EDU26CCY

Set of Books
11i General Ledger Management Fundamentals
Copyright Oracle Corporation, 2003. All rights reserved.
Objectives
After completing this module, you should be able to do
the following:
Describe the elements required to create a set of
books within Oracle General Ledger
Identify key implementation issues involved when
creating a set of books in Oracle General Ledger
Identify the attributes, options and settings
required to define the Accounting Flexfield
Define an accounting calendar
Enable predefined currencies
Create a set of books in Oracle General Ledger
Utilize the Applications Desktop Integrator (ADI)
Account Hierarchy Editor to view and maintain
Accounting Flexfield values
Agenda
Overview of creating a set of books

Creating a chart of accounts
Defining an accounting calendar
Enabling currencies
Defining a set of books
Maintaining accounts
Using Applications Desktop Integrator (ADI)
Account Hierarchy Editor
Elements Required for a Set of Books

To create a set of books:
Create
a chart
of accounts
Define
accounting
calendar
Enable
functional
currency
Steps for Creating a Set of Books

Required
Required with
Defaults
Chart of
accounts
Account
combinations
Calendar
Define period types
Define a set of books
Currencies
Assign set of books

to a responsibility
Optional
Conversion Rate
Types
Define transaction
calendar
Rates
Multiple Books for Multiple Companies
Each set of books may include multiple companies

sharing a single set of books
Each corporation may use multiple sets of books
Corporation
Sets of books
Companies
Divisions
Chart of Accounts Structure

With Oracle General Ledger, you:
Define the account combinations to be used for
transactions, journal entries, and budgeting
Define account hierarchies for reporting and
analysis
Accounting Calendar
You create a calendar to define an accounting year and
the periods it contains.
Unlimited Currencies
You can enable predefined currencies or set up

your own customized currencies
You can enable a variety of currencies to allow you
to enter transactions in multiple currencies
Sharing a Set of Books

Across Oracle Applications
Many elements of an Oracle General Ledger set of
books are shared with other Oracle applications.
Account structure
Value sets
Segment values
Security rules
Cross-validation rules
Accounting calendar Periods
Period Types
Currencies
Daily Rates
Rate Types
Journal
Categories
Sources
Agenda

Enabling currencies
Chart of Accounts
Your chart of accounts is a list of Accounting
Flexfields you create to identify general ledger
accounts
This flexible structure is made up of subfields or
segments
Each segment has a name and a set of values
Company
Division
Department
Account
Project
Building the Chart of Accounts Structure

Define a flexible chart of accounts structure:
Create up to 30 segments with a maximum of 25
characters per segment
Maximum total length allowed is 240 characters
Define each segment name and the order in which

it appears
Attach a list of valid values to each segment
XX
XXX
XXXX
XXXX
XXX
Company | Cost Center | Account | Sub-Account | Product
Identifying Business Requirements

Identify the aspects of your business that you need to
track and analyze; pay specific attention to aspects
that span several applications. Examples include:
Company, legal entity, fund
Division, region, territory, state, country
Location, plant, office, store
Cost center, department, function
Natural Account categories:
asset, liability, owner's equity, revenue and expense
Product, product line, line of business, channel

Project, phase, task, job, work order
Identifying Segment Requirements
Assign each business dimension as a separate

segment.
Avoid having more than one meaning for each
segment.
Product &
Company
XXX
Region
XX
Project
XXXX
Analyzing Reporting Requirements

Make certain that you can generate the required reports
based on the segments in your Accounting Flexfield.
Company
Region
Cost Center
Project
Creating a Worldwide Chart of Accounts

Many companies need to use a unified chart of
accounts, but also need to capture different
information in different sites and countries based on
business needs and statutory requirements.
Consolidating
segments
(HQ control)
Nonconsolidating
segments
(Local control)
Worldwide Chart of Accounts Example

Canada and the United Kingdom reserve the right-most
segment for their specialized needs. This segment
does not roll up to the consolidated financials
compiled at Headquarters.
Headquarters
Company Cost Center - Account
Canada
Company Cost Center Account Product
United Kingdom
Company Cost Center Account Subaccount
Creating Vertical Structures
Use vertical parent rollups on specific segments

when possible rather than creating addition
segments. Segment by using vertical Accounting
Flexfields.
Example: Division and region are not included in
the posting level.
Division parent
European
Division
Region parent
Western
Region
Child level
Company
Cost
Center
Account
Validation and Value Sets
When you define value sets, you also need to

determine how you want to validate your values
The available validation types are:
Independent
Dependent
Table
Oracle recommends using independent validation

with the Accounting Flexfield
Using Independent
and Dependent Segments
Independent Segment
Segment that has meaning
on its own without
depending on other
segment values
Example
Company: 01
Dependent Segment
Segment that is linked to
an independent segment
Example
Account:
1100
Subaccount:
001
Desc: Cash-Citibank
Account:
2200
Subaccount:
001
Desc: Debt-B of A
Designing Size
and Numbering Systems
Decide whether to allow alphabetical characters in
the Accounting Flexfield
Decide on the size of the Accounting Flexfield
segments
Design the coding scheme for your Accounting
Flexfield values
Creating Accounting Flexfields

To create an Accounting Flexfield:
1. Define a value set
2. Define an account structure
3. Define valid segment values
4. Optionally, create account combinations
5. Optionally, create aliases
6. Optionally, define security rules
Defining Value Sets

Use value sets to control the characteristics and format
of the Accounting Flexfield segment.
Value_set 1
Format:
Char
Value_set 2
Format:
Char
Value_set 3
Format:
Char
Value_set 1
Format:
Char
Max size: 2
Max size: 3
Max size: 4
Max size:2
Validation:
Independent
Validation:
Independent
Validation
Independent
Validation:
Independent
Balancing
Cost Center
Natural
Account
Intercompany
The same value set can be used more than once in the
same Accounting Flexfield structure.
Defining the Accounting

Flexfield Structure
Defining Segment Values

Enter valid values for each segment before using them
in the Accounting Flexfield segments.
Value_set 1
Format:
Char
Value_set 2
Format:
Char
Value_set 3
Format:
Char
Value_set 1
Format:
Char
Max size: 2
Max size: 3
Max size: 4
Max size:2
Validation:
Independent
Validation:
Independent
Validation
Independent
Validation:
Independent
Balancing
Cost Center
Intercompany
01
02
03
100
101
999
Natural
Account
TSAL
1000
9999
01
02
03
Populating Segment Value Attributes

Attributes for each value include:
Translated Value
Description
Parent
Group and level
Segment qualifiers
Allow budgeting and posting

Account type natural account segment values
Control Account
Reconciliation Flag
Enabled
Date From and To
Segment Qualifiers
Account Type
Asset, Liability, Owners' Equity

Revenue, Expense
Budgetary Dr, Budgetary Cr
Budget Entry Allowed
Yes or No
Posting Allowed
Yes or No
Control Account
Reconciliation Flag
Available for specific countries
Defining Hierarchies
Define parent/child relationships, including multilevel
hierarchies, to facilitate reporting and analysis.
Top-level
parent
Secondlevel
parents
Children
Western Region
California
East
CA
West
CA
Nevada
East
NV
West
NV
Oregon
East
OR
West
OR
Working with Ranges

For each parent value, you can:
Define child ranges
Define parent ranges
Move child ranges
Move parent ranges
View hierarchies
Account Hierarchies
You can set up a variety of flexible parent/child
account hierarchies to match your organizational
needs.
Smart
Computers, Inc.
CPUs
Disk
drives
Smart
Computers, Inc.
Printers
New
York
Paris
Chicago
Account Hierarchy Manager
With the Account Hierarchy Manager you can

graphically create, maintain, and review account
structure hierarchies
You can define new parent and child segment
values, as well as change parent/child
dependencies
You can create new rollup groups from the
Account Hierarchy Manager and have your
changes reflected automatically in both the Key
Segment Values and Rollup Groups windows
New
Account Hierarchy ManagerSecurity
The Account Hierarchy Manager has security rules that
enable you to control:
Read only or read/write access
Access to hierarchies, segment values, and charts
of accounts
Agenda

Enabling currencies
Defining an Accounting Calendar

Create a calendar to define an accounting year and the
periods that it contains.
Set up one year at a time, specifying the
accounting period type
Define your calendar with at least one period
before the period in which you start entering
transactions
Optionally, define multiple calendars and assign a
different calendar to each set of books
Defining Period Types
Each calendar has an associated period type

Pre-defined period types in Oracle General Ledger
are Month, Quarter, and Year
If needed, define your own period types in addition
to the standard periods
Period Type
Periods
Month
01/01/2002
to
12/31/2002
Calendar
=
Jan-02 to
Dec-02
Set of books
Defining Your First Accounting Period

Define at least one accounting period before the first
period for which you enter transactions or perform
foreign currency translation.
Dollar
Yen
First
period
Second
period
(First
Transaction
Period)
Enter historical data
Accounting Period Statuses

Each accounting period has one of the following five
statuses:
Never
Opened
Open
Period
Future
Enterable
Permanently
Closed Period
Closed
Period
Calendar Auditing
Checks calendar
definitions
Checks date
gaps
Checks
overlapping
periods
Agenda

Enabling currencies
Enabling Currencies
You must enable a currency before you can enter
transactions or record balances in that currency.
Enabled
Canadian Dollar
Agenda

Enabling currency
Creating a Set of Books

You must create at least one set of books before you
can use Oracle General Ledger.
Define Accounting Flexfields
Create the account flexfields
structure with the company segment
Define currencies
Assign responsibilities
Set of Books Options

When you define a set of books in the Set of Books
window, you also specify the accounting practices you
will follow for that set of books.
Closing
Journaling
Intercompany
Budgetary Control
Multiple Reporting Currencies
Linking a Set of Books

to a Responsibility
Employees from HR
User ID
Many to many
relationship
Responsibility
AR Clerk
AP Manager
GL Supervisor
1 to 1
relationship
at a time
GL Set of Books
Chart of Accounts
Calendar
Currency
Intercompany Balancing Options

within a Single Set of Books
Oracle General Ledger offers the following solutions to
account for intercompany transactions:
Standard intercompany balancing
Enhanced intercompany balancing
Clearing companies
Intercompany segment balancing
Setup Steps for Intercompany

Setup steps required are:
Enabling the Balance Intercompany Journals
checkbox on the Set of Books form
(Optionally) Defining a Segment using the
Intercompany Segment Qualifier
Entering the balancing options in the
Intercompany Accounts form using the following
criteria:
Journal source
Journal category
Balancing segment value
Intercompany Segment
Intercompany
Segment
Co
CC
Acct
Intercompany
01
200
6300
03
GL automatically
copies the trading
partner to
this segment
Agenda

Enabling currencies
Enabling Account Combinations

To use an account combination, accept the default
enabled check box in the GL Accounts window.
01-100-1420-003
02-100-1420-005
01-200-1420-002
02-100-1420-004
Segment Value Inheritance

Enabled
Attributes for Segment

111011
Posting
Budgeting
Enabled
Inherited
Posting
Budgeting
Not Inherited
Preserve
accounts
Enabled
Posting
01-200-111011
Budgeting
01-100-111011
Troubleshooting
Segment Value Inheritance
Segment Value Inheritance updates the Accounting

Flexfield structure assigned to the set of books for
your responsibility
A chart of accounts that uses table validation must
have a LAST_UPDATE_DATE and a
CREATION_DATE field
Defining Flexfield Security Rules

Restrict data entry, online inquiry, and reporting to
specific values by using flexfield security rules.
Account Segment
Include:
0000 to 9999
Exclude:
1000 to 3999
Available:
Unavailable:
0000 to 0999
4000 to 9999
1000 to 3999
Using Dynamic Insertion

You can dynamically create new account code
combinations when entering data by enabling dynamic
insertion in the Key Flexfield Segments window.
Dynamic Insertion can be enabled or disabled at
any time
Define cross validation rules to prevent incorrect
account combinations from being created by
dynamic insertion
X
Allow Dynamic Inserts
Defining Cross-Validation Rules

Prevent the creation of invalid account combinations
by setting up cross-validation rules.
Define cross-validation rules before entering a
chart of accounts
Use cross-validation rules in combination with
dynamic insertion
Division:
01 US
02 Asia
Region:
100 New York
400 Tokyo
Account:
4100 Sales
7550 Travel
Valid
01 100 4100
Invalid
01 400 4100
Defining Shorthand Aliases

A shorthand alias is a word or code that represents a
partial or complete account combination. Use
shorthand aliases to reduce account-entry keystrokes
and to maximize productivity and accuracy.
Shorthand Alias
Cash01
NY
Sales
=
=
=
Account
Combination
01-110-000-1110-000-0000
- 320 - - - 01- 420 - 4110 - - - -
Agenda

Enabling currencies
Overview of Account Hierarchy Editor
Maintaining
Your
Chart of
Accounts
ADI Account
Hierarchy Editor
Oracle
General
Ledger
Integrating with Oracle General Ledger

Use Account Hierarchy Editor to make changes to your
account structure. Upon saving, Oracle General Ledger
reflects changes automatically.
ADI
GL
Key Segment Values
Rollup Groups
Using the Account Hierarchy Editor

Set profile options
Database
Install ADI
Access AHE
ADI
AHE
GL AHE:
Saving
Allowed
to Yes
GLDI: AHE
Privileges
to Yes
Save changes
to GL application
View, build, and

modify values and
account hierarchies
Using the Account Hierarchy Toolbar
New
Remove
Node Properties
Open
Vertical
Zoom In
Save
Column
Zoom Out
Print
Horizontal
Help

Segment Symbols
Child value
Parent value
Disabled segment value
Child value with an assigned parent
Top level parent
Parent with assigned parent
Parent Levels in an Account Hierarchy

Level 1
3000
Lower Level Parents

Level 2
Level 3
3100
3110
3111
3150
3115
3160
3200
3220
3250
3300
3310
3311
3350
3115
Creating New Child Values

Use the Account Hierarchy Editor to define a new child
segment value.
Create a new child value in the View Account
Hierarchy window
Enter attributes
Segment Value: 4140
Description: Training
Account Type: Revenue
Effective:
Enabled:
Allow Budgeting:
Allow Posting:
Multiple Hierarchy Diagrams

You can view more than one hierarchy diagram at a
time.
400
402
406
500
510
410
520
530
Saving and Refreshing Hierarchies
Applications
Desktop Integrator
General
Ledger
Summary
In this lesson, you should have learned how to:
Describe the elements required to create a set of
books within Oracle General Ledger
Identify key implementation issues involved when
creating a set of books in Oracle General Ledger
Identify the attributes, options and settings
required to define the Accounting Flexfield
Define an accounting calendar
Enable predefined currencies
Create a set of books in Oracle General Ledger
Utilize the Applications Desktop Integrator (ADI)
Account Hierarchy Editor to view and maintain
Accounting Flexfield values

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Set of Books

11i General Ledger Management Fundamentals

Copyright Oracle Corporation, 2003. All rights reserved.

Overview of creating a set of books

Copyright Oracle Corporation, 2003. All rights reserved.

Elements Required for a Set of Books

Copyright Oracle Corporation, 2003. All rights reserved.

Steps for Creating a Set of Books

Define period types

Define a set of books

Assign set of books

Copyright Oracle Corporation, 2003. All rights reserved.

Multiple Books for Multiple Companies

Each set of books may include multiple companies

Copyright Oracle Corporation, 2003. All rights reserved.

Chart of Accounts Structure

Copyright Oracle Corporation, 2003. All rights reserved.

Copyright Oracle Corporation, 2003. All rights reserved.

You can enable predefined currencies or set up

Copyright Oracle Corporation, 2003. All rights reserved.

Sharing a Set of Books

Copyright Oracle Corporation, 2003. All rights reserved.

Overview of creating a set of books

Copyright Oracle Corporation, 2003. All rights reserved.

Copyright Oracle Corporation, 2003. All rights reserved.

Building the Chart of Accounts Structure

Define each segment name and the order in which

Company | Cost Center | Account | Sub-Account | Product

Copyright Oracle Corporation, 2003. All rights reserved.

Identifying Business Requirements

Product, product line, line of business, channel

Identifying Segment Requirements

Assign each business dimension as a separate

Copyright Oracle Corporation, 2003. All rights reserved.

Analyzing Reporting Requirements

Copyright Oracle Corporation, 2003. All rights reserved.

Creating a Worldwide Chart of Accounts

Worldwide Chart of Accounts Example

Copyright Oracle Corporation, 2003. All rights reserved.

Creating Vertical Structures

Use vertical parent rollups on specific segments

Copyright Oracle Corporation, 2003. All rights reserved.

Validation and Value Sets

When you define value sets, you also need to

Oracle recommends using independent validation

Copyright Oracle Corporation, 2003. All rights reserved.

Copyright Oracle Corporation, 2003. All rights reserved.

Copyright Oracle Corporation, 2003. All rights reserved.

Creating Accounting Flexfields

Copyright Oracle Corporation, 2003. All rights reserved.

Defining Value Sets

Defining the Accounting

Copyright Oracle Corporation, 2003. All rights reserved.

Defining Segment Values

Copyright Oracle Corporation, 2003. All rights reserved.

Populating Segment Value Attributes

Allow budgeting and posting

Asset, Liability, Owners' Equity

Budget Entry Allowed

Available for specific countries

Copyright Oracle Corporation, 2003. All rights reserved.

Copyright Oracle Corporation, 2003. All rights reserved.

Working with Ranges

Copyright Oracle Corporation, 2003. All rights reserved.