record your journals, you can assign unique sequence numbers. Sequence numbering the journals simplifies thetask of tracing the journal entries and is a legal requirement in some countries, especially those in Europe, Asia, and LatinAmerica. Sequencing enables the fiscal authorities to easily verify the completeness of a company's accounting record.

Sequential numbering of journals enables you to:

• Maintain gapless sequence numbers.

• Sequentially number subledger journal entries. Generate a sequence number for journal entries created by subledgeraccounting before transferring them to general ledger.

• Sequentially number general ledger journal entries.

• Assign sequences within a ledger or legal entity.

• Generate reports based on the sequence numbers.

The two different types of journal sequences used with Subledger Accounting and General Ledger journals are:

• Accounting Sequences: Gapless sequence numbering for journals which is assigned when the journals are postedor subledger accounting runs.

• Reporting Sequences: Gapless and chronological sequence numbering which is assigned to journals when theGeneral Ledger period is closed.

Note: You can sequence journals for ledgers (primary and secondary ledgers) and journal level and subledgerlevel reporting currencies as well as legal entities. If you use journal or subledger level reporting currencies,first define sequences for the source ledger. The sequence number generated for the source ledger is notautomatically assigned to the reporting currency journal. You must then set up accounting and reportingsequences separately for the reporting currencies.

Related Topics

• Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheets: Explained

Defining Journal Sequences Manually: ExplainedYou can manually define sequences to generate numbers for journal entries. Use the Manage Accounting and ReportingSequences task to search, create, and update sequences, sequence versions, and sequencing assignments. You can alsocreate journal sequences using the Rapid Implementation process. The process creates and assigns the sequences.

SequencesCreate, update, and search for sequences from the Sequences tab on the Manage Accounting and Reporting Sequencespage. To define a sequence, enter a unique sequence name and description. Create at least one sequence version tocomplete the sequence. The sequence version indicates the series of sequence numbers to be used and the effective daterange of the series.

When you create a sequence version, you specify the:

• Effective Start Date: The default date is the current date. The date can be set to any date in the past or future.

• Effective End Date: The date when the sequence should be disabled.



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• Initial Number: A positive integer that is the starting number of the sequence. The number increments by one foreach accounting entry.

Note: The Edit Sequences page displays the last sequence number used for each sequence version.

Sequencing AssignmentsAfter creating your sequences, assign them various criteria to specify when the sequences are generated. Use theSequencing Assignments tab on the Manage Accounting and Reporting page to search, update, or create sequencingassignments.

The following table describes the fields on the Sequencing Assignments tab.

Field Description

Ledger

The ledger for which the journal entries must be sequentially numbered or that contains the legalentity.

Legal Entity The legal entity for which the journal entries must be sequentially numbered. The Legal Entity field

appears when you set your Sequence By ledger option to Legal Entity.

Journal Entry Type

Select whether general ledger or subledger entries are being sequentially numbered.

Sequencing Event

The event which triggers the sequence numbering,

Sequence Validation Date

The date when generating a sequence number. This date is used to determine if a sequence isavailable and the sequence assignment is active.

Require Assignment for All Journals

If you select this option, you must explicitly define valid Sequence Assignments, Exceptions, orExclusions for all journal entries.

Status

Indicates if the assignment is enabled or disabled.

The following table outlines some of the different combinations of journal entry type, sequencing event, sequence validationdate, journal sorting date. For each combination, the table also indicates whether the sequence is an accounting or reportingsequence.

Journal Entry Type Sequencing Event Sequence ValidationDate

Journal Sorting Date Remark

General Ledger

Posting

Accounting Date

Accounting Date

Accounting Sequence

Subledger Accounting


Accounting Date

Completion or PostingDate or Accounting Date

Accounting Sequence

General Ledger

Period Close

Accounting Date

Accounting Date

Reporting Sequence

General Ledger

Period Close

Reference Date

Reference Date

Reporting Sequence



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Journal Entry Type Sequencing Event Sequence ValidationDate

Journal Sorting Date Remark


Period Close

Accounting Date ofReference Date

Reference Date

Reporting Sequence

Tip: For reporting sequences, you can specify fiscal balancing segment values to specify what balancingsegment values to use with reporting sequences for period close. You can deselect the option to excludebalancing segments with management type journals or nonfinancial journals such as, statistical journals.

The following figure shows the Fiscal Balancing Segment Values section from the Sequencing Assignment page. The sectionincludes the segment value, description, and an indicator for whether the segment value is selected for use with the reportingsequence.

Sequencing Assignment DetailsThe following table lists and describes the fields in the Sequences section on the Create Sequencing Assignment page.

Field Description

Status Status of the assignment such as New or Used.

Priority

Priority of the exception. This option is inactive unless you define an exception.

Sequence Name

Name of the sequence to be assigned. A blank indicates the entries must not be sequenced.

Start Date

Define the effective start date for the sequence assignment.

End Date

Define the effective end date for the sequence assignment.

Journal Source

Select the journal sources from the list to be sequentially numbered for a sequence event.

Journal Category

Select the journal categories from the list to be sequentially numbered for a sequence event.

Accounting Event Type

Select the accounting event types to be sequentially numbered (only for subledger entries).

Accounting Entry Type

Select the accounting entry types to be sequentially numbered (only for subledger entries).

Document Category

Select to group transactions assigned to the sequence.



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The following figure shows the Add Exception and Add Exclusion buttons on the Create Sequencing Assignment page.

Use the following buttons to add a row:

• Add Exception: When you create an exception, the priority value is always one more than the highest number in thePriority field. Use exceptions to assign different sequences to certain journal sources, journal categories, accountingevent types, or accounting entity types. For example, you want to include all journal sources, but assign a differentsequence for your Expense journals.

• Add Exclusion: Create exclusions to exclude specific journal sources, journal categories, accounting event types, oraccounting entity types. For example, you want to exclude journal sources and categories containing managementor statistical accounts that do not impact financial results.

FAQs for Manage Accounting and Reporting Sequences

What happens if I enable sequencing in the rapid implementationspreadsheet?Two sets of defaults are generated: general and country specific. The process applies the general defaults first and thecountry specific defaults override general defaults. For example, using the predefined defaults, sequencing is enabled at theledger level. For some countries like Spain and Italy, the general defaults are overridden by country defaults and sequencesare set at the legal entity level.

Accounting and reporting sequences are generated based on the predefined country defaults. For example, for a Franceledger, accounting sequences are generated for each legal entity of the ledger. For an Italian ledger, both accounting andreporting sequences are generated for each legal entity of the ledger.

Manage Journal Approval Rules



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Creating Journal Approval Rules

VideoWatch: This video tutorial shows you how to create journal approval rules that either automatically approve a journal batch, orthat route the batch for supervisory approvals based on the ledger and journal amounts. The content of this video is also coveredin text topics.

ProcedureYou can use the Business Process Management Worklist application to configure journal approval rules. For example, youcan create journal approval rules that automatically approve a journal batch, or that route the batch for approval based on theledger and journal amounts.

This procedure creates the following approval rules:

• When the largest journal amount in a batch is more than 500, and less than 10,000, the batch requires one level ofsupervisory approval.

• When the largest journal amount is 10,000 or more, two levels of supervisory approval are required.

• If the largest journal amount in a batch is 500 or less, the batch doesn't require approval or it's automaticallyapproved.

Create a Rule That Requires One Level of Supervisory Approval

1. In the Global menu, click the Notifications icon and from the list, select More Details.2. Select Financials. The Business Process Management Worklist application page opens.3. Click your user name and select Administration. You can manage the journal approval rules only if you have

administrator access.4. Click the Task Configuration tab.5. From the Tasks to be configured pane, select the FinGLJournalApproval Journal Approvals task.6. Click Edit task to create the rules.7. Click the Assignees tab. The Assignees page shows the participant tree. A participant is a user or set of users in

the approval assignment and routing definition. The journal approval task has 17 predefined participants. Typicallyyou use only one or two participants, but you have the flexibility to meet more complex approval requirements. Eachparticipant is associated with one rule set, and a rule set can have one or more approval rules.

8. On the Supervisory Journal Approver participant, click Go to rule.9. Click the Add Rule icon.

10. In the Name field, enter the name of the rule: Between 500 and 10000.11. Click Expand. Each rule defines the conditions for when the journal batch should be approved and by whom.

Note: The IF component evaluates the journal based on batch, journal, or journal line-level attributes. TheTHEN component determines who the approval should be routed to.

12. In the IF section, click the Left Value icon. The Condition Browser window opens.13. Click the Expand icon on the Maximum Amount Journal folder.14. Click the Name attribute, which represents the ledger name.15. Click OK. The Condition Browser window closes and the attribute name is populated in the Left Value field.16. In the Right Value field, enter the name of the ledger in quotation marks, for example, enter "Vision Operations

(USA)".







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Note: The first condition uses the operator named is. This operator compares the two values.

17. Click the Add simple test icon from the list to add another condition.18. Click the Left Value icon. The Condition Browser window opens.19. Expand the Maximum Journal Amount folder and select the Maximum Accounted Amount Credit attribute. This

attribute stores the maximum accounted credit amount across all journals in the batch.20. Click OK. The Condition Browser window closes.21. In the second condition, click in the Operator field and select the operator named between.22. Click the Right Value icon. The Right Operand window opens.23. In the Operand 1 field, enter the lower limit as 500.24. In the Operand 2 field, enter the upper limit as 10000.25. Click OK. The Right Operand window closes.26. To configure the action to send the journal batch for one level of supervisory approval, click the Add Action icon in

the THEN section.27. Select Add Approver and select Supervisory.

Note: The Supervisory list builder generates the list of approvers by moving up the supervisory hierarchythat's set up in the Human Resources application. Specify the number of approvers, the first approver,and the highest possible approver.

28. To route the journal batch for one level of supervisory approval, in the Number of levels field, enter 1.29. In the Starting Participant field, click Search. The Add Hierarchy Participant window opens and the Get Manager

option is selected by default.30. For this rule, the starting participant or first approver, is going to be the manager of the person who submits the

journal batch for approval. In the Reference User field, enter Task.creator.31. Click OK. The Add Hierarchy Participant window closes.32. In the Top Participant field, click Search. The Add Hierarchy Participant window opens.

Note: The top participant is the last user in the approval hierarchy. The list builder continues to add usersto the approvers list from the supervisory hierarchy of the first approver, until the number of levels is met,or the top participant is reached.

33. Click the Get User button.34. In the Reference User field, enter the sign in name of the top participant within quotation marks.35. Click OK. The Add Hierarchy Participant window closes.36. From the Tasks to be configured pane, click Save. The Enter Comments window opens.37. Click OK. The Enter Comments window closes and a message appears stating that the rule has been saved.38. Click OK.

Create a Rule That Requires Two Levels of Supervisory ApprovalCreate a rule for the same ledger requiring two levels of supervisory approval if the largest journal amount is 10,000 or more.Copy the first rule and make changes for this second rule.

1. Click the Assignees tab.2. Select the first rule.3. Click the list on the Cut icon and select Copy.4. Click the list on the Cut icon and select Paste. The second rule appears after the first rule.5. In the Name field for the second rule, enter Greater than 10000.



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6. Click Expand.7. The first condition in the IF section that checks for the ledger, stays the same. Change the operator of the second

condition to same or more than.8. In the Right Value field, enter 10000.9. In the THEN section, in the Number of levels field, enter 2.

10. Click Collapse. The second approval rule is complete.

Create a Rule That Automatically Approves JournalsCreate the rule that automatically approves journals that are 500 or less for a specific ledger. The rule must also ensure thatjournal batches for all other ledgers are automatically approved as well.

Caution: It's very important that the rules in a rule set cover all conditions and are collectively exhaustive. If not,errors might occur.

1. Select the first rule.2. Click the list on the Cut icon and select Copy.3. Click the list on the Cut icon and select Paste. The third rule appears after the first rule.4. Click in the Rule Name field and rename the third rule to Less than 500.5. Click the Expand icon to open the new rule.6. Create a condition for journals 500 or less in the specified ledger by first grouping the two existing conditions

together. In the IF section, click both conditions to select them.7. Click the Surround selected tests with parenthesis icon. Both conditions are now enclosed within a set of

parentheses.8. Click in the Operator field of the second condition and select same or less than from the list. The amount

automatically changes to 500.9. Now add another condition to cover all of the other batches that don't have journals for the specified ledger. Click

the Add simple test icon. A third condition row is added after the two grouped conditions.10. Since this new condition is mutually exclusive to the grouped conditions, click the connector to change it from and

to or.11. Click the Left Value icon. The Condition Browser window opens.12. Expand the Maximum Journal Amount folder and select Name.13. Click OK. The Condition Browser window closes.14. Click in the Operator field and select the operator named isn't.15. In the Right Value field, enter the name of the ledger in quotation marks.16. Now set up the automatic approval. The Supervisory list builder has two parameters that override the supervisory

approval and return a preconfigured approval action. In the THEN section, click in the Auto Action Enabled field,and select True.

17. In the Auto Action field, enter "APPROVE". Include the quotation marks.18. Collapse the rule.

You have now defined three rules that meet the business requirements and are collectively exhaustive. All journalbatches satisfy the conditions in at least one of the three rules and are routed for approval accordingly. If a journalbatch doesn't satisfy the conditions in at least one rule within a rule set, the rule evaluation process would fail witherrors.

19. Deploy the rules so that they can be used. On the Tasks to be configured toolbar, click the Commit Task icon. TheEnter Comments window opens.

20. Click OK. The Enter Comments window closes and a message appears stating that the data rule has been savedand committed.

21. Click OK.

After journal approval is enabled, journal batches being posted are submitted for approval based on these rules.



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Approving Journals: Points to ConsiderUse approval management to define policies that apply to the journal approval workflow.

Rule Definition ConsiderationOne predefined approval rule exists for journal approval. If you enable the ledger and the source for approval, then the journalentry is sent for one level of approval. Configure the approval rules using the Define Approval Management task list in theSetup and Maintenance work area. For a simple approval scenario, start by defining one or all of the following journal approvalrules based on:

• The highest journal line amount per ledger per batch.

• The highest journal amount per ledger per batch.

• Where you are in the period close process. For example, are you in the beginning, middle, or end of the month, or inpreclose, close, post close, or quarter close process?

Select the Skip creator for Approval List option on the journal approval rules configuration page to prevent the submitterfrom approving a journal batch. If the journal batch submitter is found to be one of the approvers, then you can select to skipthe journal submitter as an approver. Then assign the approval task to other approvers or automatically route the approvaltask to the submitter's manager.

The following table provides an example of the rule conditions and approval actions that you can configure for differentmaximum journal line amounts.

Condition Approval Action

Less than 50,000 USD

No approval required

Between 50,000 and 100,000 USD

One level of approval required

Greater than 100,000 USD

Two levels of approval required

Build your rules for combinations of ledger, entered amount, approval level, or other scenarios. In addition, define your rulesbased on attributes from the different parts of your journal, including the ledger, batch, header, or line level. For example, usecategory, source, account, or descriptive flexfield information as selection criteria for journal approval.

Approvals List Builder ConsiderationsThe following table describes the list builders you can use to build a journal approval list.

List Builder Functionality Additional Information

Human Resources (HR) Supervisory

The HR supervisory hierarchy levels areselected. The number of levels available forapproval is specified.

The most effective when the GeneralAccountant enters the journals. For example,if an accountant enters a journal, he needsapproval from his manager. If his managerenters a journal, he needs approval from hismanager, and so on up the hierarchy for thespecified number of levels. Self-approval canbe set at any level in the hierarchy.



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List Builder Functionality Additional Information

Job Level

A relative dollar amount is attached to ajob. The approval list moves up the HRSupervisory hierarchy to the point whereapproval finds a job with the necessaryapproval amount.

Enable self-approval to allow approval ofjournals created within your authority limit.

Position

A relative dollar amount is attached to aposition.

Use this hierarchy if you need:

• A hierarchy different than the HRSupervisory hierarchy

• Multiple hierarchies that must beselected based on different attributes.

Approval Group

Approver groups represent functionalor subject matter experts outside thetransaction's managerial chain of authority,such as Legal or Human Resourcepersonnel.

Not Applicable

Dual Chain

Dual chains can be processed at the sametime.

Not Applicable

Note: Best practices: Select the Job Level, HR Supervisory, or Position list builder for your journal approvalrules.

Other ConsiderationsOther functionality to consider before defining approval rules.

• Approval is for the entire journal batch regardless of the attributes used in the approval rules.

• For the job and position level approvals, the approval list continues up the hierarchy until it finds the approver withthe correct approval authority.

• If the journal requires approval, submitting a journal for posting automatically routes the journal for approval beforeposting.

• A journal can be escalated to an approver by the administrator.

• The Withdraw Approval button on the Journals page is used anytime in the approval process to withdraw journalsfrom the process. Clicking this button enables editing of the journal. After your changes are made, submit the entryfor approval again. When a journal is withdrawn, the completion status is set to Incomplete.

• Approval notifications display a table of key journal attributes for each journal and a list of past, current, and futureapprovers.

• The Journals region of the dashboard displays journals requiring your approval and journals pending approval fromothers.

• If you are the current approver, the Journals page shows the journals to be approved or rejected.

• Allocation journals are not routed through the approval process.

• You can review the details of the journals and journal lines included in a journal batch on the online and email journalbatch approval notifications.



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Note: Approval is enabled at the ledger and source level. Both the ledger and journal source must be enabledfor the approval process.

Related Topics• Approval Management: Highlights

Manage AutoPost Criteria Sets

Creating an AutoPost Criteria Set: Worked ExampleThis example shows how to create an AutoPost Criteria Set to post your general ledger journal entries that were created bythe journal import process for your subledger transactions. Your enterprise, InFusion Corporation:

• Implemented Oracle Fusion General Ledger and the Oracle Fusion subledgers: Payables and Receivables.

• Uses a non-Oracle subledger called Fast Assets for fixed asset tracking and depreciation.

• Plans to automate posting of general ledger journal batches created by the journal import process to protect thesubledger sourced journal entries from edits or deletion that might cause an out-of-balance situation between thesubledgers and general ledger.

Consider the following points while creating a criteria set:

• Use the All option for category and accounting period to reduce maintenance and ensure that all journal imports areincluded in the posting process.

• Create a criteria set that includes all your subledger sources. Create multiple criteria sets by source only if you mustschedule different posting times to balance close activities or reduce processing time.

Creating an AutoPost Criteria SetCreate your AutoPost Criteria Set to automatically post journal entries from both Oracle and non-Oracle subledgers.

1. On the Manage AutoPost Criteria Sets page, click the Create icon to open the Create AutoPost Criteria Set page.2. Enter the criteria set name: All Journal Imported Entries.3. Select the Enabled check box.4. Enter the description: Posting journals imported from the subledgers.5. Click the Add Row icon to add each new line.6. Complete the fields, as shown in this table.

Priority Ledger or Ledger Set Source Category Accounting Period

1

InFusion CorporationLedger

Payables

All

All

2


Receivables

All

All

3


Fast Assets

All

All

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7. For all three sources, select Yes for the Process All Criteria option, and enter 30 as the number of days beforeand after submission date. Setting the before and after day with a wide range of days enables the process to runless often.

8. Click Save and Close.9. Schedule the process to run immediately after the journal import process to prevent changes to the journals. Run the

process during nonpeak times to save resources.

Manually Generating the AutoPost Process: ExamplesCreate an AutoPost criteria set and schedule the AutoPost Journals process to run on a regular basis following yourscheduled journal imports from your subledgers. When errors occur that prevent posting of the journal imports, you mustcorrect the errors and manually run the AutoPost process. The following scenarios illustrate the kinds of errors that couldoccur and how you can resolve these errors.

ScenarioThe following table lists the errors that prevented journal batches from posting when the scheduled AutoPost Journalsprocess ran.

Error Cause Solution

Unopened accounting period

The journal import was imported into a futureperiod. An error arises when the AutoPostJournals process runs on a schedulebecause journals can't be posted in a futureperiod.

Open the period.

Invalid or no journals

Journal import fails to import transactionsfrom the general ledger interface table. TheAutoPost Journals process runs on schedulebut finds no batches to post. The postingprocess doesn't run and the AutoPostExecution report shows that no batchesmatched the criteria.

Correct the error that caused the journalimport to fail.

Invalid or no journals

No journals were selected based on theposting criteria. Journal batches are availablefor posting. The posting process doesn't runand the AutoPost Execution report showsthat no batches matched the criteria.

Revise the criteria set.

After you correct the errors:

• Manually run the AutoPost Journals process by selecting the Run AutoPost option from the Tasks panel on thejournal pages.

• Click Generate on the AutoPost criteria set pages.

• Verify that the process ran successfully by reviewing the AutoPost Execution report.



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FAQs for Manage AutoPost Criteria Sets

How can I run the AutoPost process?After you define an automatic posting criteria set, run the AutoPost process by clicking the Generate button on the ManageAutoPost Criteria Sets page or the Launch AutoPost link from the Journals task pane. The AutoPost process poststhe journal batches that meet the criteria defined. Optionally, schedule the AutoPost process for specific automatic postingcriteria sets through the Schedule tab in the Schedule Process: Advanced region to run at specific times and submissionintervals.

How can I identify errors that occurred during my AutoPost process?Review the AutoPost process results on the AutoPost Execution report. This report is automatically created when the processcompletes successfully. The report contains the batch name, accounting period, and balance type for each posted journalbatch, and lists error statuses for batches that fail to post. The unposted journals with their error status are also displayed onthe Requiring Attention tab of the Journals work area and the General Accounting Dashboard.

Why didn't the AutoPost process post journal batches as expected?Verify that the posting criteria set specifies the precise criteria required to post the wanted journals. If the criteria is correct,then verify the following:

• Journal imports completed successfully.

• Journal batches are error free and ready to post.

• Specified accounting period is open.

Manage Journal Reversal Criteria Sets

Automatic Journal Reversals: How They're ProcessedThe ability to submit journal reversals automatically enables you to automate and streamline your journal reversal process. Ifyou generate a large number of journal reversals for month end closing, use the automatic reversal functionality to save timeand reduce entry errors.

Start by creating a journal reversal criteria set. You then generate the reversal which starts the automatic reversal process andin turn, starts the journal reversal process and optionally, the journal posting process.

Settings That Affect Journal ReversalsA journal must meet the following criteria to be automatically reversed:

• The balance type is Actual.



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• The journal category is enabled for automatic reversal.

• The reversal period is open or future enterable.

• The journal is posted and not yet reversed.

• The journal isn't a reversal journal. Reversal journals cannot be reversed in Oracle General Ledger.

• The journal isn't a posted journal for a reporting currency that was replicated from its source journal. Reportingcurrency journals that were replicated from a source journal are reversed when the source journal is reversed.

• The journal isn't a posted journal that originated from Oracle Subledger Accounting with a journal source that isfrozen.

The ledger option called Launch AutoReverse After Open Period enables generation of automatic journal reversals whenan accounting period is first opened. If you reverse journals on the last day of every month, disable the ledger option toautomatically run reversals when the period is opened. Then schedule the AutoReverse process to run on the last day ofevery month. The accounting period automatically increments for each subsequent run.

How Automatic Journal Reversals Are ProcessedThe following table describes the criteria used to create journal reversal criteria sets, which automatically reverse andoptionally post journals.

Criteria Functionality Options

Category

Required. The journal category you set asthe reversal option. Journals entered withthis category are selected for reversal andoptionally, posting.

All journal categories are listed.

Reversal period Required. The accounting period of the

reversal journal. The Next day option isonly applicable to average daily balanceledgers. Nonaverage daily balance ledgersand consolidation average daily balanceledgers treat the Next day option in thesame manner as the No default option.

• No default• Same period• Next period• Next nonadjusting• Next day

Reversal day

Required for average daily balance ledgersonly. The day of the period on which toreverse the journal.

• First day• Last day• Next day

Reversal method

Required. The method for changing theamounts in the reversal entry.

• Change sign• Switch debit or credit

Automatic reversal option

Required. The option to reverse and postjournals automatically. Journals are postedafter they are reversed.

• None• Reverse automatically• Reverse and post automatically

After creating your journal reversal criteria sets, assign them to ledgers. Journal reversal criteria set can be shared andassigned to multiple ledgers. Also secure journal reversal criteria set definitions using definition access set security to preventunauthorized users from using, viewing, or modifying the journal reversal criteria.

If the automatic reversal option is set to reverse and post automatically, the AutoPost process posts the journals generated bythe AutoReverse process. The process does not post other journals. You manually post reversal journals that were generatedoutside of the AutoReverse process.



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Note: Journals posted by the AutoReverse process always bypass approval.

General Ledger automatically creates the AutoReverse Execution report when the AutoReverse process completessuccessfully. The report prints the journal name and reversal period for each journal that is successfully reversed and whetherthe reversal journal is submitted for posting. The AutoPost Execution report is created automatically when the AutoPostprocess finishes. These reports help you diagnose any problems and verify that all journals were processed properly.

Note: The AutoReverse process doesn't check that the reversal date is a valid business day for an averagebalance ledger. The journal validation in the journal pages or import process does the check and if necessary,rolls the date to the next business day.

Manage Clearing Accounts Reconciliation

Clearing Accounts Reconciliation: OverviewClearing accounts reconciliation offers automatic and manual methods to group, match, and reconcile related in and outjournal lines that no longer contribute to an account's ending balance. You can analyze those unreconciled journal lines thatare both relevant and responsible for the buildup of the ending balance in a clearing account.



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The following figure shows the process flow for clearing accounts reconciliation. Reconciliation can be automatic or manual.You can run reconciliations reports and also reverse reconciliations.

Reconcile Clearing Accounts

Automatic or Manual?

Reconcile Clearing Accounts

Automatically

Automatic

Reconcile Clearing Accounts Manually

Additional Reconciliation

Required?

Close Accounting Period

Run Clearing Accounts

Reconciliation Reports

Reverse Reconciliation

ReverseReconciliation?

Manual

No

Yes

Yes No

The recommended approach for reconciling clearing accounts is to run automatic reconciliation to process the majority ofthe journal lines, based on your setup. Then use manual reconciliation to resolve the journal lines that weren't reconciledautomatically. You can also reverse incorrect reconciliations. Reports are available to help with this process.

Related Topics

• Reconciling Clearing Accounts: Procedure

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Setting Up Clearing Accounts Reconciliation: ProcedureClearing accounts reconciliation offers automatic and manual methods to group, match, and reconcile related in and outjournal lines that no longer contribute to an account ending balance.

Steps to EnableTo use clearing accounts reconciliation, perform the following steps:

1. Enable primary and secondary ledgers for clearing accounts reconciliation, as required. Select the Enable ClearingAccounts Reconciliation option in the Reconciliation section on the Specify Ledger Options page.

2. On the Manage Values page, set the Reconcile attribute to Yes for each of the reconcilable clearing account valuesin the natural account segment.

3. Run the Inherit Segment Value Attributes process to update existing account combinations with the subsequentchanges to the segment value.

4. Use the Manage Clearing Accounts Reconciliation setup task to configure and maintain clearing accountreconciliation types and the associated reconciliation rules. You can find the task under the Define General LedgerOptions task list in the Functional Setup Manager.

Related Topics• Security Reference for Oracle Financials Cloud

• Enabling Journal Lines for Clearing Accounts Reconciliation: How It Works

Reconciliation Types: ExplainedReconciliation types consist of one or more reconcilable clearing accounts and their associated reconciliation rules. Use theManage Clearing Accounts Reconciliation task to configure and maintain them.

Chart of Accounts Level or Ledger LevelYou can define reconciliation types at a chart of accounts level or at a ledger level. Chart of accounts level reconciliation typesapply to all associated primary and secondary ledgers that are enabled for reconciliation. For ease of maintenance, definereconciliation types at the chart of accounts level.

If a ledger requires reconciliation rules that vary from the associated chart of accounts' rules, you can specify the ledger whencreating the reconciliation type. You can select from among the primary and secondary ledgers enabled for clearing accountsreconciliation that use the chart of accounts you selected.

The Manage Clearing Accounts Reconciliation page automatically displays all reconciliation types, whether defined at a chartof accounts level or a ledger level.

Note: If you submit the automatic reconciliation process for all reconciliation types, the process reconcilesledger-specific reconciliation types first, followed by chart of accounts level types.

Reconciliation Type NamesUse unique names for reconciliation types. Maintaining a consistent naming convention is recommended. Considerappending the chart of accounts or ledger name as a suffix to distinguish between chart of accounts level and ledger leveldefinitions. Following this convention helps you identify the appropriate definitions on the various reconciliation processing

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pages. This practice also helps to keep reconciliation type names unique within the application, and across ledgers andcharts of accounts.

Account Matching Rules and Account FiltersWhen you create a reconciliation type, you must select an account matching rule. The account matching rule identifies thechart of account segments that are significant for finding matching journal lines during the reconciliation process. Conversely,the selection implies which segments are insignificant and irrelevant during the reconciliation process. Those irrelevantsegments aren't considered when grouping and matching eligible journal lines that are reconciled together.

The account matching rules are:

• By Primary Balancing Segment, Natural Account

• By Primary Balancing Segment, Natural Account, Cost Center

• By Account Combination

After you select the account matching rule, use the account filter to specify the segment values that belong to valid clearingaccount combinations. You would typically specify segment values only for those segments that are part of the accountmatching rule that you selected. At a minimum, you must specify a value for one of the segments. Most likely, you wouldprovide a value for the natural account segment. If you don't specify values for a segment, the reconciliation processconsiders all of the underlying child values for that segment as valid values in a clearing account combination, when matchingand grouping together related journal lines.

If you specify values for a segment that's not part of the account matching rule, journal lines across the specified values forthat segment are reconciled together.

For example, a chart of accounts has the following segments and child values:

• Company: Primary balancing segment values of 01, 02, 03

• Cost Centers: 000, 100, 200

• Natural Accounts: Range of 00000 - 99999

• Products: 100, 200

The chart of accounts is used by the Vision Services (USA) ledger, which has been enabled for reconciliation. Thereconciliation type has the following attributes:

• Name: Approved Claims

• Account Matching Rule: By Primary Balancing Segment, Natural Account

• Account Filter:

◦ Cost Center: 100 to 200

◦ Natural Accounts: 22100 to 22101

This table shows how the process groups the journal lines together for matching and reconciliation, for the Vision Services(USA) ledger and the Approved Claims reconciliation type.

Set 1 Set 2 Set 3 Set 4 Set 5 Set 6

01-100-22100-100

01-100-22101-100

02-100-22100-100

02-100-22101-100

03-100-22100-100

03-100-22101-100

01-100-22100-200

01-100-22101-200

02-100-22100-200

02-100-22101-200

03-100-22100-200

03-100-22101-200



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Set 1 Set 2 Set 3 Set 4 Set 5 Set 6

01-200-22100-100

01-200-22101-100

02-200-22100-100

02-200-22101-100

03-200-22100-100

03-200-22101-100

01-200-22100-200

01-200-22101-200

02-200-22100-200

02-200-22101-200

03-200-22100-200

03-200-22101-200

In this example, the journal lines are grouped together into six sets. Because the account matching rule is By PrimaryBalancing Segment, Natural Account, each primary balancing segment value (01, 02, 03) is combined with each naturalaccount segment value that's in the account filter (22100, 22101), into its own set.

Since the product segment isn't part of the account matching rule or account filter, each set includes all of the productsegment values (100, 200).

Lastly, the cost center segment isn't part of the account matching rule, but it's included in the account filter. The cost centersegment values are 000, 100, and 200, but the account filter specifies only 100 and 200. This means that the journal lineseligible for reconciliation are limited to account combinations with cost centers 100 and 200. And, since the cost center isn'tpart of the account matching rule, each set includes journal lines containing both cost centers 100 and 200.

In summary, even though the following account combinations include primary balancing segment values 01, 02, and 03, andnatural account segment values 22100 and 22101, they're excluded from the reconciliation because the cost center is 000.

• 01-000-22100-100

• 01-000-22100-200

• 01-000-22101-100

• 01-000-22101-200

• 02-000-22100-100

• 02-000-22100-200

• 02-000-22101-100

• 02-000-22101-200

• 03-000-22100-100

• 03-000-22100-200

• 03-000-22101-100

• 03-000-22101-200

Reconciliation Start Date and Last Automatic Reconciliation RunEvery reconciliation type has a reconciliation start date. The reconciliation start date, and the criteria you specify whenreconciling automatically or manually, are used to retrieve the clearing account journal lines eligible for reconciliation. Onlyjournal lines with an accounting date after the reconciliation start date are available for reconciliation.

The Manage Clearing Accounts Reconciliation page displays the date of the last successful automatic reconciliation run. Youcan use this date to track and monitor completed and pending reconciliations. Clearing accounts reconciliation, as an integralpart of period close activities, can be planned accordingly.

Tolerances for Manual ReconciliationYou can set up amount and percentage tolerances for manual reconciliation. When the net accounted amount of the journallines is within the tolerance, the lines can be reconciled together using manual reconciliation. If you:

• Leave both the amount and percentage tolerance fields blank, then there is no tolerance.



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• Specify a value in one of the two tolerance fields, that amount or percentage becomes the applicable tolerance.

• Specify both an amount and a percentage, the stricter of the two tolerances is applied.

The percentage tolerance is calculated on the higher of the grouped journal lines total debit or credit amounts. The amounttolerance is based on the absolute amount in the ledger currency.

Changes to Reconciliation TypesYou can change the reconciliation type name, description, tolerance percentage or amount, reconciliation start date, andwhether the reconciliation type is active. The edited reconciliation type becomes the applicable definition for any futurereconciliation processes subsequent to the edit. Existing journal line groups that were already reconciled aren't affected bythe changes. You can still reverse groups that were previously reconciled.

Inactive Reconciliation TypesInactive reconciliation types are ineligible for automatic and manual clearing accounts reconciliation processing, startingfrom the moment they're inactivated. Also, the submission page for the Unreconciled Transactions report doesn't displayinactive reconciliation types as a report parameter. You can however, use inactive reconciliation types when submitting theReconciled Transactions report, as well as on the Reverse Reconciliation page.

Related Topics

• Automatic Clearing Accounts Reconciliation: How It Works

• Manually Reconciling Clearing Accounts: Procedure

Tolerances and Manual Clearing Accounts Reconciliation: How ItWorksWhen you define reconciliation types for clearing accounts reconciliation, you can specify an amount tolerance, a percentagetolerance, or both. These tolerances apply only to the manual reconciliation process. The percentage tolerance is calculatedon the higher of the grouped journal lines total debit or credit amounts. The amount tolerance is based on the absoluteamount in the ledger currency. If you specify both an amount tolerance and a percentage tolerance, the stricter of the two isapplied.

How Tolerances Are AppliedAs an example, a reconciliation type has the following definition:

• Chart of accounts level

• Account Matching Rule: By Account Combination

• Account Filter: 01-000-22100

• Tolerance percentage: 1

• Tolerance amount: 5

This table shows the journal lines eligible for reconciliation that were retrieved on the Manual Reconciliation page.

Journal Line Account Combination Accounted Amount (Debit) Accounted Amount (Credit)

1 01-000-22100 100.00

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Journal Line Account Combination Accounted Amount (Debit) Accounted Amount (Credit)

2

01-000-22100

98.00

Total debits are 100.00 and total credits are 98.00. The higher of the two is 100.00. The percentage tolerance of 1 is appliedagainst 100.00. One percent of 100.00 is 1. The amount tolerance is 5. The stricter of the two is applied, so in this example,the tolerance of 1 is applied. The difference between total debits of 100.00 and total credits of 98.00 is 2. This difference ishigher than the applicable tolerance of 1, so the two journal lines remain unreconciled.



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Chapter 5Define Period Close Components

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5 Define Period Close Components

Manage Period Close

Opening First Period: OverviewFor all ledgers, primary, secondary, and journal and subledger level reporting currencies, open the first period of the ledgerwhen you are ready to transact in that period.

1. To open the first period of your ledgers, navigate to the Open First Period task in the primary ledger task list.2. Click the Go to Task icon.3. On the submission page, select the ledger and the period to open.4. Click the Submit button to submit the open period process.

You can use other ways to open the first period or subsequent periods without going into the Setup and Maintenance workarea. You can maintain the ledgers' period statuses from the:

• Close Status region in the General Accounting Dashboard. The Close Status region provides real-time visibilityinto the period close process from your subledgers to your General Ledger across the entire enterprise.

• Manage Accounting Periods task in the Period Close work area.

• Process Monitoring work area, which provides a framework for submitting, monitoring and maintaining processesacross Oracle Fusion Financials.

Close Monitor: OverviewThe Close Monitor:

• Provides information about the period close status for a given accounting period across multiple products for relatedledgers in a hierarchical ledger set based display.

• Uses the hierarchical ledger set to mirror the consolidation relationships and roll ups of entities across the enterprise.

• Summarizes period close status information for each ledger across multiple products and for each consolidationnode across multiple ledgers.

• Provides the contact information of the manager for a given node on the ledger set hierarchy.

• Summarizes high-level income statement results for each entity and aggregates this financial information at eachconsolidation node.

• Displays each of these elements of information, period status, manager information, and financial data, in separatetags that are navigated to for each node of the interactive hierarchical display.

• Provides views for a given ledger set, for a particular accounting period, and currency.

The period status information that is displayed is broken down by application module including General Ledger, Payables,Receivables, Asset, Projects, and Costing. Some modules track their entity at a more granular level, such as:

• Business units for Payables, Receivables, and Projects

• Asset Books for Assets



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• Cost Organization Books for Costing

The Close Monitor indicates the number of the subunits by module for the ledgers. It also displays the fractional indicator,where applicable, of how many of the subunits are at the closed status.

Secondary ledgers, journal level, or transaction level reporting currencies cannot be associated with subledger businessunits for Payables, Receivables, and Projects. As such, if the ledger set displayed in the hierarchy includes members thatare secondary ledgers, journal, or subledger level reporting currencies, the period status indicated in the Close Monitor forsuch subledger modules is based on its related primary ledger. Asset books and cost organization books can be associatedwith all types of ledgers. Therefore in the case of the Assets and Costing modules, their period status for secondary ledgeror reporting currencies is shown accordingly for the books directly associated with them. Otherwise, their period statuses arederived from the books associated with their primary ledgers.

Setting Up the Close MonitorThe Close Monitor setup consists of a ledger set hierarchy definition whereby a predefined ledger set is addressed, with eachledger and ledger set assigned a manager who is responsible for its financial close, and a logo to represent the entity in thedisplay.

Note: The list of managers available for assignment contains the persons defined in the Human CapitalManagement (HCM) module of Oracle Fusion Applications. The attributes defined in HCM, such as the picture ofthe person and contact details, are shown in the Close Monitor.

The ledger set serves as the foundation of this setup.

• The members of the Close Monitor hierarchy must share a common chart of accounts and calendar.

• The financial data displayed in the Close Monitor is derived from the account group assigned to the ledger set,therefore, an assignment is required. The account group:

◦ Must include two line items whose account designations respectively query the total revenues and totalexpenses of the organization.

◦ Reflects a summarized income statement in the financial data tab of the Close Monitor.

• All ledgers in the ledger set share a common chart of accounts and the selection of accounts are equally applicablethroughout the nodes in the ledger set hierarchy.

• When working with ledger sets that include members that are also ledger sets, you can choose any of the ledgersets in the selector to indicate the starting ledger set to display in the Close Monitor.

• If different account groups are assigned to each ledger set member in such a ledger set, the account group used todisplay the financial data is the one assigned to the ledger set specified in the selector in the Close Monitor.

• To have meaningful comparison and summation along the ledger set hierarchy:

◦ Assign ledgers to the ledger set that have a relevant currency representation that matches the intended groupcurrency that the Close Monitor displays the financial data in.

◦ Select the appropriate primary, secondary, or reporting currency ledger for assignment to the ledger set.

◦ Alternately, use translated balances (balance level reporting currency) in the ledger set selection to satisfy thecommon group currency requirement if needed.

Viewing the Close MonitorYou choose a ledger set, an accounting period, and currency as the view criteria for the Close Monitor display. You can alterthis selection at any time.



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For example, change the currency displayed by:

• Working with a global ledger set.

• Shifting the focus to a lower-level ledger set that is aggregating at the continental level, such as North America, thatuses a different group currency.

• Including the ledger with the relevant currency representation that matches the selected group currency that theClose Monitor financial data is displayed in.

Note: If matching financial data for a ledger in the selected currency is not available, a message is displayedstating that the requested financial data is not available.

The Close Monitor supports different zoom levels to enable you to:

• Accommodate viewing a larger ledger set hierarchy in its entirety, given the limited display area of the user interface.

• Show detail information for each node which can vary, decreasing and simplifying in content as you zoom out furtherto accommodate showing more nodes in a single view.

• Hover over the more summarized node to view the complete set of information for that node at the 100% zoomlevel.

• Leave the zoom level at 100% and move around the display to other ledger sets or ledgers currently not in view.

Note: A view control panel that can be exposed on demand allows you to adjust the zoom level, pan across thehierarchy, flip the display tabs, and switch the hierarchy display format.

Configuring Social Objects in Oracle Social Network: ExplainedBefore you can start using the social object, for example, accounting period, journal, or intercompany transaction in OracleSocial Network, configure the social object using the Manage Oracle Social Network Objects task on the Setup andMaintenance task list page.

The configuration consists of enabling the social object and its attributes for use on the Oracle Social Network. For example,for the accounting period social object, enable the following attributes: Ledger, Period Name, Period Start Date, and PeriodEnd Date. You also configure the enablement method of the social object. The methods are: No, Manual, and Automatic.

The configuration applies to all instances of that social object in the application and to all ledgers. You can automaticallycreate an conversation by setting the option in Managing Oracle Social Network Objects user interface.

Note: Oracle Social Network is currently only available in Oracle Cloud implementations.

Related Topics

• Managing Oracle Social Network Objects: Explained

Period Close Components: ExplainedWhile implementing your accounting configuration, optionally define and maintain period close components, includingallocations and periodic entries, revaluations, and historical rates.

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If you use allocations, revaluation, or translation, configure the following tasks under the Define Period Close Componentstask list in your implementation project:

• Manage Allocations and Periodic Entries

• Manage Revaluations

• Manage Historical Rates

Manage Allocations and Periodic EntriesThe Manage Allocations and Periodic Entries task is a manual task in the implementation project. Use the CalculationManager to create allocations and other formula journal templates for generating periodic journal entries automatically. Youcan base formulas on multiple criteria.

You must perform an external procedure outside the Setup and Maintenance work area to complete this task. To set up yourallocations rules, navigate to the Journals work area and click the Create Allocations Rules task from the Tasks pane. Thistask navigates you to the Calculation Manager, a framework that enables you define your allocation rules and formulas usinga graphical interface and intuitive step-by-step wizards.

Manage RevaluationsRevaluation is done to adjust foreign entered amounts due to currency fluctuations. Use the Manage Revaluations task todefine currency revaluation options, such as the range of accounts to revalue and the gain or loss accounts. Navigate to theManage Revaluations page, and define and generate your revaluation definitions.

Manage Historical RatesHistorical rates are the weighted average rate for transactions that occur at different points in time. The application useshistorical rates to calculate the conversion rate on equity account balances during foreign currency translation of the balancesheet.

Navigate to the Currency Rates Manager page to define and maintain your historical rates. You can currently definehistorical rates using an ADF Desktop Integrator spreadsheet.

To create historical rates, specify the required ledger and other optional fields, as needed. Click the Create in Spreadsheetbutton to open the spreadsheet for uploading. To update existing historical rates for your ledgers, click the Edit inSpreadsheet button, the spreadsheet is prepopulated with the existing historical rates.

Note: Before using the historical rates spreadsheet, install the ADF Desktop Integrator client as an add-on toMicrosoft Excel.

FAQs for Manage Period Close

How can I use social networking to effectively close the period?Use the Social link on the Period Close work area to collaborate with members of your team or others within your companyto effectively close the period.

For example, as a controller, you keep Oracle Social Network open from the Period Close Overview page during theperiod close so you can be aware of any transactions that must be posted for the period.



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On the All tab:

• You see a conversation that needs your attention.

• Your boss, the chief financial officer, started a private conversation with you to announce the close of a deal worth15,000,000 USD and wants it booked for this period.

• You download and listen to a voice message file that the chief financial officer posted sharing details about thedelivery of the goods to help you confirm that the revenue can be posted to this period.

• You create a new conversation and invite your accounting manager to join, marking it so she knows to reply quickly.

• Your accounting manager added you to a conversation for the revenue adjustment journal.

• Your accounting manager adds a post to the conversation confirming that the revenue is posted.

You navigate to the Close Monitor page to view the latest financial balances and confirm that the revenue is posted.

Depending on your job role and permissions, you can access social networking features for the following Oracle FusionGeneral Ledger business activities:

• Period status

• Journal

Related Topics

• What does social networking have to do with my job?

Manage Allocations and Periodic Entries

Creating an Allocation Rule and Generating Allocations

VideoWatch: This video tutorial shows you how to create an allocation rule and generate allocation journals. The content of this videois also covered in text topics.

ProcedureThis example distributes a cost that's recorded in one account to different cost centers, based on the headcount in each costcenter. The headcount is recorded using the statistical currency, and the cost centers receiving the cost are under a parentcost center. The chart of account consists of the following segments:

• Company

• Line of Business

• Account

• Cost Center

• Product

• Intercompany

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Create the RuleNavigate to the Calculation Manager, which is the tool for managing allocations.

1. Navigate to the Journals work area.2. Click the Tasks icon and select the Create Allocation Rules task. The task opens the Enterprise Performance

Management workspace.3. From the Navigate menu, select Administer, Calculation Manager.4. Expand the Essbase application.5. Find the balances cube for the chart of accounts that's associated with the relevant ledger and expand it.6. Right-click the Rules node and select New from the menu. The New Rule window opens.

Tip: Since the rule is going to allocate cost based on headcount, consider including headcount in the rulename.

7. Accept the default values for the rest of the fields and click OK. The New Rule window closes and the Rule Designeropens in a new tab with the name of the rule you just entered.

Define the Point of ViewSet the Point of View to default values that are fixed throughout the allocation rule. For example, if a chart of accounts hasa future-use segment that's currently not used, you can use the Point of View to set a default value such as 000. Then youdon't have to select a value for this segment when defining the rule.

1. In the Rule Palette, select the Point of View object and place it between the beginning and ending components inthe flow chart on the Designer area.

2. To have users supply the accounting period when the allocation is run, use a variable. Runtime prompt variablesmake rules dynamic and reusable. Click in the Value field for the Accounting Period row.

3. Click the Actions icon and select Variable. The Select Variable window opens.4. Select the Database category, which is the category for the specific cube. The Application category applies to all

cubes.5. In this example, the accounting period is already defined as a variable, so select it and click OK.6. Click the Member Selector button. The Member Selector window opens. You can set the fixed dimensions namely,

Ledger, Company, Line of Business, Product, and Intercompany segments from the Member Selector. You can alsoset the Currency and Currency type. You can expand the dimensions to find the values or you can search for them.Alternatively, instead of using the Member Selector, you can enter the values manually.

7. Select Ledger from the Dimensions drop down value.8. Expand All Ledgers.9. Select the appropriate ledger.

10. Click the Select icon to move the ledger to the Selections panel.11. From the Dimensions list, select the Company, the Line of Business, the Product, the Intercompany, and the

Currency dimensions, and set them.12. Select Currency Type from the Dimensions list.13. Expand the Currency Type node and select Total. This selection indicates that the allocation is going to use

balances in the ledger currency, including the equivalent ledger currency balances of foreign currency journals.

Note: If you select Entered, the allocation would only use amounts where the entered currency is thecurrency that was selected for the Currency dimension.

14. Click OK. The Member Selector window closes.

Fixed values have now been set for all of the segments, except the Account and Cost Center segments.



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Define the Allocation Component

1. From the Rule Palette, select the Allocation object and place it between the point of view member components inthe flow chart on the Designer Area. The Allocate Wizard window opens and the Point of View tab opens.

This Point of View is specific to the Allocation component, so if you have a rule with multiple Allocation components,you can specify a Point of View for each of them. Since this rule has only one Allocation component, and you havealready defined a Point of View, skip this step.

2. Click Next. The Source tab opens.

The source is the revenue pool to be distributed or allocated. A source can be a referenced account balance or auser-defined amount. For this rule, the source is the communication cost. To retrieve the cost, you must provide theaccount combination. You already specified values for the Company, Line of Business, Product, and Intercompanysegments in the Point of View, so the only source segments to specify here are Account and Cost Center.

3. Click the Member Selector button. The Member Selector window opens.

a. On the Dimensions list, select Account.b. Click the Search tab and search for the communications cost account.c. Select the account and click the Select icon to move the account to the Selections section.d. On the Dimensions list, select Cost Center.e. Click the Search tab and search for the cost center.f. Select the cost center and click the Select icon to move the cost center to the Selections section.g. Click OK. The Member Selector window closes.

4. The remaining dimensions, Scenario, Balance Amount, and Amount Type, specify what balance to retrieve fromthe source account. On the Allocate Wizard window, the default value for the Scenario dimension is Total forAllocations, which is the sum of the actual and allocated amounts. Since the source for this rule only involves actualbalances, you must change the value. Click the Member Selector button. The Member Selector window opens.

a. On the Dimensions list, select Scenario.b. Expand Scenario in the Members tab.c. Select Actual and click the Select button to move it to the Selections section.

Note: If you have two rules with the second rule using the allocations resulting from the first rule,use the Allocated scenario for the second rule.

d. On the Dimensions list, select Balance Amount.e. Expand Balance Amount in the Members tab.f. Since the rule is going to allocate communications cost for the period, select Period Activity. Click the Select

icon to move it to the Selections section.g. Click OK. The Member Selector window closes.

5. Accept the default value for the Amount Type dimension as Period to Date.6. Click Next. The Allocation Range tab opens. The range is the spread of values that the source is distributed against.

In this rule, the cost is allocated across cost centers.7. Click in the Select Value field in the Cost Center row.8. Click the Actions icon and select Member. The Select Member window opens.

a. Select the appropriate parent value and click the Select icon to move it to the Selections section.

Note: Always select a parent value because you have to allocate across a range of values.



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b. Click OK. The Member Selector window closes.9. Click Next. The Target tab opens.

10. The target receives the allocated amount. Enter the account number within quotation marks in the Account row.11. Click Next. The Offset tab opens.

The offset receives the offsetting debit or credit to balance the allocation that was generated. On the Offset tab, enterthe account number in the Account row and the cost center in the Cost Center row, within quotation marks.

Caution: The offset must be a child value. If you select a parent value, the allocation rule fails validation.

12. Click Next. The Exclude tab opens.13. This allocation isn't excluding any values, so click Next. The Basis tab opens.14. On the Basis tab, for the Account dimension, enter the account number that has the headcount values.

Note: The basis determines the ratio in which the source must be allocated to each member of theallocation range. The basis could be distributing the source evenly. Or you can select specific statistical oraccount balances for a particular period as the basis.

For this allocation, the ratio is going to be calculated by dividing a cost center's headcount by the total headcount.15. Enter Period Activity in quotation marks for the Balance Account dimension because the total headcount for each

cost center is included in one journal recorded in one period.16. Enter STAT in quotation marks in the Currency dimension. The values for the other dimensions are derived

automatically based on the Point of View and range specified previously.17. Click Next. The Basis-Options tab opens.18. Accept the default settings and click Next. The Rounding tab opens.19. Specify the rounding options in case of rounding differences when the allocation is generated. Since the allocation

is in US dollars, on the Rounding tab, enter 2 as the number of decimal places to use. Click Finish. The AllocateWizard window closes.

Validate the RuleValidation is an important and required step. Validation checks for consistency against the outline of the balances cube that itreferences. For example, validation checks that the offset is a child, not a parent value, and checks that entered values exist.

1. Click the Validate icon on the toolbar. After the validation is completed, a message appears stating whether thevalidation was successful.

2. Click OK.3. Click the Validate and Deploy icon to deploy the rule and make it available for generation in the general ledger.4. Click Yes to first save the rule.5. After the deployment is completed, a message appears stating whether the deployment was successful.6. Click OK.

Generate the Allocation Journal

Generate the allocation journal using the following steps:

1. Navigate to the Journals work area.2. Click the Tasks icon.3. Select the Generate General Ledger Allocations task.4. In the Rule or Rule Set field, enter the name of the allocation rule. The Accounting Period prompt should appear.5. Select the accounting period.6. The Post Allocations option is selected by default.



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7. Click Submit. A confirmation message appears stating that the process was submitted.8. Click OK.

Review the Journal

1. Navigate to the Journals work area2. Click the Tasks icon.3. Select the Manage Journals task.4. Enter the first part of the allocation rule name in the Journal field.5. Enter a value in the Accounting Period field.6. Select Allocations in the Source field.7. Click Search.8. Click the Journal link to open the journal. The cost that was allocated has a credit and the debits to the different cost

centers are based on their headcount.

Now that the rule is defined, all that's needed for future accounting periods is to generate the journals.

Allocation and Periodic Entries: OverviewIn Oracle Fusion General Ledger, use the Calculation Manager to create allocations and other formula journal templates forgenerating periodic journal entries automatically. Allocations are defined and generated from preaggregated balances in theGL Balances cubes, which provide the following benefits:

• Immediate real-time access to financial balances for allocations and periodic entries.

• Accelerated performance for complex allocations.

You can base formulas on multiple criteria. For example:

• Use account balances or statistical amounts to allocate shared revenue or costs across multiple organizational unitsand ledgers.

• Define complex computations based on variables from different charts of accounts.

• Group journal formulas together and execute sequentially to update account balances in a step-by-step process.

The Calculation Manager provides flexibility, automation, intelligence, and control in distributing costs and revenues acrossthe enterprise. In addition, the Calculation Manager:

• Includes runtime variables, rules, formulas, and rule sets stored in Oracle Essbase.

• Distributes revenues or costs with recursive allocation rules.

• Creates complex formula rules using formula components.

• Contains an Allocation Wizard to define allocation and formula rules.

• Uses real-time checking of rule definitions to validate correctness of rules.

• Minimizes setup and maintenance time with reusable components.

• Simplifies allocation generation mechanism by integrating with enterprise schedule.

• Groups rules together in rule sets and cascading allocations for efficient processing.

• Creates primary, statistical, or foreign currency allocation and formula rules.

Access the Calculation Manager from the Tasks pane of the General Accounting dashboard or Journals work area byclicking the:

• Define Allocation Rules link to define or modify allocation definitions

• Generate Allocations link to run the allocation process



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Note: Adobe Flash Player 10 or higher is a required component for the Calculation Manager. Upgrade yourAdobe Flash Player if the Calculation Manager's performance slows down after upgrading your browser. Formore information, see:

• Designer's Guide for Oracle Hyperion Calculation Manager

Calculation Manager: OverviewThe Calculation Manager creates, validates, deploys, and administers sophisticated allocation rules. In the CalculationManager:

• Base formulas on multiple criteria, such as account balances or statistical amounts, to allocate shared revenue orcosts across multiple organizational units.

• Use complex computations based on different variables to automatically calculate allocated amounts.

• Group journal formulas together and executed sequentially to update account balances step-by-step.

There are three types of objects that can be created in Calculation Manager:

• Components: Contain formulas, points of view, or allocation objects.

• Rules: Contain components such as points of view, formulas, and templates, which are used to create allocationcalculations.

• Rule Sets: Contain sets of rules that can be calculated sequentially

Note: The following are limitation in Oracle Fusion General Ledger.• Allocation rules cannot be shared across rule sets in Calculation Manager.• Within a rule or rule set, the same target or offset cannot be written to by multiple rule components.• When generating allocation rules with run time prompts other than the User Point of View in an allocation rule

component, an error occurs.

Oracle Essbase Balances Cubes: OverviewOracle Essbase is embedded within Oracle General Ledger and provides multidimensional balances cubes. Every time atransaction or journal is posted in General Ledger, the balances cubes are updated at the same time.

The flowing table lists and describes Essbase Dimensions and provides examples of dimension members.

Dimension Description Example

Accounting Period

Based upon the calendar of the ledger orledger set. Report on years, quarters, orperiods.

• 2012• QTR-1• JAN-12

Ledger or Ledger Set

Used to select a ledger for the reporting.Multiple ledgers may be in the same cube ifthey share a common chart of accounts.

• InFusion North America Ledger Set• InFusion US Primary Ledger



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Dimension Description Example

Chart of Accounts Segments

Uses a separate dimension for each of thesegments from the charts of accounts.Organized by hierarchy. A default hierarchyis provided that includes all detail segmentvalues. Hierarchies published in the PublishAccount Hierarchies user interface areincluded.

• Company: InFusion America: 101• Cost Center: Sales: 400• Account: Cash: 1110

Scenario Indicates if the balances represented are

actual or budget amounts. Allocation-relateddimensions are predefined members andrequired for allocation solutions. Allocationdimensions are not used directly by endusers.

Budget scenario dimension members areuser-defined in the Accounting Scenariovalue set and appear in the cube afterrunning Create Scenario DimensionMembers process.

• Budget 2012• Actual• Forecast 2013

Balance Amount

Indicates if the value is the beginningbalance, period activity, or ending balance.Debit, Credit, and Net amounts are availablefor reporting.

• Beginning Balance (DR, CR, or Net)• Period Activity (DR, CR, or Net)• Ending Balance (DR, CR, or Net)

Amount Type

Indicates whether the amounts representBase, Period to Date, Quarter to Date, orYear to Date.

• Base• PTD: Period to Date• QTD: Quarter to Date• YTD: Year to Date

Currency

Used to select the wanted currency for thebalances.

• All ISO Currencies• USD: US Dollar• JPY: Japanese yen

Currency Type

Used to select the currency type of thebalances.

• Total• Entered• Converted From (for each ISO

currency)

Allocation Security: ExplainedTo access the Calculation Manager, you must be assigned one or more of the four privileges and permissions.

The following privileges and permissions are associated with the Calculation Manager:

• Generate General Ledger Allocation Formula - Generate Allocation and Periodic Entries: Permits generation ofallocation and periodic entries.

• Define General Ledger Allocation Formula - Manage Allocation Rules or Rulesets through Calculation Manager:Grants the ability to update allocation rules or rule sets owned by the user with view access to all allocation rules orrule sets regardless of their ownership.



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• Define Self Managed General Ledger Allocation Formula - Manage Allocation Rules or RuleSets through CalculationManager: Grants the ability to update allocation rules or rule sets, but limited to the ones owned by the user.

• Administer General Ledger Allocation Formula - Administer Allocation Rules or RuleSets through CalculationManager: Grants the ability to update all aspect of allocation rules or rule sets including the ownership attribute,regardless of the original definition's ownership.

Migrating Allocation Rules: InstructionsMigrating Allocation Rules consists of two tasks:

1. Exporting from the Source Instance2. Importing to the Target Instance

Exporting from the Source InstanceTo export from the source instance:

1. Sign in to the Oracle Fusion Home page of the source environment with Application_Implementation_Consultant.2. Navigator > Setup and Maintenance.3. Click Manage Implementation Projects in the Task pane.4. Click the Create icon to add an implementation project.5. Enter the basic information and click Next.6. On the Create Implementation Project: Select Offerings to Implement page, verify that the Include check box is

deselected for all the projects.7. Click Save and Open Project.8. Click the Select and Add icon to add a task.9. Change Search to Tasks and search for Manage Allocations and Periodic Entries.

10. Select Manage Allocations and Periodic Entries and click Apply. The task is added to the ImplementationProject page in the background.

11. Click Done.12. Click Done for the implementation project.13. In the Tasks pane, click Manage Configuration Packages.14. Click the Create icon to create a configuration project.15. Search for your implementation project in the Name field and enter or modify the basic information.16. Select the option Setup task list and setup data.17. Click Next and then Submit.18. Answer Yes to the message.19. Click Refresh until the process finishes.20. Click the Download icon, select the download Configuration Package, and save it to a local disk.

Importing to the Target InstanceThis process imports the allocations and periodic entries.

To import to the target instance:

1. Sign in to the Oracle Fusion Home page of the target environment with Application_Implementation_Consultant.2. Navigator > Setup and Maintenance.3. Click Manage Configuration Packages.4. Click Upload to upload the configuration package that was downloaded in the export process.5. Click Browse to find the file, then Get Details, and then Submit.



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6. In the Export and Import Processes, click Import Setup Data to import the data.7. On the Import Setup Data page, accept or change defaults as needed.8. Click Next to navigate through the pages and then Submit.9. Click Refresh until the submitted process finishes.

Manage Recurring Entries

Recurring Journals: OverviewDefine recurring journal formulas for transactions that you repeat every accounting period, such as accruals, depreciationcharges, and allocations. Your formulas can be simple or complex. Each formula can use:

• Fixed amounts and account balances, including standard, actual amounts, statistics, and period-to-date or year-to-date balances.

• Amounts from the current period, prior period, or same period last year.

• Amounts in your formulas, including total balances, entered currency balances, or statistical balances.

You can quickly create recurring formulas by copying and modifying existing formulas. You can:

• Define single ledger or multiple ledger recurring journal formula batches.

• Create a recurring journal formula batch that contains recurring journal entries for different ledgers.

• Define recurring journal formulas for your ledger currencies, entered currencies, and statistical currency.

Recurring Journal Types: ExplainedYou can use the following types of recurring journal entries to reduce data entry time and increase accuracy for journal entriesthat repeat each period.

• Skeleton: With no amounts

• Standard: With set amounts

• Formula: With variable amounts

Skeleton Journal EntriesSkeleton journal entries contain the same accounts each period, but have different amounts. After you generate skeletonjournal entries, edit the unposted journal batch by entering the journal line amounts on the Edit Journals page.

Use skeleton journal entries to record statistical journals, such as headcount, units sold, barrels of oil, or other statisticalfactors. For example, to enter headcount for your cost centers each period:

1. Define a skeleton entry with your headcount accounts.2. Generate the skeleton entries.3. Enter the actual headcount amounts before posting the batch.

Note: Set the journal entry to reverse automatically at the beginning of the next period if you enter the totalheadcount each period. Otherwise, if you only enter the change in the headcount each period, a reversingjournal is not required.



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Best practices recommend that you create skeleton recurring journal entries in spreadsheets or copy existing journals.

To create journals in spreadsheets:

1. Navigator > Journals.2. Select the Create Journal in Spreadsheet link to download the workbook template once.3. Create and save the skeleton journal entry.4. For each period open the template and enter the amount for the journal lines already in the template.5. Upload the batch.6. Open the journal on the Edit Journal page and add the amounts.7. Once the updates are made, save, complete, and post the journal batch.

To copy journals:

1. Navigator > Journals > Manage Journals.2. Search for the journal to copy.3. Open the journal.4. Click the Batch Actions Menu > Copy.5. Make the wanted changes to the new journal.6. Save, complete, and post the journal batch.

Standard Recurring Journal EntriesStandard recurring journal entries contain the same accounts and amounts each period. Just as with skeleton recurringjournal entries, best practices recommend that you create standard recurring journals in spreadsheets.

1. Navigator > Journals.2. Select the Create Journal in Spreadsheet link to download the workbook template once.3. Create and save the standard journal entry.4. For each period, upload, and submit the batch with posting selected. The recurring journal batch is created and

posted.

Formula Recurring Journal EntriesFormula recurring journal entries contain formulas created using the formula component and allocation wizard in theCalculation Manager. These formulas calculate journal amounts that vary from period to period and are based on existingaccount balances or other criteria.

Use recurring journal entries to perform simple or complex allocations or eliminations. For example, you can allocate:

• A portion of your rent expense to another division.

• A pool of marketing costs to several departments based on the ratio of department revenues to total revenues.

Creating Recurring Journals: ExampleThis example shows how to define and generate formula recurring journals that are automatically generated every period.

You must have:

• A role that can access the Journals work area in Oracle General Ledger.

• A duty that can access the Create Allocation Rules task.



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The following assumptions apply:

• The chart of accounts includes segments for company, department, account, subaccount, and product.

• Account 1210 is the trade receivables account.

• The period-to-date activity in account 1210 is 100,000 USD.

Here are the goals for this example.

• Create a journal that populates a monthly allowance for bad debt based on 5% period-to-date activity in the tradereceivables account.

• Account 7730 is the bad debt expense account and account 1260 is the allowance for bad debt account.

• A formula rule must be defined to generate the following journal entry for the period Apr-17 and thereafter.

◦ DR 01.000.7730.0000.000 5,000 USD

◦ CR 01.000.1260.0000.000 5,000 USD

This worked example includes details for the following tasks:

1. Configuring the Formula Rule2. Creating the Runtime Prompt Variable3. Creating the Rule Set4. Generating the Allocation Journal

Configuring the Formula RuleCreate a formula rule.

1. Navigate to the Journals work area.2. From the Tasks pane, click Create Allocation Rules.3. Navigate to the Administer menu option and then select Calculation Manager. Calculation Manager opens in a new

browser window and a cube is highlighted based on the data access set selected in the Journals work area.4. Expand Essbase.5. Expand VF_USA_Accounting_Flexfield (your cube).6. Expand db.7. Highlight the Rules row, right-click, and select New from the menu.8. Enter the Rule Name: Special Bad Debt Allocation, accept the other defaults, and click OK.9. The Rule Designer opens in a new tab. Under New Objects, click, hold, and drag the Point of View object. Place it

between the Begin and End nodes in the Rule Designer.10. Enter a Caption: Point of View.11. Perform the following steps to enter a Variable Dimension Value:

◦ Click the Value field for Accounting Period.

◦ Click the Actions icon and select Variable from the drop-down list. A new window opens.

◦ Under Category, select Database from the drop-down list.

◦ Click Accounting_Period.

◦ Click OK.

12. Perform the following steps to enter other member dimension values:

◦ Click the Value field for another dimension.

◦ Click the Actions icon and select Member from the drop-down list.

◦ Select a member and click the Add icon to move the member to the Selections panel.

◦ Click OK. Repeat for all dimensions to include in the Point of View.



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◦ In this scenario, the following are fixed dimension values:• Company: 01• Department: 000• Subaccount: 0000• Product: 000• Currency: USD• Currency Type: Total

◦ Under New Objects, click, hold, and drag the Formula component and place it between the Point of Viewnodes in the Rule Designer.

◦ Enter a Caption: Bad Debts Calculation.

◦ Enter the offset member.

◦ Click Next.

In this scenario, the offset is defined as account 1260, the allowance for bad debt. The offset is child combination01.000.1260.0000.000 when combined with the fixed member dimension values in the Point of View.

13. Perform the following steps to enter the Formula member dimension value:In this scenario, the formula member dimension value is defined as account 7730. The bad debt expense is chargedto child combination 01.000.7730.0000.000 and combined with the fixed member dimension values in the Point ofView.

◦ Click the icon for the formula field and select Member from the drop-down list.

◦ Select the Account dimension value, highlight the row, and click the Select icon to move the value to theSelections panel.In this scenario, the goal is to calculate an allowance for bad debt based on the period-to-date activity in tradereceivables account 1210. Trade receivable is child combination 01.000.1210.0000.000 when combined withthe fixed member dimension values in the Point of View.

◦ Repeat for the other formula member values and click OK when all formula members are selected.In this scenario, the following dimension values are selected. Selection of members for the followingdimensions is required for the source in a formula component.

• Scenario: Actual• Balance Amount: Period Activity• Amount Type: PTD

◦ Multiply the formula expression by .05.

◦ Click the Save icon.

◦ Click the Validate and Deploy icon.

Creating the Runtime Prompt VariableCreate a runtime prompt variable as an optional component of a rule. When you generate anallocation based on a rule with a defined runtime prompt variable, you are prompted to specify adimension member for the variable. The variable is used in the allocation calculation.For example, use a runtime prompt variable of Accounting Period, which prompts you to specify the period to use in theallocation calculation. A runtime prompt variable can be created once and used in multiple rules.

1. Navigate to the Journals work area.



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2. From the Tasks pane, click Create Allocation Rules.3. Once the Calculation Manager opens in a new browser window, a cube is highlighted based on the data access set

selected in Journals work area. To define the runtime prompt, select Variables under the Tools menu.4. Expand to the db under the cube, highlight the row, right-click the row, and select New from the menu.5. The Variable Designer opens in a new tab. A default value must be entered and the variable name can't contain any

spaces. Complete the fields, as shown in this table.

Field Value

Name

AccountingPeriod

Type

Member

Dimension

AccountingPeriod

Default Value

Apr-17

RTP

Selected

RTP Text

Enter Accounting Period

6. Click the Save icon. The runtime prompt variable is ready for use.

Creating the Rule SetRule sets are created by combining two or more related rules together to enable sequential allocatingof balances.

1. Navigate to the Journals work area.2. From the Tasks pane, click Create Allocation Rules.3. After the Calculation Manager opens in a new browser window, expand to Rule Sets under the highlighted cube.

Highlight the row, right-click the row, and select New from the menu.4. Enter the rule set name and click OK.5. The Ruleset Designer opens in a new tab. Expand to the db under the cube for which the rule set is created, expand

the rules, and drag the rules under the rule set.6. Click the row for the rule set, click the Variables tab, and select Merge Variables.

Merge variables means that common variables among all of the rules in the rule set are merged. You only have toselect the runtime prompt value once when submitting the Generate General Ledger Allocations process.

7. Click the Save icon.8. Click the Validate and Deploy icon.

Generating the Allocation JournalStart the allocation process to create the journal entries that populate the account balances.

1. Navigate to the Journals work area.2. From the Tasks pane, click Generate General Ledger Allocations.3. Select a rule or rule set and enter any runtime prompt values.4. Click Submit.5. The Generate General Ledger Allocations task submits four processes consecutively (three, if the Post Allocations

option isn't is selected). The processes calculate the allocation, write the results to the GL_INTERFACE table, importthe journal batches, and post the journal batches to the General Ledger.



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Scheduling Recurring Journals: ExamplesYou can create processing schedules for recurring journal entries that have been defined in the Calculation Manager.Scheduling automates the monthly generation of the entries and speeds up the close process.

You can define multiple schedules for each calendar in General Ledger. These schedules can increment by accountingperiod, based on any calendar defined. Schedules are shared across ledgers.

ScenarioIn this example, you have created a reserve for bad debt recurring journal entry in the Calculation Manager. Now, add arecurring schedule to the entry to generate the entry once a month on the last day.

1. From the Journals work area, select the Generate General Ledger Allocations task. The Generate General LedgerAllocations page opens.

2. Select the rule: Reserve for Bad Debt.3. Specify Accounting Period: Blank

Note: The Accounting Period field appears if you use a runtime prompt in your rule and selectAccounting Period as the runtime variable.

4. Select the Post Allocations option.5. Click Advanced.6. Click the Schedule tab.7. Select the Using a schedule option.8. Select a frequency of Monthly.9. Select Repeat: By date.

10. Enter start and end dates.11. Click Submit.



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The following figure shows the Schedule tab on the Generate General Ledger Allocations process page. The options on thepage are set to the values as directed in steps 7 through 10.

12. The generation process runs at the scheduled time.

Manage Allocation Entries

Calculation Manager Toolbar: ExplainedIn addition to the Enterprise Performance Management Workspace buttons, the Calculation Manager toolbar displays buttonsthat are specific to the Calculation Manager. Not all buttons display in all the views and designers within the CalculationManager.

The Calculation Manager toolbar consists of the following buttons:

• Home: Displays the default start-up option for the content area.



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• System View: Displays the main view within the Calculation Manager. (This is the default view).

• List View: Displays a list of objects that you can filter by application type, application, object or database type,deployment status, and validation status.

• Custom View: Displays a view you can change with folders that you create.

• Filter Options: Opens the Filter dialog that you can use to filter objects in the List View.

• Refresh: Refreshes the view with your latest changes.

The Calculation Manager toolbar adds the following buttons when you open a rule:

• Save: Saves the object with which you are working.

• Validate: Validates the object with which you are working.

• Validate and Deploy: Validates and deploys the object with which you are working.

Calculation Manager Menus: ExplainedCalculation Manager menus and menu options display in addition to Enterprise Performance Management Workspace menusand menu options. The menus and options vary depending on the view you are using and the object with which you areworking. The default view of the Calculation Manager displays the following menus when you launch Calculation Manager,System View.

Note: This topic describes the Calculation Manager menu options only.

File MenuEnables you to create objects, open and close objects, import and export objects, print rules, and log off.

Note: Not all of these file menu options are available for the products that use Calculation Manager.

• New, Rule: Creates a rule

• New, RuleSet: Creates a rule set

Edit MenuEnables you to edit objects you select. The Edit menu is available from most of the views and from within the Rule andComponent definition pages.

• Edit, Delete: Deletes an object selected in the System, List, or Custom View

• Edit, Copy: Copies selected text

• Edit, Paste: Pastes text from the clipboard

• Edit, Copy Group: Copies a component group

Note: The Edit menu is not available within the Deployment View.

View MenuEnables you to open different views.

• View, View Pane: Displays or hides a list of existing and new objects that you can add to rules, rule sets,components, and templates.



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Note: View Pan is the only View menu option available from within the Rule Designer and Rule SetDesigner.

• View, List View: Displays a list of the objects you select on the Filter dialog. The filter dialog enables you to create afiltered list, by application type of applications, databases, and objects.

• View, System View: Displays a list of the Essbase applications, databases, and objects to which you have access.The System View is the default view.

• View, Custom View: Displays a view that you can change with folders that you create. This view enables you toorganize objects in a way that is meaningful to you.

• View, Deployment View: Displays a list, by application type and application, of the rules and rule sets that aredeployed and not deployed with their deployment and validation status.

Tools MenuEnables you to install other products, search for objects, create a filtered list of objects for the List View, edit the caption of anobject, and access the Variable Navigator and Variable Designer.

• Tools, Filter: Opens the Filter dialog from which you can filter by application type, application, object type (rule,rule set, formula or script component, or template), calculation type, plan type, database, deployment status, andvalidation status. You can also select All to display all application types, applications, objects, and databases,regardless of their deployment and validation status.

• Tools, Variables: Opens the Variable Navigator in which you can navigate to a location for which you want to create,edit, copy, or delete a variable. From the location you select in the Variable Navigator, you can display the VariableDesigner in which you can create, edit, copy, and delete variables for components.

Note: The two menu options listed aren't available within the Deployment view.

Actions MenuEnables you to validate and deploy objects that you select in the views and from within the Rule and Rule Set Designers. Notall of the Actions menu options are available from within the views and designers.

• Actions, Validate: Validates the rule, rule set, and formula component you selected

Note: This is the only Actions menu option available from within the Deployment View.

• Actions, Deploy: Deploys the rules or rule sets you selected.

• Actions, Quick Deploy: Deploys the rule in fewer steps than regular deployment by using a shortcut to one or moreapplications.

Note: This feature is available only from within the Rule Designer for Essbase business rules.



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Using Flow Charts: ExplainedView rules and templates, and the components they include, in a flow chart within the Rule Designer. When you open a rule,move among the components, for example, formulas, ranges, and loops, by selecting them in the flow chart. Increase ordecrease the size of the flow chart to view or hide details of the components.

When you select a component in the flow chart, its properties, usages, and other information are displayed in tabs. Asyou move among the components, the tabs change. For example, if you open an allocation rule and select the formulacomponent in the flow chart the following properties are displayed:

• Properties of the formula, such as name, description, application, and application type to which the formula belongs

• Usages of the formula, such as which rules and templates the formula is used in.

• Text of the formula, such as the variables, members, and functions, that are displayed in the tabs.

Views: ExplainedViews enable you to see Calculation Manager objects in different contexts. For example, the Deployment View displaysobjects according to whether they are deployed or not deployed. The Custom View displays objects according to filters andcriteria that you select.

The Calculation Manager contains the following views:

• List View

• System View

• Custom View

• Deployment View

• View Pane

List ViewThe List View contains a filtered list of Essbase applications or databases, and objects, rule sets, rules, or formulacomponents, filter according to your criteria.

System ViewThe System View is the default view that is displayed when you start the Calculation Manager. It contains a list of all of theapplications and objects to which you have access. Your privileges are determined by the role you are assigned in SharedServices. For each object, the owner, the user who made the last change, and the date the changes were last made arelisted.

Custom ViewThe Custom View enables you to create folders and move objects into them to create a view that contains only your objects.This view enables you to organize objects in a way that is meaningful to you.



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Deployment ViewThe Deployment View contains a list of the rules and rule sets that are deployable with their deployment and validation status.From this view, select rules and rules sets in an application to make them deployable. Deploy one or more rules or rule sets(partial deployment), or deploy all rules and rule sets in an application (full deployment).

View PaneThe View Pane enables you to create or open an object. Depending on whether you are working in a rule or a rule set, theRule or Ruleset Palette, is displayed in the View Pane. In the palette, move new and existing objects into the rule, rule set, orflow chart.

When working with views display or hide the View Pane using the View menu. In the Custom View, move new and existingobjects from the View Pane into the folders you create. In the System and List views, the View Pane is hidden by default. Inthe Deployment View, the View Pane is not available.

Note: The View Pane content varies depending on which view you are in and whether you are working with arule set, rule, template, or component.

The following table lists the tasks that can be performed from the various views in the Calculation Manager.

Tasks List View System View Custom View Deployment

Create, open, rename,delete, refresh, and closeobjects

Yes

Yes

Yes

Yes

Set preferences

Yes

Yes

Yes

Yes

Import and exportobjects

Yes

Yes

Yes

Yes

Show the usages ofobjects

Yes

Yes

Yes

Yes

Create a copy of objects

Yes

Yes

Yes

Yes

Print a business rule

Yes

Yes

Yes

Yes

Select views

Yes

Yes

Yes

Yes

Sign out Workspace

Yes

Yes

Yes

Yes

Work with favorites

Yes

Yes

Yes

Yes

Perform an advancedsearch

Yes

Yes

Yes

Yes

Start help

Yes

Yes

Yes

Yes



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Tasks List View System View Custom View Deployment

Filter objects in the viewaccording to criteria youspecify

Yes

No

No

No

Work with variables

Yes

Yes

No

Yes

Validate objects

Yes

No

No

Yes

Create a shortcut to abusiness rule

No

Yes

No

No

Import and exportbusiness rules and otherobjects

No

Yes

Yes

No

Validate and migrateobjects

No

Yes

Yes

No

Change the owner of anobject

No

No

Yes

Yes

Deploy objects

No

No

No

Yes

Filtering Objects in the List View: ExamplesYou can use filters in the List View to filter objects according to:

• Application Type that is populated by default with the application type, such as Essbase, your application ordatabase, in which you are creating the new rule.

• Object type, such as allocation rules, allocation rule sets, and formula components

• Deployment or validation status

ScenarioTo create a filtered list of objects in the List View:

1. From the System View, select View, List View.The Filter dialog is displayed the first time you open the List View. If you select filtering options, then close the ListView to work in the System or Custom View. When you reopen the List View, the filter dialog is not displayed. Tochange the filtering options when you reopen the List View, select Tools, Filter to open the Filter dialog.

2. In the Filter dialog, on Filter Options, under Application Type, select Essbase.3. Do one of these tasks:

◦ For Essbase: In the Application and Object Type fields, select the applications and object types you want todisplay in the List View. The default is All.

◦ Under Deployed Status and Validated Status, clear any check boxes of selections you do not want to display.All check boxes are selected by default.



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Tip: Click Reset to reset the dialog with default values.

◦ On Advanced Options, for Object Label, select one of these options to display only objects whose namesmatch the criteria:

• Starts With, to display only objects whose names start with characters you specify.• Ends With, to display only objects whose names end with characters you specify.• Contains, to display only objects whose names contain characters you specify.• Matches, to display only objects whose names match characters you specify.

◦ Enter the characters that are common to the names of the objects you want to display.

◦ Select Ignore case to display objects whose names contain characters in either upper or lower case, even ifthe case does not match the case of the text you entered in step 6.

◦ In Created By, enter the name of the user who created objects you want to display.

◦ In Modified By, enter the name of the user who modified objects you want to display.

◦ For Created Date, select After, Before, or Between to display only objects that were created after, before, orbetween dates you specify. Between is the default. Click the list of values to display calendars from which youcan select dates.

◦ For Modified Date, select After, Before, or Between to display only objects that were modified after, before,or between dates you specify. (Between is the default.) Click the list of values to display calendars from whichyou can select dates.

◦ For Any Text, select an option to display only objects containing text that starts with, ends with, contains,or matches text that you enter. To display objects that include this text regardless of its case, select Ignorecase.

4. Click OK.

FAQs for Manage Allocations and Periodic Entries

How can I access the Calculation Manager?Login into the Oracle Fusion General Ledger application and navigate to the Journals work area. From the Journals workarea select the Create Allocation Rules link and automatically log into the Calculation Manager in Workspace to create newallocation rules or rule sets.

Note: The application or the balances cube that is currently selected in the General Ledger Data Access Set isautomatically selected in the Calculation Manager.

How can I create a folder in the Custom View?In the Custom View, create folders that contain only the allocation rules, allocation rule sets, and formulas you want to viewand work with.

To create a folder in the Custom View:

1. In the System View, select View, Custom View.



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2. In the Custom View, right-click the Essbase application type, and select New Folder.3. In New Folder, enter a name for the folder.4. Click OK.

Tip: You can create nested folders by right-clicking the folder you want to create a folder in and selecting NewFolder.

How can I rename a folder in the Custom View?Rename the folders you create in the Custom View.

To rename a folder in the Custom View:

1. In the System View, select View, Custom View.2. In the Custom View, expand the Essbase application type.3. Right-click the folder you want to rename, and select Rename.4. In the Rename Folder, enter a new name for the folder.5. Click OK.

Define Allocation Rules

Allocation Rules: ExplainedThe Calculation Manager enables you to create, validate, deploy, and administer sophisticated multidimensional allocationrules. An allocation rule is logical expressions or formulas that are created within an application to produce a set of resultingvalues. Create an allocation rule set of two or more related rules to launch the rules sequentially.

Before you create a rule or rule set, you must understand the database outline and the application with which you areworking. This information helps you create your allocation rules more efficiently. Learn the following about your data:

• How the data is stored and aggregated.

• What level the data gets loaded into the database.

• What order the calculations are performed.

• What key assumptions drive the calculations.

Create allocation rules using components like formulas, member ranges, and variables, including run time prompt variables.

Creating an Allocation Rule: ExampleYou can create one or more allocation rules to use to allocate balances, as needed for financial reporting from the SystemView. You can also create an allocation rule from the List, Custom, and Deployment Views.

ScenarioTo create a new rule:

1. Navigator > General Accounting: Journals > Create Allocation Rules link.



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2. Navigate menu > Administration > Calculation Manager.3. File menu > New > Rule.4. In New Rule, enter the rule's name.5. Enter the Application Type: Essbase.

Note: The application type is populated by default with the application type in which you are creating thenew rule.

6. Select an Application Name. The application name must be a valid Essbase application such as your chart ofaccounts name.

7. Select the Database.

Note: If you expand the following options in the System View: Essbase > your Application > Databasename, then right-click Rules and select New to create a new rule, the New Rule dialog is populated withthe Application Type, the Application, and the Database you are working in within the System View.

8. Click OK. The new rule is displayed in the Rule Designer.

Starting Calculation Manager: Worked ExampleThis example demonstrates how to begin to create allocations and other journal templates with formulas, to generate periodicjournal entries automatically.

Starting Calculation Manager1. Navigate to the General Accounting, Journals work area.2. In the General Accounting, Journals work area, click the Create Allocation Rules link.3. In the Enterprise Performance Management System Workspace, select Administer, then Calculation Manager from

the Navigate menu.4. In Allocation Manager, select Variables from the Tools menu.5. Expand the Essbase tree.6. Expand the database to which you want to add a rule set. For this example, expand VF_USA_Accounting_Flexfield.7. Right-click the db icon and select New from the list.

Note: If the database already has a rule set, you can add a rule by right-clicking the rule set and selectingNew.

8. On the Properties tab, complete the fields, as shown in this table.

Field Value

Name

Balancing_ Segment_Value

Type

Member

Dimension

Company

Default Value

3888

RTP Text Enter Company Text



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Field Value

9. Click Save.

Creating an Allocation Rule with an Allocation Component: WorkedExampleThis example demonstrates how to create an allocation rule with allocation components.

You are the General Accountant for InFusion America Inc. You are creating an allocation rule with allocation components.

A rule consists of calculations that are grouped into components. When you design allocation rules, you add variables tocomponents. Variables assume the values that you define for them. Replacement variables provide a substitution value whenyou design or generate an allocation rule.

Creating an Allocation Rule with an Allocation Component1. Click the Navigator.2. Click the Journals link under General Accounting to access the Journals work area.3. Click the Create Allocation Rules link.4. In the Enterprise Performance Management System Workspace, click the Navigate menu.5. Select Administer and then Calculation Manager.6. On the System View tab of Calculation Manager, expand the Essbase tree.7. Expand the VF_USA_Accounting_Flexfield tree node.8. Expand the db tree item.9. Right-click the Rules tree item.

10. Select New.11. In the New Rule dialog box, enter EMEA Overhead Distribution in the Name field.12. Click OK.

You design a rule by dragging components from the Rule Palette to the Rule Designer flow chart. Each componentperforms a separate task. You can add Point of View, Allocation, or Formula components to your rule.

You enter additional rule details on the Properties tab.13. In the Rule Palette area, drag the Point of View object to the Rule Designer area.

The begin and end components of the rule appear in the Rule Designer work area.14. On the Point of View tab, click in the Ledger field of the Dimension value table.15. Click the Actions button for the Ledger field.16. Select Member.17. In the Member Selector dialog box, expand the Ledger tree, and expand the All Ledgers tree node.18. Click the Vision Operations (USA) tree item and click Select to move it to the Selections panel.19. Click OK.20. Repeat the preceding steps and complete the following dimension fields, as shown in this table.

Field Value

Company

"All Company Values","00"

Sub-Account "All Sub-Account Values", "0000"



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Field Value

Product

"All Product Values", "[Product]@[000]"

Currency

"USD"

21. From the Rule Palette, drag Allocation to the Rule Designer panel.22. In the Allocate Wizard, click in the Value column of the AccountingPeriod field.23. Click the Actions button.24. Select Variable.25. In the Select Variable dialog box, select Database in the Category field.26. Click the Balancing_Segment_Value field, and click OK.27. Click Next.28. Click in the Select Value column of the Company field.29. Click the Actions button.30. Select Member.31. In the Member Selector dialog box, expand the Company tree.32. Expand the All Company Values tree item.33. Click the 00 tree item.34. Click Select to move it to the Selections panel.35. Click Next.36. Use the preceding procedure and complete the dimension fields, as shown in this table.

Field Value Action

Department

"[Department]@[000]"

Member

Account

an account

Member

37. Click Save and then OK.

Creating an Allocation Rule with a Formula Component: WorkedExampleThis example demonstrates how to create an allocation rule with a formula component.

You are the General Accountant for InFusion America Inc. You are tasked with creating an allocation rule with a formulacomponent.

Rules are based on formulas. The formulas use multiple criteria. For example, you can use account balances or statisticalamounts to allocate shared revenue or costs across multiple organizational units. You can define complex computationsbased on variables from various charts of accounts. You can group journal formulas together and execute them sequentiallyto update account balances in a step-by-step process.

Creating an Allocation Rule with a Formula Component1. Click the Navigator.2. Click the Journals link under General Accounting to access the Journals work area.



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3. Click the Create Allocation Rules link.4. In the Enterprise Performance Management System Workspace, click the Navigate menu.5. Select Administer and then Calculation Manager.6. On the System View tab of Calculation Manager, expand the Essbase tree.7. Expand the VF_USA_Accounting_Flexfield tree item.8. Expand the db tree node.9. Right-click the Rules tree item and select New.

10. In the New Rule dialog box, enter EMEA Overhead Distribution in the Name field and click OK.You design a rule by dragging components from the Rule Palette to the Rule Designer flow chart. Each componentperforms a separate task. You can add Point of View, Allocation, or Formula components to your rule.You enter additional rule details on the Properties tab.

11. On the Properties tab, complete the fields, as shown in this table.

Field Value

Name

Reserve for bad debts.

Description

This formula rule calculates the reserve needed for bad debts.

12. In the Rule Palette area, drag the Point of View object to the Rule Designer area.13. In the Point of View area, enter POV in the Caption field.14. Click in the Ledger field.15. Click the Actions button for the Ledger field.16. Select Member.17. In the Member Selector dialog box, expand the Ledger tree.18. Expand the All Ledgers tree item.19. Click the EMEA_PC_PL tree item.20. Click the Select button to move the ledger to the selected panel.21. Click OK.22. Repeat the preceding steps to complete the fields, as shown in this table.

Field Value

Company

"[All Company Values]. [3888]"

Cost_Center

"000"

Program

"[All Program Values]. [0000]"

Location

"[Location]@[0000]"

Division

"[All Division Values]. [0000]"

Product

"[All Product Values]. [0000]"

Intercompany

"[All Intercompany Values]. [0000]"

Currency "USD"



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Field Value

Currency Type

"Total"

23. Click the Actions button for the AccountingPeriod field.24. Select Variable.25. In the Select Variable dialog box, select Database in the Category field.26. Select the Accounting_Period variable and click OK.27. To define the formula, drag the Formula object from the Rule Palette to the POV loop in the Rule Designer.28. On the Formula tab, enter Bad Debts Calculation in the Caption field.29. Click in the Enter formula field.30. Click the Actions button for the Enter formula field.31. Select Member.32. In the Member Selector dialog box, select Scenario in the Dimensions field.33. Expand the Scenario tree and click the Actual tree node.34. Click the Select button to move Actual to the Selections panel.35. Repeat the preceding steps to select the remaining dimensions and members for the formula and complete the

fields, as shown in this table.

Field Value

Balance Amount

Ending Balance

Amount Type

YTD

Account

1399

36. Click OK.37. To enter a formula to create 5 percent of total accounts receivable as reserve for bad debts, in the Enter formula

field, at the end of the formula you just created, enter *.05*-1.38. To specify the target members, click in the Enter member name field.39. Click the Actions button.40. Select Member.41. In the Member Selector dialog box, expand the Account tree until the account 75555 appears.42. Click account 75555.43. Click the Select button to move the account to the Selections panel.44. Click OK.45. To specify offset members, on the Formula tab, enter "13005" in the Offset Member field.46. Click Save.47. Click OK.48. Click the Validate button and then the OK button to acknowledge validation of the rule.49. To deploy the rule, click the Quick Deploy button in the toolbar.50. On the Deployment Status dialog box, click OK to acknowledge successful deployment.

Designing an Allocation Rule: ExampleAn allocation rule is a Calculation Manager object that consists of calculations. The calculations are grouped intocomponents. A rule can contain one or more components.



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You create an allocation rule for an Essbase application. The rule is represented graphically in a flow chart into which you candrag and drop components to design the rule.

ScenarioTo design an allocation rule:

1. Navigate to the Journals work area and click the Create Allocations Rules task from the Tasks pane.2. Click Navigate > Administration > Calculation Manager.3. In the System View, perform one of these tasks:

◦ Click File > New > Rule. Expand the Essbase Application Type, the Application, and the Calculation Type,Plan Type, or Database.

◦ Right-click Rules and select New.

4. In New Rule, enter the rule's name, the Application Type Essbase, and the Application Name. The applicationname must be a valid Essbase application.

5. Select the Database.6. OK.

Note: If you right-click Rules and select New to create a new allocation rule, the New Rule dialog ispopulated with the Application Type, the Application, and the Calculation, Plan Type, or Databaseyou are working in within the System View.

7. To design the allocation rule, from the Rule Palette, drag new and existing objects, and drop them into the flowchart within the Rule Designer.

Note: You can also create objects such as formulas and scripts independently of the rule, and add themto the rule later.

8. From New Objects, drag and drop these components to insert a new component into the rule's flow chart:

◦ Point of Views:

◦ Allocations:

◦ Formulas:

9. On Properties, enter properties for the rule.

Note: The number and contents of the tabs change as you add components to the rule and movealong the rule's components in the flow chart. To enter properties and other information for the rule'scomponents, select the component in the flow chart. You can optionally:

◦ Edit the name by entering a new one of up to 50 characters. The name defaults from the New Ruledialog.

◦ Enter a description of up to 255 characters for the rule.

◦ Enter a caption for the rule. The caption displays in the flow chart.

◦ Enter comments for the rule. For example, you may want to tell the users how to use the rule.



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10. For Essbase: On Global Range, specify what dimensions are common to all of the components in the rule byselecting values, for example, members, variables, and functions for each dimension. The values you select for thedimensions are the values that are calculated when the rule is launched.

a. Select values for a dimension by clicking its row in the Select Value column.b. When the Actions icon is displayed, click the icon, and select one of these:

• Variable• Member• Function

11. For Essbase: On Variables, select Merge Variables to merge all instances of the same variable used in theallocation rule so only the first instance of each variable is displayed when the rule is launched. If you do not selectthis check box, all instances of each variable are displayed.

Note: If you select Merge Variables, the first value that the user enters for the runtime prompt is usedfor all subsequent occurrences of that runtime prompt during validation and launch.

12. On the Usages tab, you view which allocation rules and rule sets use the rule, if any. You cannot edit any of theinformation about this tab. The following information is displayed for the allocation rules and rule sets using theallocation rule:

◦ Names

◦ Application Name

◦ Deployment Status

◦ Validation Status

◦ Description

Note: By default, an allocation rule is not used by any allocation rules or rule sets when create.

13. Repeat these steps for each component you want to add to the allocation rule.

Note: As you add components to an allocation rule, you can increase or decrease the size of thecomponent icons and the amount of detail that is displayed in the flow chart. You can use the zoom barto zoom in and out within the flow chart. You can select a component to view its properties and edit acomponent on the Properties tab.

14. Select File, Save.15. After you design and save the rule, you can do any of these tasks:

◦ Print it.

◦ Validate it.

◦ Deploy it.

◦ Generate it from within Oracle General Ledger by navigating to the Journals work area and clicking GenerateGeneral Ledger Allocations from the Tasks pane.



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Editing Allocation Rules: ExampleYou can edit the structure of an allocation rule by adding to, removing, or changing its components. You can also edit theproperties of the allocation rule's components and the properties of the allocation rule itself. You can edit these properties ofan allocation rule:

• Name and caption

• Description and comments

• Range of dimensions and members

• Variables, you include in the allocation rule

ScenarioTo edit an allocation rule:

1. Navigator > General Accounting: Journals > Create Allocation Rules link.2. Navigate menu > Administration > Calculation Manager.3. In the System View, expand the Essbase Application Type, the Application, or Database, and Rules. Do one

of these tasks:

a. Right-click the rule you want to edit, and select Open.b. Select the rule you want to edit, and select File, Open.

4. To edit the rule, in the Rule Designer, add new components, and copy and delete existing components, from therule's flow chart.

Note: As you edit components in an allocation rule, you can increase or decrease the size of thecomponent icons and the amount of detail that is displayed in the flow chart. To edit, you use the zoombar to zoom in and out within the flow chart. When the flow chart is displayed in small or very small sizes,the component captions do not display, but you can place your mouse pointer over any icon to read itscaption. Regardless of the size of the components in the flow chart, you can select a component to viewits properties on the Properties tab.

5. To delete a component from the flow chart, select the component, right-click it, and select Remove.6. To copy and paste a component, select the component, right-click it, and select Copy. Then paste it into the flow

chart.7. To add a new component:8. From New Objects, drag and drop components to insert a new component into the rule's flow chart:

◦ Point of Views

◦ Allocations

◦ Formulas

9. From Existing Objects, drag existing objects from Essbase applications and drop them into the rule's flow chart.10. For Essbase: On Global Range, you can edit the values that is, members, variables, and functions that define the

range of values to be calculated when the rule is launched.11. Select values for a dimension by clicking its row in the Select Value column.12. When the Actions icon is displayed, click it, and select one of these:

◦ Variable



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◦ Member

◦ Member

13. For Essbase: On Variables, you can create variables for the rule.14. On Usages tab, you can view which rules and rule sets use the rule, if any. This is the information you can view

about the rules and rule sets that use the rule:

Note: On the Usages tab, you view which allocation rules and rule sets use the rule, if any. You cannotedit any of the information on this tab. The following information is displayed for the allocation rules andrule sets using the allocation rule:

◦ Names

◦ Database

◦ Application Name

◦ Deployment Status

◦ Validation Status

◦ Description

15. Select File, Save.

Printing Allocation Rules: ExampleYou can print an allocation rule's properties, its flow chart, and the details of its components. For example, if you print anallocation rule that contains a formula component for allocation expenses and shows:

• The formula syntax.

• The functions and variables that comprise the formula.

• A summary of the steps in the rule's flow chart but not in graphical form.

• The rule's properties.

Note: You cannot print allocation rule sets.

ScenarioTo print an allocation rule:

1. Navigator > General Accounting > Journals >Create Allocation Rules link.2. Navigate menu > Administration > Calculation Manager.3. In the System View, expand the Essbase Application Type, the Application, or Database, and Rules. Select

the rule you want to print.4. Select File, Print.

Note: You can also select File, Print from within the Rule Designer to print a rule.

5. In Print Preview, do these tasks:6. Select the Print options:

◦ Paper size



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◦ Print orientation: portrait or landscape.

7. Select General Rule Information to print the rule's description and other details from the Properties tab. Thedetails include the rule's name, the application, its owner, the date the rule was created, and the date the rule waslast modified.

8. Select Flow Chart and Expanded or Collapsed, to print the flow chart, and you want to print it with thecomponent details expanded or collapse.

9. Select the number of pages you want to print the components across (horizontally). Select the number of pages toprint the components down (vertically).

10. Select the Page Order options:

◦ Down, then across: The components in the flow chart print down (vertically, as rows do) on the number ofpages you specified in the previous step. Then the components print across (horizontally, as columns do) onthe number of pages you specified in the previous step.

◦ Across, then down: The components in the flow chart print across (horizontally, as columns do) on thenumber of pages you specified in the previous step. Then the components print down (vertically, as rows do)on the number of pages you specified in the previous step.

11. Select the remaining Rule Information options:

◦ Select Summary, to print a summary of the components in the flow chart.

◦ Select Variable Section to print information about any variables used in the rule.

◦ Select Detail Section to print detailed information about the components in the rule.

◦ Select Page break before sections to create a page break between summary, variable, and detail sections.This option is selected by default.

◦ Select Nested Rules to print rules contained in other rules.

12. Select Generate PDF.13. A PDF file of the rule is opened in Adobe Acrobat.14. Click the Print icon in Adobe Acrobat.15. In the Print dialog, select the print options specific to the printer you are using, and click Print.

FAQs for Define Allocation Rules

How can I open an allocation rule?You open an allocation rule from the System View that is displayed by default when you open Calculation Manager. You canalso open a rule using File, Open from within the tab of another rule, rule set, component, or template.

To open an allocation rule:

1. Navigator > General Accounting: Journals > Create Allocation Rules link.2. Navigate menu > Administration > Calculation Manager.3. In the System View, expand the Essbase Application Type, the Application, or Database, and Rules.4. Do one of these tasks:

◦ Right-click the rule you want to open, and select Open.

◦ Select the rule you want to open, and select File, Open.



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How can I save an allocation rule?You must save an allocation rule after you create or edit it. When you save the allocation rule, it is saved to the applicationand application type for which you created it. After you save it, you can validate and deploy it in Calculation Manager. You cangenerate it in Oracle Fusion General Ledger.

To save an allocation rule after you create or edit it, select File, Save.

Note: To see the allocation rule in the System View after you save it, you may refresh the application list. To dothis, right-click the application type, the application, or the database (for Essbase), and select Refresh.

How can I save an allocation rule with a different name?You can save an allocation rule with a different name using Save As. You can also copy a rule from one rule set to anotherwithin the same rule set type using Save As. Save As creates a copy of the original rule with a different name to distinguish itfrom the original.

To save an allocation rule with a different name:

1. In the System View, expand the Essbase Application Type, the Application, or Database, and Rules.2. Right-click the rule you want to save with a different name, and select Open.3. In the Rule Designer, select File, Save As.4. In Save As, enter the rule's new name, and select the Application Name.5. Select the Database.

Note: You cannot change the database of a rule you save with a different name.

6. Click OK. The new rule is added to the application list in the System View.

How can I delete an allocation rule?You delete an allocation rule from the System View. You can delete an allocation rule only if it is not used by other rules orrule sets. If the rule is being used, you must remove the allocation rule from the rules and rule sets using it, or make copiesof it for the rules and rule sets using it, before you delete it. To see if a rule is used by other rules and rule sets, you can showthe usages of the rule.

To delete an allocation rule:

1. In the System View, expand the Essbase Application Type, the Application, or Database, and Rules.2. Make sure the rule you want to delete is not being used by another rule set or rule.3. Right-click the rule you want to delete, and select Delete.4. Click OK to confirm deletion of the rule.

Define Allocation Rule Sets



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Allocation Rule Sets: ExplainedYou create an allocation rule set by combining allocation rules or allocation rule sets that can be generated sequentially. Youadd rules and rule sets to a rule set by dragging and dropping them into it.

After you create and save the rule set, you can validate and deploy it. Then you can generate it in Oracle General Ledger.

Note: Rule sets are supported in Essbase aggregate storage applications used in Oracle General Ledger insequential mode only.

Creating an Allocation Rule Set: ExampleYou can create an allocation rule set from the System View. You can also create an allocation rule from the List, Custom, andDeployment views, and from within the Ruleset Designer.

ScenarioTo create an allocation rule set:

1. Navigator > General Accounting: Journals > Create Allocation Rules link.2. Navigate menu > Administer > Calculation Manager.3. Enter the rule set's name.4. Enter the application type: Essbase.5. Select an application name.6. Select a database.

Note: From the System View, if you right-click RuleSets and select New to create an allocation rule set,the New Ruleset dialog is populated with the application type, application, and database in which youare working.

7. Click OK. The new rule set is displayed in the Ruleset Designer.

Creating an Allocation Rule Set With Deployment: Worked ExampleThis example demonstrates how to create an allocation rule set.

You are the General Accountant for InFusion America Inc. You are tasked with creating an allocation rule set.

You create rule sets by combining two or more related rules (or rule sets) so you can launch the rules or rule sets sequentially.

Creating an Allocation Rule Set1. Click the Navigator.2. Click the Journals link under General Accounting to access the Journals work area.3. Click the Create Allocation Rules link.4. In the Enterprise Performance Management System Workspace, click the Navigate menu.5. Select Administer and then Calculation Manager.6. On the System View tab of Calculation Manager, expand the Essbase tree.7. Expand the VF_USA_Accounting_Flexfield tree item.



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8. Right-click the Rules tree node and select New.9. In the New RuleSet dialog box, enter EMEA Overhead Distribution, and click OK.

10. Expand the VF_USA_Accounting_Flexfie tree in the Rule Set Palette, then expand the db tree node and then theRules tree node.

11. Drag EMEA Overhead Distribution from the Rule Set Palette to the Ruleset Designer panel.12. Drag EMEA - Allocation of Indirect Costs from the Rule Set Palette to the Ruleset Designer panel.13. Click EMEA Overhead Distribution Rule Set in the Ruleset Designer.14. Click the Variables tab in the lower panel of the work area.15. Select Merge Variables.

If a rule set has the same variable used across rules in a rule set, you can merge the rules. Then at generation time,the input is taken from that variable as the run time prompt.

16. Click Save and then OK.

Before you deploy rule sets, you validate them to ensure that there are no syntax errors. Validation ensures that all ofthe following criteria are met:

◦ All members of all dimensions in the application are valid.

◦ All functions exist, have the correct number of parameters, and are valid for the application type.

◦ All variable references that are used in rules are valid. Replacement variables are replaced with the correctstrings and then validated.

◦ The generated script contains no syntax errors.

You can deploy rules and rule sets to Oracle Fusion General Ledger. You execute a partial deployment by deployingone or more (but not all) rules and rule sets. You execute a full deployment by deploying all rules and rule sets in thecurrent application.

Rules and rule sets that are deployed can be generated from the Allocation Generation page.

◦ To deploy multiple rules and rule sets but not all; in Deployment View, select the check boxes of the rules andrule sets that you want to deploy.

◦ To deploy only one rule or rule set in the current application; then in Deployment View, select the one rule orrule set option.

Designing an Allocation Rule Set: ExampleAfter you create a rule set in the New RuleSet dialog, the rule set is displayed in the Ruleset Designer.

ScenarioTo create an allocation rule set:

1. Navigate to the Journals work area and select Create Allocation Rules from the Tasks pane.2. From the Navigate menu, select Administration, then Calculation Manager.3. In the System View, expand the Essbase application type and the application.4. For Essbase: Right-click RuleSets and select New.

Note: For Essbase applications, only one rule sets node for each application at the same level as thedatabases.



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5. In New RuleSet, do these tasks:

a. Enter the rule set's nameb. Select the Application Type as Essbasec. Select the Application Name.d. As you selected Essbase as the application type, select the Database.e. OK.

6. In the Ruleset Designer, to create the rule set, from Ruleset Palette, drag existing rules and rule sets and dropthem into the flow chart.

Note: You can use the Move Up and Move Down icons on the Ruleset Designer pane to reorder therules in the rule set. Rules in General Ledger applications are launched sequentially within a rule set, so theorder of the rules is important.

7. On Properties, enter properties for the rule set. In the Ruleset Designer, if you select a rule or rule set within therule set you are creating; its properties are displayed on Properties instead of the new rule set's properties.

Optionally, enter the following:

a. The name by entering a new one of up to 50 characters. The name defaults from the New RuleSet dialog.b. A description of up to 255 characters for the rule set.c. Comments for the rule set. For example, you may want to enter a comment that describes what the allocation

rule set does.8. On Usages tab, you view which allocation rules and rule sets use the rule, if any. You cannot edit any of the

information about this tab. The following information is displayed for the allocation rules and rule sets using theallocation rule:

a. Namesb. Databasec. Application Named. Deployment Statuse. Validation Statusf. Description

Note: By default, a rule set is used by no other rule sets when you create it.

9. On Variables, select Merge Variables to merge all instances of the same variable used in the rules within this ruleset so only the first instance of each variable is displayed when the rule is launched. If you do not select this checkbox, all instances of each variable are displayed.

Note: If you select Merge Variables, the first value that the user enters for the runtime prompt is usedfor all subsequent occurrences of that runtime prompt during validation and launch.


Adding an Allocation Rule to an Allocation Rule Set: ExamplesYou can add an allocation rule to an allocation rule set that belongs to the same application type. The rules in the rule set canbe launched sequentially or simultaneously.



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ScenarioTo add an allocation rule to an allocation rule set:

1. In the System View, expand the Essbase Application Type and the Application.2. Expand RuleSets, right-click the rule set you want to open, and select Open.

Note: Only one rule set node exists for each application at the same level as the plan types anddatabases.

3. In the Ruleset Designer, in Existing Objects, expand the application and the plan type or calculation type thatcontains the rule you want to add.

4. To add the rule, drag and drop it into the Ruleset Designer.5. Repeat step 4 for each rule you want to add to the rule set.6. Select File, Save.

Editing Allocation Rule Sets: ExamplesYou can edit the following properties of an allocation rule set:

• Allocation rule components

• Allocation rule name

• Allocation rule description

• Allocation rule comments

ScenarioTo edit an allocation rule set:

1. Navigator > General Accounting > Journals > Create Allocation Rules link.2. Navigate menu > Administration > Calculation Manager.3. In the System View, expand Essbase Application Type and the Application.4. Expand your rule set by right-clicking the rule set you want to edit, and selecting Open.


5. In the Ruleset Designer, add, copy, delete and change the order of new rules and rule sets:

a. To delete a rule or rule set from the rule set, select the rule or rule set, right-click it, and select Remove.b. To add a rule or rule set to the rule set, from Existing Objects, drag existing rules and rule sets from Essbase

applications, and drop them into the Ruleset Designer.

Note: The rules and rule sets you add to the rule set must belong to the same application type asthe rule set you are editing.

c. To open a rule or rule set in the rule set, right-click the rule or rule set, and select Open.d. To reorder the rules and rule sets within the rule set, you can use the Move Up and Move Down icons on the

Ruleset Designer pane.



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6. On Properties, edit properties of the rule set. (In the Ruleset Designer, if you select a rule that you added to thisrule set, the properties are displayed on the Properties tab.)

7. Optional: Edit the name by entering a new one of up to 50 characters. (The name defaults from the New RuleSetdialog.)

8. Optional: Edit the description by entering a new one of up to 255 characters.9. Edit the Enable Parallel Execution selection. If you want the rules and rule sets in the rule set to run

simultaneously, select this option, to run sequentially, clear this option. By default, the rules and rule sets in a rule setrun sequentially: each rule or rule set in the rule set must run without errors before the next rule or rule set is run.

10. If the rule set contains nested rule sets which have a different Enable Parallel Execution setting than the parent ruleset, the setting of the nested rule set applies. For example, if you have rule set1 that is marked for parallel processingand it contains rule1, rule2, and rule set2 that is marked for sequential processing, the rules and rule sets in rule set2are processed sequentially, even though rule set1 is marked for parallel processing.

11. Edit the comments.12. On the Usages tab, you view which allocation rules and rule sets use the rule, if any. You cannot edit any of the

information that appears on this tab. The following information is displayed for the allocation rules and rule setsusing the allocation rule:

a. Namesb. Calculation or Plan Typec. Application Named. Deployment Statuse. Validation Statusf. Description


Copying an Allocation Rule Set to Another Application: ExampleFrom the System View, you can copy an allocation rule set to another application of the same application type (Essbase) ordatabase.

Note: Allocation rule sets are not supported in Essbase Aggregate Storage or Block Storage applications, otherthan Aggregate Storage applications used in Oracle General Ledger.

ScenarioUse the following steps to copy a rule set to another application:

1. In the System View, expand the Essbase Application Type and the Application.2. Expand RuleSets.


3. Right-click the allocation rule set you want to copy, and select Copy To.

Note: You can also copy an allocation rule set when you are working with it in the Ruleset Designer,and paste it into another allocation rule set or allocation rule.

4. Select the rule set name, select Edit, Copy, open the rule or rule set into which you want to copy it, and select Edit,Paste.



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5. In Save As, enter a new name for the allocation rule set, or accept the default name, and select an application andcalculation or plan type. Click OK.

Note: You cannot copy the allocation rule set to more than one application and calculation or plan type.

The new allocation rule set is added to the application and calculation or plan type you selected. To see it in the SystemView, you must refresh the application list. To refresh the application list, click the Refresh icon on the toolbar.

Saving an Allocation Rule Set: ExampleYou must save an allocation rule set after you create or edit it. When you save the allocation rule set, it is saved to theapplication and application type for which you created it. After you save it, you can deploy, validate, and generate it. You candeploy and validate it in Calculation Manager; you can generate it from Oracle General Ledger.

ScenarioTo save an allocation rule set after you create or edit it, select File, Save, or click the Save icon.

Note: To see the allocation rule set within the System View after you save it, you must refresh the applicationlist. To do this, right-click the application type, the application, the database (Essbase), and select Refresh. Youcan also click the Refresh icon on the toolbar to refresh the application list in the System View.

Saving an Allocation Rule Set with a Different Name: ExampleYou can save an allocation rule set with a different name using Save As. Saving it with a different name creates a copy of therule set.

Scenario

1. In the System View, expand the Essbase Application Type and the Application.2. Expand RuleSets.

Note: For Essbase applications, only one rule set node exists for each application at the same level asthe plan types and databases.

3. Right-click the rule set you want to save with a different name, and select Open.4. In the Ruleset Designer, select File, Save As.5. In Save As, enter the rule set's new name, and select an application. Click OK.

Note: You cannot change the application type of a rule set you save with a different name. The new ruleset must have the same application type as the rule set from which the rule set is created.

The new rule set is added to the application list in the System View.



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Deleting an Allocation Rule Set: ExampleYou delete an allocation rule set from the System View. You can delete an allocation rule set only if it is not being used byother allocation rule sets. To see if it is being used by other rule sets, you can show its usages. If it is being used, you mustremove it from the allocation rule sets that are using it, or make copies of it for the allocation rule sets that are using it, beforeyou delete it.

Scenario

1. In the System View, expand the Essbase Application Type and the Application.2. Expand RuleSets.3. To make sure the rule set is not being used by another rule set, right-click it, and select Show Usages.4. Right-click the rule set you want to delete, and select Delete.5. Click OK to confirm deletion of the rule set.

Refreshing Allocation Rules or Allocation Rule Sets: ExampleIn the System View, you can refresh any level of the application list. You can refresh:

• Application Type

• Application

• Database

• One or Multiple Rule Sets or Rules

By default, when you refresh an application, application type, or database, all of the rules, rule sets, components, andtemplates belonging to it are refreshed.

However, refreshing the rule sets or rules within an application does not refresh higher levels in the application list or rule setsor rules that belong to other applications.

Note: You can also click the Refresh icon on the toolbar to refresh the entire application list in the SystemView.

Scenario

1. In the System View, expand the Essbase Application Type and the Application.2. To refresh rule sets, right-click RuleSets, and select Refresh or to refresh rules, expand the database, right-click

Rules, and select Refresh.

Note: You can also right-click the application type, the application, or database that contains theallocation rules you want to refresh, and select Refresh.



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Showing the Usages of a Rule or Allocation Rule Set: ExampleYou can display the allocation rules and rule sets that are using a rule or allocation rule set. Viewing the usages of rules or rulesets is useful when deleting rules or rule sets and you must know what objects are using it.

Scenario

1. In the System View, expand the Essbase Application Type and the Application.2. To show the usages of a rule set, expand RuleSets.3. Right-click the rule set whose usages you want to see.4. Select Show Usages or to show the usages of a rule, expand the database, and Rules.5. Right-click the rule whose usages you want to see, and select Show Usages.6. You can view this information about the rule or allocation rule set:

a. Namesb. Databasec. Application Named. Deployment Statuse. Validation Statusf. Description

Note: You can also view a rule or rule set's usages from within the Rule or Ruleset Designer onthe Usages tab.

7. After you review the information, click OK.

Changing the Owner of an Object: ExampleYou can change the owner of an object such as a rule, rule set, or formula in the System View. The application to which itbelongs must be deployed. By default, an object's owner is the user that creates it, unless the user changes the ownership.Users can edit only objects they own, with the exception of administrators who can edit any objects.

Scenario

1. In the System View, expand the Essbase Application Type and the Application.2. To change the ownership of a rule set, expand RuleSets or to change the ownership of a rule, expand the

database, and then expand Rules.3. Right-click the object, and select Change Ownership.4. In Change Owner, select the owner to whom you want to transfer ownership of the object.5. Click OK.

Note: The user you assigned ownership to can edit the object.



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FAQs for Define Allocation Rule Sets

How can I open an allocation rule set?You open an allocation rule set from within the System View. You can also open a rule set from within the RulesetDesigner, by selecting File, then Open.

To open an allocation rule set:

1. In the System View, expand the Essbase application type and the application.2. For Essbase: Expand RuleSets, right-click the rule set you want to open, and select Open.

Note: For Essbase applications, there is only one rule set node for each application at the same levelas the databases.

How can I open an allocation rule within an allocation rule set?You can open an allocation rule from within an allocation rule set from the System View or from the Ruleset Designer.

To open an allocation rule within an allocation rule set:

1. In the System View, expand the Essbase Application Type and the Application.2. Expand your rule set that contains the rule you want to open.

Note: For Essbase applications, only one rule set node exists for each application at the same level asthe databases.

3. Right-click the rule you want to open, and select Open.

Note: You can also open a rule that belongs to an allocation rule set from within the RulesetDesigner. To do this, in the Ruleset Designer, right-click the rule, and select Open.

How can I remove an allocation rule from an allocation rule set?When you remove a rule from an allocation rule set, the rule is not deleted. The rule exists independently of the rule set in thedatabase.

To remove an allocation rule from an allocation rule set:

1. In the System View, expand the Essbase Application Type and the Application.2. Expand RuleSets, right-click the rule set you want to open, and select Open.

Note: Only one rule sets node exists for each application at the same level as the plan types anddatabases.



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3. In Ruleset Designer, right-click the rule you want to remove, and select Remove.

Select File, Save.

Working with Point of View and Allocation Components

Working with Point of View Components: OverviewEvery data value in a report is derived from the intersection of a member from each dimension in the Essbase databaseconnection. Financial Reporting enables a designer to place these dimensions on the report grid or user point of view. Reportviewers can change the member selected for dimensions on the user point of view. This enables report viewers to configurethe reports to fit their needs. The user point of view can also be used in books.

You create and edit point of view components from within a rule to set members, variables, and functions that containthe global range of the point of view component. You can nest a point of view component within another point of viewcomponent.

Allocation components contain calculations for distributing data from members at one level in the database outline to othermembers in the outline. Formula components contain calculation statements that you design using members, functions, andvariables.

Creating a Point of View Component: ExampleYou create a Point of View component from within a rule to set members, variables, and functions that contain the globalrange of that Point of View component.

You can also define or edit the caption that displays in the flow chart and the comments that are entered for the valuesselected for each of the dimensions in the Point of View.

ScenarioTo create a Point of View component:

1. Navigator > General Accounting: Journals > Create Allocation Rules link.2. Navigate menu > Administration > Calculation Manager.3. In the System View, select File menu, New, Rule. Expand the Essbase Application Type, the Application, and the

Calculation Type, Plan Type, or Database and Rules.4. Right-click rules you want to open, and select Open. The rule is displayed in the Rule Designer.5. After you determine where in the rule's flow chart you want to create the Point of View component, from the New

Objects Palette, drag the Point of View component and drop it into that location in the flow chart.6. On the Point of View tab, enter a caption to identify the Point of View component. The caption is displayed in the

flow chart of any rule that uses it.7. Optional: Perform one of these tasks to define the Point of View global range:

a. Click Variable Selector to select or create variables to define the Point of View. If you select a variable, youcan select Link Variable Dynamically to ensure the variable is updated dynamically when changes are madeto it.

b. Click Member Selector to select members to define the Point of View.



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c. Click in the row of a dimension in the Value column to type the names of members that define the Point ofView.

d. Click in the row of a dimension, click the Actions icon, and select one of these options to enter members:

• Members• Variables: You can use a variable to fill the Point of View component. The variable must be defined at

the database level and must be of the Member Range type.• Functions: The functions you enter should return level 0 members only and should include the at sign @

before the function name. You can enter these functions:

◦ @Level0Descendant

◦ @Sibling

◦ @UDA

◦ @Attribute

Note: The Level0Descendant and Sibling functions require a member name as aparameter.

Note: If a global range is defined for the rule for which you are creating the Point of View component, thePoint of View tab displays the rule's member selections by default. To see if a global range is definedfor the rule, select the Begin or End tab in the flow chart. Then click the Global Range tab to see if anymembers, functions, or variables are defined.

8. To enter a comment for the members you select for a dimension, click Comment.9. Click Reset Grid to clear any entries you made to the grid.


Editing a Point of View Component: ExampleYou can edit the members, variables, and functions that contain the global range of the Point of View component. You canalso edit the caption that displays in a flow chart and the comments that are entered for the values selected for each of thedimensions in the Point of View.

ScenarioTo edit a Point of View component:


Calculation Type, Plan Type, or Database.4. Right-click the rule, and select Open.5. In the Rule Designer, select the Point of View component you want to edit in the flow chart to display its properties.

You can edit any of these properties of a Point of View component.

a. The caption displays in the rule's flow chart.b. The members, variables, and functions that define the Point of View.c. Whether any variables used in the Point of View component are updated dynamically when changes are made

to the variables.



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d. Whether comments are entered for the dimensions and members that define the global range of the Point ofView.

e. Whether the values of the members in the Point of View component are calculated when the rule to which itbelongs is validated or launched.


Working with Allocation Formula Components: ExamplesAn allocation formula component is composed of formula calculation statements. These examples show performing thefollowing actions on formula components:

• Creating

• Opening

• Editing

• Deleting

• Copying and pasting

• Showing usages

Creating Formula ComponentsTo create the calculation statements of a formula, you enter or select members and variables. As you create the formula,each of its calculation statements is listed in a row within a grid in the Component Designer. You can create a formulacomponent from the System View or from within the Rule Designer. A formula component exists as an independent objectin the database, so it can be shared among allocation rules.

1. From the System View, expand the Essbase Application Type, the Aggregate Storage Application, and theDatabase.

2. Right-click Formulas, and select New.3. Enter the formula's Name.4. Enter the Application Type (Essbase).5. Select an Application Name such as Vision Chart of Accounts. The application name must be a valid Essbase

aggregate storage application.6. Select the Essbase Database.

Note: Right-click Formulas, and select New to create a new formula, the New Formula dialog. Thedialog is populated with the application type, the application, and the database you are working in withinthe System View.

7. Click OK. The formula is displayed in the Component Designer.8. In the Component Designer, on Properties tab, optionally complete these steps:

a. Verify that the Shared check box is selected by default.

Note: You cannot select or clear the Shared check box. To create a formula that is not shared,open an allocation rule, and then drag a new formula component into the allocation rule's flowchart. The shared check box is not selected. If you decide to make the formula shared, select theShared check box.



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b. Edit the formula's name by entering a new one of up to 50 characters. The name defaults from the NewFormula dialog.

Note: Names of members in Essbase aggregate storage applications can be the same. If thereis a name that is not unique, the name is marked when the object is validated. If this occurs, youmust enter the full path for the member. The full path syntax is [Dimension name]. [Parent name].[Member name.]

c. Enter a description of up to 255 characters for the formula.d. Enter a caption for the formula. The caption is displayed in the Rule Designer flow chart. If you do not enter a

caption, the component's name is displayed in the flow chart.e. Enter comments for the formula. For example, you may want to tell users how the formula component should

be used.9. On Formula, enter a caption for the formula.

10. The Offset Member is the total amount of all of the formulas in the formula component. Click the Ellipsis icon toselect a member.

Note: You can define an offset member manually within the formulas that you create. The offset definedin the formula component is calculated as the sum of all calculated amounts.

11. To create a formula statement, click in the first formula statement row before the equal sign. Then enter a member orcross dimension member selection, or click Actions to select:

◦ A variable

◦ One or more members

12. To complete the formula statement, click in the row after the equal sign. Then enter a member or cross dimensionmember selection, or click Actions to select a variable or member.

13. For each formula statement row, click the Comments icon to enter optional comments about the formula statement.14. On Usages, you can view the rules that use the formula component.15. Select File > Save.

Opening Formula ComponentsYou can open a formula component from the System View or within the Rule Designer flow chart of a rule that uses theformula component.

1. From the System View, expand the Essbase Application Type, the Aggregate Storage Application, and theDatabase.

2. Expand Formulas.

◦ Right-click the formula you want to open, and select Open.

◦ Double-click the formula you want to open.

Note: The formula component opens in the Component Designer. To open a formula componentwithin a rule, open it from within the rule's flow chart by right-clicking the formula component. SelectOpen or double-click the component.



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Editing Formula ComponentsYou can edit the formula statements that contain a formula component and the formula component's comments, caption,name, and description.

1. From the System View, expand the Essbase Application Type, the Aggregate Storage Application, and theDatabase and the Formulas.

2. Select the formula component you want to edit.3. Right-click the formula component, and select Open.4. In the Component Designer, you can edit any of these properties of a formula component:

◦ Caption

◦ Formula statements

◦ Name

◦ Description

◦ Comments


Deleting Formula ComponentsYou can delete a formula component only if the component is not being used in any allocation rules. To see if any allocationrules are using the formula component, you can show the formula component's usages.

If the formula component is being used by a rule, and you don't want the formula component, remove it from the rule, thendelete it. If the formula component is being used in a rule, and you no longer need the rule, you can delete the rule. If noallocation rules use the formula component, you can delete the component.

To delete a formula component:

1. In the System View, expand the Essbase application type, the Essbase aggregate storage application, the database,and Formulas.

2. Right-click the formula you want to delete, and select Show Usages to make sure no allocation rules are using theformula component.

3. Remove the formula component from any allocation rules that are using it.4. In the System View, right-click the formula you want to delete, and select Delete.5. Confirm deletion of the formula.

Copying and Pasting Formula ComponentsYou can copy a formula component from a rule and paste it into the same, or a different, rule. You can also copy the contentsof the grid within a formula component and paste the contents into the same, or a different, formula component. You cannotcopy a formula component and paste it into another formula component or another component type.

To copy and paste a formula component:

1. In the System View, expand the Essbase application type, the Essbase aggregate storage application, the database,and Rules.

2. Right-click the rule that contains the formula component you want to copy, and select Open.3. In the Rule Designer flow chart, right-click the formula component you want to copy, and select Copy.4. Do one of these tasks:

◦ To paste the formula component into the same rule flow chart, right-click in the location of the flow chart, andselect Paste.



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◦ To paste the formula component into a different rule flow chart, open the rule where you want to paste thecomponent. Then right-click in the location, and select Paste.


Showing a Formula Component's UsagesYou can see which allocation rules are using a formula component, and other information, by displaying the formulacomponent's usages from the System View.

To show a formula component's usages:

1. In the System View, expand the Essbase application type, the Essbase aggregate storage application, the database,and Formulas.

2. Right-click the formula whose usages you want to see, and select Show Usages.3. You can view this information about the formula component:

◦ The names of the allocation rules that are using the formula component.

◦ The application names of the allocation rules that are using the formula component.

◦ The database names of the allocation rules that are using the formula component.

◦ The owner of the formula component.

◦ Whether the allocation rules that are using the formula component are deployed.

◦ Whether the allocation rules that are using the formula component are validated.

◦ A description of the allocation rules that are using the formula component.

Note: You can also view a formula component's usages from within the Component Designer on the Usagestab.

Creating an Allocation Component: ExampleYou create an allocation component from within a rule; it exists only in that rule and cannot be shared among allocation rules.

ScenarioTo create an allocation component:


Calculation Type, Plan Type, or Database.4. Right-click the rule you want to open, and select Open. The rule is displayed in the Rule Designer.5. After you determine where in the rule's flow chart you want to create the allocation component, from the New

Objects Palette, drag the Allocation component and drop it into that location in the flow chart.6. In the Calculation Manager, on the Point of View tab, for each dimension listed that you do not want to vary during

the allocation, do one of these tasks, and then click Next.

a. Select a predefined selection from Use Predefined Selection to populate the dimensions listed with values.b. Click the Member Selector icon to select members and variables for each of the dimensions listed. Make

sure that all members you select are valid level 0 members.c. Select a dimension in the list, and click Actions to select a member or variable.



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Note: If you drop a Point of View component within another Point of View component, the secondPoint of View inherits the members, variables, and functions from the first Point of View. In theMember Selector, the dimensions listed in the current step are available for selection fromDimension. This enables you to select members and functions for any of the dimensions listed inthe current step.

7. In the Calculation Manager, on the Source for each dimension listed, select a member whose data you want toallocate by doing one of these tasks. You must select a member for each dimension listed. The source members canbe members that are not level 0.

a. Select a predefined selection from Use Predefined Selection to populate the dimensions listed with values.If the predefined selection does not enter a value for each dimension listed, you must enter a value for anydimensions that are empty.

b. Click the Member Selector icon to select a member for each of the dimensions listed.c. Select a dimension in the list, and click Actions to select a member or variable. You cannot use functions in

this step of the Allocation component.d. Optional, to allocate a specific value, enter an amount to be allocated instead of the selecting members.

8. If the source amount you want to allocate is zero, select one of these options from the drop-down list.a. Select the next pool record.b. Stop processing the allocation.

9. Click Next.10. On Allocation Range, enter the parent member for the dimensions you want to use for the allocation. To enter the

parent member, do one of these tasks, and then click Next.a. Select a predefined selection from Use Predefined Selection to populate the dimensions listed with values.b. Click the Member Selector icon to select the parent member for the dimension to which to allocate the data.c. Enter a parent member, or select a dimension in the list. Click the Actions icon to select the parent member

(of the main dimension) to which to allocate the data. The data is allocated to the level 0 member (that is, thelowest member in the outline, with no members under it).

11. On Target, for the remaining dimensions, select a level 0 member to which to allocate the data. Perform one ofthese tasks and click Next.

a. Select a predefined selection from Use Predefined Selection to populate the dimensions listed with values.b. Click the Member Selector icon to select members for each of the dimensions listed.c. Select a dimension in the list, and click the Actions icon to select a member or variable.

12. On Offset, perform one of these tasks and click Next:a. Select a predefined selection from Use Predefined Selection to populate the dimensions listed with values.b. Click the Member Selector icon to select members for each of the dimensions listed.c. Select a dimension in the list, and click the Actions icon to select a member or variable.

Note: You must specify members for the offset; you cannot leave it empty.

13. Optional: On Exclude, select any members you want to exclude from the allocation. Perform one of these tasks andclick Next.

a. Select a predefined selection from Use Predefined Selection to populate the dimensions listed with values.b. Click the Member Selector icon to select members for each of the dimensions listed.c. Select a dimension in the list, and click the Actions icon to select a member or variable.



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14. On Basis perform these tasks:

a. Select an allocation method to specify how the data should be allocated.

i. Select Allocate evenly to allocate data values in the allocation range evenly. Then on Basis Optionsfor evenly method, specify what you want to be done if the basis is negative, zero, has missingvalues, or if all members are excluded.

ii. Select Allocate using a basis to calculate a percentage to be applied to each member in theallocation range. Then on Basis Options, specify what you want to be done if the basis is negative orequal to zero.

b. Any dimension members you do not specify are inherited from the Point of View you defined previously, butyou can override those Point of View selections by doing one of these tasks:

i. Select a predefined selection from Use Predefined Selection to populate the dimensions listed withvalues.

ii. Click the Member Selector icon to select a member for each of the dimensions listed.iii. Select a dimension in the list, and click the Actions icon to select a member or variable.

15. Click Next.16. On Rounding, complete these steps. The members you select in this step must be a part of the allocation range.

a. Enter the number of decimal places to use for this allocation, or click the Actions icon to select a member orvariable that represents this value.

b. Select where to place the rounding difference.

i. Select Define location to specify a member or members on which to place the rounding difference.Perform the following steps.

a. Select a predefined selection from Use Predefined Selection to populate the dimensions listedwith values.

b. Click the Member Selector icon to select a member for each of the dimensions listed.c. Select a dimension in the list, and click the Actions icon to select a member or variable.

ii. Select Use biggest value to round data values to their largest values.iii. Select Use smallest value to round data values to their smallest values.iv. Select Discard rounding error to use allocated data values as they are.

17. Click Finish.

Editing an Allocation Component: ExampleYou can edit an allocation component by opening the rule to which it belongs. When the rule is displayed in the RuleDesigner, you can view the allocation component's properties by selecting it in the rule's flow chart.

ScenarioTo edit an allocation component:


Calculation Type, Plan Type, or Database and Rules.4. Select the rule that contains the allocation component you want to edit.5. Right-click the rule, and select Open.



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6. In the Rule Designer, select the allocation component you want to edit in the flow chart to display its properties.You can edit any of these properties of an allocation component.

a. The member whose data you want to allocate.b. The level 0 members to which you want to allocate data.c. The data and the amount of the data you want to allocate.d. How you want the data processed:

• The total amount of the data allocated written to an offset member.• The data allocated evenly or in different amounts using a driver.• The allocated data rounded, and if so, how it should be rounded.


FAQs for Working with Point of View and AllocationsComponents

How can I open a point of view or an allocation component ?You open a point of view or allocation component from within the flow chart of the rule to which it belongs.

Note: You cannot open the allocation component from the System View.

To open a point of view or an allocation component:

1. In the System View, expand the Essbase Application Type, the Application, Database, and Rules.2. Right-click the rule that contains the component you want to open, and select Open. The rule is displayed in the

Rule Designer.3. When the rule opens, click the point of view component or double-click the allocation component in the rules flow

chart to open the component.

How can I save a point of view or allocation component ?You save a point of view or an allocation component when you save the rule to which it belongs in the Rule Designer. Unlikethe formula components, point of view and allocation components cannot exist independently for the rule to which theybelong.

To save a point of view or allocation component:

• Select File and Save, or click the Save icon, once you finish designing a point of view or an allocation component.

How can I copy and paste a point of view or allocation component?You can copy a point of view or allocation component from within the rule in which it is used, and you can paste thecomponent into the same or a different rule.



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To copy and paste a point of view or allocation component in a rule flow chart:

1. In the System View, expand the Essbase Application Type, the Application, Database, and Rules.2. Right-click the rule that contains the point of view or allocation component you want to copy and paste, and select

Open. The rule is displayed in the Rule Designer.3. In the Rule Designer, right-click the point of view or allocation component you want to copy in the rules flow

chart, and select Copy to copy only the component or Copy Group to copy the component and the associatedcomponents within it.

4. Do one of the following tasks:

◦ To paste the component into the same rule, right-click the location in the flow chart where you want to pastethe component, and select Paste.

◦ To paste the component into a different rule, open the rule, right-click the location in the flow chart where youwant to paste the component, and select Paste.

Note: You can also select Edit and Paste.

5. Select File and Save.

How can I delete a point of view or an allocation component?You delete a point of view or an allocation component from the System View. Since point of view or allocation componentscan be used in only one rule, you can delete these components by removing them from the rule to which they belong.

To delete a point of view or an allocation component:

1. In the System View, expand the Essbase Application Type, the Application, or Database, and Rules.2. Right-click the rule that contains the point of view or allocation component you want to delete, and select Open. The

rule is displayed in the Rule Designer.3. In the Rule Designer, select the point of view or allocation component you want to delete in the flow chart.4. Right-click the point of view or allocation component.5. Select Remove to confirm the removal of the component.

Note: If the allocation component is within the point of view component, then removing the point ofview component removes the allocation component.

6. Select File and Save.

Generate Allocations and Periodic Entries

Generating Allocations and Periodic Entries Manually: WorkedExampleThis example demonstrates how to generate an allocation or periodic entry manually from the Oracle Fusion General Ledger.

You are the General Accountant for InFusion America Inc. You have created allocation and periodic journal entry definitionsfor several monthly entries. You now generate these entries.



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Note: Schedule allocations and periodic entries in the Journals work area for automatic generation. Theaccounting period automatically increments for each subsequent run if defined as a Run Time Prompt for theAllocation Rule selected.

Prior to generating the allocation and periodic entries, the following tasks must be completed:

• The period is set to Open or Future Enterable. You post in open periods, but generation can take place in eitheran open or future enterable period.

• The rules or rules sets have been defined, validated, and deployed successfully from the Calculation Manager.

• The journal balances, which are inputs for the allocation or periodic rules, are entered and posted in the properperiod.

Generating Allocations and Periodic Entries Manually1. From the Navigator, click the Journals link to open the Journals work area.2. In the task pane of the Journals page, click the Generate Allocations link to open the Submission page.3. Optionally select one or all of the following options:

◦ Print Output

◦ E-mail me the output

◦ Notify me when this process ends

4. Select a rule or rule set from the list of values.5. Enter the submission parameters, including Ledger, Balancing Segment Value, and Period. The application

automatically sets the last day of the submission period as the Accounting Date and Calculation Effective Date.6. Accept the selected check box for the Post Allocations option to enable the process to post the journal entries.

If you deselect the check box for the Post Allocations option, you must either manually post or define an AutoPostCriteria Set to post automatically.

7. Click Submit.

After the generation process is complete, the journal entries created by the process are available for inquiry on theJournals page.

Manage Revaluations

Revaluation Process: ExplainedThe revaluation process is used to adjust account balances denominated in a foreign currency. Revaluation adjustmentsrepresent the difference in account balances due to changes in conversion rates between the date of the original journaland the revaluation date. These adjustments are posted through journal entries to the underlying account with the offsetposted to an unrealized gain or loss account. All debit adjustments are offset against the unrealized gain account and allcredit adjustments are offset against the unrealized loss account. If the same account is specified in the Unrealized GainAccount and Unrealized Loss Account fields, the net of the adjustments is derived and posted.

For balance sheet accounts, the revaluation journal entries are reversed in the next period. AutoReverse can be used toautomate the reversals. For income statement accounts that use the PTD method of revaluation, the revaluation journalsaren't reversed since each period's revaluation adjustment is for that period.



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In Oracle Fusion General Ledger, the revaluation functionality provides the following advantages:

• Full multicurrency functionality to eliminate currency barriers across a global business.

• Predefined revaluation rules to ensure consistency in generation of revaluation entries each period.

• Usage of prevailing currency normalization accounting standards including:

◦ US Financial Accounting Standards Board, Financial Accounting Statement No. 52 (FAS 52), Foreign CurrencyTranslation.

◦ International Financial Reporting Standards, International Accounting Standard No. 21 (IAS 21), The Effects ofChanges in Foreign Exchange Rates.

• Support for multiple balancing segments to provide clarity in tracking the profitability and performance for moredistinct segments of your enterprise in any currency

DefinitionWhen defining your revaluations, perform the following:

• Include accounts for tracking gains and losses, currency conversion rates, and the number of entered currencies torevalue.

• Define separate revaluation definitions for each class of accounts, using a different rate type for each class.

• Select various conversion types and methodologies for different account ranges, such as:

◦ Current rates and year-to-date (YTD) method for balance sheet accounts.

◦ Average rates and period-to-date (PTD) method for income statement accounts.

Note: Income statement accounts can also be revalued using the YTD method.

Hierarchies and flexible account selection criteria, such as usage of parent values from your account hierarchy, streamlinesmaintenance of revaluation definitions. The parent values can be selected for the primary balancing and the natural accountsegments using the operator Is a last descendant of. Leverage hierarchy versions to include organizational changes in yourrevaluation definitions. Adjust account selection criteria monthly to retrieve the accounts that must be revalued for the currentaccounting period.

Share revaluation definitions across ledgers that have the same chart of accounts to reduce maintenance.

GenerationGenerating revaluations include:

• Using defined revaluation criteria and automatically generating entries to shorten your close process.

• Selecting automatic posting as part of the generate revaluation criteria to help you to achieve processing efficiency.

• Scheduling revaluations to run during off peak hours to save your processing resources.

• Using date effective account hierarchies to generate revaluations to keep results in line with your current organizationhierarchies.

Always run revaluation to bring monetary balances to current rates before performing currency translation or remeasurement.

Note: When the revaluation process is scheduled to run automatically, the accounting period increments oneach subsequent run.



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Revaluation Execution ReportThe Revalue Balances process automatically generates the Revaluation Execution report when you run revaluation. Thisreport shows the details of your account balance revaluation and the journal batches created after running revaluation. Thereport includes:

• Currencies and revaluation rates used to revalue your accounts.

• Unrealized gain or loss account in which you recorded net gains and losses.

• Range of accounts revalued.

• Names of your batch and journals that the revaluation process created for each foreign currency.

• Total debits and credits of the created entries.

If the Revaluation process cannot locate rates for one or more currencies, balances are not revalued for those currencies.In this case, the Revaluation process completes with a warning and the execution report lists which currencies are missingrates.

Accounting for Unrealized Gain or Loss on Revaluation: ExplainedRevaluation launches a process that revalues the ledger currency equivalent balances for the accounts and currencies youselect, using the appropriate current rate for each currency. Resulting unrealized gain or loss amounts are posted to theunrealized gain or loss accounts or to the cumulative translation adjustment account. The revaluation journal is created,balanced, and posted automatically by balancing segment values.

Revaluation journal entries are created to adjust the ledger currency balances for conversion rate fluctuations, in accordancewith:

• Statement of Financial Accounting Standards (SFAS) No. 52, Foreign Currency Translation

• International Accounting Standard (IAS) 21, The Effects of Changes in Foreign Exchange Rates

The revaluation journal entries generated and posted in the primary ledger are automatically generated, converted, andposted to each of their reporting currencies. Define the cumulative translation adjustment account in the reporting currencyprior to running revaluation.

Income Statement Accounts Revaluation Rule: ExplainedRevaluation is the process which adjusts asset or liability accounts that may be materially understated or overstated. Thefluctuation in the conversion rate occurs between the time the transaction was entered and the time revaluation takes place.You may want to revalue income statement accounts as well. The Income Statement Accounts Rule indicates whetherperiod-to-date (PTD) or year-to-date (YTD) method is to be used when revaluing income statement accounts.

Click the Income Statement radio buttons on the Create Revaluation page to revalue income statement accounts usingPTD or YTD balances.

If you select to revalue PTD balances for income statement accounts, the process continues to appropriately revalueYTD balances for balance sheet accounts. If the range of accounts consists of both income statement and balance sheetaccounts and you select PTD as an option for income statement account revaluation rule, the revaluation:

• Creates separate revaluation journal for the income statement accounts

• Creates weighted average YTD balances using period rates from each corresponding period against the PTDaccount balance.



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• Is in compliance with the Statement of Financial Accounting Standards (SFAS) No. 52, Foreign Currency Translation.

When you run revaluation on your income statement accounts, the process produces two separate journal entries; onethat revalues your balance sheet accounts and another for your income statement accounts. You do not reverse the PTDrevaluation journal for your income statement accounts in the subsequent period. The revaluation only applies to last period'sactivity.

Note: This functionality only applies when the range of accounts in the revaluation definition consist of incomestatement and balance sheet accounts. Normally only balance sheets accounts are revalued.

Revaluing Across Multiple Balancing Segments: Worked ExampleThis example demonstrates how to revalue foreign currency balances across multiple balancing segments. Your company,InFusion America, Inc. has three lines of business. You revalue foreign currency account balances for two divisions, AirComponents and Repair Parts. The Installation Services line of business doesn't have foreign currency transactions. Yourcompany is the primary balancing segment and your lines of business are represented in the secondary balancing segment.

Note: Enable up to three balancing segments to use the multiple balancing segment feature.

The following are points to consider in running the revaluation process.

• The revaluation process posts the resulting gain or loss amounts against the unrealized gain or loss accounts,substituting the balancing segment values appropriately for all balancing segments.

• Gain or loss accounts and revaluation account ranges aren't validated against your data access set security whenthe revaluation definition is created because the ledger context isn't known at the time of definition.

• Data access set security is enforced when the Revalue Balances process is run. Limited write access to the gain orloss accounts due to inadequate access results in an error.

• Segment value security rules are enforced when you enter account ranges and the unrealized gain and lossaccounts. Only segment values that you have access to are available in the list of values.

• Account ranges that you have read and write access to are revalued. Account combinations that you don't haveaccess to are ignored.

• The revaluation process expands the parent primary balancing segment to the child values. Data access set securityapplies to the child values only, not the parent value.

• The posting process supports multiple balancing segments for calculating the entry to the Cumulative TranslationAdjustment accounts when replicating revaluation journals to reporting currencies.

Defining Revaluations1. Navigator > Setup and Maintenance > Manage Revaluations.2. On the Manage Revaluations page, click the Create icon.3. Complete the fields, as shown in this table.

Field Value

Name

InFusion America Revaluation

Description

Revaluation for all foreign currency balances.



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Field Value

Chart of Accounts

InFusion America Chart of Accounts

Currency

Leave blank.

Note: If blank, all currencies are revalued and after saving, the field automatically displays:All currencies.

Conversion Rate Type

Daily

Days to Roll Forward

5

Unrealized Gain Account

011-00-96600000-0000-000-000

Unrealized Loss Account

011-00-96700000-0000-000-000

Income Statement Account Basis

PTD

Post Automatically

Yes

4. In the Revaluation Accounts section, click the Add Row icon.5. Click the Change filter conditions icon to enter the filter used to select the accounts to revalue.6. Click Add Fields and select Company.7. Accept the default operator of Equals and select 11 from the list of Company segment values.8. Click Add Fields and select Lines of Business.9. Change the operator to Between and select 30 for Air Components and 40 for Repair Parts.

10. Click Add Fields and select Account from the list.11. Change the operator to Between and enter values 10000000 and 29999999.12. Click OK to accept the filters.13. Click Save and Close.

Optionally, click Save and then click Generate to save and run the revaluation immediately.



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Chapter 6Define Accounting Transformation

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6 Define Accounting Transformation

Accounting Transformation Configuration: Overview

Oracle Accounting Hub Cloud: OverviewOracle Accounting Hub provides the flexibility and control that you need in the implementation, expansion, and maintenanceof subledgers.

• Configure user-defined subledgers to adopt in a flexible business environment.

• Configure accounting rules to meet your corporate and statutory requirements.

• Automate to control the processes from transforming source system data to recording of detailed, auditable journalentries.

• Use modern reporting tools available in Oracle Cloud to reconcile accounted journal entries. This can lessen theaccumulative work required at the end of the accounting period. You can also gain insightful information for yourday-to-day business, corporate performance, and to make business decisions.



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Oracle Accounting HubThis figure illustrates the Accounting Hub process flow.

For additional information about Oracle Accounting Hub Cloud, see the Oracle Financials Cloud Accounting Hub BestPractices guide on the Oracle Help Center.

Accounting Transformations: ExplainedAccounting transformation refers to the process of converting transactions or activities from source systems into journalentries.

Source systems are typically industry-specific applications that are either purchased from third parties or built internallywithin the customer organization. Examples of such source systems include: core banking applications, insurance policyadministration applications, billing applications, and point of sales applications.



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Accounting Transformation StepsComplete the steps described in the following table in the order listed to account for transactions coming from differentsource systems.

This table contains the steps in the uptake process which include analyze, build, and implement and test.

Implementation Phase Step Number Description

Analyze

1

Analyze transaction flows and activitiesto determine the transaction life cycle tocapture.

2

Analyze your accounting, managementreporting, audit, and reconciliationrequirements. Ensure that the source systemprovides the required attributes to generatethis information.

Build

3

Register the source system with transactiontypes and details using the rapidimplementation spreadsheet template.

4

Configure accounting rules and assignaccounting method definitions to ledgers.

Implement and Test

5

Upload transaction data for testing.

6

Perform comprehensive testing to ensurethat all accounting is correctly generated.

Related Topics

• Uploading Transaction Data for Accounting Hub: Explained

Analyze Source Systems

Analyzing Source Systems: ExplainedAs a best practice, when performing the source system analysis complete the following:

1. Analyze and Identify Transaction Type Life CycleA source system that generates transactions as part of a business process has potential financial impact requiring creationof accounting entries. As a key step to create accounting entries, these transactions must be distinctly identified as differenttransaction types.



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Examples of transaction types from revenue recognition or billing source systems include:

• Complete an invoice.

• Record a payment.

• Record late charges.

Examples of transaction types from a point of sale source systems include:

• Record an order.

• Accept a payment.

• Receive a payment.

Examples of transaction types from retail loans source systems include:

• Loan origination.

• Loan interest approval.

• Loan interest accrual reversal.

• Loan scheduled payment.

• Loan late payment.

• Loan charge off.

A transaction type and its associated transaction data typically relate to a single document or transaction. However, thenature of source systems may prevent them from extracting this discrete information and sending it to Accounting Hub forprocessing. In some cases, summarized transaction type information, such as overall customer activity for the day, is sent foraccounting transformation.

2. Analyze Accounting, Reporting, Audit, and Reconciliation Requirements for TransactionTypesSome source systems may already produce accounting entries, while others may produce raw transactions with noassociated accounting.

• As part of the analysis, determine how much transformation is required to produce subledger journal entries.

• Next, examine the components of the journal entry rule set to determine what rules are required to produce therequired subledger journal entries.

This exercise helps determine which subledger journal entry rule set components to define for source systems data to betransformed into subledger journal entries.

Journal entry rule set components include:

• Description rules

• Account rules

• Journal line rules

• Supporting references

Such an analysis should, at a minimum, answer the following questions:

• Under what conditions are each of the lines in the subledger journal entry created?

• What is the line type, debit or credit, of each subledger journal entry line?

• What description is used for the subledger journal entry?

• How are the accounts derived for the entry?



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• What information may be useful for reconciling the subledger journal entry to the source system?

Using the example of a loan origination transaction type, determine what are the sources that store the transactioninformation for a journal entry? Visualize the journal entries that you would like to create for a loan origination transaction typeand list all the sources for its transaction information.

This table contains a journal entry, with Side, Accounting Class, Accounting and Debit and Credit amounts.

Side Accounting Class Account Debit Credit

Debit

Loan Receivables

111-000-30201-0000-206-0000-0000

500,000 USD

None

Credit

Cash

111-000-21355-0000-104-0000-0000

None

500,000 USD

• In the table the example identifies the sources for the journal lines and accounts in a source system:

◦ Each debit and credit journal line is identified and defined for each transaction type.

◦ When a loan is originated, the loan receivables account is debited, and cash account is credited.

◦ The cost center segment of the Loan Receivables accounts can have two values, depending on the loan typevalue:

• If the loan type is adjustable rate, then the cost center is '0000'.• If the loan type is fixed rate, then the cost center is '2120'.

For management reporting and control, what type of information is extracted from journal entries?

For example:

• Account group used to drill down from general ledger to subledger journal entries.

• Total loan receivables amount booked by the loan officer.

• Journal entry line description with loan number and transaction date.

At the end of this exercise, you have a list of transaction attributes that are required to obtain the appropriate accountingentries from Accounting Hub.

Examples of transaction attributes include:

• Amounts including entered, accounted and conversion data

• Dates

• Descriptions

• General ledger accounts

• Customer Information

• Transaction type information

• Product information

3. Additional Modeling ConsiderationsAdditional considerations when you model the subledger per your requirements.



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Sample questions to ask during planning:

If you have more than one transaction type:

• How do you report each of the transactions? This results in a number of transaction types.

• Do you require centralized information or separate view?

◦ For example, how do you plan to upload fixed and adjustable mortgage rate transactions, as one subledgersource system, or as separate subledger source systems?

• One subledger source system consolidates the transaction data upload and reporting view.• Separate subledger source systems enable the use of a unique accounting event class for each source

system. With separate source systems, you can configure accounting rules for each accounting eventclass. For example, you can configure the automatic reversal on accrued subledger journal entries at aspecified date or period for a specific accounting event class.

4. Analyze the Configuration of Accounting Rules in Accounting HubWith the analyzed transaction information and subledger model completed, evaluate the usage of accounts rules. Understandthe functional usage for each rule component and the requirements for accounting and reporting.

Journal Entry in Source System

This figure illustrates a journal entry.

Transaction Event: Loan Origination

Ledger: OFS Ledger US Accounting Date: 11/1/16

Loan Number: FR-002

Description: Loan Type FR Event Type Name: LOAN ORIGINATION Customer Number: 1008

Type Account Description Currency CreditDebit

Loan Receivable USD 150,000.00

Cash USD 150,000.00

Journal Line Rule Account Rule

111-000-30201-0000-206-0000-0000

111-000-21355-2120-104-0000-0000

Description Rule (Header)

Rate: 3.875

Description Rule (Line)

Accounting Rule Configuration in Accounting Hub

This image illustrates the subledger flow as detailed in the Manage Accounting Rules topics.



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Subledger Accounting Method

Journal Entry Rule Set

Journal Line Rule Account RuleDescription Rule Supporting Reference

Mapping Set

Custom Formula

Ledger

The next implementation step will be registering your source system, as detailed in additional topics.

Register Source Systems

Registering a Source System

VideoWatch: This video tutorial shows you how to register a source system into Oracle Accounting Hub Cloud. The content of thisvideo is also covered in text topics.

ProcedureIn this procedure you register a source system into Oracle Accounting Hub.

In Oracle Accounting Hub, download the setup template:

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH implementation project.4. Expand the task list: Define Accounting Entry Configuration for Rapid Implementation.5. Select the task: Create Subledger Application Setups in Spreadsheet.6. Click Go to Task.7. Select the Download Setup Template button.8. Click Save As and save the file on your local drive.






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In Microsoft Excel, populate the setup template:

1. Open the downloaded template from your local drive.2. Review the instructions tab for instructions on completing the template.3. Enter your data into the spreadsheet worksheets:

a. Click the Source System worksheet and enter data in these fields.• Source System Name• Source System Short Name• Source System Transaction Name• Source System Transaction Short Namee

b. Click the Transaction Information worksheet and enter data in these fields:• Source Name• Source Short Name• Source Type• Source Journal Display

c. Click the Line Information worksheet and enter data in these fields:• Source Name• Source Short Name• Source Type• Source Chart of Accounts Value

In Microsoft Excel, validate the setup template and generate a .zip file:

1. Click the Source System worksheet.2. Click Validate.3. Click OK on the confirmation message. The.zip file was created and saved in the same local folder as the

downloaded file.

In Oracle Accounting Hub, upload the.zip file.

1. Navigate to the task: Create Subledger Application Setups in Spreadsheet.2. Click Go to Task.3. Click the Upload Setup File button.4. Click Browse.5. Browse your local drive for the.zip file you created.6. Select the file.7. Click Open.8. Click Import. Wait until the process completes.9. Click OK.

10. Click Done.

In Oracle Accounting Hub, review your new subledger application.

1. Navigate to the task: Manage Subledger Application.2. Click Go to Task.3. In the Select Scope window:

◦ Select the Manage Subledger Application option..

◦ In the Subledger Application Setup drop-down list, select Select and Add.

◦ Click Apply and Go to Task.



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◦ Search for the subledger name, as defined in the Source System Name field in the spreadsheet.

◦ Select the subledger.

◦ Click Save and Close.

4. Preview the registered source system on the Manage Subledger Application page.

◦ Expand Event Model components.

◦ Click Cancel.

5. Preview the generated sources:

◦ Select the Manage Source task.

◦ View the sources.

◦ Click Cancel.

6. Preview the assigned accounting attributes:

◦ Select the Manage Accounting Attributes task.

◦ View the accounting attributes.

◦ Click Cancel.

Registering a Source System: ExplainedAfter completing the source system transaction flow analysis, you can use a spreadsheet to register your source systems inAccounting Hub. The spreadsheet registration accelerates the time from implementation and testing to production.

Complete the following tasks to register your source system.

1. Download the Spreadsheet TemplateDownload the spreadsheet template using the Create Subledger Application Setups in Spreadsheet task.

Navigate: Setup and Maintenance work area > Define Accounting Entry Configuration for Rapid Implementation > CreateSubledger Application Setups in Spreadsheet

2. Populate the Spreadsheet TemplatePopulate source system and transaction information in the spreadsheet template.

The spreadsheet template has three worksheets:

1. Source System2. Transaction Information3. Line Information

Source System

On the Source System worksheet, enter the name of the source system and the transaction types.

In the Source System Transactions region, enter the source system name and a short name:

This table contains definitions of the Name and Short Name fields used in the spreadsheet.



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Name Short Name

Name of the source system.

• Used as the subledgerapplication and event class.

Maximum length 25 characters.

Used as the column name in database.

This source system name is used as the registered subledger, event class, and journal source names in Accounting Hub.

• Event class represents the transaction and is used to group event types.

• Event types represent an event in the life cycle of a transaction that has accounting impact.

In the Transaction Types region, enter the transaction types.

This table contains definitions of the Name and Short Name fields used in the spreadsheet.

Name Short Name

Transaction type name. Maximum length 30 characters.

Used as the column name in database.

Transaction Information

The Transaction Information worksheet lists transaction information that can be used for accounting. These are header-levelinformation sources.

The worksheet includes three predefined required sources.

• By default, the Transaction Date provides the accounting date for booking the journal.

◦ You can add additional source attributes for the transaction date if there are multiple date options that areused as accounting date.

• Transaction Number links the transaction and line information.

• Ledger Name is the reporting entity for which journal entries are booked in the general ledger.

In the Transaction Information: List of Sources region enter the sources.

This table contains definitions of the Name, Short Name, Type and Journal Display fields used in the spreadsheet.

Name Short Name Type Journal Display?

Name of sources that appears ina drop-down list for accountingrules. Maximum length 80 characters.

Used as the column header inthe transaction data template.This template is used to uploadsource system transactions.

Used to describe the type ofvalues from the source system.

Available values are:

• Text:

◦ Where length canbe less than theAlphanumeric

Indicates whether this attributeis shown on report and inquiries,along with the journal. Acceptable values are Yes orNo. In the user interface, theseare known as user transactionidentifiers.



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Name Short Name Type Journal Display?

source type of 100CHAR characters.

• Number:

◦ A valid numericdata type.

• Date:

◦ A valid date datatype.

• Long Text:

◦ Source type:VARCHAR2.Where length canbe greater thanthe Alphanumericsource type of 100CHAR characters,but is less than1000 CHARcharacters.

Up to 50 text, 10 number, 10dates, and 5 long text sourcescan be defined.

This includes the threepredefined required sources.

Up to ten rows can be used.

Line Information

The Line Information worksheet lists types of transaction information that can have more than one value per transaction. Forexample, an order or invoice line item amount.

The worksheet includes three predefined required sources.

• Transaction Number links transaction and line information.

• Default Amount holds transaction amount values for use in accounting.

• Default Currency holds entered currency values for use in accounting.

Additional sources can be added if there are multiple different values that use the same source attribute. In that case, youmust manually map the related accounting attributes with these additional sources from the user interface.

In the Transaction Lines Information: List of Sources region enter the line sources.

This table contains definitions of the Name, Short Name, Type and Chart of Accounts Value fields used in the spreadsheet.

Name Short Name Type Chart of Accounts Value?

Name of sources that appears ina drop-down list for accountingrules. Do not add Line Number sourcename, as this name is reservedfor automatically created internalsource.

Used as the column header inthe transaction data template.This template is used to uploadsource system transactions.

Used to describe the type ofvalues from the source system.

Indicates that the source can beused to derive an account.

Acceptable values are Yes orNo.



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Name Short Name Type Chart of Accounts Value?

Maximum length 80 characters.

Available values are:

• Text:

◦ Where length canbe less than theAlphanumericsource type of 100CHAR characters.

• Number:

◦ A valid numericdata type.

• Date:

◦ A valid date value.

• Long Text:

◦ Source type:VARCHAR2.Where length canbe greater thanthe Alphanumericsource type of 100CHAR characters,but is less than1000 CHARcharacters.

Up to 100 text, 30 number, 10dates, and 5 long text sourcescan be defined.

This includes the threepredefined required sources.

Only text type sources can beused in segment rules.

Examples of sources that aretypically used to derive thegeneral ledger account:

• Account• Cost center• Company segment value

3. ValidateTo verify the accuracy of the content in the spreadsheet template, use the Validate icon on the Source System worksheet.

• If there is an error, you receive an error message.

• A Validation Report worksheet is created.

• Open the Validation Report worksheet to review the error.

• Correct the error and validate the content again.

4. Generate .zip FileGenerate the .zip file by using the Generate .zip icon on the Source System worksheet.

You receive a notification that the .zip file was created and saved in the same local folder as the downloaded spreadsheettemplate.

5. Upload .zip FileUse the Create Subledger Application Setups in Spreadsheet task to upload the .zip file.

• Use the Upload Setup File button.



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• Browse for your .zip file.

• Select Import.

If there is any error during the upload process, you are prompted with an error message. Correct the error in the spreadsheetin the fields noted in the error message.

If there is no error:

• The source system is now registered in Accounting Hub.

• One transaction object at header and line levels is created.

6. Verify Source SystemVerify the uploaded source system and transaction information from the user interface.

You can update the uploaded objects from the user interface. For example:

• Accounting Event Types:

◦ Add new event types.

• Sources:

◦ Assign and update value set and lookup type assignments. Whenever appropriate, sources can have lookuptypes or value sets assigned. Assigning a value set or lookup type enables you to predefine valid values for thesource that is used to create accounting rules.

◦ You can revise the sources. These revisions are:• Source names can be revised to be more business user-friendly so they are easily understood when

configuring accounting rules.• Sources that correspond to accounting flexfield identifiers can be marked as such.

◦ You can add sources from the user interface. The download of a new transaction data template includes thisnewly added source.

• Accounting Attribute Assignments:An accounting attribute is a piece of the journal entry. The mapping of sources to accounting attributes specifies howthe Create Accounting process gets the value for each piece of the journal entry. For example, the Entered Currencyattribute is used to map source values to the entered currency field for subledger journal entry lines.

◦ Add and update source assignments to accounting attribute.• You can add and make updates to the source assignment to the accounting attribute if you have other

sources available. For example, when you have more than one transaction date source value.

7. Configure Accounting RulesNext, configure the accounting rules using the sources from the transaction information.

Use the streamlined navigation across rule components to configure the accounting rules.

• Start by using the Configure Accounting Rules task from the Setup and Maintenance work area. This task is alsoembedded in the Define Accounting Entry Configuration for Rapid Implementation task list.

• Highlight the subledger application that you would like to use to configure accounting rules.

• On the Configure Accounting Rules user interface, navigate across the rule components that you would like to createor edit.



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Define Accounting Methods

Define accounting methods to group subledger journal entry rule sets. This determines how the source system transactionsare accounted for a given ledger.

Assign journal entry rule sets to event class and event type combinations in an accounting method. This determines how thesubledger journal entries for that class or type are created.

The following are the components of a journal entry rule set:

This table contains the accounting rule names and descriptions.

Rule Description

Journal Line Rule

Determine basic information about a subledger journal entry line. Such information includes whetherthe line is a debit or credit, the accounting class, the currency, the amounts, and conversion rates.

Description Rule

Determine the descriptions that are included on subledger journal entry headers and lines. Includeconstant values, transaction attribute, and transaction information in descriptions.

Account Rule

Determine which account is used for a subledger journal entry line.

Supporting Reference

Optionally used to store additional source information about transactions. Are useful forreconciliation of accounting to source systems, as well as reporting.

Conditions

You can attach conditions to journal line rules, description rules, and account rules components. A condition combinesconstants, source values, and operands to indicate when a particular journal line rule, description, or account rule is used. Forexample, for mortgage loans, you can elect to use a specific loan receivable account based on the loan type.

Note: To obtain a listing of accounting rule setup by ledger, submit the Subledger Accounting Method SetupsReport.

Related Topics

• Uploading Transaction Data for Accounting Hub: Explained

• Oracle Fusion Subledger Accounting Predefined Reports

Registering a Source System: Critical ChoicesTo achieve a successful implementation of Accounting Hub, certain points must be considered.

Considerations1. Determine the subledger requirements. For example, how many subledgers are to be created?

◦ Using the same subledger enables you to share subledger accounting rules, and lets you report across alldata easily.



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◦ Using separate subledgers provides more security across applications and less data in each process runproviding better performance. Specific benefits are:

• If you run two Create Accounting processes at the same time for different applications, they are muchless likely to contend for database resources.

2. Determine what source data is required to create subledger journal entries from transactions.3. Analyze the transaction life cycles that create accounting impact.4. Determine how often to upload subledger transaction data into Accounting Hub. This may depend on the immediacy

and volumes of accounting requirements in your company.

Accounting Event Model: ExplainedAccounting events represent transactions that may have financial significance, for example, issuing a loan and disposing of anasset. Financial accounting information can be recorded for these events and accounted by the Create Accounting process.When you define accounting events, determine from a business perspective which activities or transactions that occur in yoursource system may create a financial impact.

• Events with significantly different fiscal or operational implications are classified into different accounting event types.

• Event types are categorized into accounting event classes.

• Accounting definitions in Accounting Hub are based on event class and event types.

• An event type must be unique within an application.

.

This figure illustrates an accounting event model for a loan application.

Accounting Event Types:- Loan charge off- Loan interest accrual- Loan interest accrual reversal- Loan interest adjusted- Loan late payments- Loan scheduled payments- Loan origination

Accounting Event Class:Loans

Event ClassAn event class groups the related transaction information and attributes within a source system.

The event class is created using the registered source system name. For example, the Loans source system.

Event TypesWhen registering a source system, you can specify the event types as the transaction types of the source system.



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For example, the event types Loan Origination and Loan Scheduled Payments are the types of transactions that havedifferences in their functional and operational implications.

User Transaction IdentifiersUser transaction identifiers constitute the user-oriented key of the underlying subledger transaction.

These identifiers are primarily used in accounting events inquiry and on accounting event reports, to uniquely identifytransactions.

• When you register the source system using the spreadsheet template, use the Journal Display column to identifysources that are the user transaction identifiers.

• You can specify up to ten columns from the transaction sources that are available for inquiry and reports.

The transaction data that identifies the transaction varies by subledger application.

Accounting event reports and inquiries display the transaction identifiers and their labels appropriate for the correspondingevent class.

The user transaction identifiers can be displayed for an event regardless of its status. This includes the case when theaccounting event has not been processed.

The user transaction identifier values are displayed at the time the accounting event reports and inquiries are run.

Managing Accounting Sources: Critical ChoicesSources are a key component for setting up accounting rules. Sources represent transaction and reference information fromsource systems. Contextual and reference data of transactions that are set up as sources can be used in accounting rulesdefinitions.

When determining what sources should be available, it's helpful to begin the analysis by considering which information fromyour source system has accounting impact.

Examples of sources that are accounting in nature include:

• Transaction date

• Entered currency

• Transaction amounts

In addition to sources required for accounting, there may be other sources used for reporting purposes.

Examples of information that may be useful as supporting attributes for subledger journal entries are:

• Transaction identification numbers such as:

◦ Loan number

◦ Customer number

◦ Billing account number

• Counterparty information

• Transaction dates



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Provide a rich library of sources from your source systems for maximum flexibility when creating definitions for subledgerjournal entries.

A distinct difference exists between sources and source values:

• Source is the metadata, or name of the transaction attribute, used to create accounting rules.

◦ For example: Transaction Date

• Source values are the value of the attribute, used by the Create Accounting process to create subledger journalentries. These entries are based upon source assignments to accounting rules.

◦ For example: Aug 01, 2017

SourcesCreate sources from any of these user interactions:

• Create initial sources automatically when registering a new source system configuration using the spreadsheetmechanism.

• Add subsequent sources from the Manage Sources user interface after the initial upload of the source system.

◦ This table contains the data types that can be used when adding sources:

Source Value Data Type

Alphanumeric and fewer than 100characters

Alphanumeric

Alphanumeric and between 100 and1000 characters

Long

Numeric

Number

Date

Date

Note: After adding new sources from the UI, and before importing any new transactions, you mustdownload the latest transaction template.

To set up appropriate subledger journal entry rule sets, users and those implementing must understand the origins, meaning,and context of sources.

Use business-oriented names for sources to enable accountants and analysts to effectively create accounting rules.

• Enables users to easily identify a source.

• Ensures consistency in nomenclature.

Accounting Attribute Assignments for Accounting: Points to ConsiderThe Create Accounting process uses the values of sources assigned to accounting attributes and accounting rules to createsubledger journal entries.



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The Create Accounting process uses the sources assigned to accounting attributes to copy values from transaction datato subledger journal entries. For example, you may map the invoice entered currency to the subledger journal entry enteredcurrency.

Each accounting attribute is associated with a level:

1. Header: Used when creating subledger journal entry headers.2. Line: Used when creating subledger journal entry lines.

Minimum Required Accounting Attribute AssignmentsTo create a valid journal entry the following accounting attribute assignments are required. Accounting Hub predefines thevalues:

This table contains the required accounting attributes.

Accounting Attribute Predefined Source Assignment

Accounting Date

Transaction Date

Distribution Type

Accounting Event Type Code

Entered Amount

Default Amount

Entered Currency Code

Default Currency

First Distribution Identifier

Line Number

The details and descriptions of these attributes are included in the Accounting Attributes section.

Accounting AttributesAccounting attribute groups are represented in these tables.

Accounting Date

• Accounting Hub predefines Transaction Date as the Accounting Date. The Create Accounting process uses it toderive the accounting date of journal entries.

• The Accrual Reversal Accounting Date Source attribute is relevant to applications that must perform automaticreversal on accrued journal entries at a specified date or period. You can assign application and standard datesources to the Accrual Reversal Accounting Date in the Accounting Attribute Assignments page. When the AccrualReversal Accounting Date Source attribute returns a value, the Create Accounting process generates an entry thatreverses the accrual entry.

• Accounting Hub does not predefine any source assignment to the Accrual Reversal Accounting Date Sourceaccounting attribute.

This table contains the valid accounting attributes for the Accounting Date group.



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AccountingAttributes

Data Type Journal Entry Level Assignment to Rules AssignmentRequired?

Validation Rules

Accounting Date

Date

Header

Event Class Journal Entry RuleSet

Yes

Should be in opengeneral ledgerperiod.

Accrual ReversalAccounting DateSource

Date

Header

Event Class Journal Entry RuleSet

No

Should be later thanthe accounting date.

Distribution Identifier

• The distribution identifier information links subledger transaction distributions to their corresponding journal entrylines.

• The Accounting Event Type Code and First Distribution Identifier accounting attributes are predefined to theDistribution Type and Line Number sources.

This table contains the valid accounting attributes for the Distribution Identifier group.



Validation Rules

Accounting EventType Code

Alphanumeric

Line

Event Class

Yes

First DistributionIdentifier

Alphanumeric

Line

Event Class

Yes

Entered Currency

• Entered currency accounting attributes are required for all applications. The Create Accounting process uses them topopulate the journal entry line entered currency and amounts.

• The entered currency accounting attributes must always be assigned to sources. The sources assigned to theentered currency accounting attributes must always contain a value.

• Accounting Hub predefines source assignment to these accounting attributes. Additional sources can be manuallyassigned to support cross-currency transactions.

The table contains the valid accounting attributes for the Entered Currency group.



Validation Rules

Entered CurrencyCode

Alphanumeric

Line

Event Class Journal Line Rule

Yes

A valid currency.

Entered Amount

Number

Line


Yes



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Ledger Currency

• The Create Accounting process uses the ledger currency accounting attributes to calculate journal entry accountedamounts.

• Accounting Hub calculates the accounted amount as entered amount multiplied by the conversion rate. If theentered currency is the same as the ledger currency, the Create Accounting process ignores the conversion typeand conversion rate.

• For event classes that support foreign currency transactions, and therefore more than one conversion rate andreporting currency amount, multiple event class accounting attribute assignments are created.

◦ If a single line of transaction data is provided and the entered currency for debit and credit lines are different,then more than one Entered Currency accounting attribute assignment is required.

This table contains the valid accounting attributes for the Ledger Currency group.



Validation Rules

Accounted Amount

Number

Line


No

Conversion Date

Date

Line


No

Conversion Rate

Number

Line


No

Conversion RateType

Alphanumeric

Line


No

A valid generalledger conversionrate type or user.

Exchange Gain Account, Exchange Loss Account

Note: If implementing the exchange gain and loss feature, you can assign predefined account sources as theexchange gain or loss account.

• The Create Accounting process determines whether there is an exchange gain or loss. The process derives theaccount based on the account rule assigned to the journal line rule with the Gain or Loss side in the journal entry ruleset.

• If Gain or Loss journal line rules are not defined, then the value from the source mapped to the accounting attribute,Exchange Gain Account and Exchange Loss Account, are used as the exchange gain or loss account.

• The Create Accounting process raises an exception if unable to create exchange gain or loss line for the transactionin these cases:

◦ If Gain or Loss journal line rules are not defined and sources have not been mapped to these accountingattributes

◦ If the mapped source does not contain any value.

• Predefined assignments are not provided for these accounting attributes.



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• If the subledger supports foreign currency or cross-currency transactions that may result in exchange gain or loss,Oracle recommends that you perform one of the following:

a. Define accounting rules to generate exchange gain or loss lines whenever applicable for the transaction.

• Define two journal line rules if you would like to use separate account and accounting class forexchange gain and loss. Journal line rules with side Gain are used for the exchange gain. Journal linerules with the side Loss are used for the exchange loss. Optionally, you can define just one journal linerule with side the Gain or Loss if only one accounting class is used.

• Define two account rules to return the exchange gain account and the exchange loss account.Optionally, define just one account rule if the same account is used for both the exchange gain andloss.

• Assign the exchange gain or loss journal line rules and appropriate account rule to the journal entry ruleset.

b. Assign sources to the Exchange Gain Account and Exchange Loss Account. Populate the sources with theaccount combination ID of the exchange gain or loss account already defined in Oracle General Ledger.

This table contains the valid accounting attributes for the Exchange Gain Account, Exchange Loss Account group.



Validation Rules

Exchange GainAccount

Number

Header

Event Class

No

Exchange LossAccount

Number

Header

Event Class

No

Gain or Loss Reference

• The Create Accounting process groups lines with the same Gain or Loss Reference together when calculatingexchange gain or loss. The total of the accounted debit amount and the accounted credit amount are calculatedfor lines with the same Gain or Loss Reference within a journal entry. Then, the difference between the total of theaccounted debit amount and the accounted credit amount is considered the exchange gain or loss amount and theexchange gain or loss line is created if applicable.

• Predefined assignments are not provided for this accounting attribute.

• Oracle recommends that you assign a header level source to this accounting attribute so that only one exchangegain or loss line is created for a subledger journal entry, should there be any exchange gain or loss.

This table contains the valid accounting attributes for the Gain or Loss Reference group.



Validation Rules

Gain or LossReference

Alphanumeric

Line

Event Class

No

Multiperiod Accounting

• The multiperiod accounting attributes are relevant to applications that require the multiperiod accounting feature togenerate accounting in more than one accounting period, for a single transaction.



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• Either no multiperiod accounting attributes should be assigned to sources or all multiperiod accounting attributesshould be assigned to sources.

This table contains the valid accounting attributes for the Multiperiod Accounting group.



Validation Rules

Multiperiod StartDate

Date

Line


Yes, if anotheraccounting attributein the same grouphas an assignment.

Required if theMultiperiod EndDate has a value.

Multiperiod EndDate

Date

Line


Yes, if anotheraccounting attributein the same grouphas an assignment.

Required if theMultiperiod StartDate has a value. Must be later thanMultiperiod StartDate.

Manage Accounting Rules

Creating an Accounting Method

VideoWatch: This video tutorial shows you how to create an accounting method. The content of this video is also covered in texttopics.

ProcedureIn this procedure, you create an accounting method.

Create an Accounting MethodNavigate to the Manage Journal Entry Rule Set page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Expand the task list: Define Accounting Rules for Rapid Implementation.6. Select the task: Manage Accounting Methods.7. Click Go to Task.

Create an accounting method.

1. Click Create icon.2. Enter Name.






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3. Enter Short Name.4. Select Chart of Accounts.5. In the Journal Entry Rule Set Assignments region:

a. Click Create icon.b. Enter Event Class.c. Enter Event Type.d. Enter Rule Set.e. Click Save.

6. Activate the rule set assignment.

a. In the Assignments region click Activate.7. Click Save and Close.

Assign the Accounting Method to the LedgerYou must assign this accounting method to the ledger you use for accounting and posting journal entries.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Ledgers.5. Select the task: Specify Ledger Options.6. Click Go to Task.7. On the Specify Ledger Options page, Subledger Accounting region, select the new Accounting Method.8. Click Save and Close.

Creating an Accounting Method: ExplainedAccounting methods group subledger journal entry rule sets. This facilitates the definition of consistent accounting treatmentfor each accounting event class, and accounting event type, for all subledger applications. This grouping enables a set ofsubledger journal entry rule sets to be assigned collectively to a ledger.

For example:

• A subledger accounting method can be defined to group subledger journal entry rule sets that adhere to and complywith US Generally Accepted Accounting Principles (GAAP) criteria.

• By assigning a different subledger accounting method to each related ledger, you can create multiple accountingrepresentations of transactions.

Accounting rules can be defined with either a top-down, or a bottom-up approach.

• Top-Down: Define the accounting method, followed by components of each rule that must be assigned to it.

• Bottom-Up: Define components for each rule and then assign them as required.

The Create Accounting process uses the accounting method definition with active journal entry rule set assignments to createsubledger journal entries.

When an accounting method is initially defined its status changes to Incomplete. The status will also be Incomplete aftermodifying a component of any accounting rule associated with the assigned journal entry rule set.

Caution: The accounting method must be completed, by activating its journal entry rule set assignments, sothat it can be used to create accounting.



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The following definitions are used to define the journal entries, and are applied as updates to the accounting method:

• Updates to the predefined accounting method

• Assignment of journal entry rule sets for an accounting event class and accounting event type from the accountingmethods page

• Assignment of accounting methods to ledgers

• Activation of subledger journal entry rule set assignments

Updates on Predefined Accounting MethodYou may update a predefined accounting method by end dating the existing assignment and creating an assignment with aneffective start date.

Assignment of Journal Entry Rule Set for Accounting Event Class and Accounting Event TypeYou create the assignment of a journal entry rule set for an accounting event class and accounting event type using theaccounting method page.

The following should be considered for assigning rule sets:

• If the accounting method has an assigned chart of accounts you can use journal entry rule sets that:

◦ Use the same chart of accounts

◦ Are not associated with any chart of accounts

• You can assign to existing journal entry rule sets or create a new one.

Assignment of Accounting Methods to LedgersIf the accounting method has an assigned chart of accounts, it may only be used by ledgers that use the same chart ofaccounts.

If the accounting method does not have an assigned chart of accounts, the accounting method can be assigned to anyledger.

Activation of Subledger Journal Entry Rule Set AssignmentsYou can activate the subledger journal entry rule set assignments from the Accounting Method page. You can also submit theActivate Subledger Journal Entry Rule Set Assignments process to validate and activate your accounting set ups.



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Accounting Method and Accounting RulesThis figure illustrates the relationship of the components used in an accounting method.

Standard Accrual Accounting Method

Journal Entry Rule Set for Subledger Application

Journal Line Rules Account Rules Description Rules

InFusion America Inc. Primary Ledger (USD)

Supporting References

Creating a Journal Entry Rule Set

VideoWatch: This video tutorial shows you how to create a journal entry rule set. The content of this video is also covered in texttopics.

ProcedureIn this procedure, you create a journal entry rule set.

Navigate to the Manage Journal Entry Rule Set page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Expand the task list: Define Accounting Rules for Rapid Implementation.6. Select the task: Manage Journal Entry Rule Set.7. Click Go to Task.

Create a journal entry rule set.

1. Click Create icon.2. Enter Name.






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3. Enter Short Name.4. Select Event Class.5. Select Event Type.6. Select Chart of Accounts.7. In the Journal Entry region:

a. Select Description Rule you created for the header..8. In the Journal Lines region create a credit line.

a. Click Create icon.b. Select Line Type = Credit.c. Select Journal Line Rule.d. Select Account Combination Rule.e. Select Line Description Rule.

9. In the Journal Lines region create a debit line.

a. Click Create icon.b. Select Line Type = Debit.c. Select Journal Line Rule.d. Select Account Combination Rule.e. Select Line Description Rule.f. Select Segment Rule.

10. In the Supporting References region:

a. Click Create icon.b. Select Supporting Reference.c. Click Create icon.d. Select another Supporting Reference.

11. Click Save.12. From the Actions menu select Activate.13. Click Yes.14. Click Save and Close.15. Click Done.

Creating a Subledger Journal Entry Rule Set: ExplainedSubledger journal entry rule sets provide the definition for generating a complete journal entry for an accounting event.

Select the option to define the subledger journal entry rule set for a particular accounting event class or accounting eventtype.

If you are using multiple ledgers to meet divergent and mutually exclusive accounting requirements, you can vary journal entryrule sets by ledger. Each of the subledger journal entry rule sets can meet a specific type of accounting requirements.

For example, use US Generally Accepted Accounting Principles (GAAP) oriented subledger journal entry rule sets for a ledgerdedicated to US GAAP reporting. Use French statutory accounting conventions for a ledger dedicated to French statutoryreporting. These two sets of definitions have differences based on the setup of the various components that make up theirsubledger journal entry rule sets.

Predefined subledger journal entry rule sets are provided for all Oracle subledgers. If specific requirements are not met bypredefined subledger journal entry rule sets, create a copy of the predefined definitions, rename, and modify the copieddefinitions and their assignments.



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Subledger journal entry rule set assignments can be made at two levels, header and line. The following are thesubcomponents of a subledger journal entry rule set:

• Description rules

• Journal line rules

• Account rules

Assignment at Header LevelHeader assignments define subledger journal header information and line assignments define journal line accountingtreatment.

A header assignment includes the following:

• Accounting date (required)

• Accrual reversal accounting date (optional)

• Description rule (optional)

Assignment at Line LevelYou can define multiple subledger journal entry rule sets for an accounting event class or accounting event type. Using theline assignment of the journal entry rule set assigned to the accounting event class or type, a single journal entry is generatedper accounting event per ledger.

The following can be assigned to a journal entry line:

• Journal line description rule

• Journal line rule

• Account rule

• Supporting references

Assignment of Description RulesIf a description rule is defined with sources, the sources must also be assigned to the accounting event class that is assignedto the journal entry rule set. The description rule may be assigned at either the header or line level of the journal entry or toboth levels.

Assignment of Journal Line RulesWhen assigning the journal line rule, you must identify the line type: Gain, Loss, Gain or Loss, Credit, or Debit. The journal linerule must be assigned to the same accounting event class as the one assigned to the subledger journal entry rule set.

When assigning a journal line rule that is enabled for accounting for a business flow, the account combination and certainaccounting attribute values are copied from its related journal line having the same business flow class as the current line.Optionally, copy the description rule into the current line instead of assigning a separate description rule.

When assigning a journal line rule that is enabled to copy from the corresponding line within the same journal entry, you havethe option to copy the account combination, the segment value, or the line description from the corresponding line into thecurrent line.

Assignment of Account RulesThe account rule assignment defines which accounts are used for the subledger journal line. If the account rule is set up witha chart of accounts, it must have the same chart of accounts as the one assigned to the journal entry rule set. When account



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rules are defined with sources, the sources must also be assigned to the accounting event class that is assigned the journalentry rule set.

There are two types of account rules:

• Account Combination Rule: Assign an account combination rule to derive the account combination.

• Segment Rule: Assign a segment rule to derive a specific segment of an account. For example, a cost center or anatural account segment.

Assignment of Supporting ReferencesSupporting references may be used to capture transaction values on journal entry lines. A supporting reference can be usedon a journal entry rule set only if it's assigned a source from the event class of the journal entry rule set.

Creating a Journal Line Rule

VideoWatch: This video tutorial shows you how to create a journal line rule. The content of this video is also covered in text topics.

ProcedureIn this procedure you create a journal line rule.

Navigate to the Manage Journal Line Rules page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Expand the task list: Define Accounting Rules for Rapid Implementation.6. Select the task: Manage Journal Line Rules.7. Click Go to Task.

Create a journal line rule on the Manage Journal Line Rules page:

1. Click Create icon.2. Enter Name.3. Enter Short Name.4. Enter Event Class.5. Enter Side = Credit.6. Enter Accounting Class.7. Click Save and Create Another.

Repeat these steps to create another journal line rule, with a Side = Debit.

Journal Line Rule: ExplainedJournal line rules are defined within the context of accounting event classes. A journal line rule can be used in a subledgerjournal entry rule set that has the same event class. You may also assign conditions to the journal line rule.

Journal Line RulesJournal line rules are assigned to journal entry rule sets.





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To create a journal line rule, select values for options such as:

• Side (Debit, Credit, Gain or Loss)For example, when a payables invoice is generated, the liability account should normally be credited. The journal linerule must therefore specify the Side option as Credit. On the other hand, the payment of the Payables invoice mustbe accounted with a debit to the liability account. A separate journal line rule must be defined to create this debit line.

• Merge Matching Lines: To summarize subledger journal entry lines within each subledger entry. Journal entry lineswith matching criteria are merged.

• Accounting Class

◦ Select an accounting class to classify journal entry lines.

◦ For example, when a validated Payables invoice is accounted, the Item Expense and Liability journal lines arecreated. In this case, the journal line rules used in the accounting rules are assigned Item Expense and Liabilityaccounting classes respectively.

• Conditions: To restrict the use of a journal line rule by controlling when a particular journal line rule is used by theCreate Accounting process.

• Accounting Attributes: When creating a journal line rule, accounting attribute assignments are automaticallyestablished. These are based on the default accounting attribute assignments for that journal line rule's accountingevent class. You can override this default mapping of standard sources to accounting attributes. The list of values forthe source override includes all sources assigned to the accounting attribute, for the event class associated with thejournal line rule.

• Advanced Options

◦ The Subledger Gain or Less Option: Applies only to amount calculations for the primary ledger. Gain or lossamounts are not converted to reporting currency or nonvaluation method secondary ledgers. If the option isselected, the journal line holds the gain or loss amounts calculated by the subledger.The gain or loss amount is calculated as the difference in applied amounts due to fluctuations in conversionrates, based upon conversion to the ledger currency. Foreign exchange gain or loss amounts occur whentwo related transactions, such as an invoice and its payment, are entered in a currency other than the ledgercurrency, and the conversion rate fluctuates between the times that the two are accounted.

◦ The Rounding Class Option: Along with transaction rounding, groups journal lines together and calculatestransaction rounding. Subledger transaction rounding differences can occur when a transaction has multiple-related applied-to transactions, such as a Receivables invoice that has multiple associated receipts.

◦ The Link Journal Lines Option: Determines whether the journal line rule is set up to establish a link betweenthe accounting of transactions that are related both within the same application, and across applications. Thealternatives are described in this table:

This table contains the Link Journal Line Options and their descriptions.

Link Journal Lines Option Description

None

No link is established.

Copy from corresponding line

Build account for a journal line using segments from the offsetting entry of the current journal line. For example, when the business process requires that a cost center incurring an expense must alsobear the invoice liability and cash outlay.

Business flow Link logically related business transactions.



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Link Journal Lines Option Description

For example, when recording the closing of a loan, you can link to the account that was used tobook the loan origination. Journal line rules that are linked must also be assigned the same businessflow class.

Defining Conditions for Journal Line RulesYou may set conditions to specify whether the journal line rule is used to create a subledger journal entry line. If the conditionsare true, the line rule is used to create a subledger journal entry line. Use sources to create these conditions.

For example, you can set up a condition that creates a journal line to record tax, only if there is tax for an invoice. The linetype and account class mentioned here are examples of sources.

• The condition for a Payables invoice tax journal line rule could be:

◦ Where Line Type = Tax

◦ When this condition is true, there is tax for a payables invoice line. A journal entry line is created to record theaccounting impact of the tax.

• Similarly, the condition for an invoice tax journal line rule could be:

◦ Where Account Class = Tax

◦ In this case, if there is an account class of Tax, the journal line is used to record the accounting impact of thetax.

Another example is a condition that creates a journal line for freight when there are freight charges on an invoice.

Journal line rule conditions determine whether a journal line rule and its associated account rules and description rules, areused to create the subledger journal entry line.

Note: Constant values that are used in any Conditions region must not contain the following characters:• "• ,• &• |• (• )• '

For example, in the condition "Project Type" = ABC (123), the constant value following the equal sign, ABC(123), contains restricted characters ( ) that enclose 123 and is invalid.

Creating Account Rules and Mapping Sets

VideoWatch: This video tutorial shows you how to create account rules and a mapping set. The content of this video is also coveredin text topics.






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ProcedureIn this procedure you create a mapping set and account rules.

Create a Mapping SetNavigate to the Manage Mapping Sets page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Expand the task list: Define Accounting Rules for Rapid Implementation.6. Select the task: Manage Mapping Set.7. Click Go to Task.

Create a mapping set on the Manage Mapping Sets page.

1. Click Create icon.2. Enter Name.3. Enter Short Name.4. Enter Output Type.

• In the Input Source region:

a. Select Actions > Select and Add.b. Search and select Source.c. Click OK

• In the Chart of Accounts region:

a. Click Create icon.b. Enter Chart of Accounts.c. Enter Segment.d. Click Save.

• In the Mappings region:

a. Click Create icon.b. Enter Loan Type.c. Enter Output for Department.d. Click Create icon.e. Enter additional Loan Type and Output for Department.f. Click Save and Close.g. Click Done.

Create Account RulesCreate an account rule with a Constant value type on the Manage Account Rule page.

1. Select the Manage Account Rules task.2. Click Create icon.3. Enter Name.4. Enter Short Name.5. Enter Chart of Accounts.6. Enter Rule Type.



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7. Click Save.

• In the Rules region:

a. Click Create icon.b. Enter Value Type = Constant.c. Enter Chart of Account.d. Click Save and Create Another.

Create an account rule using a segment rule type and a mapping set.

1. Enter Name.2. Enter Short Name.3. Enter Chart of Accounts.4. Enter Rule Type = Segment.5. Enter Segment.6. Click Save.


a. Click Create icon.b. Enter Value Type = Mapping Set.c. Enter Value = Mapping Set name.d. Click Save and Create Another.

Create an account rule using an account combination rule type:

1. Click Create icon.2. Enter Name.3. Enter Short Name.4. Enter Chart of Accounts.5. Enter Rule Type = Account Combination.6. Click Save.


a. Click Create icon.b. Enter Value Type = Constant.c. Enter Value.d. Click Save and Close.e. Click Done.

Manage Account Rules

Account Rules: ExplainedAccount rules are used to determine the accounts for subledger journal entry lines. In addition, you can specify the conditionsunder which these rules apply. Using these capabilities, you can develop complex rules for defining accounts under differentcircumstances to meet your specific requirements. You can define account rules for an account, segment, or value set.

Account Rules by AccountDefine account rules by account to determine the entire account combination. For example, an account rule defined byaccount can be used to determine the complete supplier liability account in Oracle Fusion Payables.



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Account Rules by SegmentDefine segment rules to derive a specific segment of the general ledger account. For example, a particular segment like thecompany segment can be determined from the distribution account.

Another segment can be determined with the use of a constant value. Creating the account one segment at a time offersgreater flexibility, but also requires more setup.

Use both segment based and account based rules to derive a single account. Segment-specific rules are used, where theyare defined, and take the remaining values from an account-based rule. For example, you can use an account rule which isfor all segments and also separately use a rule which is for one particular segment. Segment-specific rules take precedenceover the all segments account based rule.

Combine account rules with segment rules. In this case, the segment value is derived from the segment rule to override thecorresponding segment of the account. If the segment rule has conditions associated with the priorities and none are met, nooverride occurs and the segment value is derived from the account rule.

Note:• If the returned account is end dated with a date that is the same or before the subledger journal entry

accounting date, and an alternate account is defined in the general ledger, the alternate account is used. Theoriginal account is stored on the journal line for audit purposes

• If the alternate account is invalid, and the Post Invalid Accounts to Suspense Account option is selectedin the Create Accounting process, then a suspense account is used. An error message is displayed if a validsuspense account is not available.

Account Rules by Value SetsIn the absence of a chart of accounts, you may define account rules based upon value sets. This enables you to share thesame rule between more than one chart of accounts if the segments in these charts of accounts share the same value set.

Sharing Account Rules across ApplicationsYou may share account rules across applications in the following ways.

• Assign an account rule from the same or a different application to a journal line rule in the subledger journal entry ruleset. For example, to derive an expense account for journal line rule Expense, assign the Projects Cost Account ruleowned to the Payables journal line rule Expense.

• Create an account rule based on an account rule from another application and assign it to a journal line rule. Forexample, you may create an account rule Invoice Expense Account referencing Project Cost Account assigned in thePriorities region. You may attach the Invoice Expense Account rule to the journal line rule Expense in the journal entryrule set.

Note:• To share an account rule across applications, all sources used by the account rule must be available for the

event class.• If the sources are available, an account rule is assigned to a journal line rule in the journal entry rule set.

Verification occurs to confirm that all sources used by the account rule are available for the journal line ruleaccounting event class. Journal line rules are only available if the sources are shared; such as reference objects.



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Account Rules and Mapping SetsMapping sets can be used to associate a specific output value for an account or segment. You can use mapping sets inaccount rules to build the account.

Account Rules ConditionsIn the account rules you may specify conditions for each rule detail line. Priorities determine the order in which account ruleconditions are examined. When the condition is met, the rule associated with that priority is used. Depending on which of thedefined conditions is met, a different account rule detail is employed to create the account.

The Create Accounting process evaluates conditions based on the priority of the rule detail. When the condition is met, therule detail is applied.

Creating Account Rules: Points to ConsiderYou can define an account rule using the following rule types:

• Account combination

• Segment

• Value Set

Account Combination RulesSet up account combination rules based upon the following value types:

1. Source Value Type: Derive the account combination by specifying a source.

Sources that have been set up as accounts can be assigned to an account combination rule. Subledger Accountingthen obtains the account combination identifier from the source.

2. Constant Value Type: Establish the account as a constant value.

For example, the constant could be a completed account combination from the chart of accounts specified. Anexample is the account combination, 01.000.2210.0000.000. This is the simplest way to derive an account.

3. Mapping Set Value Type: Derive the account combination by referencing a mapping set.

Set up a mapping set to determine the complete account combination from the chart of accounts specified.4. Account Rule Value Type: Derive the account by referencing another account rule.

The chart of accounts is optional when defining this type of rule. If the account rule has a chart of accounts assigned,then all the related account rules must use the same or no chart of accounts.

Note: A chart of accounts must be specified for account combination rules using constants.

Segment RulesSet up segment rules as follows:

• When a chart of accounts is specified, create a rule to derive the value for a specific segment from the chart ofaccounts.

• If the chart of accounts is not specified, create a rule to derive the value for an account segment with a specificqualifier.

Set up segment rules using the same methods discussed in the preceding Account Combination Rules section. By specifyingdifferent value types, users can select the way in which the segment value is derived.



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Note: A chart of accounts must be specified for segment rules using constants.

Value Set RulesValue set based rules can be created when a chart of accounts is not specified, enabling you to share the same rule betweenmore than one chart of accounts. But, only if the segments in these charts of accounts share the same value set.

Set up value set based rules using the same methods discussed in the preceding Account Combination Rules section.

Manage Mapping Sets

Mapping Sets: ExplainedMapping sets provide an efficient way to define a segment or account combination value for one or more transaction orreference attribute values. Using such input and output mappings is simpler than using complex conditions on account rules.

Based on the value of the source input, a single segment or a full account is derived.

Examples of source input value types:

• Transaction attributes

• Reference attributes

With mapping sets you can:

• Use up to 10 transaction or reference attributes as inputs into a mapping.

• Define default output value to use when actual input values do not match the mappings.

• Use wildcards for multiple input mapping sets to indicate that the value of a particular input should be ignored forcertain mappings.

• Enter the mappings directly on the user interface or use the spreadsheet available in the Export option, and thenimport.

Export allows:

◦ Exporting a template to create mappings.

◦ Exporting all mappings created for the mapping set to add or edit the current mappings.

Example

Assume a business operates in several regions, including:

• East

• South

• West

The business has a Region segment in their chart of accounts.

The region name can be the input for the mappings to derive the value of the region segment. You can create a mapping setthat maps region names to the corresponding region code.

This table contains region names and segment values used in this example.



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Input Value (Region Name) Segment Value

East

01

South

02

West

03

Additional transaction information, such as transaction type and salesperson name, could also be used as inputs to helpderive a different segment value for each combination of the input values.

Defining Mapping Sets: ExamplesDefine a mapping set when you have a matrix of input values that produces distinct output values. For each input value,specify a corresponding account combination or segment output value. One or more related pairs of these input values withthe segment or account combination output values form a mapping set.

A mapping set definition includes the selection of input sources, output type, and mappings. The mappings section displayshow input values are mapped to output values.

To define mapping sets:

• Specify the output type:

◦ The output type for a mapping set can be an account combination, segment, or value set.

◦ Use value set:

• If the value set is used by more than one chart of accounts,• And the mapping set can be reused across multiple charts of accounts.

◦ Expected input or output combinations are constant across the charts of accounts.

◦ Based on the selection, the mapping set provides the value for an account, segment, or value set.

• Define the input source:

◦ Specify the input source for mapping.

• The input source is provided for predefined mapping sets.

• Define the chart of accounts and value sets.

• Specify the output value for the mapping:

◦ For a given input value, enter the corresponding output value.

◦ The account rule uses this value to populate either the account or the segment.

• If the output type is a value set, the output value is an individual value from the value set entered.• If the output type is segment, the output value is an individual segment value.• If the output type is account combination, the output value is an entire account.

Mapping sets are used with account rules:

• If the output type is account combination or segment, identify the chart of accounts assigned to the mapping set.

• If the output type is a value set, identify the value set assigned to the mapping set.



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• If defining a mapping set for more than one chart of accounts or value set, it can be assigned to more than oneaccount rule. This increases the ability to share the mapping set.

A mapping set with no associated chart of accounts:

• Can be assigned to an account rule if:

◦ The account rule is not associated with a chart of accounts.

◦ The mapping set can have any chart of accounts or no chart of accounts.

• Cannot be assigned to an account rule if:

◦ The account rule is associated with a chart of accounts. The mapping set must have the same chart ofaccounts.

ExampleIn the following example, the chart of accounts is set up with four segments. A mapping set is defined with a value set forSupplier Type as described in the following table.

This table contains examples of input values and output values.

Input Value Output Value

Services

01-100-6120-000

Consulting

01-400-6110-000

Assume that two invoices are entered, one for a supplier with a type of Services and one for a supplier with a type ofManufacturing.

When using the mapping set, the source value Supplier Type is compared with the mapping set input values to determine theaccount.

In this example, there is a match for the first case; the invoice with a supplier type of Services maps to an input value.However, the invoice with a supplier type of Manufacturing does not map to an input value.

This table contains the derived accounts based on the example.

Invoice Supplier Type Output Value

1

Services

01-100-6120-000

2

Manufacturing

No account generated

Note: To ensure that transaction 2 is accounted, you may want to modify the account rule to which themapping set is assigned. If not, a separate rule can be defined to provide for the Manufacturing supplier type, ordefine a default output in the existing mapping set.



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Creating Description Rules

VideoWatch: This video tutorial shows you how to create a custom formula and description rules. The content of this video is alsocovered in text topics.

ProcedureIn this procedure you create a custom formula and description rules.

Create a Custom FormulaNavigate to the Manage Mapping Sets page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Expand the task list: Define Accounting Rules for Rapid Implementation.6. Select the task: Manage Custom Formulas.7. Click Go to Task.

Create a formula on the Manage Formulas page.

1. Click Create icon.2. Enter Name. The Short Name is created but can be updated.3. Enter Data Type.4. Enter Event Class.5. Click Save.

• In this formula you abbreviate a loan type value. For example, if the loan type is Fixed Rate, then its new value is FR;otherwise the value is AR.

In the Expression region:

a. Click Insert Function.

i. Enter Type = Conditional.ii. Click Search.iii. Select IF THEN ELSEiv. Click OK.

b. Place the cursor after the IF,.c. Click Source.

i. Select Subledger Application.ii. Select Name = Loan Type.iii. Click Search.iv. Select Loan Type.v. Click OK.

d. Click More.e. Select Equal To (=).






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f. On the IF line, after the = enter 'Fixed Rate' including the single quotes.g. On the THEN line, enter 'FR'.h. On the ELSE line, enter 'AR'.i. Validate the formula.

i. Click Validate.ii. Click OK on the Information message.iii. Click Save.

j. Activate the formula.

i. Click Actions > Change Status > Activate.k. Click Save and Close.

Create Description RulesIn this exercise, you create a header description rule for an accounting event. In this example, we display the loan type, eventtype, and the customer number at the header level of the journal entry.

Navigate to the Manage Description Rules page.

1. Click Go to Task for the Manage Description Rules task.2. Click Create icon.3. Enter Name.4. Enter Short Name.5. Click Save.6. In the Rules region, enter the description rule components.

a. Click Create icon.b. In the Description Details text box enter Loan Type.c. Click Source.

i. In the Source Search enter Type, Formula.ii. Select the formula you created in the prior step.iii. Click OK.

d. In the Description Details text box, place your cursor at the end of the text and append:e. Click Source.f. Search by Name: Accounting Event Type Name.g. Click OK.h. In the Description Details text box, place your cursor at the end of the text and append:i. Click Source.j. Search by Name: Customer Number.

k. Click OK.7. Click Save and Close.8. Click Save and Create Another.

In this exercise, you create a line description for an accounting event. In this example, we display the loan rate at the line levelof the journal entry.

1. Click Create icon.2. Enter Name.3. Enter Short Name.



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4. Click Save.5. In the Rules region, enter the description rule components.

a. Click Create icon.b. In the Description Details text box enter Rate:.c. Click Source.

i. In the Source Search enter Name, Loan Rate.ii. Click OK.

6. Click Save and Close.7. Click Save and Close.8. Click Done.

Creating Description Rules: ExplainedUse descriptions rules to define the elements of a description that appears on the subledger journal entry at the header orthe line. The definition determines both the content and sequence in which the elements of the description appear. You canassign a condition to a description rule to determine that the description is selected for display if the condition is satisfied.

Description Rule DefinitionA description rule can be defined with combinations of source and literal values. If sources are used in the rule, theaccounting event class associated with the sources determines in which subledger journal entry rule set the description rulecan be selected and used.

Build descriptions using the available sources for the application.

The following is the description details that have been entered, using a literal and a source:

• Loan Origination Date = Origination Date

◦ Literal = Loan Origination Date

◦ Source = Origination Date

For example:

• Source value of the Origination Date = 11/01/11

• Journal entry description = Loan Origination Date 11/01/11

Creating Conditions: ExamplesThe following provides examples of defining an account rule with a condition.

Example 1: User-Defined Real Estate Application Account Rule Condition ExampleThis example defines an account rule for assignment to a loan journal line. The account rule has two priorities, a mapping setand a constant.

• The first priority creates an output for an account based on the mapping set rule definition.

◦ A condition is created using the first priority rule. This rule is only used if the condition is met.

• The condition is Credit Status must not be null.• The accounts derived from the mapping set rule are used if the Credit Status has a valid value.

Otherwise, the accounts derived from the entered constants value from the second priority are used.

◦ This table contains the setup of the condition for the first priority:



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( Source Operator Value )

(

"Credit Status"

is not null

)

• The second priority creates an output from a constant value (0.9100030.50034206331.0.0.0). No condition isassociated with the second priority.

Example 2: Oracle Fusion Assets Account Rule Condition ExampleThis example defines a rule for a capital purchase. The rule is applied if the distribution account cost center is the same as theliability account cost center, and the asset tracking option is Yes.

This condition can be expressed as:

• Where Distribution Cost Center = Liability Cost Center and Asset Tracking option = Yes

This table contains the setup of the condition formula.

( Source Delimiter Segment Operator Value Delimiter Segment ) And Or

(

"DistributionAccount"

.

"CostCenter"

=

"LiabilityAccount"

.

"CostCenter"

)

'AND'

(

"AssetIndicator"

=

Yes

)

The following two rows of data are used in the accounting event, to which the account rule and condition applies.

Account Rule Condition Example: Accounting Event Data

This table contains the values to which the condition is applied.

Account Invoice 1 Invoice 2 Asset Indicator

Distribution Account

02-640-2210-1234

01-780-6120-0000

Yes

Liability Account

01-640-2210-0000

02-782-2210-0000

Yes

In the Accounting Event Data table, assume the cost center segment is the second segment. When the account rule with thiscondition is used the account rule is applied to derive the account of Invoice 1 only. For Invoice 2, (assets tracking option =Yes), the cost center for the Distribution and Liability accounts are not the same. Both conditions must be met in order for therule to apply.

Note:• When an account source is used, you must also use a specific segment. Select All if the full account is required

to be used in the condition instead of a specific segment.• The condition uses the account source and distribution account, along with a segment that you must provide.

In this example, the cost center segment is provided.



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Creating Custom Formulas

VideoWatch: This video tutorial shows you how to define a custom formula to return a value to be used to create subledger journalentries. The content of this video is also covered in text topics.

ProcedureIn this procedure, you create a custom formula for an existing Payables description rule.

Create a Custom FormulaNavigate to the Manage Mapping Sets page.

1. Click Navigator.2. Click Setup and Maintenance.3. In the Search field enter Manage Custom Formulas.4. Click the task name Manage Custom Formulas.

Create a formula on the Manage Formulas page.

1. Click Create icon.2. Enter Name. The Short Name is created but can be updated.3. Enter Data Type.4. Enter Event Class.5. Click Save.

• This formula is used in a description rule for the Invoices event class.

In the Expression region:

a. Click Insert Function.

i. Enter Type = Conditional.ii. Click Search.iii. Select IF THEN ELSEiv. Click OK.

b. Place the cursor after the IF.c. Click Source.

i. Select Subledger Application.ii. Select Name = Intercompany.iii. Click Search.iv. Select Intercompany Invoice Indicator.v. Click OK.

d. Click More.e. Select Equal To (=).f. On the IF line, after the = enter 'Y' including the single quotes.g. On the THEN line, click Insert Function.

i. Select Type = Alphanumeric.






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ii. Click Search.iii. Select Concatenate.iv. Click OK.

h. Double-click String1, and replace with 'Intercompany Invoice'.i. Double-click String2.

i. Double-click Source.ii. Select Subledger Application = Payables.iii. Enter Name = Invoice Number.iv. Click Search.v. Select Invoice Number.vi. Click OK.

j. Copy and pasts the THEN clause Concatenate('Intercompany Invoice',"Invoice Number") to the ELSEclause.

k. Remove 'Intercompany Indicator'.l. Validate the formula.

i. Click Validate.ii. Click OK on the Information message.iii. Click Save.

m. Activate the formula.

i. Click Actions > Change Status > Activate.n. Click Save and Close.

Add the Custom Formula to a Description RuleAdd the custom formula to an existing description rule.

1. Navigate to the Setup and Maintenance work area.2. In the Search field enter Manage Description Rules.3. Click Edit on the Invoice Type description rule.

a. Remove the existing source.b. Click Source button.c. Search by Typed. Select Invoice Header with Type.e. Click Save and Close.

4. Click Save and Close.

Manage Custom Formulas: ExplainedYou can use Subledger Accounting custom formulas to derive a value that is used in a journal entry, such as a journal amountor description.

Formula Usage and AssignmentsA custom formula can be used to:

• Calculate a numeric value

• Derive an alphanumeric value



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• Return a date value

It can also be used in any of the following accounting rule components:

• Journal line rule

• Account rule

• Mapping set

• Description rule

• Supporting reference

Formula DefinitionDefine custom formulas using sources for the selected event class. Predefined functions and conditions can also be used toderive the resulting value.

• Enter source in double quotes (").

• Enter constant values in single quotes (').

• Enter date values in the format YYYY-MON-DD.

Example 1A custom formula has been defined to use in the description rule for the journal entry rule set for the Invoice event class.

Steps:

1. Define a formula:

◦ IF "Project Number" IS NOT NULL AND "Invoice Date" >= '2015-Jan-01'

THEN Concatenate("Project Number", "Invoice Number")

ELSE Concatenate("Supplier Name", "Invoice Number")

2. Use the formula in a description rule.3. Assign the description rule to a journal entry rule set.

Results:

Accounting is created for two project invoices and one nonproject invoice.

This table contains the invoices created by example 1.

Invoice Invoice Details Journal Entry Description

1

Invoice number = MA0024 Invoice date = 2014-Dec-11 Supplier name = ABC Inc. Project number = 12345

ABC Inc.MA0024

2

Invoice number = MA0045 Invoice date = 2015-Jan-30

12345MA0045



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Invoice Invoice Details Journal Entry Description

Supplier name = ABC Inc. Project number = 12345

3

Invoice number = MA0012 Invoice date = 2015-Jan-15 Supplier name = ABC Inc.

ABC Inc.MA0012

Example 2A journal entry is recorded for the actual 401k funding every quarter. The monthly accrued amount entry is created for eachmonth of the quarter using the following custom formula.

Note that the accrual entry is to be reversed at the beginning of the next month by the accrual reversal feature.

Steps:

1. Define a formula:

◦ "Fund Balance" / 3 * "Month Number in the Quarter"

2. Assign the formula to the Entered Amount accounting attribute for the event class.3. Use the formula as the Entered Amount for the journal line rule.4. Assign the journal line rule to the journal entry rule set.

Fund balance = 1,200 USD

This table contains the monthly entries created using example 2.

Month Results

1

Accrual amount for the first month in the quarter: 1200 / 3 * 1 = 400

2

Accrual amount for the second month in the quarter: 1200 / 3 * 2 = 800

3

Accrual amount for the third month in the quarter: 1200 /3 * 3 = 1200

Predefined Formula FunctionsThe following predefined functions are available to be used in custom formulas.

This table contains a listing of predefined formula functions.

Type Function Description Example

Alphanumeric

Concatenate

Concatenate two strings into onesingle string.

Concatenate('This is ', 'a test.')returns 'This is a test'.

Alphanumeric

Substring

Extract part of a string.

Substring('How are you?', 3,5)returns 'w are'.



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Date

FirstDayOfYear

Return the first day of thecalendar year based on theparameter.

FirstDayOfYear('2013-Jul-11')returns '01-Jan-2013' in dateformat.

Date

LastDayOfYear

Return the last day of thecalendar year based on theparameter.

LastDayOfYear('2013-Jul-11')returns '31-Dec-2013' in dateformat.

Date

FirstDayOfMonth

Return the first day of the monthbased on the parameter.

FirstDayOfMonth('2013-Jul-11')returns '01-Jul-2013' in dateformat.

Date

LastDayOfMonth

Return the last day of the monthbased on the parameter.

LastDayOfMonth('2013-Jul-11')returns '31-Jul-2013' in dateformat.

Date

AddMonth

Return the date of specifiednumber of months after the datein parameter.

AddMonth('2013-Jul-11', 2)returns 11-Sep-2013 in dateformat.

Numeric

YearNum

Return the year of a date sourcein 4-digit format.

YearNum('2012-Feb-28') returnsthe number 2012.

Numeric

MonthNum

Return the month of a datesource in numeric format.

MonthNum('2012-Feb-28')returns the number 2.

Numeric

DayNum

Return the day of date source innumeric format.

DayNum('2012-Feb-28') returnsthe number 28.

Numeric

Round

Round a number to a specificdecimal place.

Round(183.1123, 2) returns183.11 Round(183.1123, -1) returns 180

Numeric

RoundUp

Round up a number to integer.

RoundUp(0.01) returns 1. RoundUp(1.50) returns 2.

Numeric

RoundDown

Round down a number tointeger.

RoundDown(0. 01) returns 0. RoundDown(1. 50) returns 1.

Numeric

Power

Return the power of a number.

Power(3,2) returns 9.

Numeric

NumberOfGLPeriod Return the number of

nonadjustment accountingperiods between two dates.

• If start date is not thefirst day of an accountingperiod it's counted as oneperiod.

If accounting calendaris defined as Monthly,NumberOfGLPeriod('2013-Jul-11', '2013-Oct-10') returns4.



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• If end date is not the lastday of an accountingperiod, it's counted asone period.

Related Topics

• Subledger Journal Entry: Overview

• Creating a Manual Subledger Journal: Points to Consider

• Accrual Reversals: Explained

Creating Supporting References

VideoWatch: This video tutorial shows you how to create supporting references. The content of this video is also covered in texttopics.

ProcedureIn this tutorial you create supporting references.

Navigate to the Manage Supporting References page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Expand the task list: Define Accounting Rules for Rapid Implementation.6. Select the task: Manage Supporting References.7. Click Go to Task.

Create a supporting reference.

1. Click the With Balances tab.2. Click Create icon.3. Enter Name.4. Enter Short Name.5. In the Sources region:

a. Search Subledger Application.b. Source and select Source.c. Click OK.

6. Repeat these steps to create another supporting reference.7. Click Save and Close.

Creating Supporting References: ExplainedSupporting references are used to store additional source information about a subledger journal entry at the line level.






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Supporting references with balances establish subledger balances for a particular source and account for a particularcombination of supporting references plus the account combination.

For example:

• If a journal line contains a supporting reference that includes two sources, Customer Type and Customer Name.

• Balances are created for the account combination, plus customer name and customer type.

Examples of how you may want to use supporting reference balances are to:

• Facilitate reconciliation back to the subledgers and source systems by tagging journal entries with transaction andreference attributes.

• Create balances by dimensions not captured in the chart of accounts.

• Reporting using dimensions not captured in the chart of accounts.

• Enrich Oracle Fusion Business Intelligence Applications reporting on subledger journals.

• Profit and loss balances by dimensions not captured in the chart of accounts

Define supporting references to hold additional supporting information for detailed account balance maintenance orreconciliation and reporting requirements.

Supporting Reference AssignmentSupporting references are a powerful tool to allow capture of journal entries with transaction attributes. You can use thesetags to report on entries, reconcile entries back to source systems or even maintain balances at the attribute level.

• Define supporting references once and reuse by assigning sources of different event classes or source systems tothe same supporting reference.

• You can assign one source per event class to each supporting reference. The subledger or source system uses thesupporting reference name to store the source values. This standardizes supporting reference information, even if itcomes from disparate source systems.

Supporting references can be defined using either of these options (located on tabs):

• With Balances:

◦ Select the balances option in the definition of the supporting reference, to have balances only maintainedwhen the supporting reference is assigned.

◦ If balances are maintained for a supporting reference, they are carried forward into the next fiscal year, for allProfit and Loss account types.

◦ A limit of thirty supporting references with balances can be defined. You can consider adding more sourceassignments to predefined supporting references, rather than creating a new one.

• Without Balances:

◦ No limit to the number of supporting references without balances is defined.

◦ Consider using a journal entry header or line description if:

• No balance is maintained for a supporting reference.• No supporting reference details are needed for reports.

Caution: Using supporting references instead of descriptions may impact accounting engine performance.



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Related Topics

• Supporting Reference Assignments: Points to Consider

Migrate the Configuration

Migrating Accounting Rules: Points to ConsiderUse the export and import functionality in the Setup and Maintenance work area to perform migration of setup data. Whenmigrating accounting rules, you must migrate task lists in entirety and fulfill some requirements.

Full Task List MigrationThis table contains the task lists used to migrate in full, depending on the offering.

Offering Task List


Define Accounting Transformation Configuration

Oracle Fusion Financials

Define Subledger Accounting Rules Define Transaction Account Rules

Support is not provided for a partial task list migration.

You may migrate setup data for specific applications only. Note that supporting references, accounting options, andaccounting class usages are migrated for all applications, regardless of the applications specified.

Migration RequirementsPrior to migration, journal entry rule sets and accounting methods must be successfully activated. Invalid journal entry rulesets or accounting methods cause import failure.

Ensure that your setup data migration includes all dependent business objects from other required setup modules, such asDefine Ledgers. The import sequencing of these dependent business objects must be prior to accounting rules businessobjects.

Related Topics

• Configuration Packages: Explained

• Implementation Project Based Export and Import: Explained

Secure Accounting Transformations

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https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=A48BC766452FB084E040D30A6881408B



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Security for Accounting Transformations in Accounting Hub:ExplainedAccounting transformations require both function and data security privileges.

Oracle Accounting Hub security for accounting transformations includes:

• Setup task security

◦ Security to register source systems into Accounting Hub.

◦ Security to configure accounting rules to define accounting treatments for transactions.

• Transactional task security

◦ Security to create subledger journal entries (manual subledger journal entries or those generated by the CreateAccounting process).

◦ Security to review and generate reports of subledger journal entry headers and lines.

Security to Perform Setup TasksUse the Define Accounting Transformation Configuration task in the Setup and Maintenance work area to integrate yourexternal source system with the Accounting Hub.

To register your external source system and configure accounting rules, the setup user must be provisioned with a role thatincludes the following duty roles:

• Application Implementation Consultant

• Accounting Hub Integration

• In the security reference implementation, the Financial Application Administrator job role hierarchy includes theAccounting Hub Administration Duty role. This role provides the access to integrate your external source systemswith accounting transformations.

Security to Perform Transactional TasksTo import transaction data for accounting and posting in general ledger, the user must be provisioned with a job role that isassociated with the Accounting Hub Integration duty role.

• The Import Subledger Accounting Transactions privilege is assigned to the Accounting Hub Integration duty role.This role enables the user to submit the Import Subledger Accounting Transactions process. This process alsocreates accounting entries and posts them in the general ledger.

To create and view subledger journal entries as an independent task, you must have the access necessary to perform thetasks. These tasks can be opened from the Oracle General Ledger, Journals work area. You must have access to the workarea, as well as all of the ledgers (primary, secondary and reporting currency) in which the journal entry is posted.

The following are defined in the security reference implementation:

• The General Accounting Manager job role hierarchy includes duty roles that provide the entitlement to managegeneral accounting functions. This entitlement provides access to the general ledger, Journals work area.

The following duty role must be assigned directly to the General Accounting Manager job role to provide access to create andview subledger journal entries:

• Accounting Hub Integration Duty



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Alternatively, you can assign the Subledger Accounting Duty and Subledger Accounting Reporting Duty roles to any of thefollowing general ledger job roles:

• Chief Financial Officer

• Controller

• Financial Analyst

• General Accountant

For more information about available setup job roles, duty roles, and privileges, see the Oracle Financials Cloud SecurityReference guide on the Oracle Help Center.

Related Topics

• Data Security: Explained

Create and Process Subledger Journal Entries

Subledger Journal Entries in Accounting Hub: How They Are Createdand ProcessedThe Create Accounting process uses the uploaded transaction data and accounting rules to create subledger journal entries.For example, a subledger journal entry rule set specifies that the customer name should appear in the description of asubledger journal entry line. The customer name value is obtained from the customer name source data provided by theuploaded transaction data.

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This figure illustrates the Create Accounting process.

Upload Transaction

Data

Universal Content Managment

Submit Import Accounting

Transactions Process

Create Accounting Process

Subledger Journal Entries

Subledger Reporting

Import to General Ledger

General Ledger Journal Entries and Balances

Automatically submitted and processed.

How Subledger Journal Entries Are Created and Processed in Accounting Hub

1. The source system transactions are uploaded into Universal Content Management.2. The transactions are then imported into Accounting Hub using the Import Accounting Transactions process.3. The Create Accounting process is automatically submitted.4. Subledger journal entry rule set definitions and sources from transaction data are applied to create subledger journal

entries.5. The subledger journal entries are summarized and imported to Oracle General Ledger.


Chapter 7Manage Subledger Accounting

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7 Manage Subledger Accounting

Manage Subledger Accounting: OverviewIn the Manage Subledger Accounting activity, you can generate journal entries for source system transactions, createadjustment entries, and review accounting results.

You can:

• Create accounting for a batch of transactions by submitting an offline process.

• Create manual adjustment entries.

• Review generated journal entries and projected balances on views and reports.

Upload Transaction Data for Accounting

Uploading Transaction Data for Accounting

VideoWatch: This video tutorial shows you how to import source system transaction data into Accounting Hub. This process importstransaction data, creates accounting events and subledger journal entries for events with accounting impact. The content of thisvideo is also covered in text topics.

ProcedureIn this procedure, you import transaction data for use in accounting for subledger journal entries.

Populate the Transaction TemplateNavigate to the Manage Journal Entry Rule Set page.

1. Click the Setup and Maintenance tile on the home page.2. Click the Implementation Projects button.3. Search for the FAH Implementation project.4. Expand the task list: Define Accounting Configuration for Rapid Implementation.5. Select the task: Manage Subledger Application.6. Click Go to Task.

Download the transaction template spreadsheet.

1. Click Download Template button.2. Save File: Save the file on a local drive.3. Click OK.4. Click Save.5. Open Windows Explorer.6. Select the .zip file.







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7. Click Extract all files (or extract using the method provided on your local version.)8. Preview the metadata file. The metadata file contains details including creation date, application short name and

required date format.9. Open and populate the header transaction file: XlaTrxH.xls.

This figure illustrates the header transaction file.

10. Open and populate the line transaction file: XlaTrxL.csv

This figure illustrates the line transaction file.

11. Select and compress the three files.

◦ The file names must remain the same as the downloaded files.

◦ As a best practice, Oracle recommends that the .zip file has a unique name that includes a subledger sourceand date stamp.

◦ The.zip file name must begin with XlaTransaction.

Upload the Transaction TemplateReturn to the Oracle Accounting Hub to upload the compressed transaction file.

1. Click Navigator.2. Click Files Import and Export.3. Click Create icon.4. File: Browse for the compressed file.5. Account: Select the account fin/fusionAccountingHub/Import.6. Click Save and Close.7. View the file upload information to verify file uploaded.

Import the Transaction DataThe next step is to import the transaction data. This process creates accounting entries. Accounting rules definition is aprerequisite setup for successfully creating accounting entries

1. Click Navigator.2. Click Scheduled Processes.3. Click Schedule New Process.4. Search and select Name: Import Accounting Transactions.5. Click OK.6. Select Data File = your uploaded file name beginning with XlaTransaction.7. Click Submit.8. Click OK.



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9. Click Refresh until the process completes.

View the TransactionsView the transaction that you imported in the subledger application.

1. From the Home page select General Accounting > Journals.

◦ You must select the appropriate Data Access Setto view your transactions.

2. Open the Task Pane.3. Select Subledger Accounting > Review Subledger Journals task.4. Search Ledger.5. Search Journal Source.6. Search Accounting Date.7. Select Journal line.8. In the Journal Entry Details region, click the View Journal Entry button to view the details of the journal entry.9. Click the View Transactions button to drill down to view the transaction data.

View the transactions that you imported in the general ledger.

1. From the Home page select General Accounting > Journals.2. Open the Task Pane.3. Select Manage Journals task.4. Search Source.5. Search Batch Status.6. Click Search.7. Click the Journal Batch link to view the details of the journal.8. Click the Debit account link to view the details for the debit side of the journal line.9. Click the View Journal Entry to view the transaction associated with the journal entry.

Uploading Transaction Data for Accounting Hub: ExplainedAfter completing the registration of the source system and the configuration of the accounting rules, you can perform aspreadsheet upload of transaction data. You can upload the transaction data with a manual or an automated process.

This figure illustrates the upload transaction data processes, whether they are to be executed manually or automated.



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Manually Upload Transaction DataTo upload the transaction data manually, follow these sequential steps:

1. Download the transaction data template using the Manage Subledger Application task.2. Extract the three files contained in the downloaded template.

a. Metadata.txt

• The metadata file contains find key information about the source system. It also contains relatedinformation that you must know when populating the transaction spreadsheet for upload. For example,the required data format.

This Metadata file includes:

◦ Creation date

◦ Application short name

◦ Date format

◦ Transaction header file name

◦ Transaction line file name

b. XlaTrxH.csv

• This file contains the header-level columns for the transaction data that can be populated.• The column names match the short name of the sources that were included in the Transaction

Information worksheet during the registration of your source system.• One column that is available in the header and line file is the Transaction Number. The Transaction

Number links the header and its corresponding lines information.c. XlaTrxL.csv

• This file contains the line-level columns for the transaction data that can be populated.• The column names match the short name of the sources that were included in the Line Information

worksheet during the registration of your source system.3. Populate the header and line CSV files.4. Compress the three files using a Zip file format.

◦ The name of the .zip file must begin with XlaTransaction.

◦ To uniquely identify the file, we recommend you suffix the file with the subledger source name and date. Forexample: XlaTransactionRetailLoan050417.zip.

5. Upload the .zip file into Universal Content Management.

Caution: You must assign the Accounting Hub Integration Duty Role to a custom job role to perform thisstep. Alternatively, you can assign the Subledger Accounting Duty and Subledger Accounting ReportingDuty roles to any of the following general ledger job roles:

◦ Chief Financial Officer

◦ Controller

◦ Financial Analyst

◦ General Accountant



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◦ Navigate: Navigator > Tools > File Import and Export.

◦ Click Create.

◦ Browse for the compressed file.

◦ Select account: fin/fusion/AccountingHub/Import.

◦ Save and Close.

◦ View the file upload results in the Search Results region.

6. Submit the Import Accounting Transactions process.

◦ Navigate: Navigator > Scheduled Processes.

◦ This process imports accounting transactions from Universal Content Management, creates accountingentries and posts the journal entries to the general ledger.

◦ If there are invalid entries, query journal entries with Invalid status from the Review Journal Entries task, viewthe transaction, and correct the errors directly. Refer to the Correcting Accounting Hub Transaction Data forInvalid Entries: Explained topic for details.

Note: Error correction is dependent on the dependent on the Update Subledger Transactionsprivilege. You can remove or add the privilege per your company's policy.

◦ The uploaded transaction data is kept in the Accounting Hub Cloud for 90 days. Exceptions include:

• Transactions that are used to create multiperiod accounting entries. This type of transaction is kept untilthe end date of the multiperiod duration.

• Unaccounted transactions. These transactions are not purged, even if they are more than 90 days old.

Automated Processing OptionsAutomated processing options are available to bring the transaction data files from the registered source systems intoAccounting Hub. This includes data from other external sources, such as other company-specific applications, transactionapplications, or legacy applications. Optionally, data transformation processing may be required for data sourced from PaaSor other external files.

• Transaction data in CSV format are imported into Accounting Hub using the Universal Content Management withone of three available integration options:

◦ Oracle Web Center Content Client Command-line tool.

◦ Oracle UCM Web Services.

◦ ERP Integration Service, upload to UCM.

• Import the transaction data using the Import Accounting Transactions process.

• The Create Accounting process is automatically called, resulting in the creation of journal entries.

For more information about automated processing options, see the following resources in the Oracle Help Center:

• Oracle Fusion Middleware Developer's Guide for Content Server: Using Oracle UCM Web Services

• Oracle Integration Cloud Service

• Oracle Accounting Hub Best Practice guide



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TestingOnce the setup is complete, testing should be comprehensive to ensure that all accounting is correctly generated.

At a minimum, this should include testing for the following:

• Sources are available for creating subledger journal entries.

◦ Review available sources from the Manage Sources user interface.

◦ Confirm that when you configure accounting rules, sources are available for use.

• Subledger journal entries accurately reflect the accounting rules.

We also suggest that you test the following:

• Subledger journal entries contain the appropriate dates, amounts, descriptions, and accounts.

• Conditions used to determine journal line rules, account rules, or descriptions are valid.

• Subledger journal entries are successfully transferred and posted to general ledger.

Note: To perform detailed diagnostics on the underlying transaction sources used to accounting journal entries,follow the Subledger Accounting diagnostic framework business process flow. See the Diagnose SubledgerAccounting Event Data: Explained topic for details.

Gain Insight Using Journal EntriesOnce you have the accounted subledger journal entries in Accounting Hub, you can use the posted journal entries to gaininsightful information.

• To streamline period close activities, perform a reconciliation of subledger journal entries with the posted journalentries in the GL or the source system, on a regular basis.

◦ Review the supporting references report that tracks specific accounts in the subledger. Reconcile with thesame account in the general ledger.

◦ The Supporting References report is a user-defined analysis using OTBI subject areas; Subledger Accounting- Journals Real Time, and Subledger Accounting - Supporting References Real Time.

• Review the accounting reports to gain insight on your current business performance with the configured analyticalmetrics, such as supporting references.

• Perform queries on specific accounts in the general ledger and drill down to its corresponding subledger journalentries and transaction data.

Create Accounting

Subledger Accounting Options: ExplainedSubledger accounting options define how certain accounting processing should be done for transactions of a given subledgerat a ledger level. These options are set up for the primary and secondary ledgers only.



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Manage Subledger Accounting OptionsThis task is accessed from the Setup and Maintenance work area. The page is displayed in the context of a primary orsecondary ledger. All registered subledger applications are displayed. If you created additional accounting event classes afterinitial ledger setup, run the Update Subledger Accounting Options process to incorporate these event classes.

The Manage Subledger Accounting Options task provides the ability to edit:

• Accounting Options

• System Options

Edit Accounting OptionsThis page displays the subledger accounting options for the ledger. You can review and update the options. The view for thispage depends on the subledger application type and the ledger type (primary or secondary).

The views are as follows:

• The Defaults and Ledger options view displays the accounting program defaults and the event class options for thefollowing:

◦ A primary ledger for a subledger application.

◦ A secondary ledger for a subledger application.

• The Ledger options view displays the event class options for a subledger application, and secondary ledger.

General Options

• Subledger Accounting Enabled

This option is visible only for secondary ledgers in the ledger options view. Enable or disable the subledgerapplication for the ledger. No entries are generated by subledger accounting for an application if subledgeraccounting is disabled for the ledger.

• General Ledger Journal Entry Summarization

◦ This option determines whether subledger journal entries are summarized or grouped when they aretransferred to General Ledger.

This table contains the General Ledger Journal Entry Summarization options and a description of those options.

Option Description

Summarize by general ledger period Default option.

Indicates that all subledger entry lines are summarized into a single general ledger entry if theyhave the same:

◦ Accounting period

◦ General ledger journal category

◦ Account

◦ Entered currency

◦ Side

◦ Balance type



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Option Description

Disabled if the ledger uses daily balancing.

The general ledger effective date defaults to the last date of the accounting period.

Summarize by general ledger date Indicates that all subledger entry lines are summarized into a general ledger entry if they have the

same:

◦ Accounting date

◦ General ledger journal category

◦ Account

◦ Entered currency

◦ Side

◦ Balance type

Default value if Summarize by accounting period is disabled.

The general ledger effective date is equal to the subledger accounting date.

Group by general ledger period

Indicates that all subledger journal entries with the same accounting period are grouped together. Each subledger journal entry line is transferred into the general ledger with the same granularity asthe original lines.

Group by general ledger date

Indicates that all subledger journal entries with the same accounting date are grouped together. Each subledger journal entry line is transferred into the general ledger with the same granularity asthe original lines.

• Reversal Method

Use the Reversal Method option to determine how the reversal subledger journal entries are generated in subledgeraccounting. The options are:

◦ Switch debit and credit (default): reverses a debit for a credit and a credit for a debit.

◦ Change Sign: The reversal entry keeps the same side as the original entry, but the sign is changed.

• Rounding Rule

Use the Rounding Rule option to determine which option to use for rounding. Subledger accounting rounds to theminimum accountable unit or ledger currency precision.

Tip: For examples described in the Rounding Rule Options table, assume that the precision is 2 and theminimum account unit is 0.01.

This table contains the Rounding Rule options and a description of those options.



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Option Description

Up

Amount rounded up. For example, 5.983 (USD) is rounded to 5.99 (USD).

Down

Amount rounded down. For example, 5.988 (USD) is rounded to 5.98 (USD).

Nearest

Amount rounded to nearest number. However, if the difference between Up and Down options isequal, the amount is rounded up. For example, 5.985 (USD) is rounded to 5.99 (USD).

• Third-Party Merge Accounting Options

The reporting currency ledgers inherit the third-party merge accounting option from the primary ledger.

This table contains the Third-Party Merge Accounting Options and a description of those options.

Option Description

Transfer of the third-party controlaccount balances

◦ Transfers the control account balance at the merge date, from the old third party to thenew third party.

◦ Reverses and rebooks the existing journal entries that occurred after the merge date.

◦ In the case of a partial merge, transfers the balance that corresponds to the transactionsthat are part of the partial merge.

Replace third party

◦ Updates the existing journal entries by replacing the old third party and site with the newthird party and site.

None

◦ No accounting effect.

Journal Categories Options

• The table describes the event class option that can be overridden. Note that only the Journal Category event classcan be overridden.

This table contains the Journal Categories Options, and a description of those options.

Option Description

Journal Category

Defined in the accounting rules for an event class. Any valid journal category defined in GeneralLedger can be used.

Edit System OptionsThe following three regions are available:

• Create Accounting Processing Options

• Event Class Options

• Transfer to General Ledger Processing Options



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Create Accounting Processing Options

• Number of Create Accounting Workers

• Processing Unit Size

This table contains the Create Accounting Processing options and a description of those options.

Column Name Description

Processing Unit Size

Approximate batch size for high volume general ledger transfer flow, and is also the general ledgerimport batch size. If not specified, the corresponding accounting processing unit size is used.

◦ You can define the processing unit size to process a large number of items in one commit cycle. A processingunit is the number of transactions processed by the Create Accounting process in one commit cycle. CreateAccounting processes the default processing unit size at the application level.

• Stop at Error Limit

◦ Maximum number of events allowed to fail before canceling account program.

Event Class Options

• Event Class


On the Manage Subledger Accounting Options page, you can select the subledgers for each ledger or ledger set, andspecify the Processing Unit Size for each event class.

Transfer to General Ledger Processing Options

• Number of General Ledger Transfer Workers


Importing information from subledgers is done using subledger accounting. Posting from the subledger application transfersdata to the general ledger interface and journal entry tables.

As part of your configuration, you can specify whether the Create Accounting process is to split the creation process intomultiple workers (processors). The benefit of splitting the creation process is that:

• Accounting can be generated more efficiently with more resources allocated to complete the process.

• You can have multiple processors running in parallel to create the entries in a shorter period of time.

One restriction is the capacity of the hardware that is being used by the application. The more available processors, the moreyou can allocate to the Create Accounting process.

The decision for how many processors to use is made based upon expected volumes and the processing window. In otherwords, how much time is allocated to creating accounting. Accounting is often done as a nightly batch process, to facilitateapplication availability during work hours.

Dependencies exist between the overall completion status of the Create Accounting process and the workers. In general, theparent does not update to the Completed status until all the workers successfully complete.

The process that allows transfer of subledger journal entries to general ledger uses separate processing workers that arespecialized in general ledger transfer. A lightweight general ledger transfer parent process is used to distribute the workload



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to the workers. To transfer entries even faster, you can have a number of parallel processing workers used for high volumegeneral ledger transfer flow. If not specified, the corresponding accounting processors are used.

Submitting the Create Accounting Process: ExplainedThe Create Accounting process is an Oracle Enterprise Scheduler process. It can be submitted as a request from theScheduled Processes Monitor window to create journal entries for a batch of events. It has input parameters that determinethe execution mode and the selection criteria for events.

This figure illustrates the submission of the Create Accounting process.

Report

Create Accounting (Enterprise Scheduler Service (ESS)

process)

Schedule Process Monitor

(Batch Mode)

This table contains the parameters for the Create Accounting process as submitted in the Scheduled Processes Monitorwindow.

Prompt Description

Subledger Application

Source system for which the Create Accounting process is being executed.

Ledger

Ledger name for which the Create Accounting process is being executed.

Process Category

Selecting a process category indicates that all associated accounting event classes and theiraccounting event types are selected for processing.

End Date

End date puts a filter on the selection of events. Only events having an event date on or before theend date are selected for accounting. Default value is current system date. If the process is scheduled to execute periodically, after theinitial process, the End Date for each subsequent scheduled process is incremental.

Accounting Mode

Accounting mode; Draft or Final



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Prompt Description

Default value is Final.

Process Events

Adds other filter criteria for the Create Accounting process to select events: All: Process all events. Errors: Process only those events that have previously been processed in error. Invalid Accounts: Process only those events that have previously been processed in error. Replaceany invalid accounts with the suspense account. Default value is All.

Report Style

Users can select the type of details to display on the execution report. The report can be printed inSummary, Detail, or No report. Default value is Summary.

Transfer to General Ledger

Indicates whether the Create Accounting process should submit the Transfer to GL process; Yes,No. Default value is Yes.

Post in General Ledger

Indicates if users, who have been granted the posting privilege, want to submit General Ledgerposting; Yes or No. Default value is Yes.

Journal Batch

Batch name used by Transfer to GL to decide on the batch name for the batch created in OracleFusion General Ledger. When a value for the batch name is not provided, the journal import default is used. Free text field.

Include User Transaction Identifiers

Default value is No.

Related Topics

• Disabling Posting Subledger Transactions to the General Ledger: Explained

Accessing the Create Accounting Execution Report: ExplainedWhen you submit the Create Accounting process, the Create Accounting Execution Report is submitted automatically if theCreate Accounting process completes with a success or warning status. The Create Accounting process output contains a

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message with the Create Accounting Execution Report request identifier. Use this request identifier to retrieve the executionreport output.

Create Accounting Execution ReportThe Create Accounting Execution Report can be recreated.

This report can be recreated as needed using the following criteria:

• Submit the Create Accounting process.

• Use the same request identifier of the wanted Create Accounting process run previously by the same user, providedthat no other Create Accounting process was run with the same criteria.

Diagnose Subledger Accounting Event Data: ExplainedThe diagnostic framework stores data that is used in the creation of a journal entry so that the data can be reported toanalyze accounting issues. The purpose of the process is to provide the transaction data that is referenced during accountingthrough accounting rules and ledger setup.

The diagnostic framework provides a tool that can be used to determine why the accounting was created in a particular wayor why there are errors. Errors may occur because either the source system information or the accounting rules are not asexpected.

The following examples describe typical uses of the diagnostic framework features.

• In the implementation phase, you can launch the Accounting Event Diagnostic report to review the source valuesavailable in the transaction objects.

• On a daily basis, you can use the Accounting Event Diagnostic report to troubleshoot exceptions.

Diagnostic Framework FeaturesThe diagnostic framework features are as follows:

• SLA: Diagnostic Enabled: This option controls whether diagnostic information is gathered by the Create Accountingprocess. Use with caution. Selecting this option can cause slow performance.

• Diagnostic Framework Execution: When the SLA: Diagnostic Enabled option is set to Yes, the diagnostic frameworkis executed simultaneously with the Create Accounting process. The diagnostic framework data is stored in thediagnostic tables.

• Accounting Event Diagnostic Report: To view the diagnostic framework report, users submit the Accounting EventDiagnostic process with the appropriate report parameters.

• Purge Accounting Event Diagnostic Data: Purging is useful when accounting is successfully created so that thevolume of information in the report does not increase to a point where it becomes unusable.Diagnostic framework data purged:

◦ When the data collected can be purged by running the process.

◦ When the administrator launches the Purge Accounting Event Diagnostic Data process.

Diagnostic Framework Business Process FlowThe following steps describe the diagnostic framework business process flow:

1. The administrator sets the SLA: Diagnostics Enabled option to Yes for the user or responsibility.



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2. Users submit the Create Accounting process that automatically executes the diagnostic framework to populatethe diagnostic tables. The diagnostic framework gathers source values and other information from the transactionobjects.

3. Users submit the Accounting Event Diagnostic process to view the diagnostic report. Based on the information in thediagnostic report, users may determine if additional or resubmission of information from source systems is required.They may also determine if any updates to the accounting rules is required.

4. Users run the Create Accounting process again to generate subledger journal entries for events that had an error.5. The administrator submits the Purge Accounting Event Diagnostic Data process to purge the results of the

diagnostic framework.

Posting Subledger Transactions to the General Ledger: ExplainedPost subledger journals to the general ledger when you create accounting, or run the Post Subledger Journal Entries processto transfer and post at a later time.

• To perform posting to General Ledger, you must have the privilege to execute this task.

With the required privileges, you can select the Account and Post to Ledger option to create and post journal entries to thegeneral ledger, during the online Create Accounting process.

• If you do not have the privilege to post, select Account in Final to create journal entries and transfer to GeneralLedger.

• You can view the output of the Post Subledger Journal Entries process for the summary of the transfer process.

You can manually run the Create Accounting process to create a batch of transactions. Set the following parameters tocreate journal entries and post to the general ledger.

• Accounting Mode is set to Final.

• Transfer to General Ledger is set to Yes.

• Post in General Ledger is set to Yes.

◦ If you do not have the privilege to post, the Post in General Ledger parameter is not available.

Related Topics• Disabling Posting Subledger Transactions to the General Ledger: Explained

Create Subledger Journal Adjustment

Subledger Journal Adjustments: Points to ConsiderSubledger journal adjustments enable easier audit and reconciliation because you can store transaction information directlywith journal adjustments. You can enter and complete subledger journal adjustment entries from the user interface or uploadusing a spreadsheet.

You can perform the following actions on your subledger journal adjustments, depending on their status:

• Edit

• Duplicate

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• Reverse

• Delete

• Complete

Editing a Subledger Journal AdjustmentWhen editing a subledger journal adjustment, you can perform the following tasks:

• Edit the journal header information, if the status is not Final.

• Edit and create journal lines, including accounts.

• Enter the debit, and credit amounts.

• Enter the accounting class.

• View the impact on general ledger account balances should the adjustment be completed.

• Post the journal.

You can also edit incomplete subledger journal adjustments.

• Examples of header information which can be updated:

◦ Ledger

◦ Accounting date

◦ Category

◦ Description

• Examples of subledger journal adjustment line information which can be updated:

◦ Account

◦ Accounting class

◦ Entered amount

◦ Journal adjustment lines

◦ Select supporting references and assign values to them.

• Edit default currency options to be assigned to a subledger journal adjustment.

• Edit or redefine the subledger journal adjustment description.

Duplicating Subledger Journal AdjustmentsAs a time saving feature, you may copy an existing adjustment.

The duplication feature is enabled for all existing subledger journal adjustments, regardless of status. It includes the ability tocopy complete information required for a subledger journal adjustment header and line.

Note: All fields can be edited when an adjustment is duplicated.

Reversing Subledger Journal AdjustmentsYou can reverse subledger journal adjustments in Final status. Reversal options are populated from accounting options.

• Switch debit and credit.

• Change sign.



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Deleting Subledger Journal AdjustmentsOracle Fusion Subledger Accounting provides the ability to delete a subledger journal adjustment that is not in Final status.The ability to delete subledger journal adjustments ensures that users have the flexibility to correct errors without technicalsupport.

Completing Subledger Journal AdjustmentsYou can complete subledger journal adjustments in Final and Post to General Ledger status.

Creating a Manual Subledger Journal: Points to ConsiderThe application enables the user to create manual subledger journal entries online.

Creating a Manual Subledger Journal EntryThis includes the ability to:

• Enter the complete information required for a manual subledger journal entry.

• Enter subledger journal entry descriptions.

• Select a supporting reference and supply the supporting reference value to a subledger journal entry line.

• Assign a descriptive flexfield to a subledger journal entry header or subledger journal entry line.

• Populate default values for an entered currency for a created subledger journal entry line.

• Enter default conversion type, date, and rate information to establish a default currency for the journal that is differentthan its associated ledger currency.

• View projected balances of entered and accounted journal line amounts.

• Complete and post subledger journal entries.

Note: The ability to post subledger journals to the General Ledger is dependent on your security profile.If you do not have the privilege to post, creating a manual subledger journal entry with a Final completionstatus includes the transfer to General Ledger.

Supporting Reference Assignments: Points to ConsiderYou may want to analyze account balances and financial results by different transaction attributes. However, transactioninformation such as salesperson, customer, or supplier are typically not stored in the general ledger because of the volume ofgeneral ledger balances it would create. Therefore, you are not able to analyze general ledger data categorized by transactionattributes.

You can perform this type of reporting and analysis using supporting reference information from subledger transactions. Thisfeature enables you to create balances based upon transaction attributes not typically stored as segments in the generalledger chart of accounts.

For example, you can report on receivables balances by salesperson, customer, credit risk category, item, or any othercombination of transaction attributes.

Supporting references can be used to:

• Provide additional information about a subledger journal entry line.



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• Establish a subledger balance for a particular supporting reference value.

• Assist with reconciliation of account balances.

• Provide additional detail information for financial managerial analysis.

You can assign supporting references at the subledger journal entry line level.

Assigning Supporting References at the Subledger Journal Entry LineAssigning supporting references to subledger journal entry lines enables you to maintain detailed balances, by supportingreference value, for general ledger accounts.

Related Topics

• Creating Supporting References: Explained

Validating a Third-Party Control Account: ExamplesIf third-party control accounts are enabled, and the account entered is a third-party control account, you must enter third-party information in the journal entry.

ExampleIf an account is defined as a Supplier type third-party control account the subledger journal entry lines that use that accountmust include supplier information.

When a valid third-party control account is assigned to a journal line, you are required to provide third-party information, suchas name and site.

Submit the Third-Party Balances Report to display subledger balances and account activity information for suppliers andcustomers.

The Customer or Supplier subledger third-party balances are updated when the journal is completed to a Final status.

Review Subledger Journal Entry

Subledger Journal Entry: OverviewYou can create subledger journal entries by using one of two methods:

• Use the Create Accounting process to process accounting events using accounting rules.

• Create manual subledger journal entries.

Subledger journal entries are always created in a given subledger application context. When the subledger journal entry iscomplete, the appropriate sequence names and numbers are assigned. If applicable, corresponding secondary ledger andreporting currency journal entries are also created.

Manual journal entries can be entered for primary ledgers or for secondary ledgers. Manual journals for primary ledgers areautomatically created only for associated reporting currencies, not secondary ledgers.



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Reviewing a Subledger Journal Entry: Points to ConsiderSubledger journal entries can be reviewed whether they were created from processing accounting events, or manuallyentered.

You can search subledger journal entries directly, or search for journal entries with a specific status, unprocessed accountingevents, or subledger journal entry lines.

Advanced search functionality, including the ability to use multiple search criteria is available.

Review Subledger Journal EntriesPerform an inquiry on unprocessed accounting events, subledger journal entries and subledger journal entry lines based onmultiple selection criteria.

• Create, edit, duplicate, reverse or delete a manual subledger journal entry

• View detailed information about the subledger journal entry

• View a subledger journal entry in the T-Accounts format

• View transactions underlying the accounting event or the subledger journal entry

• View supporting references associated with the subledger journal entry and lines

• View tagged subledger journal entries or create a tag on the subledger journal entry

• Perform subledger journal corrections by editing the account directly on a completed journal entry. Review theoriginal entry together with the correction for easier reconciliation.

◦ To correct the account on a subledger journal you must have the Override Subledger Journal Entry privilege.

Viewing Projected Balances: Points to ConsiderUse the projected balances feature to view the impact on account balances for selected subledger journal entry lines.

The projected balances flow has the following business benefits:

• The creation and validation of unposted manual journal entries by providing immediate information about the accountbalances for the selected journal lines.

• The validation and reconciliation of posted journal entries by providing immediate information about the accountbalances for the selected journal lines.

Projected BalancesSubledger Accounting manual journal entry and General Ledger manual journal entry, approval, and inquiry pages displayprojected or current balances including the current journal entry line amounts. Depending on whether the journal is posted ornot, the current balance (for the period of the journal) is displayed or calculated.

The projected balance region displays the projected balances for the account that includes the amounts of the selectedjournal entry line. Additionally, if more than one journal line for same account of the selected journal line exists, then theprojected balance amount includes the impact from each journal line. The Period To Date, Quarter To Date, and Year To Datebalances are also available.

• For unposted journals, the period balance is projected by summing the current balance with the subledger journalentry line amounts



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• For posted journals, the opening balance and the period activity are calculated using the current balance and journalline amount

Projected balances increases accuracy when booking entries to reconcile accounts.

Managing Accounting Reversals: ExplainedTo create an accounting reversal for a transaction or transaction distribution, the transaction objects should include theappropriate header or line level accounting reversal options.

Accounting reversals enables you to reverse the accounting impact of a previously accounted transaction distribution or allexisting accounting for a transaction.

Accounting reversal terminology includes the following:

• Reversed (original) Distribution

◦ Refers to a transaction distribution that although successfully accounted, is either incorrect or canceled. Thetransaction distribution is therefore reversed.

• Reversal Distribution

◦ Refers to a transaction distribution which reverses the effect of the original distribution on transactionbalances. Typically, reversal distributions are identical to the reversed distributions in all respects except forentered (ledger) amounts that reverse the sign of the original.

• Replacement Distribution

◦ Refers to a transaction distribution which replaces the reversed distribution with the correct value.

Distribution ExamplesThis table contains distribution examples.

Invoice Distribution LineNumber

Invoice Line Type Accounting Date Amount Description

1

Item

10-Jan-2013

1000

Reversed

2

Item

12-Jan-2013

-1000

Reversal (of line 1)

3

Item

12-Jan-2013

2000

Replacement (of line 1)

Transaction Total

2000

Note that the original accounting impact of the reversed distributions is undone, even if the subledger journal setups oraccounting configurations have changed since the original subledger journal entry was generated.



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Correcting Accounting Hub Transaction Data for Invalid Entries:ExplainedYou can correct errors on uploaded transaction data using the Review Journal Entries page:

• Search for subledger journal entries with an invalid status.

• View the transaction.

• Correct the transaction attributes as required.

◦ The following predefined attributes cannot be updated.

• Application Name• Event Type• Ledger Name• Transaction Date• Transaction Number• Line Number

• Save the update.

• Resubmit the Create Accounting process.

Subledger Balances

Import Supporting Reference Initial BalancesUse the Import Supporting Reference Initial Balances task to import initial supporting references balances. This task enablesyou to upload subledger journal entries to initialize supporting reference balances. The uploaded journal entries don't impactgeneral ledger balances.

Note: When using the Manage Configuration Packages task to export or import setup data, initial balances thathave been imported into one environment are not going to be migrated into another. You must import balancesseparately into each environment you maintain.

Access the task from the Setup and Maintenance work area.

Third-Party Control Account Balances ReportUse the Third-Party Control Account Balances report (XLATPRPT) to list subledger accounting third-party control accountbalances and activity for suppliers and customers.

The report provides the following information:

• Third-party balances for subledger accounting third-party control accounts.



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• Subledger journal entry lines that add up to the total period activity for each control account, third party, and third-party site.

• Third party and third-party site information.

• User transaction identifiers for the associated events.

Run the process from the Scheduled Processes page and optionally schedule the process to run periodically.

ParametersJournal Source

List of enabled journal sources mapped to registered accounting generating subledger applications.

Ledger

The list of ledgers is based on the user accessible business units, asset books or legal entities. Only the list of ledgersassociated with those business units, asset books or legal entities is shown.

From Accounting Period

All periods for the accounting calendar and period type associated with the selected ledger.

To Accounting Period


Third-Party Type

Based on third party defined for the subledger application for the journal source. Values: Customer, Supplier, All.

Third-Party Name

All customers or suppliers based on third party type.

Third-Party Site

All third-party sites for the supplier or customer identified by third-party name.

From Third-Party Number

All customer or all supplier numbers based on the third party type.

To Third-Party Number

Any customer or supplier numbers greater than or equal to the From value.

Include User Transaction Identifier

Controls whether the report retrieves user transaction identifiers names and values. Values: Yes, No.

Account

Account range filter.



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Related Topics

• Accounting Attribute Assignments for Accounting: Points to Consider

Update Subledger Accounting Balances ProcessUse the Update Subledger Accounting Balances process (XLABABUP) to update subledger supporting reference balancesand third-party control account balances.

This process is run automatically following the Create Accounting process. It should be run manually if the auto run fails forany reason.

Run the report from the Scheduled Processes page and optionally schedule the process to run periodically.

Note: Draft entries do not update balances. To include accurate balances, transactions must be accounted inFinal.

ParametersSubledger Application

List of all user accessible accounting generating subledgers.

Ledger

The list of ledgers is based on the user accessible business units, asset books or legal entities. Only the list of ledgersassociated with those business units, asset books or legal entities is shown.

Carry Forward Subledger Accounting Balances ProcessThe Carry Forward Subledger Accounting Balances process will carry forward supporting reference balances and third-partycontrol account balances to the current period for a ledger. This process is automatically initiated when the accounting periodis newly opened.

Note: The process can also be submitted manually if the initial process executed abnormally when theaccounting period was opened.

ParametersLedger

The list of ledgers is based on the business units, asset books or legal entities that a subledger user has access to. Only thelist of ledgers associated with those business units, asset books or legal entities is shown.

Accounting Period




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Advanced Features

Accounting Class Usages: ExplainedAccounting class usages is a classification or grouping of accounting event classes to be used in a report or process basedon subledger journal entries. A report or process referring to such a group would only process subledger journal entriestagged with the accounting event classes defined in the group.

Manage Accounting Class Usages TaskThe Manage Accounting Class Usages task enables you to group accounting event classes. Use Accounting Class Usagesassignments to determine which subledger journal entry lines to retrieve for a particular process. For example, for massadditions a subledger can define accounting class usages to identify the journal entry lines that must be processed to createrecords for another subledger.

Defining Accounting Class UsagesUse the Manage Accounting Class Usages task to create assignments that may be associated with a ledger. In theAccounting Class Assignments region, assign accounting classes to an assignment definition.

Predefined processes and assignment definitions cannot be deleted or updated. You can copy a predefined assignmentdefinition and modify if necessary.

Accrual Reversals: ExplainedTo use accrual reversal, assign application or standard date sources to the Accrual Reversal Accounting Date Sourceaccounting attribute. When this accounting attribute has a value, the Create Accounting process generates an entry thatreverses the accrual entry.

You can define how and when accrual reversals are automatically performed by:

• Indicating that an accounting event is eligible for accrual reversal.

• Determining when the accrual is reversed.

• Scheduling the Create Accrual Reversal Accounting process to generate the reversal entries of the accrual.



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Accrual Reversal Process StepsThis figure illustrates the accrual reversal process.

1. Assign Source to Accrual Reversal Accounting Date

Source Accounting Attribute

2. Import Accounting Transaction with

Accrual Transactions

3. Submit Create Accounting Process

Accrual Entry is Valid?

Accrual Reversal Accounting date*

Reversal Entry Created in Final or

Draft Status

Resolve ExceptionReversal Entry

Created in Incomplete Status

Yes

Yes

No

4. Submit Create Accounting Reversal Accounting Process

Reversal Entry is Valid?

Reversal Entry Created in Final

StatusYes

Resolve Exception

No

5. View Accrual Reversal Accounting

Entries

* Accrual Reversal Accounting date on or before end date and in open or future period.

Note: End Date: The date up to which the Create Accounting process selects accounting events forprocessing.

Accrual Reversal Process Steps

1. Assign a date source to the Accrual Reversal Accounting Date Source accounting attribute at the event class level.



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Use this attribute to schedule the automatic reversal of a journal entry. Assign any standard date source or one of thefollowing application sources to the Accrual Reversal Accounting Date Source accounting attribute:

◦ Next Day: The accounting date of the accrual reversal is the next day following the accounting date of theaccrual entry.

◦ First Day of Next Accounting Period: The accounting date of the accrual reversal entry is the first day of thefollowing accounting period.

◦ Last Day of Next Accounting Period: The accounting date of the accrual reversal entry is the last day of thefollowing accounting period.

Note: You can override the Accrual Reversal Accounting Date Source accounting attribute values on thejournal entry rule set if multiple sources have been assigned to the accounting attribute.

2. Import Accounting Transaction with accrual transactions.3. The Create Accounting process is submitted automatically by the Import Accounting Transaction process. It can also

be submitted manually after any exception is resolved.

The Create Accounting process creates the accrual journal entry as well as the accrual reversal journal entry. Use theReversal Method option on the Manage Subledger Accounting Options page to determine whether the reversal isdone by switching the debit and credit side on entries, or by using negative amounts.

Accrual entries are reversed by the following processes:

◦ The Import Accounting Transaction process if submitted on or before the reversal accounting date.

◦ The Create Accounting process if the end date is on or after the accrual reversal date.

◦ The Accrual Reversal Accounting process if the accrual reversal date is later than either:

• The Import Accounting Transaction process submission date.• The end date of the Create Accounting process.

4. Schedule the Create Accrual Reversal Accounting process to run automatically in each accounting period. As a bestpractice, run before closing the period.

5. View accrual reversal accounting entries.

Related Topics• Accounting Attribute Assignments for Accounting: Points to Consider

Accrual Reversal: ExamplesThe following examples describe how accrual reversals are scheduled and accounted.

Example 1A company receives materials worth 100 (USD) on the 30th of the month but has not been invoiced. The following journalentry is created when the material is received to record the accrual.

This table contains a journal entry.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)

Accrual Expense 100.00 100.00



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Accrual Liability

100.00

100.00

The accrual reversal accounting date is set to First Day of Next Accounting Period. The following journal entry is created toreverse the accrual.

This table contains the reversal journal entry.


Accrual Liability

100.00

100.00

Accrual Expense

100.00

100.00

Example 2Future trading requires a margin account that is market-to-market on a daily basis. This means that the investor or ledger'sgains or losses on the position are reflected on a daily basis. If the margin account is less than a specified amount (themaintenance of the margin), a margin call is issued. This requires the holder of the account to replenish the account to theinitial margin level or close out the position.

The investor or ledger must mark the account to market each day. The entry booked from the day before must be reversed toreflect the new position.

Journal Entry Creation

• The following journal entry creation date is June 1, 2006.

• Accounting date: 01-Jun-2006

This table contains the journal entry.


Loss

100.00

100.00

Margin Liability

100.00

100.00

Reverse the Journal Entry

• The accrual reversal accounting date is set to Next Day. The following journal entry is created to reverse the journalentry from June 1.

• Accounting Date: 02-Jun-2006



Margin Liability 100.00 100.00



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Loss

100.00

100.00

Reflect the New Position

• On June 2, a new journal entry is created to reflect the new position, which will be reversed on June 3.




Loss

105.00

105.00

Margin Liability

105.00

105.00

Reverse the Accrual

• On June 3, the following journal entry is created to reverse the accrual from June 2.




Margin Liability

105.00

105.00

Loss

105.00

105.00

Submitting the Create Accrual Reversal Accounting Process:ExplainedThe Create Accrual Reversal Accounting process processes incomplete accrual reversal journal entries with accounting datesthat fall on or before the End Date parameter specified. If the incomplete accrual reversal accounting entries are validatedsuccessfully, they are set to Final status and then posted to the general ledger, dependent on the parameters.

Report ParametersThis table contains the parameters for the Create Accrual Reversal Accounting process.

Prompt Description

Subledger Application

Source system for which the Create Accrual Reversal Accounting process is being executed.



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Prompt Description

Ledger

Ledger name for which the Create Accrual Reversal Accounting process is being executed.

Process Category

The process category indicates that all associated accounting event classes and their accountingevent types are selected for processing.

End Date

End date puts a filter on the selection of journal entries. Only incomplete journal entries having anaccounting date on or before the end date are selected for accounting. Default value is current system date.

Process Events Adds other filter criteria for the Create Accounting process to specific events:

• All: Process all incomplete journal entries and meets the End Date selection criteria• Errors: Process only those entries that have previously been processed in error.• Invalid Accounts: Process only those events that have previously been processed in error.

Replace any invalid accounts with the suspense account.

Default value is All.

Report

Identify the type of details to display on the execution report. The report can be printed in Summary,Detail, or No report. Default value is Summary.

Transfer to General Ledger

Indicates whether the Create Accrual Reversal Accounting process should submit the Transfer to GLprocess; Yes, No. Default value is Yes.

Post in General Ledger

Indicates whether to submit General Ledger posting after Transfer to GL process is complete. Default value is Yes.

Journal Batch

Batch name for General Ledger journal entries.

Multiperiod Accounting: ExplainedMultiperiod accounting enables you to create accounting entries across more than one accounting period, for a singleaccounting event. The functionality is primarily used to defer the recognition of revenue or prepaid expense across multipleaccounting periods.

You can:

• Determine how to distribute the amount across accounting periods.

• Specify a prepaid expense or deferral account.

• Preview multiperiod journal entries before creating and posting final entries:

◦ Submit the Create Multiperiod Accounting process in Draft mode.



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◦ Review the multiperiod journal entries in the Create Multiperiod Accounting Execution Report.

Note: You can only preview multiperiod journal entries for a single accounting period.

Multiperiod Accounting Process FlowThis figure illustrates the multiperiod accounting process flow.

Enter transaction with multiperiod accounting

date range

Create accounting event and populate

multiperiod accounting start and end dates in

transaction objects

Submit the Create Accounting process

Final entry created for initial entry?

Submit Create Multiperiod Accounting

process to generate multiperiod journal

entries

Draft entry created for initial entry?

Resolve exception

Yes

No

No

Yes

1. Enter transaction with multiperiod accounting date range.2. Create accounting event. Populate multiperiod accounting Start and End dates in transaction objects.3. Submit the Create Accounting process.

◦ Final entry created for initial entry? Yes

• Submit Create Accounting process to generate multiperiod journal entries

◦ Final entry created for initial entry? No

• Draft entry created for initial entry? Yes

◦ Resolve exception.



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• Draft entry created for initial entry? No

◦ Submit the Create Multiperiod Accounting process to generate multiperiod journal entries.

Implementation StepsImplementation Step Process Flow

This figure illustrates the implementation steps.

DefineUser-Defined Formula

DefineMultiperiod Class

DefineJournal Line Rules

AssignJournal Line Rules

toJournal Entry Rule Set

AssignJournal Entry Rule Set

to Accounting Method

Assign Formulato

Accounting Event Class Accounting Attribute

Assign Multiperiod Class

andUser-Defined Formula to Journal Line Rules

1. Define a User-Defined Formula (custom formula) determining how to distribute the entered amount acrossaccounting periods. If required, you can use the new multiperiod predefined sources. For example:

◦ Multiperiod Original Entered Amount

◦ Multiperiod Recognized Entered Amount

◦ Last Multiperiod Accounting Date

◦ Number of Days in Current Accounting Period

2. Define Multiperiod Classes using the Manage Subledger Accounting Lookups task.

◦ Lookup Type: ORA_XLA_MULTIPERIOD_CLASS

3. Define a non-multiperiod Journal Line Rule for the deferral entry specifying the Multiperiod Class. This rule is used topost the fee amount to the deferral account.



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4. Define a multiperiod Journal Line Rule for the recognition entry:

◦ Enable the Multiperiod option and assign the same Multiperiod Class.

◦ Assign the User-Defined Formula (custom formula) to the Entered Amount accounting attribute.

◦ Assign relevant sources to the Multiperiod Start Date and Multiperiod End Date accounting attributes.

5. Assign both journal line rules to the same journal entry rule set with:

◦ A deferral account rule assigned to the non-multiperiod journal line rule.

◦ A revenue or expense account rule assigned to the multiperiod journal line rule.

6. Assign the journal entry rule set to the accounting method.7. Schedule the Create Multiperiod Accounting process to run after the Create Accounting process so that recognition

journal entries are properly booked each period.

Multiperiod Accounting: ExampleThe subledger multiperiod accounting and custom formula features provide the ability to satisfy the FASB 91 accountingrequirement. This requirement of deferred recognition of fee and direct loan cost is met by modifying the recognition of feeamounts with custom formulas.

ExampleA personal loan was originated with the following information:

• Origination date: 01-Jul-2016

• Origination fee: USD 300.00

• Loan duration: 6 months

• Maturity date: 31-Dec-2016

Upon loan origination on 01-JUL-2016 the origination fee must be booked as unearned income:

Initial Journal Entry for Loan Fee

This table contains the journal that is created when the loan is originated.

Entered DR (USD) Entered CR (USD)

Receivable

300.00

Unearned Fee Income

300.00

The unearned fee income must be split over the life of the loan. Each portion must be recognized as income in thecorresponding accounting periods, between Jul-2016 and Dec-2016. The amounts in each period would depend on theproration formula used. For example:

Monthly Journal Entry for Loan Fee

This table contains of the journal achieved using a user-defined formula.



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Entered DR (USD) Entered CR (USD)

Unearned Fee Income

50.00

Loan Fee Income

50.00

Using Multiperiod Subledger Accounting RulesAccounting Hub users can define subledger accounting rules to create the multiperiod accounting entries. For example:

This table contains the usage of journal lines rules, account rules and the usage associated with multiperiod accounting.

Journal Line Rules Account Rules Usage

Unearned Fee Income

• Side = Credit• Multiperiod Option = No• Multiperiod Class = Loan Fee

The Entered Amount accounting attribute ismapped to a source that provides the feeamount.

Unearned Fee Income Account

Journal line rule for the deferral entry. Used to generate a credit line to theunearned fee income account.

Loan Fee Income

• Side = Credit• Multiperiod Option = Yes• Multiperiod Class = Loan fee• Accounting attributes:

◦ Multiperiod Start Date =Origination date

◦ Multiperiod End Date =Maturity date

The Entered Amount accounting attributeis mapped to a formula to prorate the feeamount.

Loan Fee Income Account

Journal line rule for the recognition entry. Used by the Create Multiperiod Accountingprocess to generate future entries withprorate amounts, such as the CR 50.00(USD) in the example.

• Define a custom formula to calculate the total entered amount to be recognized from the multiperiod start date untilthe end of current accounting period. Assign the formula to the Entered Amount accounting attribute of the Loan FeeIncome journal line rule.

• The Create Multiperiod Accounting process calculates entered amount for the multiperiod entries as:

Entered Amount = Amount Returned by Custom Formula - Multiperiod Recognized Entered Amount

◦ Where the:

• Multiperiod Recognized Entered Amount is calculated and stored in the Accounting Hub data model asthe total amount recognized for the transaction in prior periods.

◦ The approach handles any rounding differences in prorated entered currency amounts.



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Sample Custom FormulasThese sample custom formula definitions can be used to prorate the loan fee amount.

Prorate by Number of Periods

• To prorate the entered amount evenly across each period:

"Fee Amount" * NumberofGLPeriod ("Origination Date", "Last Day of Current Accounting Period") /NumberofGLPeriod ("Origination Date", "Maturity Date")

◦ Where the:

• Fee Amount, Origination Date and Maturity Date are standard application sources (Application: Loans).• Last Day of Current Accounting Period is a system source (Application: Subledger Accounting).• NumberofGLPeriod is a predefined numeric function.

• The entered amount for the multiperiod journal would be calculated as follows:

This table contains the calculation that occurs in the Create Multiperiod Accounting process.

Accounting Date Number of Periods SinceMultiperiod Start Date

Multiperiod RecognizedEntered Amount (A)

Amount Returned fromCustom Formula (B)

Multiperiod JournalEntered Amount (B-A)

31-Jul-16

1

0.00

300.00*1/6= 50.00

50.00

31-Aug-16

2

0.00+50.00= 50.00

300.00*2/6= 100.00

100.00-50.00= 50.00

30-Sep-16

3

50.00+50.00= 100.00

300.00*3/6= 150.00

150.00-100.00= 50.00

31-Oct-16

4

100.00+50.00= 150.00

300.00*4/6= 200.00

200.00-150.00= 50.00

30-Nov-16

5

150.00+50.00= 200.00

300.00*5/6= 250.00

250.00-200.00= 50.00

31-Dec-16

6

200.00+50.00= 250.00

300.00*6/6= 300.00

300.00-250.00= 50.00

Note: These columns are calculated by the Create Multiperiod Accounting process:• Amount Returned from Custom Formula (B)• Multiperiod Journal Entered Amount (B-A)

Prorate by Number of Days

• To prorate entered amount by the actual number of days in each period:

"Fee Amount" * ("Last Day of Current Accounting Period" - "Origination Date" + 1) / ("Maturity Date" -"Origination Date" +1)

• The entered amount for the multiperiod journal is calculated as follows:

This table contains the calculation that occurs in the Create Multiperiod Accounting process.



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Accounting Date Number of Days SinceMultiperiod Start Date

Multiperiod RecognizedEntered Amount (A)

Amount Returned fromCustom Formula (B)

Multiperiod JournalEntered Amount (B-A)

31-Jul-16

31

0.00

300. 00*31/184. 0050.54

50.54

31-Aug-16

62

0.00+50.54= 50.54

300. 00*62/184.00100.09

100.09-50.54= 50.55

30-Sep-16

92

50.54+50.55= 100.09

300. 00*92/184. 00150

150.00-100.09= 48.91

31-Oct-16

123

100.09+48.91= 150.00

300. 00*123/184.00200.54

200.54-150.00= 50.54

30-Nov-16

153

150.00+50.54= 200.54

300. 00*153/184.00249.46

249.46-200.54= 48.92

31-Dec-16

184

200.54+48.92= 249.46

300. 00*184/184.00300.00

300.00-249.46= 50.54

• Note that rounding differences, if any, are included in the resulting entered amount for the multiperiod journals.

Prerequisites

• Provide date format sources to store the multiperiod start and end dates in transaction objects.

• For the event class that supports multiperiod accounting, assign these sources to the accounting attributes:

◦ Multiperiod Start Date

◦ Multiperiod End Date

• Define the multiperiod class in the subledger accounting lookup. The multiperiod class is used to identify the journalline for which the amount is prorated across multiple accounting periods.

Tip: Accounted amounts for multiperiod journals are calculated by the Create Multiperiod Accounting processprorating proportionally to the entered amount. Rounding error differences are included in the prorated amount.Multiperiod transaction data must be available in transaction objects until the last multiperiod entry has beenaccounted in final status.

Multiperiod Accounting: Points to ConsiderTo achieve a successful implementation of multiperiod accounting, the following points must be taken into consideration.

Determine when to raise a new accounting eventDetermine when a new accounting event must be raised throughout the life cycle of a multiperiod transaction.



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• If only the multiperiod start and end dates are changed, a new accounting event is not required. As the transactionobject is maintained to provide the new multiperiod start date, the impact of the change is reflected in the nextmultiperiod journal.

• Raise a new accounting event if the amount is changed, or a transaction is canceled after the transaction isaccounted in a Final status.

If the multiperiod start date is changed after the transaction is accounted, it's not necessary to raise a new accounting event.The assumption is that all other transaction attributes remain the same. If the transaction object is maintained to provide thenew multiperiod start date, the impact of the change is reflected in the next multiperiod journal. This depends on the proratemethod and is also true for future journal entries.

However, if the transaction amount is changed after the transaction is accounted; the new accounting event is needed, whichaffects the total deferral amount.

Tip: We suggest a detailed analysis be performed to determine whether to raise a new accounting event whentransaction attributes are updated.

Raise a transaction reversal eventConsider the multiperiod journal accounting date when raising the transaction reversal event.

Set the reversal accounting date to a date after the last multiperiod journal with Final status. A reversal entry reverses allexisting final entries, including the multiperiod journals, with the reversal accounting date.

For example, the transaction accounting date is on 01-Feb and multiperiod journals have been created for February andMarch with a Final status. If the transaction is canceled, the cancellation event should be set to 01-Apr or the first day of thenext open period, whichever is later.

Provide the multiperiod start and end datesThe multiperiod start date and multiperiod end date must be provided in transaction objects for event classes that supportmultiperiod accounting. These date sources are mapped to the accounting attributes Multiperiod Start Date and MultiperiodEnd Date for the event class. They must both be blank or both be populated in the transaction objects.

Once a multiperiod journal is created in Final status, the multiperiod end date should not be modified to any day prior to theaccounting date of the last multiperiod journal in the primary and secondary ledgers.

Provide the multiperiod transaction dataMultiperiod transaction data must be available in subledger transaction objects until the last multiperiod entry is accounted inFinal status.

At least one line level transaction object is required for the event class to use multiperiod feature. Ensure transaction objectsare populated with current data for the multiperiod transaction throughout the life cycle of multiperiod, even if the transactionis accounted.

For example, if the multiperiod start date is changed after the transaction is accounted but not all future entries have beenaccounted. The new multiperiod start date should be populated in the transaction object. This enables the Create MultiperiodAccounting process to calculate the prorate amount according to the modified multiperiod date range.



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Process the multiperiod accountingMultiperiod recognition entries are created based on transaction objects data and accounting rule definition at the time theCreate Multiperiod Accounting process is executed.

• The entered amount value for the multiperiod journal is calculated by a formula. This formula is assigned to theEntered Amount accounting attribute on the multiperiod journal line rule.

• The accounted amount value for multiperiod journals is calculated by the Create Multiperiod Accounting process,prorating proportionally to the entered amount, including rounding differences.

Multiperiod accounting entries aren't created:

• If any subledger level reporting currency or secondary ledger is disabled, although the multiperiod transaction maynot be fully recognized yet.

• If subledger level reporting currency is added after the journal is created in Final status, the multiperiod journal isn'tcreated for the new reporting currency.

• If the transaction accounting date is prior to the first open period of a reporting currency or secondary ledger, thejournal isn't created for the reporting currency or secondary ledger.

Multiperiod transactions are processed by the Create Multiperiod Accounting process only once for each accounting periodand transaction.

• Don't modify the multiperiod start date for a transaction to a date in a prior accounting period of the last multiperiodjournal in primary and secondary ledgers.

• If the multiperiod start date for a transaction is modified to a date in a prior accounting period, accounting periodsthat were previously processed for the transaction by the Create Multiperiod Accounting process are not processed,regardless of the period status. Any adjustment in the prorated amount due to change of start date will beaccounted in the next accounting period.

Sequencing of Accounting Entries: OverviewThe following sequences are attached to subledger journal entries or general ledger journal entries. These two sequences arenot mutually exclusive and can coexist in the same journal entry.

Accounting SequenceThe accounting sequence is assigned to subledger journal entries at the time that the journal entry is completed. Thesequence is assigned in the completion date order using the accounting date as the date criterion for determining thesequence to be used.

Reporting SequenceThe reporting sequence is assigned to both subledger journal entries and general ledger journal entries when the accountingperiod is closed. This sequence is used by most of the legal reports required in some countries as the main sorting criterion todisplay the journal entries.

Note: In some related documents, this sequence is referred to as the chronological sequence.

Related Topics• Document Sequences: Explained

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• Document Sequences: Points to Consider

• Document Sequencing in Payables: Explained

• Accounting Attribute Assignments for Accounting: Points to Consider

Subledger Accounting Profile Options: Points to ConsiderSet values for each profile option to specify how Oracle Fusion Subledger Accounting controls access to and processes data.

Profile OptionsThe table contains the profile options that are available for subledger accounting.

Profile Option Profile Display Name Profile Description

XLA_ DIAGNOSTIC_ MODE

Diagnostics Enabled

Control whether transaction data used inaccounting generation should be gathered fordiagnostics.

XLA_ DISABLE_ GLLEZL

Journal Import Disabled

Control whether subledger journal entries areimported to the general ledger.

XLA_ ENABLE_ TRANSFER_ TO_EBS_GL

Enable Transfer to Oracle EBS GL

Specify whether the target for transfer andpost subledger journal entries is Oracle E-Business Suite General Ledger.

XLA_ ENABLE_ TRANSFER_ TO_PSFT_GL

Enable Transfer to Oracle PeopleSoft GL

Specify whether the target for transfer andpost subledger journal entries is OraclePeopleSoft General Ledger.

XLA_ OTE_ OLA_ POLLING_ INTERVAL

Online Accounting Request Polling Interval

Set the interval in seconds for onlineaccounting engine to check for incomingaccounting requests.

XLA_ OTE_OLA_PROCS

Number of Online Accounting Processes

Set the number of processes for onlineaccounting.

XLA_ OTE_ OLA_ TIMEOUT_LIMIT

Online Accounting Processing Timeout Limit

Set the number of seconds online accountingengine attempts to process a transactionbefore timing out.

XLA_ SHOW_ ZERO_AMT_JRNL

Zero Amount Journal Lines Displayed

Show zero amount journal lines.

Related Topics

• Profile Options: Overview

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Manage Subledger Accounting Reporting

Oracle Fusion Subledger Accounting Predefined ReportsOracle Subledger Accounting provides accounting reports for fiscal and internal control purposes.

The reports are comprehensive from a financial standpoint and include the best source of information for each type of journalentry. These reports can be used in lieu of the General Ledger-based journals and account analysis reports to see detailedsubledger journal entries as well as supporting transaction information.

Scheduled Processes work area

Reports can be scheduled and run from the Scheduled Processes work area found under Tools on the Navigator.

Reports and Analytics work area

In some cases, reports are also:

• These reports are available from the Reports and Analytics work area, found under Tools on the Navigator, or fromother work areas.

• Opened using links that deploy the business intelligence (BI) catalog.

The following table contains the primary predefined reports by type:

Account Analysis Reports

This table contains a listing of Subledger Accounting account analysis reports.

Display Name Description

Account Analysis Report

Provides drill down information about the movement on a particular account for a period or range ofperiods. It only includes journal entries posted to general ledger.

Account Analysis by Legal Entity Report

Prints account balances by account combination and selected segments with subledger journaldetails, including third-party information and sequences. Flexible grouping and sorting options areprovided at submission.

Journal Reports

This table contains a listing of Subledger Accounting journal reports.


Daily Journals Report

Lists subledger journal activity for a given period or date range, journal source, enteredcurrency, and journal batch. Report prints detailed subledger journal lines prior to general ledgersummarization. Third party and transaction details are also listed for the journal lines.

Journal Entries Report

Displays detailed information for subledger and general ledger journal entries. Groups report byledger, journal source, journal category, and event class at submission.



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Journal Ledger Report

Lists the accounting entries with subledger details like transaction number, transaction date, andline description, using flexible sorting options that are provided at report submission. This reportprovides a real audit trail between general ledger and subledgers to satisfy legal and businessrequirements.

Journals and Third Party Report

Prints all journals posted in Oracle Fusion General Ledger for the accounting period. The reportprovides accounting and reporting sequence details, detailed subledger accounting entry linesreporting level regardless of the ledger journals summarization. Assists in verifying that all journalsare accurately recorded in chronological order with no gaps. It uses legal sequencing rules for bothaccounting entries and source documents.

Subledger Detail Journal Report

Displays information about the posted general ledger journal batches that originate from OracleFusion Receivables and Oracle Fusion Payables subledgers. The report prints subledger details liketransaction number, transaction date, transaction amount in entered and ledger currency.

Third Party Reports

This table contains a listing of Subledger Accounting third party reports.


Third-Party Balances Report

Displays subledger balance and account activity information for suppliers and customers.

Third-Party Account Balance Report

Prints account and original third-party transactions impacting the account during a particular periodof time. The report is run to ensure that subledger and general ledger balances reconcile, and toidentify possible reasons for any discrepancies.

Third-Party Balances Summary Report

Displays information for each account of the third party and third-party site, and accountidentification. This report can be used as a tool for auditing third-party accounts.

Third-Party Detail and Balances Report

Provides third party account balances and accounting activity details for the requested accountingperiod range. You can review the accounting process details by third party and audit third-partyaccounts in detail.

Other Subledger Accounting Reports

This table contains a listing of other Subledger Accounting reports.


Accounting Event Diagnostic Report

Shows the transaction data used in accounting. The data is collected when the profile option SLA:Enable Diagnostics is set and the Create Accounting process is run.

Subledger Accounting Method SetupsReport

Displays the accounting setups for a subledger application and accounting method.

Subledger Period Close ExceptionsReport

Lists all accounting events and journal entries that fail period close validation. Groups report byledger, period, journal source, journal category, and event class at submission.



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To run predefined reports, navigate to the Scheduled Processes work area and follow these steps:

1. Click the Schedule New Process button2. Search on the process name.3. Enter your parameters.4. Enter your process options and schedule.5. Click Submit.

Related Topics

• Reports and Analytics Pane: Explained

Subledger Accounting Subject Areas, Folders, and Attributes:ExplainedTo create real-time analyses for Oracle Fusion Subledger Accounting you should be familiar with subject areas, folders, andattributes.

Subject AreasTo create an analysis, you begin by selecting a subject area from which you select columns of information to include in theanalysis. For example, to create an analysis of journal information, you begin by selecting a Subledger Accounting- JournalsReal Time subject area. Subject areas are based around a business object or fact. In this example, the subject area is basedon the column in the subledger entries tables.

Subledger Accounting has 2 specific subject areas:

• Subledger Accounting- Journals Real Time

• Subledger Accounting - Supporting References Real Time

FoldersEach subject area has one fact folder and a number of dimension folders. Fact folders contain attributes that can bemeasured, meaning that they are numeric values like journal debit and credit amounts. Fact folders are in the list of foldersand are usually named after the subject area. Dimension folders contain attribute and hierarchical columns like journal nameand accounting period.

Some folders appear in more than one subject area, such as Time. These are referred to as common folders or commondimensions.

Each folder within a subject area may have a different level of granularity. For example:

• Accounting Class has accounting class attributes.

• Bill-to Customer has subfolders and attributes under the subfolders.

AttributesFinally, each dimension folder contains attributes (columns), such as balance type and posting date. This figure illustrates thestructure of subject areas, folders, and attributes.

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This figure illustrates the subject area listing that includes the Subledger Accounting - Journals Real Time subject area,folders, and attributes.

The figure illustrates these components:

• Subject area: Subledger Accounting - Journals Real Time

• Dimension - Presentation Folder: Accounting Class

• Dimension - Attributes: Accounting Class Code, Accounting Class Description and Accounting Class Meaning.

• Fact - Presentation Folder: Journals



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• Fact - Measures: Journal Line Accounted Amount CR, Journal Line Accounted Amount DR, Journal Line EnteredAmount CR, Journal Line Entered Amount DR, Journal Line Statistical Amount, Unrounded Accounted Amount CR,Unrounded Accounted Amount DR, Unrounded Entered Amount CR, and Unrounded Entered Amount DR.

Related Topics

• Data Structure for Analytics: Explained

Accessing the Create Multiperiod Accounting Execution Report:ExplainedWhen you submit the Create Multiperiod Accounting process, the Create Multiperiod Accounting Execution Report issubmitted automatically if the Create Multiperiod Accounting process completes with a success or warning status. The reportdisplays entries created by the Create Multiperiod Accounting process.

Create Multiperiod Accounting ReportThe Create Multiperiod Accounting Execution Report can be recreated.

This report can be recreated as needed using the following criteria:

• Submit the Create Multiperiod Accounting process.

• Use the same request identifier of the wanted Create Multiperiod Accounting process run previously by the sameuser, provided that no other Create Multiperiod Accounting process was run with the same criteria.

Using the Supporting References Report

Using the Supporting References ReportWatch: This video tutorial shows you how to use the Supporting References report. The content of this video is also covered intext topics.

ProcedureIn this procedure, you create and view the supporting references report in OTBI (Oracle Transactional Business Intelligence).

Create a Supporting References ReportCreate a supporting reference report.

Note: Supporting references must be assigned to journal lines in the journal entry rule set, and then accountingcreated, to view in supporting references.

Navigate to the Reports and Analytics work area.

1. From the Home page, click Navigator > Reports and Analytics.2. Open Create drop down.3. Select Analysis.

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4. Select Subject Area: Subledger Accounting - Supporting Reference Real Time.

a. On the Select Columns page In the Create Analysis region, expand the Subject Area.b. Expand the folders and select the desired columns.

• Click the Addicon to move columns to the Selected Columns region.• To rename columns, select the column row and click the Edit icon.• Resequence columns by using the arrows.

This table contains column names used in the supporting references report.

Folder Column

Journal Source

Journal User Source Name

Ledger

Ledger Name

Supporting Reference BalanceDetails

Select the appropriate supporting references Rename as wanted.

GL Account

Concatenated Segments

Ledger

Ledger Currency

Time

Accounting Period Name

Supporting Reference Balances

Period Balance Dr Period Balance Cr

c. Click Next button.5. On the Select Views page:

a. Enter the report Title.b. Select Table option.c. Click Next button.d. Click Next button again to skip the Edit Table page.

6. On the Sort and Filter page:

a. Click Add Filter.b. Select Ledger Name.c. Select Operator 'is equal to'.d. Enter wanted ledger name.e. Add another filter. Click Add Filter.f. Select Journal User Source Name.g. Select Operator 'is equal to'.h. Enter wanted journal user source name.



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i. Click Submit.7. On the Create Analysis page:

a. Enter Analysis Name.b. In the Save In region, select My Folders.c. Click Submit.d. Click OK.

View the Supporting References ReportView the supporting reference report from the navigation pane.

1. Expand the navigation pane.2. Expand My Folders.3. Click your report name.4. Click View action.5. The supporting reference balances report is displayed.

Note: If you do not see any data, the balances may not yet be updated. In that case, you must run the UpdateSubledger Accounting Balances process and then view again.

Related Topics

• Creating Supporting References: Explained


Chapter 8Define and Maintain Intercompany Processing Rules

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8 Define and Maintain IntercompanyProcessing Rules

Manage Intercompany System Options

Intercompany System Options: ExplainedDefine intercompany system options to set up intercompany processing rules at the enterprise level, based on your specificbusiness needs.

To maintain consistency throughout an enterprise, intercompany transaction processing rules should be defined at theenterprise level. By standardizing these rules, an enterprise can minimize disputes, decrease processing time, and cutadministrative costs.

Before setting up intercompany system options, you must determine how to process your intercompany transactions. Forexample, to:

• Enforce an enterprise-wide currency or allow intercompany transactions in local currencies.

• Allow receivers to reject intercompany transactions.

• Determine the minimum transaction amount that is processed.

System OptionsChanging and saving a system option has no effect on intercompany transactions already in progress. Intercompany systemoptions only affect new intercompany transactions, and are not retroactive to any transactions previously entered.

The system options are:

• Intercompany Batch Numbering

The intercompany batch numbering option defines whether to use system generated or manual transaction batchnumbering. Choose one of the following options to create intercompany batch numbers:

◦ System Generated: Generates intercompany batch numbers.

◦ Manual: Lets you manually enter the batch number.

• Intercompany Currency

Standardize transaction processing by selecting an intercompany currency. Intercompany transactions created inthe Intercompany module are always entered in this currency. This simplifies transaction processing, and eliminatesforeign conversion rate fluctuation risks. If you select an Intercompany currency, that currency is defaulted intothe Minimum Transaction Currency field. It overwrites any other currency in that field and the field cannot beupdated.

• Minimum Transaction Amount

The minimum transaction amount represents a minimum threshold intercompany transaction amount. This amountprevents the submission of immaterial transactions for small amounts that do not add value. To implement this rule,you must first select an Intercompany currency. That currency is defaulted into the minimum transaction currency



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for processing intercompany transactions. These two system options ensure that when comparing a transactionamount to the minimum transaction amount, the two numbers are entered in the same currency, allowing for anaccurate comparison.

• Conversion Rate Type

Select a conversion rate type that is used when transferring foreign currency intercompany transactions to GeneralLedger, Receivables and Payables.

Note: The foreign currency intercompany transactions are not stored in the ledger currency in theIntercompany module.

• Allow Receiver to Reject Transaction

Use this system option to determine if receivers of intercompany transactions can reject transactions or not. Forexample, if your company policy requires intercompany transactions be approved, but does not allow receivers toreject the transactions, then you can set this system option to No.

• Intercompany Calendar and Period Type

You can have an intercompany calendar that is separate from the general ledger calendar. This ensures that theopening and closing of intercompany periods can be controlled separately from the general ledger calendar. You canlimit the creation of intercompany transactions by using the intercompany calendar to close periods by transactiontype. For example, you can prevent users from creating intercompany sales transactions beyond the 20th of eachmonth by closing the period for that transaction type on the 20th, but keep the period open for the other transactiontypes until the 25th of the month..

Select a calendar from the available general ledger calendars in the list of values.

To update the intercompany calendar to use a different general ledger accounting calendar, the intercompany periodstatus for all intercompany transaction types must either be Never Opened or Closed.

The Period Type value is predefined from the selected accounting calendar and cannot be updated. It indicates thetype of period defined for that calendar.

• Default Transaction Type

Select a transaction type that will default when new intercompany batches are created.

• Summarize Distributions for Receivables Invoicing

Specify this option while setting up the Intercompany System Options by selecting a Yes or No. When you selectYes, the provider distribution lines are summarized to generate one receivables invoice line. Intercompany passes theTransaction description to the receivables invoice line. Note that the accounting of the receivables invoice still showseach provider line separately.

When you select No for the Summarize Distribution for Receivables Invoicing option, each provider distribution lineis passed to Receivables to be generated as a separate receivables invoice line. In this case, Intercompany passeseach Provider Line description to the receivables invoice line.

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Managing Intercompany Organizations: ExplainedThe Manage Intercompany Organizations task allows you to define intercompany organizations and assign them to a legalentity. The intercompany organization can act either as a provider or a receiver in an intercompany transaction.

Optionally assign a receivables and payables business unit to the organization if you require invoice generation. Invoices aregenerated in Oracle Fusion Receivables and Oracle Fusion Payables for the business units specified.

You can initiate an intercompany transaction only for those organizations that you have access to. If a new organization isadded after the application is configured, the intercompany accountant or administrator should ensure that access is given tothe appropriate users.

An organization can be disabled if there are no open transactions, and all transactions for that organization are either in a Newor Complete status.

Legal EntityEach intercompany organization must be associated with a legal entity, but you can associate more than one organization toa legal entity.

Receivables and Payables Business UnitsThe available business units are those associated with the ledger to which the selected legal entity belongs. This assignmentis optional, but is needed when the organization is engaged in intercompany activity requiring intercompany invoices.

If you enter the wrong receivables or payables business units, you can still correct them as long as the organization is not yetused in an intercompany transaction, regardless of the transaction status.

Related Topics

• Intercompany Organization Configuration: Example

• Intracompany Organization Configuration: Example

Define Invoicing Options

Customer and Supplier Assignment: ExplainedThe intercompany customer and supplier assignments are used to derive the customers and suppliers for intercompanyinvoicing. You can associate a legal entity with either a customer account or supplier, or both. Each legal entity can only haveone customer account and one supplier assigned to it.

Customer AccountAssign a unique customer account to the legal entity of the organization that receives and approves intercompanytransactions. The customer account type must be Internal and it must have an active bill-to site with primary selected. Eachcustomer account can have multiple sites each associated with a different receivables business unit. This allows invoicing forthe customer in a variety of receivables business units.

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SupplierAssign a unique supplier to the legal entity of the organization that initiates intercompany transactions. The supplier must havean active primary pay site. Each supplier can have multiple sites, each associated to a different payables business unit.

Related Topics

• Intercompany Organization Configuration: Example

• Intracompany Organization Configuration: Example

Defining Receivables Assignments: ExplainedUse Oracle Fusion Intercompany to generate invoices for intercompany transactions.

Defining Receivables AssignmentsSet up your receivables assignments by mapping an intercompany transaction type and a receivables business unit to thereceivables transaction type and receivables memo line. Oracle Fusion Receivables will use the receivables transaction typeand the receivables memo line to process intercompany transactions transferred to the receivables application. You canconfigure specific receivables transaction types, and receivables memo lines, that you use for each intercompany transactiontype for a receivables business unit.

Manage Intercompany Balancing Rules

Intercompany Balancing Rules: ExplainedIntercompany balancing rules are used to generate the accounts needed to balance journals that are out of balance by legalentity or primary balancing segment values. You specify the intercompany receivables and intercompany payables accountsthat you want to use as the template for building the intercompany receivables and intercompany payables accounts. Theintercompany balancing feature then uses these rules to generate the accounts of the balancing lines it creates.

Journals lines are first summarized by the legal entity and are balanced by the legal entity. Since a legal entity can have manyprimary balancing segment values, it is possible that a journal could have multiple lines for a legal entity with different primarybalancing segment values. In that case, when intercompany balancing is done, the lowest primary balancing segment valuewithin each legal entity in the journal is used. After this, balancing occurs across balancing segment values within each legalentity.

These same rules are also used to generate the intercompany receivables account and intercompany payables account oftransactions entered in the Intercompany module.

The intercompany balancing rules are also used to generate the intercompany receivables account for the provider side of anintercompany transaction. The balancing rules also used to generate the intercompany payables account for the receiver sideof an intercompany transaction.

Defining Intercompany Balancing RulesYou can define intercompany balancing rules at the following levels:

1. Primary balancing segment

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2. Legal entity3. Ledger4. Chart of accounts

The rules are evaluated in the order shown. For example, you can define a Primary Balancing Segment rule and a Legal Entitylevel rule. If both rules can be used to balance a particular journal, the Primary Balancing Segment rule is used, as it has ahigher precedence.

You have flexibility in defining your intercompany balancing rules. You can have a simple setup in which you define one rulefor your chart of accounts. This rule is used for all intercompany balancing for all ledgers that use this chart of accounts.Alternatively, you can have a more granular set of rules. For example, you can define a different rule for each legal entity andone chart of accounts rule to cover any gaps in your rule definitions. You can gain even more granularity by defining rules forspecific journal and category combinations or intercompany transaction types.

Using Chart of Accounts Rules for IntercompanyUse chart of accounts rules for intercompany balancing. You have flexibility in defining your intercompany balancing rules withthe setup of a single chart of accounts rule to use for all ledgers that use this chart of accounts. When you create a chart ofaccounts rule, you specify the chart of accounts, intercompany receivables, and intercompany payables accounts you wantto use, as well as the source and category. It is recommended that the intercompany receivables account be an asset typeaccount, and the intercompany payables account be a liability type account.

You can define rules that are applied to a specific source and category, such as Payables and Invoices, or a specificintercompany transaction type, such as Intercompany Sales. Alternatively, you can choose to create rules for all sources andcategories by selecting the source of Other and the category of Other.

Intercompany Balancing will then evaluate the journal source and journal category combination in determining which rule touse for balancing. The order of precedence is as follows.

• Specific journal source and journal category

• Specific journal source and journal category of Other

• Journal source of Other and specific journal category

• Journal source of Other and journal category of Other

Additional Intercompany Balancing and Clearing Company OptionsAdditional Intercompany Balancing and Clearing options are used to balance the second balancing segment or the thirdbalancing segment or both, when a transaction is unbalanced by one of these segments but is already balanced by theprimary balancing segment. This option is defined for a ledger but you can create rules for various Source and Categorycombinations.

Additional Intercompany Balancing and Clearing options include the following settings:

• Intercompany Receivables and Intercompany Payables accounts: You can use as the accounts as the template tobuild balancing accounts for balancing segment 2 and balancing segment 3 when the journal is already balanced byprimary balancing segment.

• Summarization options: You can choose to summarize lines within a legal entity before balancing lines are generatedby choosing the Summary Net option. Alternatively choose the Detail options so lines are not summarized beforebalancing within a legal entity. Note that summarization always applies to balancing lines generated in a cross legalentity scenario.

• Clearing company options: Oracle recommends always setting clearing company options to handle many-to-manyjournals as this avoids balancing failing during General Ledger Posting or Subledger Accounting Create Accountingprocess.



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Clearing Company OptionsYou can choose to set clearing company options to balance a many-to-many journal. Set the following options to manageyour clearing company balancing.

• Clearing Company Condition: Choose when to use a clearing company.

◦ Use clearing company only for intracompany journals.

◦ Use clearing company for all many-to-many journals.

◦ Error out if many-to-many journal. This is the default value for this option.

• Clearing Company Source: Choose how the clearing company value is derived for your balancing lines, from thefollowing options:

◦ Default clearing balancing segment value.

◦ Manually entered clearing balancing segment value. Note that if you select Manually entered clearingbalancing segment value, you will need to manually enter a value in the create journals screen. This option willnot work for subledger accounting entries as they do not have a field on the user interface to enter this value.

• Clearing Company Value: If you selected Default clearing balancing segment value for Source, you must select aprimary balancing segment value in this field. This is the value used to balance your intracompany or many-to-manyjournals.

Intercompany Balancing Rules: ExamplesThis topic provides examples of intercompany balancing rules and the intercompany balancing lines generated. These rulesare used to generate the accounts needed to balance journals that are out of balance by legal entity or primary balancingsegment values.

Intercompany Balancing Rules PrecedenceIn this example the legal Entity InFusion Textiles intercompany manufacturing activities are tracked separately from its non-manufacturing activities. In order to achieve this legal entity level rules are defined specifically between the legal entity InFusionTextiles and the two manufacturing legal entities, InFusion Products (East) and InFusion Products (West). A chart of accountsrule is created to cover all other intercompany activities.

Setup

• InFusion USA Chart of Accounts as shown in the following table.

Segment Name Company (CO) Cost Center (CC) Division (DIV) Account (ACCT) Intercompany (IC)

Segment Qualifier

Primary BalancingSegment

Second BalancingSegment

Third BalancingSegment

Account

IntercompanySegment

• Ledger, Legal Entity, Primary Balancing Segment Value Assignments as shown in the following table.

Ledger Legal Entity Primary Balancing Segment Value

InFusion USA

InFusion Farms

3100, 3200, 3300, 3400, 3500



389


InFusion USA

InFusion Textiles

4000

InFusion USA

InFusion Products (East)

5000

InFusion USA

InFusion Products (West)

6000

InFusion USA

1000, 9000

• Chart of Accounts Rule as shown in the following table.

Rule Number Chart ofAccounts

AR Account AP Account Source Category Transaction Type

1

InFusionUSA Chart ofAccounts

1000 - 000 -0000 - 13050 -0000

1000 - 000 -0000 - 21050 -0000

Other

Other

None

• Legal Entity Level Rule as shown in the following table.

Rule No. From LegalEntity

To LegalEntity

AR Account AP Account Source Category TransactionType

2

InFusionTextiles

InFusionProducts(West)

1000 - 000 -0000 - 13020- 0000

1000 - 000 -0000 - 21020- 0000

Other

Other

None

3

InFusionTextiles

InFusionProducts(East)

1000 - 000 -0000 - 13030- 0000

1000 - 000 -0000 - 21030- 0000

Other

Other

None

• Journal Balancing

◦ Journal before Balancing as shown in the following table.

Line Line Type LegalEntity

CO CC DIV ACCT IC Debit Credit

1

Expense

InFusionFarms

3100

100

1200

52330

0000

150

2

Expense


5000

100

1200

52340

0000

200

3

Expense


6000

200

1300

52345

0000

300



390

Line Line Type LegalEntity


4

Liability

InFusionTextiles

4000

500

1300

40118

0000

650


◦ Journal after Balancing as shown in the following table.

UsesRule

Line LineType

LegalEntity


1

Expense

InFusionFarms

3100

100

1200

52330

0000

150

2

Expense


5000

100

1200

52340

0000

200

3

Expense


6000

200

1300

52345

0000

300

4

Liability

InFusionTextiles

4000

500

1300

40118

0000

650

1

5

IC AR

InFusionTextiles

4000

500

1300

13050

3100

150

1

6

IC AP

InFusionFarms

3100

100

1200

21050

4000

150

3

7

IC AR

InFusionTextiles

4000

500

1300

13030

5000

200

1

8

IC AP


5000

100

1200

21050

4000

200

2

9

IC AR

InFusionTextiles

4000

500

1300

13020

6000

300

1

10

IC AP


6000

200

1300

21050

4000

300



391

Using Chart of Accounts Rules for Intercompany Balancing:ExamplesThe following are some examples using chart of accounts rules for Intercompany balancing.

One-to-One Balancing: ExampleIn these scenarios, you choose to track intercompany balancing for companies with values 3000, and 4000 to separateintercompany accounts. You will set up specific rules at the primary balancing segment value level for this. A chart ofaccounts rule is created for all other intercompany activity.

Setup

InFusion USA Chart of Accounts

Segment Qualifier Primary BalancingSegment

Balancing Segment2

Segment Segment IntercompanySegment

Segment Name

Company (CO)

Cost Center (CC)

Product (PROD)

Account (ACCT)

Intercompany (IC)

Ledger, Legal Entity, and Primary Balancing Segment Value Assignments


InFusion USA

InFusion Farms

3000

InFusion USA

InFusion Textiles

4000

InFusion USA

InFusion Production

5000

InFusion USA

1000, 9000

Rule No. 1: Chart of Accounts Rule

• Chart of Accounts: InFusion USA

• Source: Other

• Category: Other

• Transaction Type: None

IC Account CO CC PROD ACCT IC

AR Account

1000

000

0000

13010

0000

AP Account

1000

000

0000

21010

0000



392

Rule No. 2: Primary Balancing Segment Rules

• From Ledger and To Ledger: InFusion USA

• From Primary Segment Value: 3000

• To Primary Segment Value: 4000

• Source: Other

• Category: Other



AR Account

1000

000

0000

13011

0000

AP Account

1000

000

0000

21011

0000

Rule No. 3: Primary Balancing Segment Rule




• Source: Other

• Category: Other



AR Account

1000

000

0000

13012

0000

AP Account

1000

000

0000

21012

0000





• Source: Other

• Category: Other



AR Account

1000

000

0000

13013

0000

AP Account

1000

000

0000

21013

0000



393





• Source: Other

• Category: Other



AR Account

1000

000

0000

13014

0000

AP Account

1000

000

0000

21014

0000

Journal No. 1: One-to-One Legal Entity Journal

• Source: Manual

• Category: Adjustment

Line Account Debit Credit Description Uses Rule No.

1

5000- 100- 1200-52330- 0000

150

2

4000- 110- 1200-41111- 0000

150

3

5000- 100- 0000-21010- 4000

150

IntercompanyBalancing Line

1

4

4000- 110- 0000-13014- 5000

150


5

Journal No. 2: One-to-Many Legal Entity with Multiple Primary Balancing Segment Values for a legal Entity

Note: Balancing summarizes across a legal entity and first performs intercompany balancing using the lowestprimary balancing segment value within the legal entity. In the following example, 1000 and 9000 are assigned tothe same legal entity so first 1000 is used to perform intercompany balancing. Then balancing is performed for1000 and 9000, that is, the primary balancing segments within a legal entity.

• Source: Manual

• Category: Adjustment


1

3000-100-1200-52330- 0000

150



394


2

4000-110-1200-41111- 0000

140

3

1000-120-1000-52345-0000

30

4

9000-130-2000-52330-0000

40

5

3000- 100- 0000-21011- 4000

140


2

6

4000- 110- 0000-13013- 3000

140


4

7

3000-100-0000-21010-1000

10


1

8

1000-120-0000-13010-3000

10


1

9

1000-120-0000-21010-9000

40

LedgerIntercompanyBalancing Line

1

10

9000-130-0000-13010-1000

40

LedgerIntercompanyBalancing Line

1

Many-to-Many Balancing: ExampleIn this section, we look at many-to-many primary balancing segment value journals and many-to-many legal entity journals.

• For many-to-many primary balancing segment journals, a clearing company is used if it is available. If no clearingcompany is available, balancing is done using a default rule that matches the largest debit with largest credit and soon.

• For many-to-many legal entity journals, a clearing company is required to balance a journal.

Setup

InFusion USA Chart of Accounts


Balancing Segment2


Segment Name

Company (CO)

Cost Center (CC)

Product (PROD)

Account (ACCT)

Intercompany (IC)



395

Ledger, Legal Entity, and Primary Balancing Segment Value Assignments


InFusion USA

InFusion Farms

3111, 3121, 3199, 3899

InFusion USA

InFusion Textiles

3311

InFusion USA

InFusion Production

3211

InFusion USA

InFusion Sales

3251

Many-to-Many Primary Balancing Segment Values Within One Legal Entity BalancedUsing a Clearing Company: ExampleRule No. 1: Chart of Accounts


• Source: Auto copy

• Category: Accrual



AR Account

3111

000

0000

11020

0000

AP Account

3251

000

0000

21021

0000




• To Primary Segment Value: All other





AR Account

3111

000

0000

11018

0000

AP Account

3111

000

0000

21030

0000



396

Additional Intercompany Balancing and Clearing Options



Journal Lines


1

3111-000-000-52330-0000

10

2

3121-000-000-52330-0000

20

3

3199-000-000-52330-0000

14

4

3899-000-000-52330-0000

16

5

3199-000-000-11020-3371

14

LedgerIntercompanybalancing line

1 and clearingcompany value3371

6

3371-000-000-21021-3199

14



7

3111-000-000-21030-3371

10



8

3371-000-000-11020-3111

10



9

3121-000-000-21021-3371

20



10

3371-000-000-11020-3121

20



11

3899-000-000-11020-3371

16



12

3371-000-000-21021-3899

16





397


90

90

Many-to-Many Legal Entity with a Clearing Company: ExampleRule No. 1: Chart of Accounts Rule


• Source: Other

• Category: Other



AR Account

3111

000

0000

11020

0000

AP Account

3251

000

0000

21021

0000

Additional Intercompany Balancing and Clearing Options



Condition Source Value

Use clearing company for all many-to-manyjournal

Default clearing balancing segment value

3899

Journal Lines


1

3111-000-000-52330-0000

10

2

3311-000-000-52330-0000

20

3

3211-000-000-52330-0000

14

4

3251-000-000-52330-0000

16

5

3111-000-000-21021-3899

10


1 and clearingcompany 3899



398


6

3211-000-000-11020-3899

14



7

3251-000-000-11020-3899

16



8

3311-000-000-21021-3899

20



9

3899-000-000-11020-3111

10



10

3899-000-000-21021-3211

14



11

3899-000-000-21021-3251

16



12

3899-000-000-11020-3311

20



90

90

Many-to-Many Primary Balancing Segment within a Legal Entity and No ClearingCompany Specified: ExampleThe default rule is used which applies largest debit to largest credit and so on.

Rule No. 1: Chart of Accounts Rule


• Source: Other

• Category: Other



AR Account

3111

000

0000

13011

0000

AP Account

3111

110

0000

21081

0000



399

Balancing will take the line with the largest debit which is line number 2 and balance it against the largest credit which is line4. Then it takes the balance of line 2 and balance this against line 3 and so on.

Journal Lines

Line Account Debit Credit Description Notes

1

3111-000-000-52330-0000

10

2

3121-000-0000-52330-0000

20

3

3199-000-0000-52330-0000

14

4

3899-000-0000-52330-0000

16

5

3899-000-0000-13011-3121

16


First, Line 4, thelargest credit isbalanced againstline 2, the largestdebit

6

3121-000-0000-21081-3899

16


First, Line 4, thelargest credit isbalanced againstline 2, the largestdebit

7

3199-000-0000-13011-3121

4


Remainder of line 2is balanced againstline 3, which is thenext largest creditamount

8

3121-000-0000-21081-3199

4


Remainder of line 2is balanced againstline 3, which is thenext largest creditamount

9

3199-000-0000-13011-3111

10


Finally, line 1 isbalanced againstthe remainder of line3.

10

3111-000-0000-21081-3199

10


Finally, line 1 isbalanced againstthe remainder of line3.

60

60



400

Manage Secondary and Clearing Company BalancingOptions

Additional Intercompany Balancing and Clearing Options: ExplainedAdditional Intercompany Balancing and Clearing options are used to balance the second balancing segment or the thirdbalancing segment or both, when a transaction is unbalanced by one of these segments but is already balanced by theprimary balancing segment. This option is defined for a ledger but you can create rules for various Source and Categorycombinations.

Additional Intercompany Balancing and Clearing options include the following settings:

• Intercompany Receivables and Intercompany Payables accounts: You can use as the accounts as the template tobuild balancing accounts for balancing segment 2 and balancing segment 3 when the journal is already balanced byprimary balancing segment.

• Summarization options: You can choose to summarize lines within a legal entity before balancing lines are generatedby choosing the Summary Net option. Alternatively choose the Detail options so lines are not summarized beforebalancing within a legal entity. Note that summarization always applies to balancing lines generated in a cross legalentity scenario.

• Clearing company options: Oracle recommends always setting clearing company options to handle many-to-manyjournals as this avoids balancing failing during General Ledger Posting or Subledger Accounting Create Accountingprocess.

Clearing Company OptionsYou can choose to set clearing company options to balance a many-to-many journal. Set the following options to manageyour clearing company balancing.

• Clearing Company Condition: Choose when to use a clearing company.

◦ Use clearing company only for intracompany journals.

◦ Use clearing company for all many-to-many journals.

◦ Error out if many-to-many journal. This is the default value for this option.

• Clearing Company Source: Choose how the clearing company value is derived for your balancing lines, from thefollowing options:

◦ Default clearing balancing segment value.

◦ Manually entered clearing balancing segment value. Note that if you select Manually entered clearingbalancing segment value, you will need to manually enter a value in the create journals screen. This option willnot work for subledger accounting entries as they do not have a field on the user interface to enter this value.

• Clearing Company Value: If you selected Default clearing balancing segment value for Source, you must select aprimary balancing segment value in this field. This is the value used to balance your intracompany or many-to-manyjournals.



401

Additional Intercompany Balancing and Clearing Options: ExamplesThis topic provides examples of additional intercompany balancing and clearing options, the setup required, and the journalbefore and after balancing.

Additional Intercompany Balancing Segment OptionsIn this scenario the enterprise has the second balancing segment and the third balancing segment enabled for its chart ofaccounts. The journal is balanced by primary balancing segment but is out of balance by the second balancing segment andthe third balancing segment.

Setup

• InFusion USA Chart of Accounts

The following table describes the structure of the InFusion USA chart of accounts.

SegmentQualifier

PrimaryBalancingSegment

SecondBalancingSegment

Third BalancingSegment

Product Account IntercompanySegment

Segment Name

Company (CO)

Cost Center (CC)

Division (DIV)

Product (PROD)

Account (ACCT)

Intercompany (IC)

• Ledger, Legal Entity, Primary Balancing Segment Value Assignments

The following table describes the defined ledger, legal entity, and primary balancing segment values.


InFusion USA

InFusion Farms

3100, 3200, 3300, 3400, 3500

InFusion USA

InFusion Textiles

4000

InFusion USA

InFusion Products (East)

5000

InFusion USA

InFusion Products (West)

6000

InFusion USA

1000, 9000

• Additional Intercompany Balancing and Clearing Options as shown in the following table.

Rule Number Ledger Source Category Transaction Type AR Account AP Account

1

InFusion USA

Other

Other

None

1000 - 000 -200- 0000 - 13010 -0000

1000 - 000 -100- 0000 -21010 - 0000



402


◦ Journal Before Balancing as shown in the following table.

Line LineType

LegalEntity

CO CC DIV PROD ACCT IC Debit Credit

1

Expense

InFusionFarms

3100

100

110

1200

52330

0000

150

2

Liability

InFusionFarms

3100

500

330

1300

40118

0000

150


◦ Journal after Balancing as shown in the following table.

Line LegalEntity

CO CC DIV PROD ACCT IC Debit Credit UsesRule

1

InFusionFarms

3100

100

110

1200

52330

0000

150

2

InFusionFarms

3100

500

330

1300

40118

0000

150

3

InFusionFarms

3100

100

110

0000

21010

0000

150

1

4

InFusionFarms

3100

500

330

0000

13010

0000

150

1

Manage Intercompany Transactions

Intercompany Allocations: How They Are ProcessedThe two processes you can use for intercompany allocation generation are Generate Intercompany Allocations and GenerateGeneral Ledger Allocations. You can use both processes for single-ledger allocations or cross-ledger allocations. TheGenerate Intercompany Allocations process updates Oracle Fusion Intercompany tables. The Generate General LedgerAllocations process updates Oracle Fusion General Ledger tables.

Settings That Affect Intercompany Allocations

The following table describes the parameters for the Generate Intercompany Allocations and Generate General LedgerAllocations processes.



403

Parameter Generate Intercompany Allocation Process Generate General Ledger Allocations Process

Rule or Rule Set

Select the rule or rule set to create allocationcalculations.

Select the rule or rule set to create allocationcalculations.

Intercompany Transaction Type

Select the type of transactions that aregrouped together and are identified by thetype of intercompany transaction.

Not Applicable

Post Allocations

Not Applicable

Select to book amounts spread from oneaccount to another.

Process Cross-Ledger Allocations

Not Applicable

Process allocations that run across morethan one ledger.

Use Intercompany Accounts

Not Applicable

Post allocation transactions to theintercompany accounts determined by theFUN application programming interface (API). This option appears only for cross-ledgerallocations.

Use Suspense Account

Not Applicable

Post allocation transactions to the suspenseaccount, if one exists. Cross-ledgerallocations are processed using JournalImport. This option appears only for cross-ledgerallocations.

How Intercompany Allocations are Processed Using the Generate IntercompanyAllocations ProcessThe Generate Intercompany Allocations process:

1. Calls the FUN API to create intercompany transactions and process the allocation lines.2. Extracts the allocation lines from the General Ledger interface table and populates the Intercompany interface tables.3. Removes the allocation lines from the General Ledger interface table upon successfully populating the Intercompany

interface tables.4. Generates a batch by provider legal entity and groups lines by receiver legal entity so that there is one transaction

per legal entity.5. Uses the entered currency amounts for populating the Intercompany interface tables.

How Intercompany Allocations are Processed Using the Generate General LedgerAllocations ProcessThe Generate General Ledger Allocations process:

1. Uses Journal Import to process the intercompany allocations if you select to post allocations for single ledgerjournals.

2. Calls the FUN API to generate the intercompany accounts if the rule or rule set contains cross-ledger lines. Youselect to process cross-ledger allocations using the intercompany accounts.



404

Note: If you select to process cross-ledger allocations using the suspense account, Journal Importprocesses the allocation lines.

3. Provides the intercompany receivables or intercompany payables account lines for cross-ledger allocations going toGeneral Ledger.

4. Populates the General Ledger interface table with the appropriate line for each ledger of the cross-ledger allocation.

Generating Intercompany Receivables and Intercompany PayablesAccounts for Manual Transactions: ExamplesThe receivables (AR) and payables (AP) accounts for manual intercompany transactions are generated automatically byOracle Fusion Intercompany. Enter distributions for the transaction and intercompany generates the receivables and payablesaccounts, based on the intercompany balancing rules setup.

Intercompany uses the transaction type, provider legal entity, receiver legal entity, primary balancing segment value of the firstprovider distribution and the primary balancing segment value of the first receiver distribution to ascertain which rule to apply.Intercompany then uses the rule, and the balancing segment values of the first provider distribution to build the intercompanyreceivable account combination for the provider side of the transaction. Similarly, intercompany builds the intercompanypayables account for the receiver side of the transaction, based on the first receiver distribution account.

Intercompany will evaluate the rules in the following order.

1. Primary balancing segment rules2. Legal entity level rules3. Ledger level rules4. Chart of accounts rules

If there is no matching rule at the lower levels, then intercompany will use the chart of accounts rule. It is thereforerecommended that you set up a chart of accounts rule for every chart of accounts structure you have. This will ensure thatintercompany will always find a rule to use to generate the intercompany receivables and intercompany payables accounts fortransactions.

Intercompany will then evaluate the transaction type in determining which rule to use to generate the receivables or payablesaccount. A rule with a specific transaction type takes precedence over a rule defined for the All Other transaction type.

Generating Intercompany Receivables and Intercompany Payables Accounts for ManualTransactions ExampleIn this scenario you choose to track your intercompany sales for the farming and textile companies separately from otherintercompany activities. Separate intercompany accounts are used for these two companies. A chart of accounts rule iscreated for all other intercompany activity.

Setup

InFusion USA Chart of Accounts as shown in the following table.


Balancing Segment2


Segment Name

Company (CO)

Cost Center (CC)

Product (PROD)

Account (ACCT)

Intercompany (IC)



405


Balancing Segment2


Ledger, Legal Entity, and Primary Balancing Segment Value Assignments as shown in the following table.


InFusion USA

InFusion Farms

3100, 3200, 3300, 3400, 3500

InFusion USA

InFusion Textiles

4000

InFusion USA

InFusion Production

5000

InFusion USA

1000, 9000

Chart of Accounts Rule

Rule No. 1 as shown in the following table.


• Source: None

• Category: None

• Transaction Type: All Other


AR Account

1000

000

0000

13020

0000

AP Account

1000

000

000

21020

000

Legal Entity Rules.



• From Legal Entity: InFusion Farms

• To Legal Entity: InFusion Textiles

• Source: None

• Category: None

• Transaction Type: Intercompany (IC) Sales


AR Account

1000

000

0000

13011

0000

AP Account 1000 000 0000 21011 0000



406




• From Legal Entity: InFusion Farms

• To Legal Entity: InFusion Production

• Source: None

• Category: None



AR Account

1000

000

0000

13012

0000

AP Account

1000

000

0000

21012

0000



• From Legal Entity: InFusion Textiles

• To Legal Entity: InFusion Farms

• Source: None

• Category: None



AR Account

1000

000

0000

13013

0000

AP Account

1000

000

0000

21013

0000



• From Legal Entity: InFusion Textiles

• To Legal Entity: InFusion Production

• Source: None

• Category: None



AR Account 1000 000 0000 13014 0000



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AP Account

1000

000

0000

21014

0000

Intercompany Accounts Generated for Intercompany Debit Transactions

Provider Distribution and Intercompany Receivable Account

This table displays the Provider side of the transaction.

Transaction Transaction Type Provider LE Receiver LE ProviderDistribution

Provider ARAccountGenerated

Uses Rule No.

1

IC Sales

InFusion Farms

InFusion Textiles

3100- 100-1200- 52330-0000

3100- 100-0000- 13011-4000

2

2

IC Adjustments

InFusion Farms

InFusion Textiles

3100- 100-1200- 52330-0000

3100- 100-0000- 13020-4000

1

3

IC Sales

InFusionProduction

InFusion Farms

5000- 120-1300- 52345-0000

5000- 120-0000- 13020-3200

1

Receiver Distribution and Intercompany Payable Account

This table displays the Receiver side of the transaction.

Transaction Transaction Type Receiver LE Provider LE ReceiverDistribution

ReceiverAR AccountGenerated

Uses

1

IC Sales

InFusion Textiles

InFusion Farms

4000- 110-1200- 41111-0000

4000- 110-0000- 21013-3100

4

2

IC Adjustments

InFusion Textiles

InFusion Farms

4000- 110-1200- 41111-0000

4000- 110-0000- 21020-3100

1

3

IC Sales

InFusion Farms

InFusionProduction

3200- 130-1200- 41112-0000

3200- 130-0000- 21012-5000

3

Intercompany Accounts Generated for Intercompany Credit Transactions as shown in the following table.

Provider Distribution and Intercompany Receivable Account



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Transaction Transaction Type Provider LE Receiver LE ProviderDistribution

Provider ARAccountGenerated

Uses Rule No.

4

IC Sales

InFusion Farms

InFusion Textiles

3100- 100-0000- 52330-0000

3100- 100-0000- 13011-4000

2

5

IC Adjustments

InFusion Farms

InFusion Textiles

3100- 100-1200- 52330-0000

3100- 100-0000- 13020-4000

1

6

IC Sales

InFusionProduction

InFusion Farms

5000- 120-1300- 52345-0000

5000- 120-0000- 13020-3200

1

Receiver Distribution and Intercompany Payable Account

This table displays the Receiver side of the transaction.

Transaction Transaction Type Receiver LE Provider LE ReceiverDistribution

ReceiverAP AccountGenerated

Uses Rule No.

4

IC Sales

InFusion Textiles

InFusion Farms

4000- 100-1200- 41111-0000

4000- 100-0000- 21013-3100

4

5

IC Adjustments

InFusion Textiles

InFusion Farms

4000- 100-1200- 41111-0000

4000- 100-0000- 21020-3100

1

6

IC Sales

InFusion Farms

InFusionProduction

3200- 130-1200- 41112-0000

3200- 130-0000- 21012-5000

3

Cross-Ledger Allocations: How They Are ProcessedJournals can be for a single ledger or multiple ledgers within a ledger set. When you create cross-ledger allocations,they must have only one debit or one credit line. The other side of the journal can have as many lines as you need. Theprocess adds an intercompany receivables or intercompany payables line to each ledger's journal so it can be posted. Theintercompany receivables and payables accounts are generated based on the intercompany balancing rules.

Settings That Affect AllocationsGeneral Ledger Allocations

For the Generate General Ledger Allocations process, set the parameters listed in the following table to create allocationjournals:



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Parameter Description

Rule or Rule set

Select the rule or rule set to create allocation lines.

Post Allocations

Select to automatically post allocation journals after they have been imported.

Intercompany Allocations

For the Generate Intercompany Allocations process, set the parameters listed in the following table to create intercompanyallocations:

Parameter Description

Rule or Rule set

Select the rule or rule set to create allocation calculations.

Intercompany Transaction Type

Select the transaction type to be used to create the intercompany transactions.

How Allocations are Processed Using the Generate General Ledger Allocations ProcessThe Generate General Ledger Allocations process creates journals from the allocation lines generated by the rule or rule set.

Journals can be for a single ledger or multiple ledgers. If the allocation lines span multiple ledgers each journal is balancedusing the intercompany balancing rules. When you create cross-ledger allocation rules each rule must only result in eitherone debit line or one credit line with as many lines on the other side as you need. The process then adds intercompanyreceivables or intercompany payables lines to cross-ledger journals so they can be imported into the relevant ledger.

How Allocations are Processed Using the Generate Intercompany Allocations ProcessThe Generate Intercompany Allocations process creates an intercompany batch, transactions, provider distributionsand receiver distributions from the allocation lines generated by the rule or rule set. The process creates intercompanytransactions in the entered currency of the allocation lines.

The Intercompany uses the primary balancing segment values, the balancing segment to legal entity assignments and theintercompany organizations set up to create transactions from your allocation.

You can create intercompany transactions from either single ledger or cross-ledger allocation lines. To successfully processcross-ledger allocations you must have either one debit line or one credit line per allocation but as many lines as required forthe other side. The single debit or single credit line forms the provider side of the transaction and the lines on the other sideform the receiver side of the transaction.

Cross-Ledger Allocations: ExamplesYou can process cross-ledger allocations by choosing to create them as general ledger journals or intercompanytransactions. Choose to generate journals from an allocation rule or rule set by submitting the Generate General LedgerAllocations process. This process provides options to balance any cross-ledger journal with a receivables or payables line.

You can also choose to create intercompany transactions from an allocation rule or rule set by submitting the GenerateIntercompany Allocations process. This creates intercompany transactions that optionally can be routed to Receivables forinvoice generation.



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The following scenario illustrates generating balancing journal entries as well as intercompany transactions for cross-ledgerallocations.

Intercompany Allocation EntriesAt month end the accountant allocates a portion of any centrally incurred expenses across all organization units thatcontribute to, or benefit from, that expenditure, based upon a calculation that represents a reasonable allocation of howthat expense should be split. By doing this allocation, the Income Statement or Profit and Loss statement for each of thoseorganization units shows a fair representation of its share of operational costs.

In many cases, allocations only take place between departments within one subsidiary, but there may be other costs that areshared between subsidiaries on a regular basis.

For example, marketing expense is incurred within a central corporate ledger, and is allocated to the United States (US),Canadian (CA), and United Kingdom (UK) organizations based on sales volume. These organizations are separate legalentities with their own separate ledgers. The US organization bears 50% of the cost and the CA and UK organizations eachbear 25% of the cost.

The Marketing Costs allocation rule is set up to generate the allocation lines listed in the following table.

Ledger Account Debit Credit Description

InFusion USA

3111-110-0000-41110-0000

USD 500

Allocation Line

InFusion UK

3411-000-0000-52330-0000

USD 250

Allocation Line

InFusion Canada

3511-120-0000-52330-0000

USD 250

Allocation Line

The intercompany balancing rules are set up to use the following accounts.

• Receivables Account: 3000-000-0000-13011-0000

• Payables Account: 3000-000-0000-21081-0000

Generate General Ledger Allocations Using Intercompany AccountsSubmit the Generate General Ledger Allocations process and choose your Rule or Rule Set. Select Process Cross-LedgerAllocations and Use Intercompany Accounts options to use intercompany balancing rules to generate the receivables andpayables accounts required to balance cross-ledger allocation journal lines.

The following journals are created for the Marketing Costs allocation rule.

The following table described the InFusion USA journal after cross-ledger balancing:


InFusion USA

3111-110-0000-41110-0000

USD 500

Allocation Line

InFusion USA

3111-110-0000-13011-3411

USD 250

Cross-LedgerIntercompany Allocationwith Ledger InFusion UK

InFusion USA

3111-110-0000-13011-3511

USD 250

Cross-LedgerIntercompany Allocation



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with Ledger InFusionCanada

The following table described the InFusion UK journal after cross-ledger balancing:


InFusion UK

3411-000-0000-52330-0000

USD 250

Allocation Line

InFusion UK

3411-000-0000-21081-3111

USD 250

Cross-LedgerIntercompany Allocationwith Ledger InFusionUSA

The following table described the InFusion Canada journal after cross-ledger balancing:


InFusion Canada

3511-120-0000-52330-0000

USD 250

Allocation Line

InFusion Canada

3511-120-0000-21081-3111

USD 250

Cross-LedgerIntercompany Allocationwith Ledger InFusionUSA

Generate Intercompany AllocationsSubmit the Generate Intercompany Allocations process to create intercompany transactions. If you need invoices for yourallocations choose an intercompany transaction type that requires invoicing so the intercompany transactions get routed toReceivables for invoice generation.

Ledger, Legal Entity, and Primary Balancing Segment assignments are set up as shown in the following table:

Ledger Legal Entity Primary Balancing Segment

InFusion USA

USA Corp

3111

InFusion UK

UK Corp

3411

InFusion Canada

Canada Corp

3511

Intercompany organizations are set up as listed in the following table.

Intercompany Organization Legal Entity

USA Sales

USA Corp



412

Intercompany Organization Legal Entity

UK Sales

UK Corp

Canada Sales

Canada Corp

The following table lists the provider intercompany transactions that are created for the Marketing Costs allocation rule.

Batch 101:

Provider Transaction Number Distribution Number Distribution account Debit Credit

USA Sales

1

1

3111-110-0000-41110-0000

USD 250

2

3111-110-0000-13011-3411

USD 250

2

1

3111-110-0000-41110-0000

USD 250

2

3111-110-0000-13011-3511

USD 250

The following table lists the receiver intercompany transactions that are created for the Marketing Costs allocation rule.

Receiver Transaction Number Distribution Number Distribution account Debit Credit

UK Sales

1

1

3411-000-0000-52330-0000

USD 250

2

3411-000-0000-21081-3111

USD 250

Canada Sales

2

1

3511-120-0000-52330-0000

USD 250

2

3511-120-0000-21081-3111

USD 250

FAQs for Manage Intercompany Transactions

How can I use social networking to discuss intercompany allocationadjustments with cost center owners?Use the Social link on the Intercompany Transactions work area to invite others to a conversation to address the adjustments.

For example, the monthly intercompany allocation of administration costs changed substantially to more accurately reflectresource usage. You need the cost center owners to validate their intercompany allocation.



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From the Intercompany Transactions work area:

1. Search for the intercompany transaction.2. Click Social to open Oracle Social Network. Click the Share button, or click Join if collaboration has already been

initiated.3. Create a new related conversation.4. Invite all of the cost center owners to join the conversation.5. Upload the allocation spreadsheet for the cost center owners' review.

The cost center owners can post questions and because the other cost center owners are members, they can see yourresponses to the questions. Each cost center owner validates their intercompany allocation in the conversation itself, whichcreates a lasting record.

Related Topics

• What does social networking have to do with my job?

Manage Intercompany Reconciliation

Managing Intercompany Reconciliation

VideoWatch: This video tutorial shows you how to reconcile your intercompany accounts and run the intercompany reconciliationprocess for your reports. The content of this video is also covered in text topics.

ProcedureUse the Reconciliation Report to reconcile your inner company accounts.

Perform the following steps to generate the Intercompany Reconciliation Report:

1. Navigate to the Springboard items from the landing page.2. Click General Accounting Infolets.3. On the IC Reconciliation infolet, click Reconcile Intercompany Accounts to start the Extract Intercompany

Reconciliation process.4. On the Actions drop-down menu, click Run.5. Select the value for the report parameters: Provider Ledger, Provider Accounting Period, and Additional

Currency.

Note: Ensure that the entries in the fields Provider Ledger and Provider Accounting Period matchthe ledger on the dashboard. The Additional Currency must also match the currency of the ledger onthe dashboard.

6. Select Conversion Rate Type and Conversion Date. These two parameters are enabled after you select theAdditional Currency.

7. Click Submit.8. Click Refresh until you see the report.

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=E43DAE558197027CE040D30A6881759F






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Note: The Period summary report is displayed only after the Extract Intercompany Reconciliation processis completed.

9. Click Actions drop-down list and select History to view previously run reports in the Period Summary. If theProvider Legal Entity or Receiver Legal Entity is displayed as 'unassigned', it means the primary balancing segmentvalue on the balancing line is not assigned to a legal entity.

10. Select an item under Entered Amount Difference in Transaction Currency column to view the Summary by Sourcereport.

11. Review Intercompany Receivables GL Balance and Intercompany Payables GL Balance in the Summary by Sourcereport. Identify the roles which have a higher balance and the journal lines that are in one, but may not be in the otherbalance.

Note: If there is a difference between the Intercompany receivables and payables amounts, drill downfurther on both intercompany receivables and payables amounts to identify the journal lines that appear inone but not the other.

a. Click the line which appears in one but not the other.b. On the Journal Lines page, click the journal name to review it and determine if it has been

correctly posted to the intercompany account.c. If the journal has been posted incorrectly, reverse it so that the Intercompany Receivables

GL Balance and Intercompany Payables GL Balance accounts on Summary by Sourcereport match.

Intercompany Reconciliation: ExplainedIntercompany reconciliation provides you with reports to assist you with reconciling your intercompany receivables andintercompany payables accounts and identifying differences.

The main goal of the reports is to make it easy for you to identify either the receiver side or provider side of a transaction thathas not been posted to the intercompany receivables or intercompany payables account.

The reports show the following intercompany lines:

• Intercompany receivables and intercompany payables lines generated by the intercompany balancing feature.

• Intercompany receivables and intercompany payables lines generated for the provider and receiver of eachintercompany transaction.

The following are not included on the intercompany reconciliation reports:

• Ledger balancing lines generated when the primary balancing segment value is in balance but either the secondbalancing segment or the third balancing segment is out of balance

• Clearing company balancing lines

Reconciliation ReportsThe reconciliation reports show the entered or transaction amount of the accounting entries booked to the intercompanyreceivables and payables accounts for a pair of provider and receiver legal entities. The accounted amounts may be differentwhen the conversion rates used for the intercompany receivables and intercompany payables are different. You can selectto run the reports using an additional currency and conversion rate that converts all amounts into a common currency forcomparison.



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The intercompany reconciliation process starts with running the Prepare Intercompany Reconciliation ReportingInformation process. Select parameters to determine what data appears on your reports. For example, select the providerlegal entity and receiver legal entity.

Once the Prepare Intercompany Reconciliation Reporting Information process has completed successfully. Click theRefresh icon to view the Reconciliation Period Summary report. This report displays the intercompany receivables andintercompany payables balances in summary for a period, and any differences between them. Drill down on the links to viewthe balances by source and then by journal lines. You have full drill-down capabilities to the general ledger journal, subledgeraccounting entry, and source receivables or payables transaction.

Generate the Reconciliation ReportTo generate the Reconciliation Report, follow these steps:

1. Navigate to Intercompany > Reconciliation.2. Click Actions > Run.3. Select the report parameters.4. Click Submit and note the process ID.5. Click the Refresh icon until the report is displayed.6. The Period Summary report is displayed.7. Click one of the Entered Amount Difference in Transaction Currency value to view the Summary by Source

report.8. Review the Intercompany Receivables and Payables balances.9. You can further drill down to any line by clicking the line. This displays the Journal Lines report.

10. Click the Journal Name to review the journal details.

Prepare Intercompany Reconciliation Reporting InformationThis process extracts data used to generate reports that can be viewed and utilized to assist with reconciliation.

Prepare Intercompany Reconciliation Reporting Information ParametersProvider Ledger

Ledger associated with the provider organization. Exclude secondary and reporting currency ledgers.

Provider Legal Entity

Legal entity of the provider organization.

Provider Accounting Period

Accounting period of the provider ledger.

Receiver Ledger

Ledger associated with the receiver organization.

Receiver Legal Entity

Legal entity of the receiver organization.

Receiver Accounting Period



416

Accounting period of the receiver ledger.

Additional Currency

Currency for converting the accounted amount.

Note: We recommend that you always specify an additional currency. Intercompany Reconciliation Infolets arepopulated only if the additional currency matches the ledger currency of the ledger in context of the accountinginfolets.

Conversion Rate Type

Conversion rate type for the additional currency.

Conversion Date

Conversion rate date for the additional currency.


Chapter 9Define Consolidations

417

9 Define Consolidations

Consolidation Method: OverviewSelect the best consolidation solution for your enterprise:

• Reporting Only Consolidations: If your subsidiaries and corporate ledger share the same chart of accounts andcalendar.

• Balance Transfer Consolidations: If your subsidiaries and corporate ledger have either or both different charts ofaccounts and different calendars.

• Financial Management Consolidations: If there are complex factors in your financial consolidation requirementssuch as:

◦ Complex company structures such as joint ventures, minority interest holdings, partially or fully ownedsubsidiaries.

◦ Multiple heterogeneous systems including data sources that are not general ledger that are required tosupport nonfinancial or industry-specific metrics, disclosures, and footnote schedules.

Reporting Only Consolidation Method: ExplainedUse the Reporting Only consolidation method and these reporting solutions: Financial Reporting, General AccountingDashboard, Smart View, online inquiry, Oracle Business Intelligence (BI) Publisher, Oracle Transactional Business Intelligence.

The following figure illustrates this scenario.

• The two subsidiaries and the corporate ledger share the same calendar.

• The first subsidiary uses the corporate chart of accounts and a local currency. The reporting currency functionality isused to record balances in the corporate currency.

• The second subsidiary uses a local chart of accounts and a local currency. A secondary ledger is used to recordbalances in the corporate chart of accounts and the corporate currency.



418

• The reporting currency, secondary ledger, corporate ledger, and adjustment ledger, are grouped into the corporateledger set for consolidation and reporting.

Corporate Ledger SetCorporate Chart of Accounts

Corporate Currency

Balance Level Corporate Chart of Accounts

Reporting Currency inCorporate Currency


Corporate Chart of AccountsCorporate Currency

Adjustment LedgerCorporate Chart of Accounts

Corporate Currency

Subsidiary Primary Ledger 1

Corporate Chart of AccountsLocal Currency

Secondary Ledger Balance Level


Financial Reportingand Analysis

Financial Reporting

General Accounting Dashboard

Smart View

Online Inquiry

BI Publisher

Oracle Transactional BI


Local Chart of AccountsLocal Currency

Use

With the Reporting Only consolidation method, perform the following tasks:

• Group the ledgers in a ledger set. This assumes the ledgers share the same chart of accounts and calendar.

• Translate balances to the corporate currency for ledgers not in the corporate currency.

• Create eliminating entries.

• Run reports using the ledger set and the corporate currency as reporting parameters to view the consolidatedbalances.



419

If each entity's ledger has a different chart of accounts or calendar from the corporate chart of accounts and calendar, asecondary ledger is used. The secondary ledger conforms the balances to the common chart of accounts and calendar andis included in the consolidation ledger set.

Balance Transfer Consolidation Method: ExplainedIf multiple subsidiaries and the corporate ledger don't share the same chart of accounts and calendar, use the BalanceTransfer Consolidation method and these reporting solutions: Financial Reporting, General Accounting Dashboard, SmartView, online inquiry, Oracle Business Intelligence (BI) Publisher, and Oracle Transactional Business Intelligence (BI).

The following figure illustrates a scenario where two subsidiaries use their own local charts of accounts and currencies.The corporate ledger uses a corporate chart of accounts and corporate currency. The balance transfers convert the localbalances to the corporate chart of accounts and currency.

Balance LevelReporting Currency in Corporate Currency

Balance Level Reporting Currency inCorporate Currency







Corporate Consolidation Ledger

Corporate Chart of Accounts Corporate Currency

Financial Reportingand Analysis

Financial Reporting

General Accounting Dashboard

Smart View

Online Inquiry

BI Publisher

Oracle Transactional BI

Load

Use



420

With the Balances Transfer consolidation method, perform the following tasks:

• Translate balances to the corporate currency for ledgers not in the corporate currency.

• Create a chart of accounts mapping to map subsidiaries account values to the corporate chart of accounts.

• Transfer balances from the subsidiaries to the corporate consolidation ledger using the Transfer Ledger Balancesprocess, which transfers between any source and target ledger pair, or the Transfer Balances to SecondaryLedger process for balance level secondary ledgers. In the parameters, select:

◦ Source and Target Ledgers

◦ Chart of Accounts Mapping

◦ Amount Type

◦ Source Ledger and Target Ledger Periods

◦ Run Journal Import

◦ Create Summary Journals

◦ Run Automatic Posting

◦ Balancing Segment

• Create eliminating entries using journal entries or the Calculation Manager in the corporate consolidation ledger.

• Generate a report on the consolidated balances net of eliminations in the corporate consolidation ledger.

Reporting Only Versus Balance Transfer: Points to ConsiderHere are pros and cons comparing the Reporting Only Consolidation method versus the Balance Transfer Consolidationmethod.

Reporting Only Consolidation Pros:

• You are not required to run additional processes to consolidate unless ledgers have a different currency than theconsolidation currency.

• View the consolidated balances anytime. This cannot be done in the Balance Transfer Consolidation methodbecause that method requires a balance transfer be done to achieve consolidation.

• Faster close process.

Balance Transfer Consolidation Pros: Do not require a standardized chart of accounts and calendar.

Note: When reviewing balances that use either consolidation method, verify that the translation to theconsolidation currency is current. If there is a journal or subledger level reporting currency ledger, translatedbalances are automatically available from either Reporting Only or Balance Transfer Consolidations. Only areporting level reporting currency ledger must have the translation process run when it has a different currencythan the consolidation currency.

Balance Transfer Consolidation Cons:

• May require an additional consolidation ledger to maintain balances or the current parent ledger can serve as theconsolidation ledger. You can use your parent ledger and just transfer the subsidiary balances directly into thatledger.



421

• Must run a balance translation process if the currency is different from the consolidation currency. Then run thetransfer processes to view the consolidated balances.

• Maintain charts of accounts mappings, which can be a labor intensive.

• Outdated balance transfers have to be reversed and posted, and then a new balance transfer is run every time thesource ledger's balance changes.

• Requires translation to be run again if ledger currency is different than the consolidation currency.

Balance Transfers: OverviewTwo methods of balance transfers are supported in Oracle Fusion General Ledger. Balance data is transferred from:

1. A primary ledger to a balance level secondary ledger assigned to it.2. From one ledger to another without a predefined relationship.

You can drill down from the target ledger balances to the source ledger balances. The drill down can originate from:

• Financial reports.

• Smart View spreadsheet.

• Account Inspector queries.

• Account Monitor analyses.

• Journal lines in the target ledger.

When the Source and Target Ledger Currency Are the Same

You drill down on the entered amount from the Journal Lines page or the Journal page in target ledger which resulted froma balance transfer. The displayed page provides the source and target ledger details so you can analyze details. For example,analyze the accounting period and accounts used in the source ledger that transferred to the journal line amount in the targetledger.

Note: When there is a variance between the source and target ledger, there is a warning icon displayed next tothe target amount and source amounts. The variance in this case could be due to journals that were posted tothe source ledger after the balance transfer between source and target ledger.

When the Source and Target Ledgers Do Not Share the Same Ledger Currency

It is necessary to translate the source ledger to the target ledger's ledger currency before transferring balances. As such,balance transfers drill down also shows the reporting currency balances for the source ledger in the target ledger currency aspart of the drill path.

Note: When there is a variance between the source (translated balance) and target ledger, there is a warningicon next to the target amount and source translated amounts.

The variance in this case can be due to:

• Conversion rate changes after the balance transfer.

• Journals that were posted to the source ledger after the balance transfer between source and target ledger.



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Reporting Consolidation with Multiple Levels: ExamplesThe consolidation for InFusion Corporation happens at two levels.

Level OneThe InFusion North America elimination ledger records the elimination entries between InFusion USA and InFusion Canada. Aledger set has been created for the three ledgers to enable creation of consolidation reports in Financial Reporting.

The following figure shows the InFusion North America ledger set. The ledger set includes the InFusion North Americaelimination ledger, the InFusion USA ledger, and the InFusion Canada ledger.

InFusion North America Ledger Set

InFusion USA InFusion Canada

InFusion North America Elimination Ledger

The InFusion EMEA elimination ledger records the elimination entries between InFusion UK and InFusion Germany. A ledgerset has been created for the three ledgers to enable creation of consolidation reports in Financial Reporting.

The following figure shows the InFusion EMEA ledger set. The ledger set includes the InFusion EMEA elimination ledger, theInFusion UK ledger, and the InFusion Germany ledger.



423

InFusion EMEA Ledger Set

InFusion UK

InFusion EMEA EliminationLedger

InFusion Germany

Level TwoThe InFusion Corporate elimination ledger records the elimination entries among all four entities. A ledger set has beencreated for the five ledgers to enable creation of consolidation reports in Financial Reporting.

The following figure shows the InFusion Corporate ledger set. The ledger set includes the InFusion Corporate eliminationledger and the ledgers for InFusion USA, InFusion Canada, InFusion UK, and InFusion Germany.

InFusion Corporate Ledger Set

InFusion USA

InFusion Corporate Elimination Ledger

InFusion Canada InFusion UK InFusion Germany



424

Preparing Elimination Entries: ExamplesThe following examples show how to eliminate intercompany transactions recorded in the InFusion ledgers duringconsolidation. The following assumptions apply to all examples.

• The balances that must be eliminated in the consolidation are between entities within a ledger set.

• The eliminations are accomplished by creating allocation rules using Calculation Manager.

• The elimination adjustments are recorded in an elimination ledger.

Level One Elimination EntriesThe first level of elimination entries is created for transactions between two InFusion North America ledgers (InFusion USA andInFusion Canada), and between two InFusion EMEA ledgers (InFusion UK and InFusion Germany). The elimination entries arerecorded during the consolidation with their respective parent ledgers.

The following figure shows the InFusion North America ledger set. This ledger set includes the InFusion North Americaelimination ledger, the InFusion USA ledger, and the InFusion Canada ledger.

InFusion North America Ledger Set

InFusion USA

InFusion Canada

InFusion North America

Elimination Ledger

The following figure shows the InFusion EMEA ledger set. This ledger set includes the InFusion EMEA elimination ledger, theInFusion UK ledger, and the InFusion Germany ledger.



425

InFusion EMEA Ledger Set

InFusion Germany

InFusion UK

InFusion EMEA Elimination

Ledger

The following table shows the debits and credits for the first transaction where InFusion USA pays InFusion Canada 10,000USD for copper wiring.

Ledger Account Debit Credit

InFusion USA

Expense to InFusion Canada

10,000 USD

InFusion USA

Intercompany Payable toInFusion Canada

10,000 USD

InFusion Canada

Intercompany Receivable fromInFusion USA

10,000 USD

InFusion Canada

Revenue from InFusion USA

10,000 USD

The following table shows the debits and credits for the elimination entry in the InFusion North America elimination ledger.

Account Debit Credit

InFusion USA Intercompany Payable

10,000 USD

InFusion USA Expense

10,000 USD

InFusion Canada Revenue

10,000 USD

InFusion Canada Intercompany Receivable

10,000 USD

The following table shows the debits and credits for the second transaction where InFusion UK pays InFusion Germany 5,000EUR for manufactured technical components.



426


InFusion UK

Expense to InFusion Germany

5,000 EUR

InFusion UK

Intercompany Payable toInFusion Germany

5,000 EUR

InFusion Germany

Intercompany Receivable fromInFusion UK

5,000 EUR

InFusion Germany

Revenue from InFusion UK

5,000 EUR

The following table shows the debits and credits for the elimination entry in the InFusion EMEA elimination ledger.


InFusion UK Intercompany Payable

5,000 EUR

InFusion UK Expense

5,000 EUR

InFusion Germany Revenue

5,000 EUR

InFusion Germany Intercompany Receivable

5,000 EUR

Level Two Elimination EntriesTwo additional intercompany transactions have taken place and must be eliminated when the four entities are all consolidatedinto the InFusion Corporate elimination ledger.

The following table shows the debits and credits for the third transaction where InFusion Germany pays InFusion USA 20,000USD for technical products.


InFusion Germany

Expense to InFusion USA

20,000 USD

InFusion Germany

Intercompany Payable toInFusion USA

20,000 USD

InFusion USA

Intercompany Receivable fromInFusion Germany

20,000 USD

InFusion USA

Revenue from InFusion Germany

20,000 USD



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The following table shows the debits and credits for the fourth transaction where InFusion Canada pays InFusion UK 15,000USD for copper rolls.


InFusion Canada

Expense to InFusion UK

15,000 USD

InFusion Canada

Intercompany Payable toInFusion UK

15,000 USD

InFusion UK

Intercompany Receivable fromInFusion Canada

15,000 USD

InFusion UK

Revenue from InFusion Canada

15,000 USD

Final Elimination Entry at Corporate LevelThe following elimination entries are based on the previous cross-ledger transactions. At different levels of the consolidation,certain intercompany payables and receivables balances must be eliminated. Eliminations are only required in the context of aconsolidation where the trading parties are both included in a given consolidation.

The following figure shows the InFusion Corporate ledger set. This ledger set includes the InFusion Corporate primary ledger,the elimination ledgers for InFusion EMEA and InFusion North America, and the ledgers for InFusion USA, InFusion Canada,InFusion UK, and InFusion Germany. The figure also shows that transactions occurred between the following ledgers:

• InFusion USA and InFusion Canada

• InFusion UK and InFusion Germany

• InFusion Germany and InFusion USA



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• InFusion Canada and InFusion UK

InFusion Corporate Ledger Set

InFusion USAPrimary Ledger

(USD)

InFusion Corporate Primary

Ledger (USD)

InFusion Canada

Reporting Ledger (USD)

InFusion UKReporting

Ledger (USD)

InFusion GermanyReporting

Ledger (USD)

InFusion EMEA Elimination

Ledger

InFusion North America

Elimination Ledger

The following table shows the elimination entries for InFusion Corporation, where the conversation rate of EUR to USD is1.577.


InFusion USA Payable

10,000 USD

InFusion Canada Receivable

10,000 USD

InFusion Germany Payable

20,000 USD

InFusion USA Receivable

20,000 USD

InFusion Canada Payable

15,000 USD

InFusion UK Receivable

15,000 USD

InFusion UK Payable

7,885 USD

InFusion Germany Receivable

7,885 USD

The following figure shows the consolidated balance sheet in US dollars.



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The report has these columns: USA, Canada, UK, Germany, Eliminations, Total. The report has these rows: Total Assets,Total Liabilities, Total Stockholder's Equity, Total Liabilities and Equity. Under the Eliminations column, the Total Assets rowdisplays a negative amount of 52,885, and the Total Liabilities row displays a positive amount of 52,885.

Mapping Segments to Financial Management Dimensions:ExplainedWhen integrating with Oracle Hyperion Financial Management, you can use the following dimensions for consolidation. Mapone to one, or concatenate segments into a single Hyperion Financial Management dimension.

The following figure shows an example of mapping segments in Accounting Hub to dimensions in Hyperion FinancialManagement. In this example:

• Company is mapped to Entity.

• Department and Location are concatenated and mapped to Department.

• Account and Subaccount are concatenated and mapped to Account.

• Product is mapped to Product.



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• Program isn't mapped and its data is summarized.

Note: Data is summarized across segments that aren't mapped to dimensions.

FAQs for Define Consolidations

How can I secure balance transfer drill-down?The balance transfer drill-down feature is secured with the same privilege that controls the existing account balance inquiryfeatures. A specific data access set is not required to drill down from the target ledger to the source ledger to view thebalance transfer information. As long as you have read or write access to the target ledger you can drill down to the sourceledger. However, you are limited to just that drill path and cannot see other journals for the target ledger.


Chapter 10Define Budget Configuration

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10 Define Budget Configuration

Budget Uploads: OverviewIn Oracle General Ledger, you can load budget data to perform variance reporting.

If you use a third-party budgeting application or don't use a budgeting application, there are two ways to load budgets intothe GL Balances Cube.

• Importing Budget Data from a Flat File: Export budget data from your budgeting application to a commaseparated values .csv file. Use the Import General Ledger Budget Balances file-based data import to prepare andgenerate flat files in a .csv format. You can use Oracle Application Development Framework Desktop Integratorcorrection worksheets to correct validation errors, delete rows with errors, and resubmit the corrected error rows.

Note: For more information about file-based data import, see the File-Based Data Import for OracleFinancials Cloud guide.

• Importing Budget Data from a Spreadsheet: You can access the budget load spreadsheet from the GeneralAccounting Dashboard. Enter, load, and correct budget data in the ADF Desktop Integrator spreadsheet tool.Use this tool to prepare and load budget data for multiple ledgers and periods with a common chart of accountsinstance. The list of values and the web picker help you select valid values. This simplified data entry reduces errorsand alerts you to errors as you enter the data in the spreadsheet. Error correction is done in the same spreadsheet.



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The following figure shows the process flow for budget upload. Prepare your budget data, upload it using a spreadsheet orflat file, and report on the budget data.

Upload

Budget Preparation

ADFdi SpreadsheetComma Separated Flat File

Scenario: Budget

Financial Reporting General Accounting Dashboard Adhoc Analysis with Smart View

Budget Reporting

Caution: When the GL Balances Cube is rebuilt, the process retains the budget balances as well as the actualbalances. Only the budget balances loaded using the spreadsheet or flat file through the GL Budget Balancesinterface table are retained. Create reports in Smart View or Financial Reporting to verify that the budget datawas loaded correctly.

Related Topics

• File-Based Data Import for Oracle Financials Cloud




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Importing Budget Data from a Flat File: ExplainedUse the Upload Budgets processes to integrate budget information from other budgeting applications such as OracleHyperion Planning. You can load your budget amounts to the General Ledger balances cube by populating theGL_BUDGET_INTERFACE table and running the Validate and Upload Budgets process. You can load budgets for multipleperiods and for multiple ledgers with the same chart of accounts in a single load process. Note that the budget data isn'tloaded to the GL_BALANCES table and only loaded to the balances cube for variance reporting purposes.

Note: You can load data to interface tables using predefined templates and the Load Interface File for Importscheduled process, which are both part of the External Data Integration Services for Oracle Cloud. For moreinformation about file-based data import, see the File Based Data Import guide for your cloud services.

Assigning Values for Columns in the GL_BUDGET_INTERFACE TableFor budget import to be successful, you must enter values in the columns of the interface table that require values.


Name Value

RUN_NAME

Enter a name to identify the budget data set being imported.

STATUS

Enter the value NEW to indicate that you are loading new budget data.

LEDGER_ID

Enter the appropriate ledger ID value for the budget amount. You can view the ledger ID for yourledgers on the Manage Primary Ledgers page. The ledger ID column is hidden by default, but youcan display it from the View Columns menu. If you enter multiple ledgers for the same run name, allof the ledgers must share the same chart of accounts.

BUDGET_NAME

Enter the appropriate budget name value for the budget line. You define the budget names in theAccounting Scenario value set.

PERIOD_NAME

Enter the period name that you are loading the budget data for. You can load budget data to NeverOpened, Future Enterable, and Open periods only.

CURRENCY_CODE

Enter the currency for the budget.

SEGMENT1 to SEGMENT30

Enter valid and enabled account values for each segment in the chart of accounts.

BUDGET_AMOUNT

Enter the amount in the ledger currency for account types, expense and assets.

OBJECT_ VERSION_ NUMBER

For Oracle Cloud implementations, leave this field blank as the application automatically populatesthis when you load the data from the secure FTP server. For other implementations, you can set thecolumn to a value of 1.



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These columns remain blank because the budget import process either uses these columns for internal processing, ordoesn't currently use them.

• CHART_OF_ACCOUNTS_ID

• CODE_COMBINATION_ID

• ERROR_MESSAGE

• CREATION_DATE

• CREATED_BY



• LAST_UPDATED_BY

• REQUEST_ID

• LOAD_REQUEST_ID

Related Topics

• External Data Integration Services for Oracle Cloud: Overview


Loading Data to the Budget Interface Table: ExplainedLoad the budget amounts to the interface table by performing the following steps.

1. Export budget data from your budgeting application to a comma separated values (.csv) file. The file-based dataimport for Import General Ledger Budget Balances has a template that you can use. For more information about file-based data import, see the File Based Data Import for Oracle Financials Cloud guide.

2. Upload the zipped .csv file to the UCM directory fin/budgetBalance/import.3. Launch the scheduled process called Load Interface File for Import and select the following parameters:

◦ Import process: Validate and Upload Budgets

◦ Data file: Select the name of the zipped .csv file

4. Run the Validate and Upload Budgets process to load the budget amounts to the General Ledger balances cube.5. Review the logs for validation errors. If there are validation errors, correct the data in the template and regenerate

the .csv file. Then resubmit the data by repeating steps 3 and 4.

Related Topics


Importing Budget Data from a Spreadsheet: ExplainedYou can use the Create Budgets spreadsheet to enter, load, and correct budget data. To open the spreadsheet, navigate tothe General Accounting Dashboard and select the Create Budgets in Spreadsheet task.

https://fusionhelp.oracle.com/helpPortal/faces/AtkHelpPortalMain?TopicId=C260011EE39AD9F3E040D30A6881341B





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Budget ImportThe spreadsheet uses the Oracle ADF Desktop Integration Add-In for Excel, which is the same add-in used by the CreateJournals spreadsheet. The spreadsheet uses an interface table called the GL_BUDGET_INTERFACE and requires the BudgetEntry duty. The budget import uses the Accounting Scenario value set for the budget being loaded. The Run Name is used asan identifier for the imported data set.

The spreadsheet budget import:

• Supports multiple ledgers but a single chart of accounts instance

• Allows multiple calendars and periods

• Supports entered currencies in addition to the ledger currency

• Contains user-friendly lists of values

• Performs most validations on the worksheet

• Secures values by data access sets

Note: The spreadsheet includes a Row Status column that shows if the rows upload successfully or with errors.Use the spreadsheet where the data was entered to enter the corrections.

Budget Correction with Oracle ADF Desktop Integrator:ExplainedOracle ADF Desktop Integrator correction functionality is similar to the journal correction sheet in Oracle Fusion GeneralLedger. You use this tool to correct the flat file import errors.

The correction spreadsheet functionality:

• Uses segment labels based on the data access set

• Contains user friendly lists of values

• Performs most validations on the worksheet

• Allows updating or marking the row for deletion.

Correcting DataTo use the correction spreadsheet functionality perform the following steps:

1. From the General Accounting Dashboard page, you set the data access set and download the correctionworksheet.

2. After the correction worksheet is downloaded, you query for the rows in error. Pick the run name for which there arevalidation errors and click on the Search button. This populates the budget rows in error.

3. Correct the rows in error or mark for deletion and submit the journal correction spreadsheet. Any errors will bereported on the worksheet.

4. If the row status indicates an error, double-click it to see the error details and take necessary action. You can use thelist of values to quickly correct data that is in error.



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Oracle Hyperion Planning: OverviewOracle Hyperion Planning is a comprehensive, web based, budgeting and planning application. Planning can be licensed andintegrated with the Oracle Fusion Accounting Hub to provide expanded budgeting and planning functionality.

Oracle Hyperion Planning:

• Delivers global collection of data and financial consolidation

• Enables data entry, analysis, and reporting, including personalizing data entry forms

• Facilitates budgeting collaboration, communication, and control across multidivisional global enterprises

• Drives the planning process

• Provides a framework for perpetual planning, with attention to managing volatility and frequent planning cycles

• Promotes modeling using complex business rules and allocations

• Integrates with Smart View so you can design worksheets in Microsoft Excel to enter, format, analyze, and report ondata

The following table provides installation and configuration activities and documentation references.

Activities Documentation

Installation of Planning

Oracle Hyperion Enterprise Performance Management System Installation and Configuration Guidefor Oracle Hyperion Enterprise Performance Management

Configuration of Planning


Integration of Planning

Oracle Hyperion Financial Data Quality Management ERP Integration Adapter for Oracle ApplicationsAdministrator's Guide

Integration with Oracle Enterprise Planning and BudgetingCloud Service: OverviewIntegrate with Oracle Enterprise Planning and Budgeting Cloud Service to synchronize your budget and actual amounts forfinancial reporting and analysis.

The integration between Oracle Enterprise Planning and Budgeting Cloud Service enables you to:

• Integrate Oracle Fusion General Ledger data with the Oracle Enterprise Performance Management Cloud.

• Automate the import of data into the Oracle EPM Cloud applications.

• Schedule or manually run the integration process after selecting the source ledger from Oracle Fusion GeneralLedger and setting up the mappings.



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For more information on completing the setup for integration with Oracle Enterprise Planning and Budgeting, Financials CloudService, see the Integrating Financials Cloud with EPM Cloud section in the Administering Data Management for OracleEnterprise Performance Management Cloud guide in the Oracle Help Center (http://docs.oracle.com).



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Chapter 11Define Financial Reporting

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11 Define Financial Reporting

Financial Reporting Center Implementation: Points toConsiderThe Financial Reporting Center adds self-service functionality for the Oracle Fusion Applications and the Oracle FusionAccounting Hub. The financial reports are available immediately on both computers and mobile devices, which leads toquicker decision making.

Note: To access the reports in Financial Reporting Center, store the reports in the My Folder or Shared Customdirectories.

Job Roles and Duty RolesThe following table shows the predefined job roles and their associated duty roles.

Predefined Job Role Duty Roles

General Accountant

• Financial Reporting Management• Account Balances Review

General Accounting Manager


Financial Analyst


Business Process Model InformationThe features are part of the Manage Financial Reporting and Analysis detailed business process.

The following table shows the activities and tasks for that business process.

Activity Task

Prepare Financial Reports

Generate Financial Statements

Analyze Financial Performance

Inquire and Analyze Balances



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Financial Reporting Center: How It WorksThe Financial Reporting Center is intended to be the primary user interface for financials end users to access all seven reporttypes.

Financial Reporting Center Overview

The Financial Reporting Center includes these report types: Financial Reporting Studio Reports, Account Groups andSunburst, Smart View Reports, Oracle Transactional Business Intelligence Analyses, Oracle Transactional BusinessIntelligence Dashboards, Oracle Business Intelligence Publisher Reports, and Business Intelligence Mobile Apps. Otherreporting tools are also available to run the same seven report types.

The following figure illustrates the report types that are available in the Financial Reporting Center.

Financial Reporting Studio

Reports

Oracle Fusion General Ledger Balances Cube

Oracle Transaction Tables

Enterprise Performance Management Workspace

Account Groups and Sunburst

Smart View Reports

Oracle Transactional BI Analyses

Oracle Transactional BI Dashboards

Oracle BI Publisher Reports BI Mobile Apps

Financial Reporting Center Other Reporting Tools

Can be used for the same 7 report types

Reports can be accessed through various methods. However, the Financial Reporting Center provides access to every typeof report, is intended to be the primary user interface for financials end users, and is tablet and smartphone friendly.

Financial Reports are read from the Shared > Custom > Financials and My Folders directories. All other report typescan be saved anywhere in the BI Catalog however, any user-defined content should be in the Shared > Custom folder.Subfolders can be created within the Shared > Custom folder.



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Seven types of reports can be run from the Financial Reporting Center and from the other reporting tools.

• Financial Reports: These reports are built off of the Oracle Financial Reporting Studio using data in the Oracle FusionGeneral Ledger balances cube. For example, company income statements and balance sheets. These reports aremainly run by users in General Ledger.

• Account Groups and Sunburst: Account groups are used to monitor key accounts in General Ledger. When a usercreates an account group, it becomes visible in the Financial Reporting Center with the Sunburst visualization tool.The Sunburst visualization tool lets you interact with your account balances across various business dimensions toview balances from different perspectives. Account groups are used only in General Ledger.

• Smart View Reports: Smart View is a multidimensional pivot analysis tool combined with full Excel functionality.Smart View enables you to interactively analyze your balances and define reports using a familiar spreadsheetenvironment. These queries are mainly for users in General Ledger. To share Smart View queries, users can emailthem to other users, or they can upload the queries to the Financial Reporting Center where users can downloadthem to a local drive for use. The Financial Reporting Center is only a place for users to upload and download SmartView queries.

Note: To upload a Smart View report to the Financial Reporting Center: select the Open Workspace forFinancial Reports task, navigate to the BI Catalog, and select Upload from the Tasks section. Be sure toupload the Excel file to one of the folder locations mentioned previously.

• Oracle Transactional Business Intelligence Analyses: These analyses and reports are built off of transactionaltables using subject areas. These reports can be run by users in General Ledger, Payables, Receivables, CashManagement, Intercompany, and so on.

• Oracle Transactional Business Intelligence Dashboards: Dashboards put all the information, functions, and actionsthat a business user must have to do their job in one place. Dashboards are built off of Oracle TransactionalBusiness Intelligence objects like analyses and reports. These reports can be run by users in General Ledger,Payables, Receivables, Cash Management, Intercompany, and so on.

• Oracle Business Intelligence Publisher Reports: Most of these reports are predefined and must first be submittedand resubmitted to see the latest data by the Oracle Enterprise Scheduler through the Scheduled Processesnavigation. These reports can be run by users in General Ledger, Payables, Receivables, Cash Management,Intercompany, and so on.

• BI Mobile Apps: Oracle Business Intelligence Mobile App Designer is an application that enables you to createmultitouch information-driven applications with rich interaction, rich visualization, and rich media, for mobile devicessuch as iPhone, iPad, Android phone, tablet, and more. These reports can be run by users in General Ledger,Payables, Receivables, Cash Management, Intercompany, and so on.

Other Reporting Tools OverviewSix other tools are available for reporting in Financials.

The following table lists the other reporting tools and the types of reports they support.

Other Reporting Tools Report Type

General Accounting Dashboard andAccount Inspector

Account Groups

Reports and Analytics

Oracle Transactional Business Intelligence Objects

BI Catalog All Report Types, Except Oracle Business Intelligence Publisher Reports



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Other Reporting Tools Report Type

Enterprise Performance ManagementWorkspace

Reports, Books, Snapshot Reports, Snapshot Books, Financial Reporting Batches, and BatchScheduler

Enterprise Scheduler System

Oracle Business Intelligence Publisher Reports

Even though the Financial Reporting Center is designed to be the main user interface for a financial end user's reportingneeds, some users may choose to use any of the six other tools for reporting in financials, such as:

• General Accounting Dashboard, which provides access to Account Groups: Uses the Account Monitor to efficientlymonitor and track key account balances in real time.

• Account Inspector: Perform ad hoc queries from account groups and financial reports through drill down tounderlying journals and subledger transactions.

• Reports and Analytics: This reporting tool has a panel that reflects the folder structure of the BI Catalog. Userscan access and run any Oracle Transactional Business Intelligence analysis, report or dashboard. Users can't runFinancial Reports or Oracle Business Intelligence Publisher reports from this interface. This interface can be used byall financials users.

• BI Catalog: A component of the Enterprise Performance Management Workspace where you can run all reporttypes, except for Oracle Business Intelligence Publisher reports.

• Enterprise Performance Management Workspace: Create reports, books, snapshot reports, snapshot books,Financial Reporting batches, and batch scheduler, and schedule batches to automatically run and burst to email.

• Enterprise Scheduler System: Only Oracle Business Intelligence Publisher reports can be submitted from thisinterface. Users access this interface by navigating to Tools > Scheduled Processes. Most financial users haveaccess to this interface to run standard reports for General Ledger, Payables, Receivables, and so on.

Setting Up Your Financial Reporting Center: CriticalChoicesOracle Fusion Financial Reporting Center is a powerful tool for reviewing, designing, and presenting financial reports andanalytic data. The critical choices required to configure and install the components in Financial Reporting Center consist of:

• Configuring the Financial Reporting Center

• Installing and configuring Financial Reporting Studio, performed by your end users

• Installing Smart View, performed by your end users

• Configuring Workspace Database Connection, performed by your administrator

• Configuring Oracle Transactional BI Dimensions

Configuring Financial Reporting CenterYou have access to the reports in the Financial Reporting Center and Workspace installed with Oracle Fusion FinancialApplications. Your Oracle Fusion Business Intelligence (BI) administrator defines the folder structure in Workspace. The



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administrator considers your company's security requirements for folders and reports, as well as report distributionrequirements for financial reporting batches.

• Security can be set on folders and reports from Workspace.

• You are granted access to the folders and reports you want to view by your BI administrator.

Installing and Configuring Financial Reporting StudioOracle Financial Reporting Studio is client-based software. If you open Oracle Fusion Applications from Oracle Cloud, youconnect to the Financial Reporting Studio through a Windows Remote Desktop Connection. Report authors downloadinstallation files for Financial Reporting Studio from Workspace by clicking Navigator > Financial Reporting Center >Tasks panel drawer > Open Workspace for Financial Reporting. Once Workspace is started, click Tools > Install >Financial Reporting Studio. After performing the prerequisites and completing the installation, start the Financial ReportingStudio. Provide your user ID, password, and the Server URL. Derive the Server URL information by following the steps:

1. Open Navigator > Financial Reporting Center > Tasks panel drawer > Open Workspace for FinancialReporting.

2. Edit the Workspace URL and remove workspace/index.jsp.3. Following are two examples of Server URLs:

◦ If the Workspace URL is https://fusionsystemtest-p-external-bi.us.oracle.com/workspace/index.jsp, theServer URL is https://fusionsystemtest-p-external-bi.us.oracle.com.

◦ If the Workspace URL is https://fusionsystemtest-p-external-bi.us.oracle.com:10622/workspace/index.jsp,the Server URL is https://fusionsystemtest-p-external-bi.us.oracle.com:10622.

4. Copy the modified URL to the Server URL field.

Note: For end users installing the Oracle Fusion Financials Reporting Studio, the installer starts a separateconsole window. The installer continues to run for a brief time after the installation completes the setup tasks.The process is normal, expected, and applies to Oracle Reporting Studio installations in both the Oracle FusionApplications and Enterprise Performance Manager modes. Wait for the console window to close, which happensautomatically, before clicking the Finish button on the Financial Reporting Studio Installation dialog box. If youclick the Finish button before the console window closes, the Financial Reporting Studio installation may notcomplete.

Note: You must save a new report before attempting to preview it with Web Preview.

Prerequisites needed for installing the Financial Reporting Studio are:

1. Financial Reporting Studio Client Certifications that are found at: http://www.oracle.com/technetwork/middleware/bi-foundation/hyperion-supported-platforms-085957.html.

2. Microsoft Office installed on your users' computers.

Installing Smart ViewSmart View is an Excel add-in that must be loaded on each client. To download Smart View, click Navigator > FinancialReporting Center > Tasks panel drawer > Open Workspace for Financial Reports. Once the workspace is started,click Tools > Install > Smart View.

Note: Since Smart View is an add-in to Microsoft Office products, you can install Smart View only on aWindows operating system.



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Once Smart View is installed, you must configure the connection using the Smart View Shared Connections URL. You canderive the Shared Connections URL by following these steps:

1. From the Financial Reporting Center task panel, select Open Workspace for Financial Reporting.2. Edit the workspace URL by removing index.jsp and adding SmartViewProviders at the end.

Note: The following URL is an example for a Cloud-based environment. If the workspace URLis https://efops-rel5st4-cdrm-external-bi.us.oracle.com:10622/workspace/index.jsp, the SharedConnections URL is https://efops-rel5st4-cdrm-external-bi.us.oracle.com:10622/workspace/SmartViewProviders.

3. Copy the URL.4. Open Excel.5. From the Smart View menu, click Options > Advanced.6. Paste the URL in the Shared Connections URL field.7. Click OK.

For more information about configuring Smart View client for users, see Oracle Smart View for Office User's Guide.

To connect Oracle Fusion General Ledger Balances cubes in Smart View:

1. Open Smart View from your Start menu > Programs > Microsoft Office > Microsoft Excel 2007.2. Navigate to the Smart View menu > Open. On the Start on the ribbon, click Smart View Panel that appears in the

list of values under the ribbon. The task pane opens.3. Click Shared Connections on the task pane.4. Sign in with your user name and password.5. Click the Select Server to proceed list of values.

Note: If the Essbase Server is not there, then it has to be added. Use the following steps:a. Click the Add Essbase Server link.b. Specify the Essbase Server login and password.c. Expand the Essbase server and locate the cube under it.

6. Select Oracle Essbase from the list of shared connections.7. Click the Expand to expand the list of cubes.8. Expand your cube (name of your chart of accounts).9. Click db.

10. Click the analysis link.

Note: You must perform these steps only once for a new server and database.

To set how the name and alias of the Essbase database appears:

1. Click Options on the ribbon > select the Member Options > select Member Name Display.2. Set one of these three options:

◦ Distinct Member Name. Only shows the full Essbase distinct path.

◦ Member Name and Alias: Shows both the member name and the alias.

◦ Member Name Only. Shows only the member name.

Note: The Smart Slice feature is not supported in Oracle Fusion General Ledger. For all other documentation,refer to the Oracle Smart View for Office User's Guide.



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Configuring Workspace Database ConnectionsAdministrators must create database connections from Workspace so users can access the cubes from Workspace andFinancial Reporting Studio.

Note: Ledger setup has to be completed before the database connection can be created. Oracle FusionGeneral Ledger balances cubes are created as part of ledger setup. A separate cube is created for eachcombination of chart of accounts and accounting calendar. A database connection is needed for each cube.

Steps to define a database connection are:

1. Start at the Navigator by selecting Financial Reporting Center.2. From the Financial Reporting Center task panel, select Open Workspace for Financial Reporting.3. From within Workspace select the Navigator menu > Applications >BI Catalog.4. Select Tools menu > Database Connection Manager.5. Select New button.6. Enter a user-friendly name for the Database Connection Name.7. Enter Essbase as the Type, your server, user name, and password.8. Select Application (cube) and Database from the list of values. Expand the Application name to see the related

Database.9. Click the OK button twice to save your selections.

10. Click Close button in the Database Connection Manager window to save your connection.

For more information about configuring Essbase database connections in Workspace see: Database Administrator's Guidefor Oracle Essbase.

Note: The database connection is available in both Workspace and Financial Reporting Studio. Optionally,it can be set up in Financial Reporting Studio when putting grids on a report. This should only be done by anadministrator.

Configuring Oracle Transactional BI DimensionsWithin Oracle Transactional Business Intelligence (BI), Accounting Segment Dimensions such as Balancing segment or CostCenter segment are based on the Chart of Accounts configuration. These segments can be configured to be tree-enabled,which means that hierarchies are defined upon the segment values for rollup purposes. In such scenarios, you must filter bya specific hierarchy when performing ad hoc queries against tree-based accounting segments. Incorrect results may occurif tree filters are not applied. To apply tree filters, create a filter condition on Tree Filter attributes in Accounting SegmentDimensions.

Note: For information, see: Administering Transactional Analyses at http://docs.oracle.com/cloud/latest/common/OATBI/toc.htm.

Migrating Financial Reports: InstructionsThis process consists of two tasks:

• Exporting from the Source Instance



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• Importing to the Target Instance

Exporting from the Source InstanceThis process exports only the financial reports under /shared/Custom/Financials. Make sure to copy all the financial reports orthe folders containing them to this folder.

To export from the source instance:

1. Copy all the financial reports or the folders containing them to the folder /shared/Custom/Financials.2. Sign in to the Oracle Fusion Home page of the source environment with Application_Implementation_Consultant.3. Select Navigator > Setup and Maintenance.4. Click Manage Implementation Projects in the Tasks pane.5. Click the Create icon to add a new implementation project.6. Enter the basic information and click Next.7. On the Create Implementation Project: Select Offerings to Implement page, verify that the Include check box is

deselected for all the projects.8. Click Save and Open Project.9. Click the Select and Add icon to add a task.

10. Select Tasks from the Search list and search on the task called Create Financial Statements.11. Select Create Financial Statements > Apply. The task is added to the Implementation Project page in the

background.12. Select Done.13. Click Done for the implementation project.14. In the Tasks pane, click Manage Configuration Packages.15. Click the Create icon to create a new configuration project.16. Search for your implementation project in the Name field and enter or modify the basic information.17. Select the option Setup task list and setup data.18. Click Next > Submit.19. Answer Yes to the message.20. Click Refresh until the process finishes.21. Click the Download icon, select Download Configuration Package, and save to a local disk.

Importing to the Target InstanceThis process imports the financial reports under /shared/Custom/Financials.

To import to the target instance:

1. Sign in to the Oracle Fusion Home page of the target environment with Application_Implementation_Consultant.2. Select Navigator > Setup and Maintenance.3. Click Manage Configuration Packages.4. Click Upload to upload the configuration package that was downloaded in the export process.5. Select Browse to find the file, then click Get Details, and then Submit.6. In the Export and Import Processes table, click Import Setup Data to import the data.7. When the Import Setup Data page appears, accept or change defaults as needed.



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8. Click Next to navigate through the pages and then Submit.9. Click Refresh until the process finishes.

Note: For the Financial Reporting report definition migration service from a source to target instance, referencesto version IDs of dimension members hierarchies are synchronized to their version IDs in the target instance.

Financial Reporting Permissions in BI Catalog: ExampleTo view reporting permissions, you must have a role that inherits the BI Administrator Role. None of the predefinedFinancials job roles inherits BI Administrator Role.

Assign PermissionsTo assign the BI Administrator Role and related permission use these steps

1. Select Navigator > Tools > Reports and Analytics to open the Reports and Analytics work area.2. In the Contents pane, click the Browse Catalog icon. The Business Intelligence Catalog page opens.3. In the Folders pane, expand Shared Folders.4. Expand the Financials folder and then the Bill Management folder.5. Expand Data Models. A list of reports appears on the BI Catalog6. Under Customers Export Data Model, click More > Permissions. The Permissions dialog box opens. Scroll if

necessary to see the complete list of permissions, which includes the role BI Administrator Role7. Select a permission from the list:

◦ Full Control

◦ Modify

◦ Open

◦ Schedule Publisher Report

◦ View Publisher Output

◦ No Access

◦ Custom

• Read• Traverse• Write• Delete• Change Permissions• Set Ownership• Run Publisher Report• Schedule Publisher Report• View Publisher Output

8. Check both:

◦ Apply permissions to sub-folders.



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◦ Apply permissions to items within folder.

9. Enter Replace Options: Replace All.10. Click OK.11. Click the Oracle Applications: Search: Reports and Analytics tab to return to the Reports and Analytics page.

Oracle General Ledger Predefined ReportsOracle General Ledger provides predefined reports that cover the following areas:

• Account Analysis

• Journals

• Trial Balance Reports

• Reconciliation Reports


You can schedule and run reports from the Scheduled Processes work area. In some cases, you can access and openreports in the Reports and Analytics work area. Use the Browse Catalog icon on the Reports and Analytics work area to openthe business intelligence (BI) Catalog. You can run and edit reports in the BI Catalog.

The following table describes the predefined account analysis reports.

Name Description

Account Analysis

• Prints balances by account segment and a secondary segment for each journal entry.• Lists the subledger document number for transactions imported from subledgers.

General Ledger Account Details Report

• Provides journal information to trace each transaction back to its original source.• Prints a separate page for each balancing segment value.• For each journal line, prints:

◦ The account affected, the concatenated description, the journal line amount, and thebeginning and ending account balance.

◦ Journal details including source, category, journal name, and effective date.

• Lists accounts in ascending order by account segment value.• Prints a CR next to credit amounts.

Account Analysis for Contra AccountReport

• Prints balances by account segment and a secondary segment.• Lists the contra account for each journal entry and the subledger document number for

transactions imported from subledgers.• Prints by date range, accounting flexfield range, contra account, and amount range.

Average Balance Audit Account AnalysisReport

• Displays the detail account activity that created the aggregate balances and related averagebalances.

• Displays daily average balance information for the selected accounts for the specified rangeof dates.

• Contains parameters such as the as-of reporting date, average balance type (period, quarter,or year average-to-date), and account ranges.

Note: Use to research how average balances are calculated for an account.



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The following table describes the predefined journal reports.

Name Description

Journals Report

• Provides journal activity for a given period or range of periods, balancing segment value,currency, and range of account segment values.

• Prints the accounting date, category, journal name, reference, journal batch name, entereddebit or credit amounts, net balance, and account total for each journal.

• Includes a total for each balancing segment and a grand total for all the activity.

General Journals Report

Provides journal activity for a given period or range of periods, balancing segment value, currency,and range of account segment values.

Journals Batch Summary Report

• Lists posted journal batches for a particular ledger, balancing segment value, currency, anddate range.

• Provides information about actual balances for your journal batches, source, batch, andposting dates, total entered debits and credits. Sorts the information by journal batch withineach journal entry category.

• Includes totals for each journal category and a grand total for each ledger and balancingsegment value combination.

• Doesn’t report on budget or encumbrance balances.

Journals Details Report

Provides information about manually entered journals prior to posting, including field by field, all dataentered into the applications or data imported from external sources.

Journals Day Book Report

• Provides posted journal entries and journal details chronologically by accounting date for aspecified range of dates, journal source, and journal category.

• Sorts journal entries for each accounting date by document number.• Prints the accounting date, document number, journal entry name, journal source and

category, subledger document name and number, currency, and conversion rate.• Prints for each journal line, the line number, account segment value and description,

functional debit and credit amounts, description, and cost center segment value.

Reconciled Transactions Report

Provides details of clearing account journal lines that have been successfully reconciled by bothautomatic and manual reconciliation processes.

Unreconciled Transactions Report

Lists all unreconciled clearing account journal lines that have been rejected by either automaticor manual reconciliation processes. Also lists those lines that have not yet been subjected toreconciliation.

The following table describes the predefined trial balance reports.

Name Description

Trial Balance Report

Provides summarized actual account balances and activity by ledger, balancing segment, andaccount segment value.

Trial Balance - Average Balances

• Provides a listing of ending balances and average balances for selected accounts based onan effective date specified.

• Prints the ledger currency or foreign-entered balances.• Displays period, quarter, and year average-to-date balances.



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Name Description

Note: Request additional information by specifying balancing segments and accountranges.

The following table describes the predefined reconciliation reports.

Name Description

Cash to General Ledger ReconciliationReport

Extracts cash management and general ledger accounting and transactional data for reconcilingcash management to the general ledger.

Payables to Ledger ReconciliationReport

• Provides both summarized and detailed reconciling data for review.• Shows payables and accounting beginning and ending balances, as well as summarized

activity for the period and how this activity was accounted.

Receivables to Ledger ReconciliationReport

• Provides reconciliation of receivables data to the general ledger.• Shows receivables and accounting beginning and ending balances, as well as summarized

activity for the period and how the activity was accounted.

The following table describes the predefined chart of account reports.

Name Description

Balancing Segment Value AssignmentsReport

• Reports on the assignment of primary balancing segment values to legal entities and ledgersacross accounting setups.

• Allows quick identification of overlapping balancing segment value errors and reviews of anyunassigned values.

Note: The application doesn’t check for overlapping balancing segment valuesonline.

Chart of Accounts Mapping RulesReport

• Provides both the segment and account rules defined for a specific chart of accountsmapping.

• For mappings with account rules, prints each subsidiary account range and the parentaccount into which it maps.

• For mapping with segment rules, prints the rule name and the parent and subsidiarysegments.

• For mappings with a rollup range rule, prints each subsidiary segment value range and itscorresponding parent segment value.

To run the predefined reports, navigate to the Scheduled Processes work area and follow these steps:

1. Click Schedule New Process.2. Search for the process name.3. Specify the parameters.4. Enter the process options and schedule.5. Click Submit.



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Related Topics• Setting Up the Reports and Analytics Pane: Procedure

General Ledger Subject Areas, Folders, and Attributes:ExplainedTo create real-time analyses for General Ledger, you should be familiar with subject areas, folders, and attributes.

Subject AreasTo create an analysis, you begin by selecting a subject area from which you select columns of information to include in theanalysis. For example, to create an analysis of journal information, you begin by selecting a General Ledger - Journals RealTime subject area. Subject areas are based around a business object or fact. In this example, the subject area is based onthe columns in the journal tables.

General Ledger has four general ledger-specific subject areas:

• General Ledger - Balances Real Time

• General Ledger - Journals Real Time

• General Ledger - Period Status Real Time

• General Ledger - Transactional Balances Real Time

Tip: To create a report that queries balances and allows drill down to journals, use the General Ledger -Transactional Balances Real Time and the General Ledger - Journals Real Time subject areas. Other than that,it is advised that you do not create reports that cross subject areas. Such reports may result in less than optimalperformance and are hard to maintain.

FoldersEach subject area has one fact folder and a number of dimension folders. Fact folders contain attributes that can bemeasured, meaning that they are numeric values like journal debit and credit amounts. Fact folders are usually listed afterdimension folders and are usually named after the subject area. Dimension folders contain attribute and hierarchical columnslike journal name and accounting period.

Some folders appear in more than one subject area, such as Time. These are referred to as common folders or commondimensions.

Each folder within a subject area may have a different level of granularity. For example:

• Journal Approval has approval attributes.

• Journal Batches has subfolders and attributes under the subfolders.

AttributesFinally, each dimension folder contains attributes (columns), such as balance type and posting date. This figure illustrates thestructure of subject areas, folders, and attributes.

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The following figure shows the General Ledger - Journals Real Time subject area. The subject area contains these folders:Approval Status, Journal Batches, Journal Headers, Journal Lines, Posting Status, Time.

The Approval Status folder is a Dimension - Presentation folder and contains these dimension attributes: Approval StatusCode, Approval Status Description, Approval Status Meaning. The Lines folder is a Fact - Presentation folder and containsthese measures: Accounted Credit, Accounted Debit, Entered Credit, Entered Debit, Statistical Quantity.

Related Topics

• Data Structure for Analytics: Explained

FAQs for Define Financial Reporting

How can I apply permissions to objects from Financial Reporting inWorkspace?Open the Permission dialog box from the Tasks list to set permissions for a catalog object. Permissions determine whichuser, group, or role can view, open, or modify the object. If you display this dialog box while working in the catalog in

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Workspace, any permission changes that you specify are applied immediately. If you display this dialog box as part of theBatch Scheduler wizard, then the permission changes are not applied until you run the batch.

Create Financial Repots

Video: Defining a Report

Watch: This video tutorial shows you how to create a financial report to analyze and report results of business transactions. Thecontent of this video is also covered in text topics.

Video: Adding a Formula

Watch: This video tutorial shows you how to add formulas to a financial report to calculate balances from business transactions.The content of this video is also covered in text topics.

Video: Defining a Range Function

Watch: This video tutorial shows you how to create range functions in a financial report to span several accounting periods. Thecontent of this video is also covered in text topics.

Video: Adding Grid Point of View

Watch: This video tutorial shows you how to define grid points of view in a financial report to reduce user input at report runtime. The content of this video is also covered in text topics.

Video: Setting Page and Grid Properties

Watch: This video tutorial shows you how to define the page, row, and column attributes in a financial report. The content of thisvideo is also covered in text topics.


















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Video: Formatting and Adding a Graph

Watch: This video tutorial shows you how to format and add graphs to a financial report to improve analysis of the data. Thecontent of this video is also covered in text topics.

ProcedureIn Oracle Hyperion Financial Reporting Studio, you can design traditional financial report formats such as balance sheets,profit and loss statements, and cash flow reports. You can also design nontraditional reports for financial or analytic data thatinclude text and graphics. Use Financial Reporting Studio, a client-based application launched from your desktop, to createyour reports.

Perform the following tasks to define a basic income statement.

1. Open Financial Reporting Studio on your desktop and sign in with your user name, password, and server URL.

Tip: The first time you sign in, copy the Financial Reports Workspace URL into the Server URL fieldand remove workspace/index.jsp from the end of the URL.

The following figure shows an example of the Financial Reporting Studio sign-in window, with the user name, password, andserver URL fields populated.

2. On the Standard toolbar, click the New Report icon. The report designer opens.3. On the Designer toolbar, click the Insert Grid icon. Grids are tables that contain data from external database

connections.4. Drag to select the area for the grid. The Select a Database Connection window opens.






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Tip: When creating a grid, best practice is to leave space in the designer area for other objects, suchas a company logo and report title.

5. On the Select a Database Connection window, click the Database Connection list and select your database. Aunique cube exists for each combination of chart of accounts and accounting calendar.

The following figure shows an example of the Select a Database Connection window, with the connection, user name, andpassword fields populated.

Tip: Best practice is to always turn on suppression in financial reports. This should be done at theDatabase Connection Server level. You can verify the setting by doing the following: highlight the grid,and from the menu, select Task > Data Query Optimization Settings. The normal best practicefor most reports is to turn suppression on for the entire grid, and then turn suppression off for certaincolumns and rows that must always display. For more information about suppression settings, refer tothe Using the Basic Option in Conditional Suppression section in the Designing with Financial ReportingStudio for Oracle Planning and Budgeting Cloud guide at http://docs.oracle.com/cloud/latest/epm-common/CSFSU/ch09s04s02.html#BEGIN.

6. Click OK. The Dimension Layout window opens.

Arrange Dimensions and Define RowsUse the Dimension Layout window to arrange the dimensions on the report. Use the Select Members window to select therevenue and expense accounts to include on the report.

1. On the Dimension Layout window, drag the dimensions from the Point of View frame as follows:

a. Accounting Period dimension to the Columns frame.b. Account dimension to the Rows frame.c. Company dimension to the Pages frame.



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The following figure shows the Dimension Layout window. The Company dimension is in the Pages frame, the AccountingPeriod dimension is in the Columns frame, and the Account dimension is in the Rows frame.

2. Click OK. The Dimension Layout window closes. The grid is inserted with the specified layout.3. Select the revenues account.

a. Double-click the Account cell on the grid. The Select Members window opens.b. Click the Remove All icon to deselect the default account member.c. In the Available area, expand the Account member, and continue expanding until you reach the revenue

account for the report. You can also use the search to find your account.d. Select the account and click the Add icon to move the account to the Selected area.



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The following figure shows the Select Members window for the Account dimension. The Account member is expanded andthe revenues account for the report, which is 40000, appears in the Selected area of the window.

4. Click OK. The Select Members window closes.5. Save the report.

a. From the File menu, select Save As.b. Select the My Folders directory and enter a report name.c. Click Save.

6. Insert a blank row to add space between the revenue and expense accounts.

a. Select the row after the revenues account and right-click the row header.b. From the Insert Row menu, select Text.

7. Insert a row for the expense accounts.

a. Select the row after the new blank row and right-click the row header.b. From the Insert Row menu, select Data. The default value for the new row contains the revenue account.

8. Select the expense accounts.

a. Double-click the new expense account cell in row 3. The Select Members window opens.b. Click the Remove All icon to deselect the default revenues account.c. In the Available area, expand the Account member, and continue expanding until you reach the expense

accounts.d. Select the accounts and click the Add icon to move the accounts to the Selected area.e. Select the Place selections into separate rows option to create a separate row in the grid for each

account.



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The following figure shows the Select Members window for the Account dimension. The Account member is expanded andthe expense accounts for the report appear in the Selected area of the window. The selected accounts are 50000, 60000,and 70000. The option called Place selections into separate rows is selected.

9. Click OK. The grid now includes the expense accounts.10. Save the report and leave it open for the next activity.11. You can preview the report in HTML or PDF format using the File menu or toolbar.

Add a FormulaDefine a formula to summarize the expense account balances.

1. Select the row after the last expense account row and right-click the row header.2. From the Insert Row menu, select Formula.3. Click in the empty cell in the new row. The cell properties sheet opens.4. On the cell properties sheet, select the Custom Heading option and enter Total Expenses.5. Select the row header for the formula row, which in this example is row 6.6. In the Formula bar, click the Sum(0) button to enter the formula into the formula text box.7. Enter the cell references for the expense accounts into the formula, between the parentheses. In this example, the

completed formula is Sum([3], [4], [5]).



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The following figure shows the Financial Reporting Studio window with the formula entered in the formula text box.

8. Validate the formula syntax by clicking the check mark icon in the toolbar. Validation checks the validity of theformula, not if data is available.

The following figure shows an example of the grid with the revenue account in row 1, expense accounts in rows 3 through 5,and total expenses in row 6.

9. Save the report and leave it open for the next activity. Optionally preview the report.

Define a Range FunctionUse the range function to report across periods and create rolling period columns on the report.

1. Double-click the Accounting Period cell. The Select Members window opens.2. Click the Remove All icon to deselect the default accounting period member.3. Click the Functions tab.4. Click the Range list item.



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5. Click the Add icon to move the Range list item to the Selected area. The Edit Range Function window opens.

a. Click in the Value field on the Start Member row.b. Click the Lookup icon. The Edit Start Member Parameter Value window opens.c. Click the Functions tab.d. Click the Relative Member list item. With the relative member parameter, you can define the periods that

display on the report relative to the period you specify at runtime.e. Click the Add icon to move the Relative Member list item to the Selected area. The Edit Relative Member

Function Window opens.f. Click in the Value field on the Member row.g. Click the Lookup icon. The Edit Parameter Value window opens.h. Click the Current Point of View list item, so you can enter the starting period for the report.

The following figure shows the Edit Member Parameter Value window for the Accounting Period member. The Current Pointof View row is selected.

i. Click the Add icon to move the selected value to the Selected area.j. Click OK. The Edit Member Parameter Value window closes.

k. On the Edit Relative Member Function window, select the Offset parameter, and enter -11 in the Value field.The offset value determines the number of periods to include from the current point of view.



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The following figure shows the Edit Relative Member Function window. The Offset parameter is selected and the valueentered is -11.

l. Click OK. The Edit Relative Member Function window closes.m. Click OK. The Edit Start Member Parameter Value window closes.

6. On the Edit Range Function window, click the End Member list item.7. Click in the Value field and click the Lookup icon. The Edit End Member Parameter Value window opens.

a. Click the Current Point of View list item.b. Click the Add icon to move the value to the Selected area.c. Click OK. The Edit End Member Parameter Value window closes.

8. Click OK. The Edit Range Function window closes.9. Click OK. The Select Members window closes.

10. Save the report and leave it open for the next activity. Optionally preview the report.

Define the Grid Point of ViewDefine dimensions for the grid point of view. The grid point of view ensures the same initial default value every time for everyuser.

1. Select the grid.2. Right-click and select Grid Point of View from the list.



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3. On the grid, click the Ledger: User Point of View for Ledger tab. The Select Members window opens.

a. Expand the Ledger member and continue to expand until you find the ledger to include on the report. Selectthe ledger.

b. Click the Scenario tab to select the type of balance to use on the report.c. Expand the Scenario member and select the Actual list item.d. Click the Balance Amount tab.e. Expand the Balance Amount member and select the Period Activity list item as the balance amount to

include on the report.f. Click the Currency tab.g. Expand the Currency member and select USD from the list.h. Click the Currency Type tab.i. Expand the Currency Type member and select the Entered list item.j. Click OK. The Select Members window closes.

The following figure shows the grid after defining the grid point of view. The grid is selected and the Ledger dimension is setto the US Primary Ledger. The Accounting Period dimension is set to User Point of View. Column A is defined as a range,row 1 represents revenue, rows 3 through 5 represent expense accounts, and row 6 represents total expenses.

4. Save the report and leave it open for the next activity.

Set Page and Grid Properties

1. Select the grid.2. Right-click and select Grid Point of View Setup. The Setup Grid Point of View window opens.

a. For the Balance Amount dimension, set the Report Viewers May Select option to Nothing, LockMember Selection. This step prevents the Balance Amount type from being changed at runtime.

b. Click OK. The Setup Grid Point of View window closes.



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3. Set a runtime prompt for the Company dimension to provide the flexibility of selecting any company or combinationof companies at runtime.

a. On the grid, double-click the Pages label. The Select Members window opens.b. Click the Remove All icon to deselect the default Company member.c. Select the Prompt for Company list item.d. Click the Add icon to move the selection to the Selected area.e. Click OK. The Define Prompt window opens.f. Click the Lookup icon in the Default Member field. The Select Members window opens.g. Click the Remove All icon to deselect the default Company member.h. Expand the Company member, and continue expanding until you find and select the default companies to

display in the prompt.i. Click the Add icon to move the companies to the Selected area.j. Click OK. The Select Members window closes.

k. Click the Member Labels in Prompt Selection Dialog list and select the Alias list item. The actualcompany label displays in the prompt list of values instead of a numeric company value, making the promptmore user-friendly.

The following figure shows the Define Prompts window for the Company dimension. The default members are companies101 and 102, and the prompt for member labels is set to Alias.

l. Click OK. The Define Prompts window closes.

4. On the Grid Properties sheet:

a. Click the Drill Through option to enable drill through from the report to the detail balances represented on thereport.

b. Click the Suppression list item to view the suppression settings.c. Enter 0 in the Zero Values field to suppress the display of zero dollar rows on the report.



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The following figure shows the Grid Properties sheet with the Zero Values text option set to 0.

5. Click the Pages label on the grid. If the Page Properties sheet doesn't open, select Property Sheet from the Viewmenu.

a. On the Page Properties sheet, click the Alias: Default option.6. Click the first cell in row 1. The Heading Row Properties sheet opens.

a. Click the Alias: Default option to show the name of the account rather than the account value.b. Click the Allow Expansion option to enable the expand functionality on the report.c. Select the cells for the expense accounts on the grid, and on the Heading Row Properties sheet, select the

Alias: Default and Allow Expansion options.7. Save the report and leave it open for the next activity. Optionally, preview the report.

Format and Add a GraphInsert your company logo, add a report title, and add a chart to the report.

1. On the Designer toolbar, click the Insert Image icon.

a. Drag and drop the cursor over the report to determine the length and width of the image. You can adjustthe header height setting on the Report Properties sheet and the grid object, as needed. Keeping the reportheader narrow improves the PDF output.

b. Find your company logo in your file system and select it.



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2. On the Designer toolbar, click the Insert Text icon.

a. Drag the cursor over the report to determine the length and width of the report title.b. Enter a report title.c. Select the text, and from the Format menu, select Cell. The Format window opens.d. Set the font style to Bold and the size to 14.e. Click OK.f. On the Designer toolbar, select the Center Justify icon to center the text.

3. From the File, menu, select Page Setup. Click the Page tab and set the orientation to Landscape.4. Click OK.

The following figure shows the Financial Reporting Studio designer window with a company logo, a report title of IncomeStatement by Period, and a grid with account rows and an accounting period column.

5. On the Designer toolbar, click the Insert Chart icon.

a. Drag and drop the cursor over the area to determine the length and width of the chart.b. On the Chart Properties sheet, select the Line chart type and select the expense account rows in the Data

Range section.c. Click the Format Chart button. The Format Chart window opens.d. On the Appearance tab, enter a title for the chart.e. Click the Legend tab and enter a title for the legend.f. Click the Axes tab and enter a title for the primary axis.g. Click the Element Style tab and set the attributes for the data sets, as needed.h. Click the Refresh icon to preview the chart on the Format Chart window.



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The following figure shows the Element Style tab on the Format Chart window. The title of the chart is Expenses by Month.The legend is titled Type of Expense. The primary axis is titled Dollars.

i. Click OK. The Format Chart window closes.6. Save the report.

Run the ReportYou can preview the report in Financial Reporting Studio using the File menu or toolbar, and you can run your report from theFinancial Reporting Center.

The following figure shows an example of an income statement report run from the Financial Reporting Center. The reporthas a logo and title. The grid point of view includes the ledger, scenario, balance amount, currency, and currency type



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dimensions. The company dimension is at the page level. Twelve accounting periods appear as columns and the revenue andexpense accounts appear as rows. The chart displays expenses by month.



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Chapter 12Define Extensions for Fusion Accounting Hub

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12 Define Extensions for Fusion AccountingHub

Define Custom Enterprise Scheduler Jobs for FusionAccounting Hub

Manage Custom Enterprise Scheduler Jobs: OverviewUsers run scheduled processes based on Oracle Enterprise Scheduler Services to process data and, in some cases, toprovide report output. Using the Manage Custom Enterprise Scheduler Jobs tasks, you can define job definitions, list ofvalues sources, and job sets.

The various Manage Custom Enterprise Scheduler Jobs tasks are:

• Manage Custom Enterprise Scheduler Jobs for Financial and Supply Chain Management and Related Applications.

• Manage Custom Enterprise Scheduler Jobs for Human Capital Management and Related Applications.

• Manage Custom Enterprise Scheduler Jobs for Customer Relationship Management and Related Applications.

Each task includes:

• Job Definitions: Contain the metadata about the job and the options available to users. A job definition is definedby a job type, such as Oracle Business Intelligence Publisher or PL/SQL Job type or others.

• List of Values Sources: Determine where a list of values for the parameters in a job definition comes from and whatthe specific values are.

• Job Sets: Collections of several jobs in a single process set that the users submit instead of running separate jobs.

You can access the Manage Custom Enterprise Scheduler Jobs tasks in your Offerings work area, in the ApplicationExtensions functional area, if available. Otherwise, you can open the Task panel tab and click Search to find the task.

Related Topics

• Job Definitions: Explained

• Defining Parameters for Job Definitions: Procedure

• Managing Job Sets: Explained

• Scheduled Processes: Explained

Managing List of Values Sources: ExplainedA list of values source determines where a list of values comes from and what the specific values are. Use these lists todisplay values for the parameters and application defined properties in job definitions which the user can select. For example,

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a list of countries for a Country parameter. To manage list of values sources, open the Manage List of Values Sources tabusing the Manage Custom Enterprise Scheduler Jobs task. In your Offerings work area, select the Manage Custom EnterpriseScheduler Jobs task in the Application Extensions functional area, if available. Otherwise, you can open the Task panel taband click Search to find the task.

Editing and Deleting List of Values SourceYou can edit and delete list of values sources using the Manage List of Values Sources tab. While the List of Values SourceDefinition Name is a fully qualified name of the view object, the User List of Values Source Name doesn't have validation. So,you can edit the User List of Values Source Name field and enter a name according to your preference.

Note: You can edit list of values sources for use only in job definitions that are not predefined.


Glossary

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Glossary

account rule

The rule that processing uses to derive complete accounts or segment values on a subledger journal entry. Conditions can bedefined within the rule to derive a different account based on specific attributes of the transaction.

accounting attribute

Predefined fields that map to components of subledger journal entries. Sources are assigned to accounting attributes.

accounting class usage

Grouping of accounting classes used in subledger journal entry reporting or processing.

accounting event class

Categories that classify transaction types and group event types for accounting rules.

accounting event type

Represents a business operation that may have an accounting impact.

accounting method

A set of journal entry rules which determine how a subledger journal entry is created for each event class or event type.

accounting period

The fiscal period used to report financial results, such as a calendar month or fiscal period.

application feature

A standardized functionality that is available to implemented.

application identity

Predefined application level user with elevated privileges. An application identity authorizes jobs and transactions for whichother users are not authorized, such as a payroll run authorized to access a taxpayer ID while the user who initiated the job isnot authorized to access such personally identifiable information.

AutoPost criteria sets

A grouping of options and submission frequencies used to select journal entries for automatic posting.

balances cube

A multidimensional database that holds accounting financial data. The cube allows different views of the balances to bequickly displayed.


Glossary

472

balancing segment

A chart of accounts segment used to automatically balance all journal entries for each value of this segment.

business object

A resource in an enterprise database, such as an invoice or purchase order.

business unit

A unit of an enterprise that performs one or many business functions that can be rolled up in a management hierarchy.

chart of accounts

The account structure your organization uses to record transactions and maintain account balances.

clearing company

The intercompany clearing entity used to balance the journal.

constant

Holds the numeric value used to evaluate numeric conditions in Contract Expert rules. A constant permits you to reset theconditions of many rules with just one edit.

context

A grouping of flexfield segments to store related information.

context-sensitive segment

A flexfield segment that may or may not appear depending upon a context. Context-sensitive segments are attributes thatapply to certain entity rows based on the value of the context segment.

conversion rate

Ratio at which the principal unit of one currency can be converted into another currency.

corporate rate type

Rate you define to standardize rates used in conversion of one currency to another over a period of time. This rate is generallya standard market rate determined by senior financial management for use throughout the organization.

cost center

A unit of activity or a group of employees used to assign costs for accounting purposes.

country holding company

A legal entity that acts on behalf of several divisions within an enterprise, and is the legal employer in a country.


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cube

A block of data that contains three or more dimensions. An Essbase database is a cube.

department

A division of a business enterprise dealing with a particular area of activity.

description rule

The rule that defines description content that can appear on the subledger journal header and line.

descriptive flexfield

Customizable expansion space, such as fields used to capture additional descriptive information or attributes about an entity,such as a customer case. You may configure information collection and storage based on the context.

dimension

See

division

A business-oriented subdivision within an enterprise. Each division is organized to deliver products and services or addressdifferent markets.

document sequence

A unique number that is automatically or manually assigned to a created and saved document.

enterprise

An organization with one or more legal entities under common control.

fixed rate type

Rate you set between two currencies that remains constant. For example, a rate set between the euro currency and eachEconomic and Monetary Union (EMU) currency during the conversion to the euro currency.

flexfield

A flexible data field that you can configure such that it contains one or more segments or stores additional information. Eachsegment has a value and a meaning.

flexfield segment

An extensible data field that represents an attribute and captures a value corresponding to a predefined, single extensioncolumn in the database. A segment appears globally or based on a context of other captured information.


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474

item master

A collection of data that describes items and their attributes recorded in a database file.

job

A generic role that is independent of any single department or location. For example, the jobs Manager and Consultant canoccur in many departments.

journal

An element of a journal entry consisting of the name, accounting date, category, ledger, and currency for single currencyjournal entries. Used to group journal lines.

journal batch

An element of a journal entry consisting of the name, source, and accounting period. Used to group journals for processingand easier querying.

journal entry

Point of entry of business transactions into the accounting system. Chronological record, with an explanation of eachtransaction, the accounts affected, and the amounts to increase or decrease each account.

journal line

An element of journal entries consisting of account combinations and credit or debit amounts. Optionally, contains statisticalquantities, currency information for multicurrency journals, and additional information.

journal line rule

A rule that includes options to convert transactional data into a subledger journal line. Conditions can be defined within therule so it's only used based on specific attributes of a transaction.

journal source

A name that indicates the origin of journal entries, such as payables, receivables, or manual. Used as an attribute in automaticposting and journal import processes.

key flexfield

Configurable flexfield comprising multiple parts or segments, each of which has a meaning either individually or in combinationwith other segments. Examples of key flexfields are part numbers, asset category, and accounts in the chart of accounts.

legal authority

A government or legal body that is charged with powers such as the power to make laws, levy and collect fees and taxes,and remit financial appropriations for a given jurisdiction.


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legal employer

A legal entity that employs people.

legal entity

An entity identified and given rights and responsibilities under commercial law through the registration with country'sappropriate authority.

legal jurisdiction

A physical territory, such as a group of countries, single country, state, county, parish, or city, which comes under the purviewof a legal authority.

legal reporting unit

The lowest level component of a legal structure that requires registrations. Used to group workers for the purpose of tax andsocial insurance reporting or represent a part of your enterprise with a specific statutory or tax reporting obligation.

legislative data group

A means of partitioning payroll and related data. At least one legislative data group is required for each country where theenterprise operates. Each legislative data group is associated with one or more payroll statutory units.

line of business

Set of one or more highly related products which service a particular customer transaction or business need. Refers to aninternal corporate business unit.

mainline metadata

The primary branch of metadata that a sandbox is published to. Once published, changes made in the sandbox becomeavailable to all users.

mapping set

Maps a combination of input source values to specific output values. The output value of a mapping set is used to deriveaccounts or segments in account rules.

natural account

Categorizes account segment values by account type, asset, liability, expense, revenue, or equity, and sets posting,budgeting, and other options.

natural account segment

A chart of accounts segment used to categorize your accounting transactions by account type: asset, liability, owner's equity,revenue, or expense.

offering

A comprehensive grouping of business functions, such as Sales or Product Management, that is delivered as a unit tosupport one or more business processes.


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payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory unit, but apayroll statutory unit can represent multiple legal employers.

position

A specific occurrence of one job that is fixed within one department. It is also often restricted to one location. For example,the position Finance Manager is an instance of the job Manager in the Finance Department.

post

Update account balances by the recorded debit or credit amount in each journal entry to the related accounts in the generalledger.

primary balancing segment value

A segment value used to represent a legal entity in the chart of accounts and automatically balance all intercompany andintracompany transactions and journal entries.

primary ledger

Main record-keeping ledger.

process category

Group of one or more logically related event classes that can be used to restrict which events are processed by the CreateAccounting process.

reference data

Data in application tables that is not transactional or high-volume, which an enterprise can share across multipleorganizations. For example, sales methods, transaction types, or payment terms.

reference data set

Contains reference data that can be shared across a number of business units or other determinant types. A set supportscommon administration of that reference data.

registration

The record of a party's identity related details with the appropriate government or legal authorities for the purpose of claimingand ensuring legal and or commercial rights and responsibilities.

sandbox

A testing environment that isolates untested code changes from the mainline environment so that these changes don't affectthe mainline metadata or other sandboxes.

secondary ledger

An optional, additional ledger that is associated with the primary ledger for an accounting setup. Secondary ledgers canrepresent the primary ledger's data in another accounting representation. The Secondary ledger differs in chart of accounts,accounting calendar, currency, subledger accounting method and ledger processing options.


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segment

A segment is a single field within a flexfield and maps to a single table column in your database. When configuring a flexfield,you define the appearance and meaning of individual segments.

set

Classified and grouped reference data that organizational entities share.

source

Contextual and reference information from subledger applications used in conjunction with accounting rules to createsubledger journal entries.

source system

A system that a non-Oracle software provider provides, or an internal system that creates events that the Oracle FusionAccounting Hub uses.

spot rate type

Rate you enter to perform conversion based on this rate as of a specific date. This rate applies to the immediate delivery of acurrency.

subject area

A set of columns, or pieces of data, related to a specific business object or area.

subledger

A low-level ledger that stores and manages the details that substantiate the monetary value stored in the general ledger.Oracle Fusion Receivables and Oracle Fusion Payables are examples of subledgers.

subledger accounting options

Defines how certain accounting processing should be done for transactions at the ledger and subledger application level.

subledger journal entry

A detailed journal entry generated for a transaction in a subledger application.

subledger journal entry line

An individual debit or credit line that is part of a subledger journal entry.

subledger journal entry rule set

A set of rules defining how to generate a complete journal entry for an accounting event.

supporting reference

Stores additional source information about a subledger journal entry line which can be used to establish a subledger balancefor source values for an account.


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third party

The external party that is defined in a business relationship to provide or receive goods and services.

tree

Information or data organized into a hierarchy with one or more root nodes connected to branches of nodes. A tree musthave a structure where each node corresponds to data from one or more data sources.

tree structure

A set of guidelines or a framework applied to create a tree, include data, version a tree, or access a tree.

tree version

An instance of a tree that includes life cycle elements such as start and end dates, and indicates whether the tree is active. Ifa tree is associated with a reference data set, all tree versions belong to one set.

user rate type

Rate you enter at journal entry time to convert foreign currency transactions to your ledger currency.

value set

A predefined set to validate the values that a user enters in the application. The set may be hierarchical.

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