Defining Sets of Books
A set of books determines the functional currency, account structure, and accounting calendar for each company or group of companies. If you need to report on your account balances in multiple currencies, you should set up one additional set of books for each reporting currency. Your primary set of books should use your functional currency. Each reporting set of books should use one of your reporting currencies.
When you define a set of books, you can also choose to enable budgetary control for the set of books. If you choose this option, encumbrances will be created automatically for your transactions in General Ledger, Oracle Purchasing and Oracle Payables. Enabling budgetary control is the first step in setting up funds checking.
When defining a set of books, you can also choose to enable average balance processing. If you choose this option, General Ledger will track and maintain average and end-of-day balances.
Attention: Before you can use a newly defined set of books, your system administrator must associate the set of books with one or more responsibilities. This is done using the profile option GL Set of Books Name. Your responsibility determines which set of books you use.
Oracle Payables, Receivables, and Purchasing
If you are an Oracle Payables, Receivables, or Purchasing user, you can define multiple sets of books by using the General Ledger Set of Books window. However, you can only use one set of books for a particular installation of Payables, Receivables, or Purchasing. To use multiple sets of books with any of these Oracle products, you need multiple installations of the product.
See: Oracle Applications Installation Manual.
Prerequisites
Define your period types.
Define your accounting calendar.
Define a transaction calendar if you plan to use average balance processing.
Define or enable your functional currency.
If you use Multiple Reporting Currencies, define your reporting currencies before defining your reporting sets of books.
Define your account structure.
If you want to create Retained Earnings, Suspense, Translation Adjustment, Intercompany, and Reserve for Encumbrance accounts as you enter them for the set of books, allow dynamic insertion for your account segments.
To define a set of books:
1. Navigate to the Set of Books window.
2. Enter a Name for your set of books. This name appears whenever you choose a set of books from a list and appears as a heading in reports.
3. Enter a Short Name that will appear in the title bar of each window.
4. (Optional) Enter a Description for the set of books.
5. Enter the name of any enabled Chart of Accounts, or account structure, for this set of books.
6. Enter the Functional Currency for your set of books. The functional currency is also known as the base currency, local currency, or primary currency.
Note: The General Ledger set of books' functional currency may or may not be the same as your accounting functional currency, as defined by SFAS #52 (U.S.). If not, and you need to report financial results in your accounting functional currency, consider using General Ledger's Multiple Reporting Currencies feature. See: Multiple Reporting Currencies Overview.
7. Assign an Accounting Calendar and Period Type to the set of books. General Ledger uses the calendar periods that have the period type you specify for journal entry, budgeting, and reporting with this set of books.
Note: General Ledger will report an error if there are any gaps between periods in your accounting calendar or if any of your non-adjusting periods overlap.
8. Enter the number of Future Periods to allow for journal entry within this set of books.
General Ledger automatically assigns a status of Future Entry to accounting periods following the latest open period in your calendar, based on the number of future enterable periods you define here. If you change the number of future enterable periods for your set of books, General Ledger does not change additional period(s) to the Future Enterable status until you open a new period using the Open and Close Periods window.
Note: You can enter journal batches for a future enterable period, but you cannot post the batches until you open the period.
Suggestion: Minimize the number of future enterable periods to prevent users from accidentally entering journal entries in an incorrect period.
9. Assign the default Retained Earnings account for your set of books. You can also assign default Suspense, Translation Adjustment, Intercompany, and Reserve for Encumbrance accounts. See: Assigning the Set of Books Accounts.
Multiple Reporting Currencies
If you need to report on your account balances or at the transactions level in multiple currencies, define a primary set of books using your functional currency and additional sets of books using your reporting currencies.
To specify your set of books as primary or reporting:
1. Define a set of books, as noted above. Before saving your work, complete the steps below.
2. Select Reporting Currency Options from the poplist.
3. Select one of the three options:
Primary Set of Books: Choose this option if you are defining a primary set of books.
Reporting Set of Books: Choose this option if you are defining a reporting set of books.
Not Applicable: Choose this option if you are not using Multiple Reporting Currencies.
Average Balance Processing
You can choose to enable average balance processing for a set of books. When enabled, General Ledger will track and maintain average and end-of-day balances.
To enable average balance processing for a set of books:
1. Define a set of books, as noted above. Before saving your work, complete the steps below.
2. Select Enable Average Balances from the Standard Options region.
3. Select Average Balance Options from the poplist.
5. Assign the default Net Income account for your average balance set of books. See: Set of Books Accounts.
Budgetary Control
Using budgetary control requires funds reservation for any transactions you enter in General Ledger, Oracle Purchasing or Oracle Payables. You can only post journal entries that pass funds reservation. If you enable this option, you must enter a reserve for encumbrance account for the set of books.
If you do not enable budgetary control, you cannot perform funds check or reservation in General Ledger, Oracle Purchasing or Oracle Payables.
Budgetary controls can be enabled or disabled even after a set of books has been defined and transactions entered. See: Changing Budgetary Control Options for further information.
Oracle Receivables Note: Receivables does not use the Enable Budgetary Control or Require Budget Journals options.
To enable budgetary control in a set of books:
1. Define a set of books, as noted above. Before saving your work, complete the steps below.
2. Select Budgetary Control Options from the poplist.
3. Check Enable Budgetary Control.
4. (Optional) Check Require Budget Journals to allow only those budget journal entry methods that create journal entries, namely budget journals, budget transfers, MassBudgets, and consolidation of budget balances. If you require budget journals, you cannot upload budgets, enter budget amounts, or use budget formulas.
Attention: Once you have saved your work, you cannot choose to require budget journals later. You can, however, disable this option at any time.
If you are using budgetary control, General Ledger requires you to create budget journals for your funding budget. If you want to require budget journals for all budgets, choose this option. However, if you want to require budget journals for your funding budget only, do not choose this option. Instead, you can require budget journals for your funding budget when you define the budget.
See Also
Set of Books Standard Options
Set of Books Average Balance Options
Set of Books Accounts
Defining Calendars
Defining Currencies
Defining Accounts
Opening and Closing Periods
Budgetary Control and Online Funds Checking
Defining Budgets
Multiple Reporting Currencies Overview
Overview of Average Balance Processing
GL Set of Books Name
Responsibilities Window
