This chapter provides a setup checklist for the Oracle Public Sector Financials features and describes the setup steps.
Complete all required setup steps for the following applications before beginning the Public Sector setup steps:
Oracle Applications System Administration
Oracle Assets
Oracle General Ledger
Oracle Payables
Oracle Public Sector Purchasing
Oracle Receivables
All required steps in this checklist must be completed. Specific information for each setup step is described in the following section, Oracle Public Sector Financials Setup Steps.
Note: The sequence indicated for the setup checklist applies to the Public Sector setup process only. For each application installed, consult the manuals for that application to determine the sequence of setup steps.
The table below shows the Public Sector Financials setup checklist.
| Step Number | Setup Step | Step Type | Oracle Application | Feature |
|---|---|---|---|---|
| 1. | Define a Ledger | required | General Ledger | Encumbrance Account Details GASB 34/35 Asset Accounting |
| 2. | Create New Responsibilities | optional, but recommended | System Administration | GASB 34/35 Asset Accounting |
| 3. | Assign Responsibilities to Users | optional, but recommended | System Administration | GASB 34/35 Asset Accounting |
| 4. | Specify Site-Level and Application Level Profile Options | required with defaults | System Administration | GASB 34/35 Asset Accounting |
| 5. | Define Chart of Accounts | required | General Ledger | GASB 34/35 Asset Accounting |
| 6. | Define Book Controls | required | Assets | GASB 34/35 Asset Accounting |
| 7. | Define Payables Options | required | Payables | Encumbrance accounting |
| 8. | Define Request Set | required | System Administration | GASB 34/35 Asset Accounting |
| 9. | Define Journal Reversal Criteria | optional, but recommended | General Ledger | GASB 34/35 Asset Accounting |
| 10. | Set Up the Global Consolidation System (GCS) | required | General Ledger | GASB 34/35 Asset Accounting |
| 11. | Set Up MassAllocation Batches | required [not part of standard setup checklist] | General Ledger | GASB 34/35 Asset Accounting |
| 12. | Define Financial Reports With Financial Statement Generator (FSG) | required [not part of standard setup checklist] | General Ledger | GASB 34/35 Asset Accounting |
To set up the Public Sector Financials, perform the following setup steps in the order listed.
This step applies to Encumbrance Account Details and GASB 34/35 asset accounting.
To use the full capabilities of encumbrance accounting and run Encumbrance Account Details, users must enable budgetary control for a ledger.
Note: If budgetary control is disabled, users can still enter manual encumbrances by journal entry, but encumbrances cannot be automatically generated from requisitions, purchase orders, and invoice transactions.
To enable budgetary control for a ledger, see Enabling and Disabling Budgetary Control, Oracle General Ledger User Guide.
To enable asset accounting in compliance with GASB 34/35, set up a secondary, accrual-based General Ledger ledgers that uses the same chart of accounts, calendar, and currency as the primary modified accrual General Ledger ledger.
To define a new ledger, see Defining Ledgers, Oracle General Ledger User Guide.
This step applies to GASB 34/35 asset accounting.
Set up a GASB reporting responsibility that is tied to the accrual ledger through the GL Ledger Name profile option. Assign this responsibility to users who prepare or run GASB reports.
To create new responsibilities, see Defining a Responsibility, Oracle Applications System Administrator's Guide, Responsibilities Window, Oracle Applications System Administrator's Guide, and Users Window, Oracle Applications System Administrator's Guide.
Assign new responsibilities for GASB 34/35 reporting to users.
To create new users or assign access to Public Sector for existing users, see Overview of Oracle Applications Security, Oracle Applications System Administrator's Guide and Users Window, Oracle Applications System Administrator's Guide.
This step applies to GASB 34/35.
The common user profile options for Oracle Applications must be specified as part of System Administration setup. There are a maximum of four levels at which a profile can be set: Site, Application, Responsibility, and User. Most profiles are seeded with default values at the site level that serve as the defaults until they are overridden at other levels.
If users are using single organization, the profile options are set at the site level. If multiple organizations is implemented, Public Sector profile values should be set at the responsibility level.
The table below describes the profile option levels.
| Feature | Profile Option Name | Site | Applica- tion | Respon-sibility | User |
|---|---|---|---|---|---|
| GASB 34/35 Asset Accounting | GL Ledger Name | x | x |
The table below describes the profile option values.
| Profile Option Name | Value | Description |
|---|---|---|
| GL Ledger Name | Ledger | Enables ledger to be used in Public Sector; must be set up at the responsibility level Verify the ledger that is using or GASB 34/35 reporting. Note: If multiple organizations is implemented, a ledger is linked to a specific Public Sector responsibility. |
This step applies to the Funds Available Detail Report and GASB 34/35 asset accounting.
For reporting purposes, the PSA Administrator responsibility can only be assigned one organization.
To enable the Funds Available Detail Report within a General Ledger responsibility, add the report to the GL Concurrent Program request group in General Ledger. The report is accessible to any General Ledger responsibility which uses this request group.
For GASB 34/35 asset accounting, add processes to the All Reports request group in Payables.
The table below shows the reports and programs added to the request groups in Payables.
| Request Group | Application | Report or Program |
|---|---|---|
| GL Concurrent Program | General Ledger | Funds Available Detail Report |
| All Reports | Payables | Update Assets Tracking Flag Update Asset Type |
To add reports and programs to request groups, see Organizing Programs into Request Groups, Oracle Applications System Administrator's Guide and Request Groups Window, Oracle Applications System Administrator's Guide.
This step applies to GASB 34/35 asset accounting.
Define the following accounting flexfield segment values:
Fixed Assets and Asset Expenditures
Depreciation
Debt
Net Assets
Set up a mirror range of natural account segment values, minimally at the major asset category level, for asset accounts and expense accounts.
The table below shows an example of a one-to-one relationship between the asset accounts and expense accounts.
| Account Description | Asset Account | Expense Account |
|---|---|---|
| Land | 1510 | 6510 |
| Buildings | 1520 | 6520 |
| Equipment | 1530 | 6530 |
| Construction in Progress | 1590 | 6590 |
Table 2–7 shows an example of a many-to-one relationship between an asset account and expense accounts.
| Account Description | Asset Account | Expense Account |
|---|---|---|
| Construction in Progress | 1590 | |
| CIP - Architectural Fees | 6591 | |
| CIP - Engineering Fees | 6592 | |
| CIP - Building Construction | 6593 |
Set up Depreciation Expense and Accumulated Depreciation accounts.
Set up separate Bonds Payable or other debt accounts to record liabilities related to financing the acquisition, construction, or improvement of fixed assets.
Set up an account called Invested in Capital Assets, Net of Related Debt, as a component of Net Assets. This represents the value of such assets, less accumulated depreciation, and less outstanding debt related to their acquisition.
Define a second asset book for GASB 34/35 asset accounting.
Set up the depreciation asset book as a tax asset book. Associate the book with the secondary accrual ledger. Designate the expenditure asset book as the associated corporate asset book and ensure that Mass Copy is allowed.
Note: Set up the expenditure asset book as a corporate asset book. Associate the book with the modified accrual ledger. Ensure that the Payables installation, from which the Mass Additions process will be used to add assets automatically to this asset book, is associated with the same ledger
To define book controls, see Define Your Book Controls, Oracle Assets User Guide.
This step applies to Encumbrance Accounting.
Allow Adjustments to Paid Invoices option in the Invoice tab must not be selected. Selecting this option may result in incorrect accounting.
This step applies to GASB 34/35 asset accounting.
Define a request set for GASB 34/35 asset accounting as follows:
Select Concurrent Processes
Define Parameters
Set Print Options
Schedule Request Set
To define request sets, see GASB 34/35 Asset Accounting Setup.
In System Administration, set up a request set to run concurrent processes required for GASB 34/35 asset accounting in the following sequence:
Payables Approval
Create Accounting
Note: It is possible to run the Create Accounting process with the Transfer to General Ledger parameter set to Yes. However, for GASB 34/35 asset accounting, the Transfer Journal Entries to GL process must be run separately.
Update Assets Tracking Flag
Transfer Journal Entries to GL
Mass Additions Create
Update Asset Type
This request set replaces the Mass Additions process in all cases and adds new public sector processes for GASB 34/35 asset accounting.
Note: If the concurrent processes are run individually, the processes must still be run in the correct sequence.
Define the parameters for each of the processes in the request set.
Optionally, set print options to automatically print output reports.
Schedule the request to run overnight so that the previous day’s asset acquisitions are available in the Mass Additions table the following morning.
This step applies to GASB 34/35 asset accounting.
Define journal reversal criteria to reverse asset addition journal entries in the secondary ledger. Specify the reversal method and period.
The Create Journal Entries process creates depreciation, as well as adjustment, transfer, and retirement journals for the secondary ledger. However, this process also creates addition entries that are not needed by GASB 34/35 asset accounting. Use AutoReverse to automatically generate and post journal reversals.
To define journal reversal criteria, see Automatic Journal Reversal Overview, Oracle General Ledger User Guide.
This step applies to GASB 34/35 asset accounting.
Define consolidation mapping with the modified accrual ledger as the secondary ledger and the accrual ledger as the primary.
Using segment rules, set up each segment in the parent ledger to copy values from the same segment in the secondary ledger. For the initial copy, select Balances, not Transactions, as the consolidation method.
To define a consolidation mapping, see Mapping Subsidiaries to Your Parent, Oracle General Ledger User Guide.
This step applies to GASB 34/35 asset accounting.
Set up the following MassAllocation batches to reclassify the following:
capital expenditures to fixed assets
unrestricted net assets to invested in capital assets, net of related debt
Set up a MassAllocation batch with formulas to automatically reclassify the balances of all capital expenditures to the appropriate fixed asset or CIP accounts in the mirror range of accounts that were set up in the assets section of the balance sheet.
Set up a MassAllocation batch with formulas to automatically reclassify, for all funds, that portion of net assets that represents net investment in capital assets.
To set up MassAllocation batches, see Creating MassAllocation Batches, Oracle General Ledger User Guide.
This step applies to GASB 34/35 asset accounting.
At a minimum, the following reports should be set up.
In the modified accrual ledger, set up the following reports for fund reporting:
Balance Sheet
Statement of Revenues, Expenditures, and Changes in Fund Balance
In the accrual ledger, set up the following reports for government- or university-wide reporting:
Statement of Net Assets
Statement of Activities
To define a financial report using the Financial Statement Generator (FSG), see Defining Financial Reports, Oracle General Ledger User Guide.
This step applies to multi-fund accounts receivable, and is required.
To enable dynamic insertion:
In General Ledger, navigate to the Key Flexfield Segments window.
Select the Allow Dynamic Inserts check box.
Save your work.
For information on dynamic insertion, see Dynamic Insertion, Oracle Applications Flexfields Guide.
The following prerequisite setups are required to enable the Encumbrance Account Details report and the Encumbrance Document Details report:
These reports are intended for use by Public Sector customers only and are shipped as disabled. To use these reports, encumbrance must be enabled in the setup of Oracle Purchasing and Oracle Payables. If you are contemplating on enabling the subledgers to use these reports, note that the journals table in Oracle General Ledger will become enormous, populated by encumbrance details from Oracle Purchasing and Oracle Payables.
To enable these reports please do the following:
Login with a responsibility of Application Developer.
Navigate to the Concurrent Programs window.
Query the Encumbrance Account Details Report and the Encumbrance Document Details Report.
Select the enabled checkbox.
Once these reports are enabled they will need to be added to your request group. This can be done as follows:
Login with a responsibility of System Administrator.
Navigate to the Request Groups window.
Query the GL Concurrent Program Group.
Add the Encumbrance Account Details Report and the Encumbrance Document Details Report to this request group.