Accounting Setup Manager Checklist
The following table describes the steps to create accounting setups using Accounting Setup Manager. Each required setup step must be completed before you can complete your accounting setup.
| Accounting Setup Manager Checklist | ||
| Step # | Required | Step |
| Step 1 | Optional | Define Legal Entities If you plan to record accounting transactions for one or more legal entities, you can use the Legal Entities tab in Accounting Setup Manager or Oracle Legal Entity Configurator to define your legal entities. Note: If you plan to use jurisdictions that do not come seeded, you can define your own jurisdictions using Legal Entity Configurator before you define legal entities. A jurisdiction is the intersection of the physical territory and type of legislation within which judicial authority may be exercised. The jurisdiction is used to assign a territory to a legal entity.
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| Step 2 | Required | Create Accounting Setup Structure
Review setup structure before saving. Repeat this step for each accounting setup. |
| Step 3 | Required | Complete ledger options. Define and update journal and transaction processing options for the ledger. If a secondary ledger is assigned, complete the ledger options for the primary ledger before completing the ledger options for the secondary ledger. Repeat this step for all ledgers in an accounting setup. Note: Ledger Options |
| Step 4 | Conditionally Required | Complete reporting currencies. If reporting currencies are assigned to the accounting setup when creating the accounting setup structure, it is required to complete the currency conversion options for each reporting currency. Assign reporting currencies to the primary or secondary ledger at any time. Repeat this step for each reporting currency assigned. Note: Reporting Currencies |
| Step 5 | Optional | Assign balancing segment values to legal entities. If you did not assign balancing segment values to legal entities when you created them, you can assign them now. It is strongly recommended that you assign specific balancing segment values to each legal entity to help identify legal entities during transaction processing and reporting. Note: See Balancing Segment Value Assignments |
| Step 6 | Optional | Assign balancing segment values to ledger. If you assigned balancing segment values to legal entities and want to reserve one or more balancing segment values for adjustments or nonlegal entity related transactions, assign specific balancing segment values to the ledger. For the accounting setup with no legal entity assigned, assign balancing segment values to the ledger to indicate which values are to be used for journal processing in the ledger. If balancing segment values are not assigned to the ledger, then all values will be available. Repeat this step for each ledger. |
| Step 7 | Conditionally Required | Define Subledger Accounting options. If a Subledger Accounting Method is assigned to the ledger, complete the Subledger Accounting options to provide instructions on how to create the accounting from Oracle financial subledgers or external systems to one or more ledgers in General Ledger. Repeat this step for each ledger that has a subledger accounting method assigned. |
| Step 8 | Optional | Define operating units. If using an accounting setup that has legal entities assigned, define operating units for your primary ledger.
Note: Operating Units |
| Step 9 | Optional | Define intercompany accounts. If the accounting setup has legal entities with specific balancing segment values assigned, define intercompany accounts. Intercompany accounts account for intercompany transactions between legal entities. Note: Intercompany Accounts |
| Step 10 | Conditionally Required | Define intracompany balancing rules. If the Intracompany Balancing option for the ledger is enabled, define Intracompany Balancing rules to provide instructions on how to balance journal entries between balancing segment values for the same legal entity or ledger. Repeat this step for each ledger that has this option enabled. |
| Step 11 | Optional | Define Sequencing. Define accounting and reporting sequencing options for ledgers and reporting currencies. Repeat this step for each ledger.
Note: Defining Sequences, Oracle Financials Implementation Guide |
| Step 12 | Conditionally Required | Complete primary to secondary ledger mapping. If using secondary ledgers, specify how to convert subledger journals, General Ledger journals, or balances from the primary ledger to the secondary ledger. For example, if the secondary ledger uses a different chart of accounts and currency from the primary ledger, assign a chart of accounts mapping and currency conversion rules. Perform this step once for each secondary ledger that is assigned to an accounting setup. |
| Step 13 | Required | Complete the Accounting Setup After all required setup steps for both the primary and secondary ledgers of an accounting setup are completed, complete the accounting setup by clicking Complete on the Accounting Options page. This button is enabled after all required setup steps have a Complete status. Review the successful completion of the General Ledger Accounting Setup Program in the Concurrent Manager before proceeding. Perform this step once for each accounting setup. |
| Step 14 | Optional | Perform additional General Ledger setup steps. Take advantage of additional General Ledger features, such as ledger sets and data access sets, to improve processing efficiency and add additional security to secure access to ledgers.
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| Step 15 | Required | Assign profile options to responsibilities. To control access to ledgers used by General Ledger users, assign a data access set to the profile option GL: Data Access Set for each General Ledger responsibility. If using subledgers, you should also set the SLA: Enable Data Access Security in Subledgers profile option to control the generation of accounting entries for subledger transactions. This profile option determines whether the General Ledger Data Access Set security mechanism is applied for a subledger application responsibility when viewing, reporting, or creating subledger journal entries associated with a given ledger. The General Ledger Data Access Set security mechanism is always applied for responsibilities associated with the General Ledger application. The profile option enables you to combine data access security with subledger transaction security and therefore control access to subledger journal entries depending on the ledger to which they belong. For example, you can implement a Multiple Organizations Security Profile that allows you to create Oracle Receivables invoices for two different operating units, each associated with different ledgers, but restrict drill-down from the subledger transaction to the associated subledger journal entry based upon the destination ledger contained in the Access Set. If you skip this step, you cannot control access to ledgers and process data optimally in Oracle subledgers and General Ledger.
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Setup Checklist
The following table provides a more detailed list of Oracle General Ledger setup steps, the Applications area to which each step relates, and whether the step is optional or required. After you log on to Oracle Applications, complete these steps to implement Oracle General Ledger:
| Step No. | Required | Step | Reference |
| Step 1 | Required | Define your chart of accounts. See: Defining Your Chart of Accounts. | Common Applications |
| Step 2 | Optional | Define Cross-Validation Rules to prevent certain account combinations from being created. | Common Applications |
| Step 3 | Optional | Define a chart of accounts mapping to map two or more charts of accounts. The chart of accounts mapping is used by Accounting Setup Manager to complete the setup steps for secondary ledgers, and it is used by the Global Consolidation System (GCS) to consolidate data between ledgers. | Common Applications |
| Step 4 | Optional | Define Your Descriptive Flexfields See: Defining Descriptive Flexfields for General Ledger |
Common Applications |
| Step 5 | Optional | If you want to use period types not installed with General Ledger, define your accounting period types. See: Period Types |
Common Applications |
| Step 6 | Required | Define your accounting calendar. Review the Calendar Validation report to note common setup errors. See: Defining Calendars |
Common Applications |
| Step 7 | Optional | If you plan to use average balance processing, define a transaction calendar and valid business days for that calendar. The transaction calendar ensures that journals created in Oracle General Ledger and Oracle Subledger Accounting (SLA), if used, will be posted on valid business days. See: Defining Transaction Calendars |
Common Applications |
| Step 8 | Required | Define the currency for your ledger. Also define or enable any reporting currencies you plan to use. See: Oracle General Ledger User’s Guide Defining Currencies, Oracle General Ledger User’s Guide |
Common Applications |
| Step 9 | Optional | Define conversion rate types and conversion rates, such as daily rates and historical rates. See: Overview of Multi–Currency Accounting, Oracle General Ledger User’s Guide |
Common Financials |
| Step 10 | Optional | Define additional journal entry sources. If you have enabled average balance processing, specify an Effective Date Rule for each journal source you define. See: Journal Sources |
Oracle General Ledger |
| Step 11 | Optional | Define additional journal categories. See: Journal Categories |
Oracle General Ledger |
| Step 12 | Optional | Define Journal Reversal criteria. See: Automatic Journal Reversal Overview, Oracle General Ledger User’s Guide | Oracle General Ledger |
| Step 13 | Required | Define an accounting setup using Accounting Setup Manager to combine legal entities, ledgers, reporting currencies, subledger accounting methods, and other setup information. Before you can enter transactions and journal entries to ledgers, you must complete the ledger options for all ledgers assigned to an accounting setup and the accounting setup status must be complete. See: Creating Accounting Setups Oracle Financials Implementation Guide Define additional journal entry sources and categories. If you have enabled average balance processing, specify an Effective Date Rule for each journal source you define. See: Journal Sourcesand Journal Categories. |
Oracle General Ledger |
| Step 14 | Optional | Define Ledger Sets to group ledgers that share the same chart of accounts and accounting calendar/period type combination to take advantage of processing efficiencies, such as opening and closing periods across ledgers in a ledger set. | Oracle General Ledger |
| Step 15 | Optional | Define data access sets to secure read and write access to ledgers, balancing segment values, and management segment values for one or more ledgers. See: Data Access Sets |
Public Sector Applications |
| Step 16 | Required | Assign a ledger to the profile option GL Ledger Name for each Oracle subledger. This profile option controls the ledger chart of accounts that each subledger will use for transaction processing. | Oracle General Ledger |
| Step 17 | Required | Assign a data access set to the profile option GL: Data Access Set for each General Ledger responsibility. See: Data Access Sets See: Setting General Ledger Profile Options, Oracle General Ledger Reference Guide |
Oracle General Ledger |
| Step 18 | Optional | Define Definition Access Sets and assign them to responsibilities. Once you begin securing your definitions, you can assign the Definition Access Sets assigned to your responsibilities. See: Definition Access Sets |
Oracle General Ledger |
| Step 19 | Optional | Define account combinations that can be used for data entry if you did not enable Dynamic Insertion for your chart of accounts structure. See: Defining Accounts |
Oracle General Ledger |
| Step 20 | Optional | Define and assign document sequences. See: Defining Document Sequences |
Oracle General Ledger |
| Step 21 | Optional | Define Your Employees. (Oracle Human Resources Management System User’s Guide) See: Entering a New Employee |
Oracle General Ledger |
| Step 22 | Optional | Setup Journal Approval. See: Setting Up Journal Approval |
Oracle General Ledger |
| Step 23 | Optional | Define one or more of the following optional accounts:
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Oracle General Ledger |
| Step 24 | Required | Define transaction codes if you use Public Sector General Ledger. See: Setting Up Transaction Codes |
Oracle General Ledger |
| Step 25 | Optional | Create summary accounts. See: Defining Summary Accounts |
Oracle General Ledger |
| Step 26 | Optional | Set up Automatic Tax Calculation if you do not have Oracle Receivables and Oracle Payables installed. See: Setting Up Automatic Tax Calculation |
Oracle General Ledger |
| Step 27 | Optional | Define your automatic posting criteria. See: Posting Journal Batches Automatically, Oracle General Ledger User’s Guide |
Oracle General Ledger |
| Step 28 | Optional | Define encumbrance types. See: Defining Encumbrance Types, Oracle General Ledger User’s Guide |
Oracle General Ledger |
| Step 29 | Optional | Set up Budgets. See: Defining Budgets, Oracle General Ledger User’s Guide |
Oracle General Ledger |
| Step 30 | Optional | If you enabled budgetary control, define one or more budgetary control groups. See: Creating a Budgetary Control Group, Oracle General Ledger User’s Guide |
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| Step 31 | Optional | Define Security Rules. See: Defining Security Rules |
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| Step 32 | Required | Set your General Ledger profile options. See: Setting General Ledger Profile Options, Oracle General Ledger Reference Guide |
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| Step 33 | Required | Open an accounting period. See: Opening and Closing Accounting Periods |
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| Step 34 | Optional | Set up the Global Consolidation System (GCS). See: Global Consolidation System, Oracle General Ledger User’s Guide |
