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Oracle Public Sector Financials User Guide
Release 12.1
Part Number E13449-04
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Oracle Public Sector Financials Setup Overview

Oracle Public Sector Financials Setup Overview

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 Public Sector Financials Setup Checklist

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.

Oracle 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

Oracle Public Sector Financials Setup Steps

To set up the Public Sector Financials, perform the following setup steps in the order listed.

1. Define Ledgers

This step applies to Encumbrance Account Details and GASB 34/35 asset accounting.

Encumbrance Account Details

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.

GASB 34/35 Asset Accounting

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.

2. Create New Responsibilities

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.

3. Assign Responsibilities to Users

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.

4. Specify Site-Level and Application Level Profile Options

This step applies to GASB 34/35.

Set Up Profile Option Levels

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.

Profile Option Levels
Feature Profile Option Name Site Applica- tion Respon-sibility User
GASB 34/35 Asset Accounting GL Ledger Name x   x  

Set Up Profile Option Values

The table below describes the profile option values.

Oracle Public Sector 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.

5. Define Request Groups

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 Groups
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.

6. Define Assets Related Account

This step applies to GASB 34/35 asset accounting.

Define the following accounting flexfield segment values:

Fixed Assets and Asset Expenditures

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.

Sample One-to-One Relationship for 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.

Sample Many-to-One Relationship for 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

Depreciation

Set up Depreciation Expense and Accumulated Depreciation accounts.

Debt

Set up separate Bonds Payable or other debt accounts to record liabilities related to financing the acquisition, construction, or improvement of fixed assets.

Net 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.

7. Define Book Controls

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.

8. Define Payables Options

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.

9. Define Request Set

This step applies to GASB 34/35 asset accounting.

Define a request set for GASB 34/35 asset accounting as follows:

To define request sets, see GASB 34/35 Asset Accounting Setup.

Select Concurrent Processes

In System Administration, set up a request set to run concurrent processes required for GASB 34/35 asset accounting in the following sequence:

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 Parameters

Define the parameters for each of the processes in the request set.

Set Print Options

Optionally, set print options to automatically print output reports.

Schedule Request Set

Schedule the request to run overnight so that the previous day’s asset acquisitions are available in the Mass Additions table the following morning.

10. Define Journal Reversal Criteria

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.

11. Set Up the Global Consolidation System (GCS)

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.

12. Set Up MassAllocation Batches

This step applies to GASB 34/35 asset accounting.

Set up the following MassAllocation batches to reclassify the following:

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.

13. Define Financial Reports with Financial Statement Generator (FSG)

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:

In the accrual ledger, set up the following reports for government- or university-wide reporting:

To define a financial report using the Financial Statement Generator (FSG), see Defining Financial Reports, Oracle General Ledger User Guide.

14. Enable Dynamic Insertion

This step applies to multi-fund accounts receivable, and is required.

To enable dynamic insertion:

  1. In General Ledger, navigate to the Key Flexfield Segments window.

  2. Select the Allow Dynamic Inserts check box.

  3. Save your work.

For information on dynamic insertion, see Dynamic Insertion, Oracle Applications Flexfields Guide.

Encumbrance Account Details Report

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:

  1. Login with a responsibility of Application Developer.

  2. Navigate to the Concurrent Programs window.

  3. Query the Encumbrance Account Details Report and the Encumbrance Document Details Report.

  4. 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:

  1. Login with a responsibility of System Administrator.

  2. Navigate to the Request Groups window.

  3. Query the GL Concurrent Program Group.

  4. Add the Encumbrance Account Details Report and the Encumbrance Document Details Report to this request group.