Skip Headers

Oracle Financials Implementation Guide
Release 12.1
Part Number E13425-05
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Accounting and Reporting Sequencing

Overview

Typically, enterprises carry the journal entries in multiple journals to a single general ledger for reporting purposes. Enterprises manually record the journal entries in journals (physical books), assign unique sequence numbers for each entry, and transfer the entries to the general ledger. Sequence numbering the journal entries simplifies the cumbersome task of tracing the journal entries.

Sequence numbering journal entries enables you to:

Note: You can choose to sequence journals for ledgers (primary and secondary ledgers) and/or journal level and subledger level reporting currencies. If using journal or subledger level reporting currencies and you defined sequences for the source ledger, such as the primary or secondary ledger, the sequence number generated for the source ledger is not automatically assigned to the reporting currency journal. You must set up accounting and reporting sequences separately for the reporting currencies if your want reporting currency journals sequenced.

The following figure explains the process involved in sequence numbering, which includes defining sequences and sequence assignments.

the picture is described in the document text

Defining Sequences

Define sequences to generate numbers for journal entries. Defining a sequence involves the following:

Use the Sequences page to search, create, and update sequences and sequence versions.

Creating a Sequence

To create a sequence, enter a unique sequence name and sequence description.

Creating a Sequence Version

Create at least one sequence version to complete the sequence. A sequence version indicates the series of sequence numbers to be used and the effective date range of the series.

A sequence version has the following attributes:

Updating Sequences

You can update the sequences and sequence versions in the following ways:

Sequences Page

Use the Sequences Page to search for and update or create sequences and sequence versions. The following table explains selected fields in the Sequences page.

Sequences Page
Field Name Description
Status Displays the status of the sequence. The status could be New, Used, and Disabled.
Start Date The effective start date which defaults to the current system date, but can be set to any date in the past or future.
End Date Optional. The date when the sequence should be disabled.
Initial Number An integer that is greater than zero. The number is incremented by one for each accounting entry.
Last Number Used Last generated sequence number for the version.

Defining Sequence Assignments

After creating a sequence, assign sequences to journal entries to generate sequence numbers. Assigning a sequence involves the following process:

Creating a Sequencing Context

Defining a sequencing context enables you to assign a sequence to journal entries created by Subledger Accounting or General Ledger. You can either create a new sequencing context or modify existing sequencing contexts to address new sequencing context requirements.

Sequence Contexts Page

Use the Sequencing Contexts page to search and update or create a new sequencing contexts.

Sequencing Context Definition Page
Field Name Description
Name (Sequencing Context) Unique.
Ledger Name The ledger for which the journal entries must be sequentially numbered.
Sequence Entity Option to select whether general ledger or subledger entries need to be sequentially numbered.
Sequence Event The event which should trigger the sequence numbering.
Require Assignment If you select this option, you must explicitly define valid Sequence Assignments, or Exceptions for all journal entries within a given Sequencing Context.
Validate Sequence By Required. The date format for validating the sequences. When generating a sequence number, this date is used to determine if a sequence is available and the sequence assignment is active.
Assign Sequence By Optional. Select the sorting option.
Balancing Segment Values Specify the balancing segment values of the selected ledger that are fiscal in nature.

Sequencing Context for Subledger and General Ledger Journals

Subledger journal entries are entries that are created in the various Oracle E-Business Suite products such as Payables, Receivables, Purchasing, etc. The following lists the sequencing context for subledger journals:

The following lists the sequencing context for general ledger journals are:

Assigning a Sequence

After you define the Sequencing Context, use the Assign Sequences page to assign the sequences to journal entries. A sequence assignment uses a combination of the sequencing context, sequence entity, and sequence event to sequentially number the journal entries.

Before assigning the sequences, you must determine the following sequence control attributes:

Sequence Assignments Page

Use the Create Assignments [Sequence Context] page to create and update assignments and exceptions for a sequence context.

The following table explains selected fields in the Create Assignments page.

Sequence Assignment Page
Field Name Description
Status Select the status of the new assignment.
Type Displays whether the selected is an assignment or exception.
Priority Priority of the exception. This option is inactive unless you define an exception.
Sequence Name Optional. Name of the sequence to be assigned. A blank indicates the entries must not be sequenced.
Effective Date Define the effective date range for the sequence assignment.
Document Category Select the document category to be sequentially numbered (only for subledger entries).
Balance Type List the values of balance type.
Journal Source Select the journal sources from the list to be sequence numbered for a sequence event.
Journal Category Select the journal categories from the list to be sequence 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).
Add Exception Select this option if you want to add an exception.

When you select Add Exception a new row populates with the Type as Exception. In this row, you can define the exception. When you create an exception, the priority value is always one added to the highest number in the priority.

Defining the Effective Date range

Define an effective date range for each sequence assignment. As there is no relationship between the end date of a sequence version and a sequence assignment or an exception, a sequence can expire while it is actively assigned.

Note: The effective dates of sequence assignments in a given sequencing context must not overlap in a series of sequence assignments for the same sequence control attribute combination.

Sequence Assignments for Subledger and General Ledger Journals

The sequence control attributes that are available for subledger journal entries are:

The following table explains the sequence control attributes that are available in subledger accounting for the sequence events.

Sequence control attributes Sequence event - Accounting Sequence event - GL Period Close
Balance Type Y Y
Journal Source Y Y
Journal Category Y Y
Document Category Y  
Accounting Event Type Y  
Accounting Entry Type Y  

The sequence control attributes that are available for general ledger journal entries for the Posting and GL Period Close sequence events are:

Defining Exceptions

Exceptions reduce the steps when defining a large number of sequence assignments. To define an exception, ensure one or more attributes of the sequence control attribute combination of the sequence assignment has no value. As you define exceptions for a given sequence assignment, the sequence control attribute combinations with no value remain the same for both the sequence assignment and its exception(s).

You can prioritize exceptions to determine the sequence to be used when generating the sequence number.

Exceptions Example

The sequence control attribute is Balance Type for the general ledger journal entries of Ledger A with Euro currency that must be sequentially numbered. Therefore the sequence control attribute combination can be as follows:

Type Assignment Number Balance Type Journal Source Journal Category
Assignment 1 Actual All All
Assignment 2 Encumbrance All All
Assignment 3 Budget All All

Lets create exceptions to include the following sequence control attribute combinations which are illustrated in the following table.

Type Assignment Number Balance Type Journal Source Journal Category
Assignment 1 Actual All All
Exception 1 Actual Payables All
Exception 1 Actual Receivables Adjustment
Assignment 2 Encumbrance All All
Assignment 3 Budget All All

After creating the assignments and exceptions, assign the sequences as illustrated in the following table.

Type Assignment Number Balance Type Journal Source Journal Category Sequence
Assignment 1 Actual All All Sequence A
Exception 1 Actual Payables All Sequence B
Exception 1 Actual Receivables Adjustment Sequence C
Assignment 2 Encumbrance All All Sequence D
Assignment 3 Budget All All Sequence E

From the table it can be inferred that:

When generating numbers, the application assigns sequences in the ascending order of the exceptions priority as illustrated in the following table.

Type Assignment Number Priority Balance Type Journal Source Journal Category Sequence
Exception 1 1 Actual Payables   Sequence B
Exception 1 2 Actual Receivables Adjustment Sequence C

The inference is:

Updating Assignments

You can update sequence assignments in the following ways: