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Oracle® Fusion Applications Financials Implementation Guide
11g Release 1 (
Part Number E20375-01
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5 Define Ledgers

This chapter contains the following:

Accounting Configuration: Overview

Ledgers and Subledgers: Explained

Ledgers: Points to Consider

Financial Ledgers: How They Fit Together

Specifying Ledger Options: Worked Example

FAQs for Define Ledgers

Manage Cross-Validation Rules

FAQs for Manage Chart of Accounts Mapping

Manage Journal Approval Rules

Manage AutoPost Criteria Sets

Manage Journal Reversal Criteria Sets

Manage Period Close

Manage Allocations and Periodic Entries

Manage Revaluations

Accounting Configuration: Overview

The Setup and Maintenance work area in the Oracle Fusion Applications is used to manage the configuration of legal entities, ledgers, and reporting currencies that comprise your accounting configuration. To create a new legal entity or ledger, your implementation consultant or system administrator must create an implementation project. This implementation project can be populated by either adding a financials related offering or one or more task lists.


Setup tasks that are not related to the ledger or legal entity specific setup tasks can be invoked from either an implementation project or launched directly from the Setup and Maintenance work area.

There are two offerings predefined for financial implementations.

When adding an offering to an implementation project, implementation consultants can customize the tasks displayed by adding additional tasks to the implementation project.

Ledgers and Subledgers: Explained

Oracle Fusion Applications reflect the traditional segregation between the general ledger and associated subledgers. Detailed transactional information is captured in the subledgers and periodically imported and posted in summary or detail to the ledger.

A ledger determines the currency, chart of accounts, accounting calendar, ledger processing options, and accounting method for its associated subledgers. Each accounting setup requires a primary ledger and optionally, one or more secondary ledgers and reporting currencies. Reporting currencies are associated with either a primary of secondary ledger.

The number of ledgers and subledgers is unlimited and determined by your business structure and reporting requirements.

Single Ledger

If your subsidiaries all share the same ledger with the parent company or they share the same chart of accounts and calendar, and all reside on the same applications instance, you can consolidate financial results in Oracle Fusion General Ledger in a single ledger. Use Oracle Fusion Financial Reporting functionality to produce individual entity reports by balancing segments. General Ledger has three balancing segments that can be combined to provide detailed reporting for each legal entity and then rolled up to provide consolidated financial statements.

Multiple Ledgers

Accounting operations using multiple ledgers can include single or multiple applications instances. You need multiple ledgers if one of the following is true:


Oracle Fusion Subledgers capture detailed transactional information, such as supplier invoices, customer payments, and asset acquisitions. Oracle Fusion Subledger Accounting is an open and flexible application that defines the accounting rules, generates detailed journal entries for these subledger transactions, and posts these entries to the general ledger with flexible summarization options to provide a clear audit trail.

Ledgers: Points to Consider

Companies account for themselves in primary ledgers, and, if necessary, secondary ledgers and reporting currencies. Your transactions from your subledgers are posted to your primary ledgers and possibly, secondary ledgers or reporting currencies. Local and corporate compliance can be achieved through an optional secondary ledger, providing an alternate accounting method, or in some cases, a different chart of accounts. Your subsidiary's primary and secondary ledgers can both be maintained in your local currency, and you can convert your local currency to your parent's ledger currency to report your consolidated financial results using reporting currencies or translation.

Primary Ledgers

A primary ledger is the main record-keeping ledger. Like any other ledger, a primary ledger records transactional balances by using a chart of accounts with a consistent calendar and currency, and accounting rules implemented in an accounting method. The primary ledger is closely associated with the subledger transactions and provides context and accounting for them.

To determine the number of primary ledgers, your enterprise structure analysis must begin with your financial, legal, and management reporting requirements. For example, if your company has separate subsidiaries in several countries worldwide, enable reporting for each country's legal authorities by creating multiple primary ledgers that represent each country with the local currency, chart of accounts, calendar, and accounting method. Use reporting currencies linked to your country specific primary ledgers to report to your parent company from your foreign subsidiaries. Other considerations, such as corporate year end, ownership percentages, and local government regulations and taxation, also affect the number of primary ledgers required.

Secondary Ledgers

A secondary ledger is an optional ledger linked to a primary ledger for the purpose of tracking alternative accounting. A secondary ledger can differ from its primary ledger by using a different accounting method, chart of accounts, accounting calendar, currency, or processing options. All or some of the journal entries processed in the primary ledger are transferred to the secondary ledger, based on your configuration options. The transfers are completed based on the conversion level selected. There are four conversion levels:


A full accounting representation of your primary ledger is maintained in any subledger level secondary ledger.

Secondary ledgers provide functional benefits, but produce large volumes of additional journal entry and balance data, resulting in additional performance and memory costs. When adding a secondary ledger, consider your needs for secondary ledgers or reporting currencies, and select the least costly data conversion level that meets your requirements. For secondary ledgers, the least costly level is the adjustment data conversion level because it produces the smallest amount of additional data. The balance data conversion level is also relatively inexpensive, depending upon how often the balances are transferred from the primary to the secondary ledger. The journal and subledger data conversion levels are much more expensive, requiring duplication of most general ledger and subledger journal entries, as well as general ledger balances.

For example, you maintain a secondary ledger for your International Financial Reporting Standards (IFRS) accounting requirements, while your primary ledger uses US Generally Accepted Accounting Principles (GAAP). You decided to select the subledger level for your IFRS secondary ledger. However, since most of the accounting is identical between US GAAP and IFRS, a better solution is to use the adjustment only level for your secondary ledger. The subledger level secondary ledger requires duplication of most subledger journal entries, general ledger journal entries, and general ledger balances. With the adjustment only level, your secondary ledger contains only the adjustment journal entries and balances necessary to convert your US GAAP accounting to the IFRS accounting, which uses a fraction of the resources that are required by full subledger level secondary ledger.

Combinations of Primary and Secondary Ledgers

Following are scenarios that may require different combinations of primary and secondary ledgers:


Use the same currency for primary and secondary ledgers to avoid difficult reconciliations, if you have the resources to support the extra posting time and data storage. Use reporting currencies or translations to generate the different currency views needed to comply with internal reporting needs and consolidations.

Reporting Currencies

Reporting currencies maintain and report accounting transactions in additional currencies. Each primary and secondary ledger is defined with a ledger currency that is used to record your business transactions and accounting data for that ledger. It is advisable to maintain the ledger in the currency in which the majority of its transactions are denominated. For example, create, record, and close a transaction in the same currency to save processing and reconciliation time. Compliance, such as paying local transaction taxes, is also easier using a local currency. Many countries require that your accounting records be kept in their national currency.

If you need to maintain and report accounting records in different currencies, you do this by defining one or more reporting currencies for the ledger. There are three conversion levels for reporting currencies:


A full accounting representation of your primary ledger is maintained in any subledger level reporting currency. Secondary ledgers cannot use subledger level reporting currencies.

Of the three data conversion levels available, the balance data conversion level is typically the least expensive, requiring duplication of only the balance level information. The journal and subledger data conversion levels are more expensive, requiring duplication of most general ledger and subledger journal entries, as well as general ledger balances.

Do not use journal or subledger level reporting currencies if your organization has only an infrequent need to translate your financial statements to your parent company's currency for consolidation purposes. Standard translation functionality meets this need. Consider using journal or subledger level reporting currencies when any of the following conditions exist.


The second option is rare since most companies have moved beyond the initial conversion to the EMU currency. However, future decisions could add other countries to the EMU, and then, this option would again be used during the conversion stage.

Financial Ledgers: How They Fit Together

Oracle Fusion Applications is an integrated suite of business applications that connects and automates the entire flow of the business process across both front and back office operations and addresses the needs of a global enterprise. The process of designing the enterprise structure, including the accounting configuration, is the starting point for an implementation. This process often includes determining financial, legal, and management reporting requirements, setting up primary and secondary ledgers, making currency choices, and examining consolidation considerations.

This figure shows the enterprise structure components and their relationships to each other. Primary ledgers are connected to reporting currencies and secondary ledgers to provide complete reporting options. Legal entities are assigned to ledgers, both primary and secondary, and balancing segments are assigned to legal entities. Business units must be connected to both a primary ledger and a default legal entity. Business units can record transactions across legal entities.

Enterprise Structure Components Diagram.

Primary Ledgers

A primary ledger is the main record-keeping ledger. Create a primary ledger by combining a chart of accounts, accounting calendar, ledger currency, and accounting method. To determine the number of primary ledgers, your enterprise structure analysis must begin with determining financial, legal, and management reporting requirements. For example, if your company has separate subsidiaries in several countries worldwide, create multiple primary ledgers representing each country with the local currency, chart of accounts, calendar, and accounting method to enable reporting to each country's legal authorities.

If your company just has sales in different countries, with all results being managed by the corporate headquarters, create one primary ledger with multiple balancing segment values to represent each legal entity. Use secondary ledgers or reporting currencies to meet your local reporting requirements, as needed. Limiting the number of primary ledgers simplifies reporting because consolidation is not required. Other consideration such as corporate year end, ownership considerations, and local government regulations, also affect the number of primary ledgers required.

Secondary Ledgers

A secondary ledger is an optional ledger linked to a primary ledger. A secondary ledger can differ from its related primary ledger in chart of accounts, accounting calendar, currency, accounting method, or ledger processing options. Reporting requirements, for example, that require a different accounting representation to comply with international or country-specific regulations, create the need for a secondary ledger.

Below are scenarios and required action for different components in primary and secondary ledgers:

Note: Journal conversion rules, based on the journal source and category, are required to provide instructions on how to propagate journals and types of journals from the source ledger to the secondary ledger.

Reporting Currencies

Reporting currencies are the currency you use for financial, legal, and management reporting. If your reporting currency is not the same as your ledger currency, you can use the foreign currency translation process or reporting currencies functionality to convert your ledger account balances in your reporting currency. Currency conversion rules are required to instruct the system on how to convert the transactions, journals, or balances from the source representation to the reporting currency.

Legal Entities

Legal entities are discrete business units characterized by the legal environment in which they operate. The legal environment dictates how the legal entity should perform its financial, legal, and management reporting. Legal entities generally have the right to own property and the obligation to comply with labor laws for their country. They also have the responsibility to account for themselves and present financial statements and reports to company regulators, taxation authorities, and other stakeholders according to rules specified in the relevant legislation and applicable accounting standards. During setup, legal entities are assigned to the accounting configuration, which includes all ledgers, primary and secondary.

Balancing Segments

You assign primary balancing segment values to all legal entities before assigning values to the ledger. Then, assign specific primary balancing segment values to the primary and secondary ledgers to represent nonlegal entity related transactions such as adjustments. You can assign any primary balancing segment value that has not already been assigned to a legal entity. You are allowed to assign the same primary balancing segment values to more than one ledger. The assignment of primary balancing segment values to legal entities and ledgers is performed within the context of a single accounting setup. The Balancing Segment Value Assignments report is available to show all primary balancing segment values assigned to legal entities and ledgers across accounting setups to ensure the completeness and accuracy of their assignments. This report allows you to quickly identify these errors and view any unassigned values.

Business Units

A business unit is a unit of an enterprise that performs one or many business functions that can be rolled up in a management hierarchy. When a business function produces financial transactions, a business unit must be assigned a primary ledger, and a default legal entity. Each business unit can post transactions to a single primary ledger, but it can process transactions for many legal entities. Normally, it will have a manager, strategic objectives, a level of autonomy, and responsibility for its profit and loss. You define business units as separate task generally done after the accounting setups steps.

The business unit model:

For example, if your company requires business unit managers to be responsible for managing all aspects of their part of the business, then consider using two balancing segments, company and business unit to enable the production of business unit level balance sheets and income statements.

Transactions are exclusive to business units. In other words, you can use business unit as a securing mechanism for transactions. For example, if you have an export business that you run differently from your domestic business, use business units to secure members of the export business from seeing the transactions of the domestic business.

Specifying Ledger Options: Worked Example

This example demonstrates specifying the ledger options for your primary ledger. Your company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the United Kingdom (UK). InFusion has purchased an Oracle Fusion enterprise resource planning (ERP) solution including Oracle Fusion General Ledger and all of the Oracle Fusion subledgers.

After completing your InFusion America Primary Ledger, select Specify Ledger Options under the Define Accounting Configuration task list on the Functional Setup Manager page.


Both primary and secondary ledgers are created in the same way and use the same user interface to enable their specific ledger options.

Reviewing General Region Options

  1. Accept the Name and Description defaults for the ledger selected.
  2. Review the Currency and Chart of Accounts for the specified ledger, which are automatically populated.

Setting Accounting Calendar Region Options

  1. Review the Accounting Calendar that defaults from your ledger.
  2. Select Jan-2011 as the First Open Period for your ledger.

    Important: Select a period after the first defined period in the ledger calendar to enable running translation. You cannot run translation in the first defined period of a ledger calendar. In this example, your calendar began with Jan-2010.

  3. Enter 3 for the Number of Future Enterable Periods.

    Any value between 0 and 999 periods can be specified to permit entering journals but not posting them in future periods. Minimize the number of open and future periods to prevent entry in the wrong period.

Selecting the Subledger Accounting Region Options

  1. Accept the default Accounting Method from your ledger.
  2. Select US American English as your Journal Language.

Completing the Period Close Region Options

  1. Enter your Retained Earnings Account: 101-00-31330000-0000-000-0000-0000.

    This account is required for the General Ledger to perform the movement of revenue and expense account balances to this account at the end of the accounting year.

  2. Enter your Cumulative Translation Adjustment Account: 101-00-31350000-0000-000-0000-0000.

    Note: The Cumulative Translation Adjustment (CTA) account is required for ledgers running translation.

  3. Do not enter a Default Period End Rate Type or Default Period Average Rate Type.

    The values entered here are used as the default for balance level reporting currency processing. InFusion America Primary Ledger is using the subledger level reporting currency processing.

Specifying the Journal Processing Region Options

  1. Specify the Balance options as outlined in the following table.



    Enable Suspense

    General Ledger

    Default Expense Account


    Rounding Account


    Entered Currency Balancing Account


    Balancing Threshold Percent


  2. Click all the following Entry options listed in the table.



    Enable journal approval

    Click to enable journal approval functionality. Approval rules must be created in the Oracle Fusion Approvals Management (AMX).

    Notify when prior period journal

    Notify the user when a prior period date is selected on a journal entry.

    Allow mixed and statistical journals

    Enter both monetary and statistical amounts on the same line in a journal entry.

    Validate reference date

    Requires a reference date in an open or future enterable period.

  3. Click the Separate journals by accounting date during journal import for the Import option to create individual journal entries for each accounting date.
  4. For the Reversal options, select InFusion America Accrual Set from the list of values in the Journal Reversal Criteria Set field and click the Launch AutoReverse after open period to reverse accrual journal entries automatically when a new period is opened.
  5. Click the Enable intercompany accounting for the Intercompany option to enable automatic balancing by the application for primary, second, and third balancing segments (if implemented) on intercompany journal entries and transactions.

    Note: To complete the intercompany accounting functionality, you must define intercompany rules.

FAQs for Define Ledgers

What happens if I change the cumulative adjustment account?

To avoid data corruption, your cumulative adjustment account (CTA) can only be changed if you first perform the following set of steps:

What happens if I change the retained earnings account?

To avoid data corruption, your retained earnings account can only be changed if you first perform the following set of steps:

Manage Cross-Validation Rules

Cross Validation Rules: Overview

In Oracle Fusion General Ledger, use cross validation rules to determine the account combinations that your users can create dynamically as they enter transactions or journal entries. Once enabled, a cross validation rule determines whether a selected value for a particular segment of the account combination can be combined with specific values in the other segments to form a new account combination.

If account combinations already exist and violate the newly enabled cross validation rules, these account combinations continue to be valid. Before disabling any existing account combinations that violate your rules and you are no longer using, move the balances in those accounts to the correct accounts. Then disable the account combinations manually to prevent further posting.


Best practice is to define and enable cross validation rules before:

FAQs for Manage Chart of Accounts Mapping

What's the difference between mapping with segment rules and mapping with account rules?

The chart of accounts mapping feature supports the ability to correlate a source chart of accounts to a target chart of accounts to allow for the processing of balances or amounts. This is accomplished by either using segment rules, account rules, or a combination of both. A chart of accounts mapping is used by the posting program in propagating transactions from the primary ledger to its secondary ledger, providing the means to map the primary ledger chart of accounts to that of the secondary ledger. The mapping feature is used by both balance transfer programs for balance level secondary ledgers as well as cross ledger transfers, whereby balances from one ledger are copied to another ledger.

Segment rules serve to map each segment of the target chart of accounts to an account value or segment in the source account. Three different mapping actions are available:

In addition to segment rules, define account rules for the chart of accounts mapping. Account rules map a complete target account code combination against one or more source account code combinations. The source account code combinations can be defined segment by segment using:

When do account rules override segment rules in the chart of accounts mapping?

Segment rules and account rules can be exclusively used in a chart of accounts mapping, or you can use a combination of both. If there is an overlap between the two types of rules, whereby a source account is mapped one way by the segment rules, and another by the account rules, the account rule supersedes. As such, segment rules can be used to more broadly define how to map the relationship between two charts of accounts on a segment by segment basis, and account rules can be used to more precisely delineate specific source account code combinations into their intended target accounts.

Manage Journal Approval Rules

Approving Journals: Points to Consider

Journal approval in Oracle Fusion applications uses Oracle Fusion Approvals Management (AMX) to merge the functionality of Oracle Approvals Management (AME) and PeopleSoft Approvals (AWE). In addition, Oracle Business Process Execution Language (BPEL) has replaced Oracle Workflow.

Rule Definition Consideration

There is one predefined approval rule. If you enable the ledger and the source for approval, then the journal entry is sent for one level of approval by default. You must configure the approval rules in the AMX Rules Setup user interface. For a simple approval scenario, start by defining one or all of the following rules.

For example, after your ledger is enabled for approval, enter the following approval rules to apply when your maximum journal line amount is:

Build your rules for every combination of ledger, entered amount, approval level, or other needed scenarios by using the pattern in the suggested rules. In addition, the Oracle Fusion functionality allows you to further define your own rules based on attributes from the different parts of your journal, including the ledger, batch, header, or line level. For example, use category, source, account, or descriptive flexfield information as selection criteria for the journals to be sent for approval.

The ledger is included in the rules because you typically define approval rules per ledger. Set the options that enable journal approval at the ledger level and by journal source. This allows the approval process to determine which journals to send for approval.

AMX List Builder Considerations

Use the following AMX List Builder to build your approval list.

List Builder


Additional Information

Human Resources (HR) Supervisory

This method uses the HR Supervisory hierarchy levels and specifies the number of levels available for approval.

This method is most effective when the General Accountant enters the journals. For example, if an accountant enters a journal, he needs approval from his manager. If his manager enters a journal he needs approval from his manager and so on up the hierarchy for the specified number of levels. Self approval can be set at any levels in the hierarchy.

Job Level

A relative dollar amount can be attached to a job. The approval list moves up the HR Supervisory hierarchy to the point it finds a job with the necessary approval amount.

Enable self-approval to allow approval of journals created within your authority limit.


A relative dollar amount can be attached to a position.

This is effective if you need a hierarchy different than the HR Supervisory hierarchy. It is also effective when there are multiple hierarchies that need to be selected based on different attributes.

Approval Group

Approver groups represent functional or subject matter experts outside the transaction's managerial chain of authority, such as Legal or HR personnel.


Dual Chain

Dual chains can be processed at the same time.



Best practices are to select Job Level, HR Supervisory, or Position list builders for your journal approval rules.

Other Considerations

Other functionality to consider before defining approval rules include:


Approval is enabled at the ledger and source level. Both the ledger and journal source need to be enabled for the approval process.

Manage AutoPost Criteria Sets

Creating an AutoPost Criteria Set: Worked Example

This example shows how to create an AutoPost Criteria Set to post your general ledger journal entries that were created by the journal import process for your subledger transactions. Your enterprise, InFusion Corporation, implemented Oracle Fusion General Ledger and the following Oracle Fusion subledgers: Payables and Receivables. You use a non-Oracle subledger called Fast Assets for fixed asset tracking and depreciation. You want to automate posting of your general ledger journal batches created by the journal import process to protect the subledger sourced journal entries from edits or deletion that might inadvertently happen and cause an out-of-balance situation between your subledgers and general ledger.

Consider the following points while creating your criteria set:

Creating an AutoPost Criteria Set

Create your AutoPost Criteria Set to automatically post journal entries from both Oracle and non-Oracle subledgers.

  1. On the Manage AutoPost Criteria Sets page, click the Create icon to open the Create AutoPost Criteria Set page.
  2. Enter the set name: All Journal Imported Entries
  3. Select the Enable check box.
  4. Enter the description: Posting journals imported from the subledgers.
  5. Click the Add Row icon to add each new line.
  6. Complete the fields, as shown in the table below:


    Ledger or Ledger Set



    Accounting Period


    InFusion Corporation Ledger





    InFusion Corporation Ledger





    InFusion Corporation Ledger

    Fast Assets



  7. For all three sources, select Yes for the process all criteria option and enter 30 as the number of days before and after submission date.

    Setting the before and after days with a wide range of days enables the process to run less often.

  8. Click the Save and Close button.
  9. Schedule the program to run daily at 3:00 a.m.

    Schedule the process immediately after the journal imports to prevent changes to the journals. Run the process during nonpeak times to save resources.

Manually Generating the AutoPost Program: Examples

Create an AutoPost criteria set and schedule the AutoPost program to run on a regular basis following your scheduled journal imports from your subledgers. When errors occur that prevent posting of the journal imports, you must correct the errors and manually run the AutoPost program. The following scenarios illustrate the kinds of errors that could occur and how you can resolve these errors.


The following errors occurred and prevented the journal batches from posting when the scheduled AutoPost program ran.




Error - Unopened accounting period

The journal import was imported into a future period. An error arises when the AutoPost program runs on a schedule because journals cannot be posted in a future period.

Open the period.

Error - Invalid or no journals

Journal import fails to import transactions from the general ledger interface table. The AutoPost program runs on schedule but finds no batches to post. The Posting process does not run and the AutoPost Execution report shows that no batches match the criteria.

Correct the error that caused the journal import to fail.

Error - Invalid or no journals

No journals were selected based on the posting criteria. Journal batches are available for posting. The Posting process does not run and the AutoPost Execution report shows that no batches match the criteria.

Revise the criteria set.

After you correct the errors, manually run the AutoPost program by selecting the Launch AutoPost option from the Tasks panel on the journal pages or by clicking the Generate button on the AutoPost criteria set pages. Verify that the process ran successfully by reviewing the AutoPost Execution report.

FAQs for Manage AutoPost Criteria Sets

How can I run the AutoPost program?

After you define an automatic posting criteria set, run the AutoPost program by clicking the Generate button on the Manage AutoPost Criteria Sets page or the Launch AutoPost link from the Journals task pane. The AutoPost program posts the journal batches that meet the criteria defined. Optionally, schedule the AutoPost program for specific automatic posting criteria sets through the Enterprise Scheduler to run at specific times and submission intervals.

How can I identify errors that occurred during my AutoPost process?

Review the AutoPost process results on the AutoPost Execution report. This report is automatically created when the program completes successfully. The report contains the batch name, accounting period, and balance type for each posted journal batch, and lists error statuses for batches that failed to post. The unposted journals with their error status are also displayed on the Requiring Attention tab of the Journals work area and the General Accounting Dashboard.

Why didn't the AutoPost program post journal batches as expected?

Verify that the posting criteria set specifies the precise criteria needed to post the desired journals. If the criteria is correct, then verify the following:

Manage Journal Reversal Criteria Sets

Automatic Journal Reversals: How They Are Processed

The ability to submit journal reversals automatically allows you to automate and streamline your journal reversal process. If you routinely generate and post a large number of journal reversals as part of your month end closing and opening procedures, using the automatic reversal functionality saves you time and reduces entry errors.

The figure shows the AutoReverse Journals
Process which starts with the creation of a Journal Reversal Criteria
Set. You then generate the reversal which starts the AutoReverse program
and in turn, starts the Journal Reversal program and optionally, the
Journal Posting program.

Settings That Affect Journal Reversals

The journal must meet the following criteria to be automatically reversed:

There is a new ledger option called Launch AutoReverse After Open Period that you can enable to have journal reversals automatically generated when an accounting period is first opened for the ledger. This ledger option replaces the former profile option called GL: Launch AutoReverse After Open Period. If you prefer to reverse your journals on the last day of every month, disable the ledger option to automatically launch reversals when the period is opened. Then schedule the AutoReverse program to run on the last day of every month.

How Automatic Journal Reversals Are Processed

Define Journal Reversal Criteria Sets to automatically reverse and optionally post journals using the following criteria:






The journal category you set as the reversal option. Journals entered with this category are chosen for reversal and optionally, posting.

All journal categories are listed.

Reversal period


The accounting period of the reversal journal. The Next day option is only applicable to average daily balance ledgers. Nonaverage daily balance ledgers and consolidation average daily balance ledgers treat the Next day option in the same manner as the No default option.

  • No default

  • Same period

  • Next period

  • Next nonadjusting

  • Next day

Reversal day

Required for average daily balance ledgers only.

The day of the period on which to reverse the journal.

  • First day

  • Last day

  • Next day

Reversal method


The method for changing the amounts in the reversal entry.

  • Change sign

  • Switch debit or credit

Automatic reversal option


The option to reverse and post journals automatically. Journals are posted after they are reversed.

  • None

  • Reverse automatically

  • Reverse and post automatically

After creating your journal reversal criteria sets, assign them to ledgers. Journal reversal criteria set can be shared and assigned to multiple ledgers. Also secure journal reversal criteria set definitions using definition access set security to prevent unauthorized users from using, viewing, or modifying the journal reversal criteria.

If the automatic reversal option is set to reverse and post automatically, the AutoPost program posts all the reversal journals that were generated by the AutoReverse program. The program does not pick up other journals. You manually post reversal journals that were generated outside of the AutoReverse process.


Journals posted by the AutoReverse program always bypass approval.

General Ledger automatically creates the AutoReverse Execution report when the AutoReverse program completes successfully. The report prints the journal name and reversal period for each journal that is successfully reversed and whether the reversal journal is submitted for posting. The AutoPost Execution report is created automatically when the AutoPost program finishes. These reports help you diagnose any problems and verify that all journals were processed properly.


The AutoReverse program does not check that the reversal date is a valid business day for an average balance ledger. The journal validation in the journal pages or import process does the check and if necessary, rolls the date to the next business day.

Manage Period Close

Period Close Components: Explained

While implementing your accounting configuration, optionally define and maintain the period close components to customize your accounting configurations setup.

Period close components include allocations, period entries, revaluation, and historical rates.

If you use allocations, revaluation, or translation, configure the following tasks under the Define Period Close Components parent task in your implementation project:

Manage Allocations and Period Entries

Manage Allocations and Period Entries is a manual task in the implementation project. Use the Allocation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically. Base formulas on multiple criteria.

You must perform an external procedure outside the Setup and Maintenance work area to complete this task. In order to setup your allocations rules, navigate to the Journals work area and click the Create Allocations Rules task from the Tasks pane. This task navigates you to Allocation Manager, a framework that enables you define your allocation rules and formulas using a graphical interface and intuitive step-by-step wizards.

Manage Revaluations

Defines currency revaluation options, such as the range of accounts to revalue and the gain or loss accounts. Revaluation is done to adjust foreign entered amounts due to currency fluctuations. Navigate to the Manage Revaluations page, and define and generate your revaluation definitions.

Manage Historical Rates

Historical rates are the weighted average rate for transactions that occur at different points in time. Used by the system to calculate the conversion rate on equity account balances during foreign currency translation of the balance sheet.

Navigate to the Currency Rates Manager page to define and maintain your historical rates that are used in the translation process. In Oracle Fusion General Ledger, you can currently define historical rates using an ADF Desktop Integrator spreadsheet.

To create new historical rates, specify the required Ledger and the other optional fields, as needed. Click the Create in Spreadsheet button to open the spreadsheet for uploading.

To update the existing historical rates for your ledgers, click the Edit in Spreadsheet button, the spreadsheet is prepopulated with the existing historical rates.


Before using the historical rates spreadsheet, install the ADF Desktop Integrator client as an add on to Microsoft Excel.

Opening First Period: Overview

For all ledgers, primary, secondary, and journal and subledger level reporting currencies, open the first period of the ledger when you are ready to transact in that period.

To open the first period of your ledgers, navigate to the Open First Period task in the primary ledger task list and click the Go to Task icon. On the submission page, select the ledger and the period to open. Click the Submit button to launch the open period process.

There are other ways to open the first period or subsequent periods without going into the Setup and Maintenance work area. You can maintain the ledgers' period statuses from the:

Manage Allocations and Periodic Entries

Allocation and Periodic Entries: Overview

In Oracle Fusion General Ledger, use the Allocation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically. Base formulas on multiple criteria. For example, use account balances or statistical amounts to allocate shared revenue or costs across multiple organizational units and ledgers. Define complex computations based on variables from different charts of accounts. Group journal formulas together and execute sequentially to update account balances in a step-by-step process.

The Allocation Manager provides flexibility, automation, intelligence, and control in distributing costs and revenues across the enterprise. In addition, the Allocation Manager:

Access the Allocation Manager from the Tasks pane of the General Accounting dashboard or Journals work area by clicking on the:


For more information, see:

Generating Allocations and Periodic Entries Manually: Worked Example

This example demonstrates how to generate an allocation or periodic entry manually from the Oracle Fusion General Ledger.

You are the General Accountant for Infusion America Inc. You have created allocation and periodic journal entry definitions for several monthly entries. You now generate these entries.


Schedule allocations and periodic entries in the Journals work area for automatic generation.

Prior to generating the allocation and periodic entries, the following tasks must be completed:

Generating Allocations and Periodic Entries Manually

  1. From the Navigator, click the Journals link to open the Journals work area.
  2. In the task pane of the Journals page, click the Generate Allocations link to open the Submission page.
  3. Optionally select one or all of the following options:
  4. Select a rule or rule set from the list of values.
  5. Enter the submission parameters, including Ledger, Balancing Segment Value, and Period. The application automatically sets the last day of the submission period as the Accounting Date and Calculation Effective Date.
  6. Accept the selected check box for the Post Allocations option to enable the process to post the journal entries.

    If you deselect the check box for the Post Allocations option, you must post the entry manually or define an AutoPost Criteria Set to automatically post the journal entries.

  7. Click Submit.

    After the generation process is complete, the journal entries created by the process are available for inquiry on the Journals page.

Manage Revaluations

Revaluation Process: Explained

The revaluation process is used to adjust account balances denominated in a foreign currency. Revaluation adjustments represent the difference in the value of the balance due to changes in conversion rates between the date of the original journal entry and the revaluation date. These adjustments are posted through journal entries to the underlying account with the offset posted to an unrealized gain or loss account. All debit adjustments are offset against the unrealized gain account and all credit adjustments are offset against the unrealized loss account. If the same account is specified in the Unrealized Gain Account and Unrealized Loss Account fields, the net of the adjustments is derived and posted.

For balance sheet accounts, the revaluation journal entries are reversed in the next period. AutoReverse can be used to automate the reversals. For income statement accounts that use the PTD method of revaluation, the revaluation journal entries aren't reversed since each period's revaluation adjustment is just for that period.

In Oracle Fusion General Ledger, the revaluation functionality provides the following advantages:


When defining your revaluations, perform the following:


Income statement accounts can also be revalued using YTD method.

Hierarchies and flexible account selection criteria, such as usage of parent values from your account hierarchy, streamlines maintenance of revaluation definitions. Leveraging hierarchy versions extends your revaluation definitions during organizational changes. Adjust account selection criteria monthly to retrieve the accounts that need to be revalued for the current accounting period.

Share revaluation definitions across ledgers that have the same chart of accounts to reduce maintenance.


Generating revaluations include:

Always run revaluation to bring monetary balances to current rates before performing currency translation or remeasurement.

Revaluation Execution Report

The Revalue Balances program automatically generates the Revaluation Execution report when you run revaluation. This report shows the details of your account balance revaluation and the journal batches created after running revaluation. The report includes the currencies and revaluation rates used to revalue your accounts, the unrealized gain or loss account in which you recorded net gains and losses, and the range of accounts revalued. The report also prints the names of your batch and journals that the revaluation program creates for each foreign currency, as well as the total debits and credits of the created entries.

If the Revaluation process cannot locate rates for one or more currencies, balances are not revalued for those currencies. In this case, the Revaluation process completes with a warning and the execution report lists which currencies are missing rates.

Accounting for Unrealized Gain or Loss on Revaluation: Explained

Revaluation launches a process that revalues the ledger currency equivalent balances for the accounts and currencies you select, using the appropriate current rate for each currency. Resulting unrealized gain or loss amounts are posted to the unrealized gain or loss accounts or to the cumulative translation adjustment (CTA) account you specify, and are balanced by balancing segment values. This process creates a revaluation journal which can be posted automatically.

Oracle Fusion General Ledger creates journal entries to adjust the ledger currency balances for conversion rate fluctuations, in accordance with Statement of Financial Accounting Standards (SFAS) No. 52, Foreign Currency Translation and International Accounting Standard (IAS) 21, The Effects of Changes in Foreign Exchange Rates.

The revaluation journal entries generated and posted in the primary ledger are automatically generated, converted, and posted to each of their reporting currencies. Define the CTA account for unrealized gains or losses in the reporting currency prior to running revaluation.

Income Statement Accounts Revaluation Rule: Explained

Revaluation is the process which adjusts asset or liability accounts that may be materially understated or overstated due to a fluctuation in the conversion rate between the time the transaction was entered and the time revaluation takes place. You may want to revalue income statement accounts as well. The Income Statement Accounts Rule indicates whether period-to-date (PTD) or year-to-date (YTD) method is to be used when revaluing income statement accounts.

Click the Income Statement radio buttons on the Create Revaluation page to specify whether you want to revalue income statement accounts using PTD or YTD balances. There are two radio buttons, one for PTD and one for YTD.

If you select to revalue PTD balances for income statement accounts, the program continues to appropriately revalue YTD balances for balance sheet accounts. In the revaluation definition if the range of accounts consists of both income statement and balance sheet accounts and you select PTD as an option for income statement account revaluation rule, a separate revaluation journal is created for the income statement accounts. Revaluing the PTD balance of your income statement accounts creates weighted average YTD balances using period rates from each corresponding period against the PTD account balance in compliance with the Statement of Financial Accounting Standards (SFAS) No. 52, Foreign Currency Translation.

To summarize, when you run revaluation on your income statement accounts, the program produces two separate journal entries; one that revalues your balance sheet accounts and another for your income statement accounts. You do not need to reverse the PTD revaluation journal entry for your income statement accounts in the subsequent period since that revaluation only applies to last period's activity.


This functionality only applies when the range of accounts to be revalued in the revaluation definition consist of income statement accounts in addition to balance sheet accounts. Normally only balance sheets accounts are revalued.

Revaluing Across Multiple Balancing Segments: Worked Example

This example demonstrates how to revalue foreign currency balances across multiple balancing segments. Your company, InFusion America, Inc. has three lines of business. You revalue your foreign currency account balances for two of your divisions, Air Components and Repair Parts. Your Installation Services line of business does not have foreign currency transactions. Your company is your primary balancing segment and your lines of business are represented in your secondary balancing segment.


Enable up to three balancing segments to use the multiple balancing segment feature.

The following are points to consider in running the revaluation process.

Defining Revaluations

  1. From the Manage Revaluations page, click the Create icon.
  2. Enter the values in the following table in the correct fields.




    InFusion America Revaluation


    Revaluation for all foreign currency balances.

    Chart of Accounts

    InFusion America Chart of Accounts


    Leave blank


    If left blank, all currencies are revalued and after saving, the field automatically displays: All currencies.

    Conversion Rate Type


    Days to Roll Forward


    Unrealized Gain Account


    Unrealized Loss Account


    Income Statement Account Basis


    Post Automatically


  3. In the Revaluation Accounts region, click the Add Row icon.
  4. Click the Change filter conditions icon to enter the filter used to select the accounts to revalue.
  5. Click the Add Field drop down arrow and select your company, InFusion America Inc. from the list.





  6. Click the Add Field drop down arrow and select your two Lines of Business: 30 for Air Components and 40 for Repair Parts.

    Note: Your Installation Services line of business, 50, is not included because it does not have foreign currency transactions.






  7. Click the Add Field drop down arrow and select Account from the list.






  8. Click OK to accept your filters.
  9. Click the Save and Close button to save your revaluation.

    Optionally, select the Save and Generate buttons to run the revaluation immediately.