Oracle® Fusion Applications Financials Implementation Guide 11g Release 7 (11.1.7) Part Number E20375-08

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5 Define Ledgers

This chapter contains the following:

Accounting Configuration Offerings: Overview

Ledgers and Subledgers: Explained

Ledgers: Points to Consider

Financial Ledgers: How They Fit Together

Creating Primary Ledgers: Example

Specifying Ledger Options: Worked Example

Assigning Legal Entities and Balancing Segments: Examples

Data Access Set Security: Examples

Data Access Set Security: Overview

Define General Ledger Security: Explained

Segment Value Security: Examples

Define Ledgers: Review and Submit Accounting Configuration

FAQs for Define Ledgers

Manage Cross-Validation Rules

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 Offerings: 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.

There are two offerings predefined for financial implementations.

• The Oracle Fusion Accounting Hub offering is used to add the Oracle Fusion General Ledger and Oracle Fusion Subledger Accounting application features to an existing enterprise resource planning (ERP) system to enhance the current reporting and analysis.

• The Oracle Fusion Financials offering, which includes the Oracle Fusion General Ledger and Oracle Fusion Subledger Accounting application features, as well as at least one of the subledger financial applications.

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:

• You have companies that require different account structures to record information about transactions and balances. For example, one company may require a six-segment account, while another needs only a three-segment account structure.

• You have companies that use different accounting calendars. For example, although companies may share fiscal year calendars, your retail operations require a weekly calendar, and a monthly calendar is required for your corporate headquarters.

• You have companies that require different functional currencies. Consider the business activities and reporting requirements of each company. If you must present financial statements in another country and currency, consider the accounting principles to which you must adhere.

Subledgers

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:

• Balance: Only Oracle Fusion General Ledger balances are transferred to the secondary ledger.

• Journal: General Ledger journal posting process transfers the journal entries to the secondary ledger.

• Subledger: Oracle Fusion Subledger Accounting creates subledger journals to subledger level secondary ledgers as well as reporting currencies.

• Adjustments Only: Incomplete accounting representation that only holds adjustments. The adjustments can be manual or detailed adjustments from Subledger Accounting. This type of ledger must share the same chart of accounts, accounting calendar, and period type combination, and currency as the associated primary 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.

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

• The primary and secondary ledgers use different charts of accounts to meet varying accounting standards or methods. A chart of accounts mapping is required to instruct the application how to propagate balances from the source (primary) chart of accounts to the target (secondary) chart of accounts.

• The primary and secondary ledgers use different accounting calendars to comply with separate industry and corporate standards.

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:

• Balance: Only General Ledger balances are converted into the reporting currency using translation.

• Journal: General Ledger journal entries are converted to the reporting currency during posting.

• Subledger: Subledger Accounting creates subledger reporting currency journals along with primary ledger journals.

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.

• You operate in a country whose unstable currency makes it unsuitable for managing your business. As a consequence, you need to manage your business in a more stable currency while retaining the ability to report in the unstable local currency.

• You operate in a country that is part of the European Economic and Monetary Union (EMU), and you choose to account and report in both the European Union currency and your National Currency Unit (NCU).

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.

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:

• If the primary and secondary ledgers use different charts of accounts, the chart of accounts mapping is required to instruct the system how to propagate journals from the source chart of accounts to the target chart of accounts.

• If the primary and secondary ledgers use different accounting calendars, the accounting date and the general ledger date mapping table will be used to determine the corresponding non-adjusting period in the secondary ledger. The date mapping table also provides the correlation between dates and non-adjusting periods for each accounting calendar.

• If the primary ledger and secondary ledger use different ledger currencies, currency conversion rules are required to instruct the system on how to convert the transactions, journals, or balances from the source representation to the secondary ledger.

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:

• Allows for flexible implementation

• Provides a consistent entity for controlling and reporting on transactions

• Enables sharing of sets of reference data across applications

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.

Creating Primary Ledgers: Example

Create a primary ledger as your main record-keeping ledger. Like any other ledger, a primary ledger records transactional balances by using a chart of accounts with a calendar, 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.

Scenario

Your company, InFusion Corporation is implementing Oracle Fusion Applications. You have been assigned the task of creating a primary ledger for your InFusion America entity.

1. Navigate to the Define Accounting Configurations task list and open Manage Primary Ledgers from within your implementation project. Click the Go to Task.

2. Click the Create icon.

3. Enter the following values:

   
   

   Field	Value
   Name	InFusion America
   Description	InFusion America primary ledger for recording transactions.
   Chart of Accounts	InFusion America Chart of Accounts
   Accounting Calendar	Standard Monthly
   Currency	USD
   Accounting Method	Standard Accrual

4. Click Save and Edit Task List to navigate back to the accounting configuration task list.

   Note

   You cannot change the chart of accounts, accounting calendar, or currency for your ledger after you save your ledger.

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.

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.

   Option	Setting
   Enable Suspense	General Ledger
   Default Expense Account	101-00-98199999-0000-000-0000-0000
   Rounding Account	101-10-98189999-0000-000-0000-0000
   Entered Currency Balancing Account	101-10-98179999-0000-000-0000-0000
   Balancing Threshold Percent	10

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

   Option	Description
   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.

Assigning Legal Entities and Balancing Segments: Examples

Optionally, assign legal entities and balancing segments to your accounting configuration.

Assign Legal Entities

Assign one or more legal entities to your configuration by following these steps:

1. Navigate to the Assign Legal Entities task. Click the Go to Task.

2. Click the Select and Add icon.

3. Click Search. Select your legal entities.

4. Click Apply. Click Done.

5. Click Save and Close.

Assign Balancing Segments to Legal Entities

Assign balancing segment values to your legal entities by following these steps:

1. Navigate to the Assign Balancing Segment Values to Legal Entities task. Click the Go to Task.

2. Click the Create icon.

3. Select the balancing segment value. Optionally, add a Start Date.

4. Click Save and Close to close the create page.

5. Click Save and Close.

Assign Balancing Segments to Ledgers

Assign balancing segment values directly to your ledger by following these steps:

1. Navigate to the Assign Balancing Segment Value to Ledger task. Click the Go to Task.

2. Select the balancing segment value.

3. Optionally enter a start date.

4. Click Save and Close.

Data Access Set Security: Examples

This example shows two data access sets that secure access by using primary balancing segment values that correspond to legal entities.

Scenario

The figure shows the actions enabled when an access level is assigned to a balancing segment representing legal entities (LE) for one of the two access levels:

• Read Only

• Read and Write

• InFusion USA Primary Ledger, is assigned to this Data Access Set.

• Read only access has been assigned to balancing segment value 131 that represents the InFusion USA Health LE3.

• Read and write access has been assigned to the other two primary balancing segment values 101 and 102 that represent InFusion USA Health LE1 and LE2.

In summary, you can:

• Create a Journal Batch: In ledgers or with primary balancing segment values if you have write access.

• Modify a Journal Batch: If you have write access to all ledgers or primary balancing segment values that are used in the batch.

• View a Journal Batch: If you have read only or write access to the ledger or primary balancing segment values.

Data Access Set Security: Overview

Data Access Sets secure access to ledgers, ledger sets, and portions of ledgers using primary balancing segment values. If you have primary balancing segment values assigned to a legal entity, then you can use this feature to secure access to specific legal entities.

• Secures parent or detail primary balancing segment values.

• Secures the specified parent value as well as all its descendents, including midlevel parents and detail values.

• Requires all ledgers assigned to the data access set to share chart of accounts and accounting calendar.

When a ledger is created, a data access set for that ledger is automatically created; giving full read and write access to that ledger. Data access sets are automatically created when you create a new ledger set as well. You can also manually create your data access sets to give read only access or partial access to select balancing segment values in the ledger.

You can combine ledger and ledger set assignments to a single data access set you create as long as the ledgers all share a common chart of accounts and calendar. When a data access set is created, data roles are automatically created for that data access set. Five data roles are generated for each data access set, one for each of the Oracle Fusion General Ledger roles:

• Chief Financial Officer

• Controller

• General Accounting Manager

• General Accountant

• Financial Analyst

The data roles then must to be assigned to your users before they can use the data access set.

• Full Ledger Access: Access to the entire ledger or ledger sets. For example, this could mean read only access to the entire ledger or both read and write access.

• Primary Balancing Segment Value: Access one or more primary balancing segment values for that ledger. You can specify read only, read and write access, or a combination of the two for different primary balancing segment values for different ledgers and ledger sets.

Define General Ledger Security: Explained

Data Access Set Security: Grants access to a ledger, ledger set, or specific primary balancing segment values associated with a ledger. Create and edit data access set security on the Manage Data Access Sets page from the Setup and Maintenance work area or from your implementation project.

Segment Value Security: Controls access to value set values associated with any segment in your chart of accounts. Create and edit segment value security on the Define Chart of Accounts page from the Setup and Maintenance work area or your implementation project.

Function and Data Security: Secures features and data with privileges that are mapped to roles.

• Access through the Define Security task list on the Setup and Maintenance work area or your implementation project.

• Use Oracle Identity Manager (OIM) to manage user and user-role assignments.

• Use Authorization Policy Manager (APM) to manage data roles and duty roles.

Defining Segment Value Security Rules

Set up segment value security rules against your value sets to control access to parent or detail segment values.

• Securing a value set denies access to all values by default. Create conditions and assign them to specific data roles to control access to your value set values.

• Restrict data entry, online inquiry, and reporting to specific values by using segment value security rules.

General Points About Segment Value Security:

• Used with flexfield segments.

• Specifies that data security be applied to segment values that use the value set. Based on the roles provisioned to users, data security policies determine which values of the segment end users can view or modify.

• Applies at the value set level. If a value set is secured, every usage of the value set in the chart of accounts structure is secured. For example, if the same value set is used for the legal entity and intercompany segments of the chart of accounts, the same security is applied to both segments.

• Applies only to independent value sets.

• Applies mainly when data is being created or updated, and to account combination tables for query purposes.

• Controls access to parent or detail segment values.

Segment Value Security: Examples

Segment value security is enforced in Oracle Fusion Applications where ever the chart of accounts values are used.

Scenario

1. When entering a journal for a ledger with a secured chart of accounts, you can only use account values for which the access is granted using segment security rules.

2. When running reports against a ledger with a secured chart of accounts, you can only view balances for accounts for which the access is granted using segment security rules.

3. When viewing ledger options in an accounting configuration, if the accounts specified include references to an account with values you have not been granted access to, you can see the account but not be able to enter that secured value if you select to modify the setup.

Example

Create conditions and assign them to specific data roles to control access to your segment values. For example:

1. Enable security on both the cost center and account value sets that are associated with your chart of accounts.

2. Assign the General Accountant - InFusion USA data role to have access to cost center Accounting and account US Revenue.

3. Deny all other users access to the specified cost center and account values.

Segment Value Security Operators

Use any of the following operators in your conditions to secure your segment values:

Tip:

For Is descendent of and Is last descendent of:

• Specify an account hierarchy (tree) and a tree version to use this operator.

• Understand that the security rule applies across all the tree versions of the specified hierarchy, as well as all hierarchies associated with the value set.

Define Ledgers: Review and Submit Accounting Configuration

Oracle Fusion General Ledger Balances Cube: Overview

A balances cube is an online analytical application (OLAP) database that maintains financial balances in a multidimensional database. In Oracle Fusion General Ledger a new balances cube is created when an accounting configuration is submitted for a primary or secondary ledger that uses to a new unique combination of chart of accounts and calendar.

A new balances cube is also created when a secondary ledger is added to an existing accounting configuration and uses a new unique combination of chart of accounts and calendar. The balances cubes are named after the chart of accounts they contain.

A balances cube:

• Stores your financial balances in a multidimensional enable real time, interactive financial reporting and analysis.

• Preaggregates your balances at every possible point of summarization, thus ensuring immediate access to financial data and eliminating the need for an external data warehouse for financial reporting.

• Is uniquely identified by the combination of a chart of accounts and an accounting calendar. Average balances are tracked in a separate balances cube.

• Is automatically synchronized by the following general ledger processes: posting, open period, and translation.

• Consists of a set of defining business entities called dimensions. Dimensions in a cube determine how data is accumulated for reporting and analytical purposes

• Are referred to as an application or database connection in the user interfaces for:

  • Financial Reports

  • Smart View

  • Calculation Manager

Standard Balances Cube Dimensions: Explained

A balances cube consists of a set of defining business entities called dimensions. This table details the dimensions that are available for creating financial reports, Smart View queries, and allocations using multidimensional cubes.

Creating GL Balances Cubes: Examples

There are two types of Oracle Fusion General Ledger Balances cubes: Standard Balances cubes and Average Balances cubes.

Standard Balances Cubes

A new standard balances cube is created whenever an accounting configuration is submitted for a ledger, either primary or secondary, that uses a new unique combination of chart of accounts and accounting calendar. Cubes are named after the chart of accounts.

For example, the chart of accounts, InFusion US Chart of Accounts has a related cube entitled, InFusion US Chart of Accounts. If a chart of accounts is used by multiple ledgers with different calendars, the cube names are distinguished by appending a number to their names.

For example, if InFusion US Chart of Accounts is used by two different ledgers, each of which has a different accounting calendar, one with a standard calendar year ending December 31st and the other with a fiscal year ending May 31st, two cubes are created. The cubes are named InFusion US Chart of Accounts and InFusion US Chart of Accounts 2.

Average Balances Cubes

Average balances cubes use different dimensions than the standard balances cubes therefore require their results be stored in separate cubes. If the average balances option is enabled for a ledger, a second average balances cube is automatically created based upon the same criteria of a unique combination of chart of accounts and accounting calendar. Average balances cubes are named with ADB (average daily balances) plus the name of the associated chart of accounts.

For example, for a chart of accounts, InFusion US Chart of Accounts, the average balances cube name is ADB InFusion US Chart of Accounts. Numbers are appended to the name when more than one calendar is used by the same chart of accounts. The numbering is determined and shared with the related standard balances cubes. The standard cube called InFusion US Chart of Accounts 3 has a corresponding average balance cube entitled ADB InFusion US Chart of Accounts 3.

Customer Specific GL Balances Cube Dimension Values: Points to Consider

In creating your cube, take in to consideration the dimensions that are you, the customer, define and those that are partially or completely predefined by Oracle Fusion Applications.

• Two dimensions, Chart of Accounts and Scenario, have customer specific dimension values and require user procedures to populate the cube

• Accounting Period, Currency, and Ledger dimensions are customer specific, but are automatically created in the cubes from the changes made in the applicable user interfaces.

• Other dimensions, such as Amount Type and Balance Amount, have only predefined members.

The following are points to consider in setting up and populating cubes for the Chart of Accounts and Scenario dimension members.

Create Account Hierarchies

• Account hierarchies for your chart of account dimensions are created in the Manage Account Hierarchies page or the Manage Trees and Trees Versions page after setting up your value sets, chart of accounts, and values.

• Create account hierarchies (trees) to identify managerial, legal, or geographical relationships between your value set values.

• Define date-effective tree versions to reflect organizational changes within each hierarchy over time.

• The tree version must be in an active or inactive status to be published. Draft versions cannot be published.

Publish Account Hierarchies

Next, after defining the tree versions, publish account hierarchies (tree versions) to the cube. Before publishing, set the following profile option: Display Only Segment Value Description in the Cube Alias. Consider the following points when setting the profile option.

• The member alias displayed in the Oracle Fusion General Ledger balances cubes.

  • Yes displays only the segment value description, for example: Cash.

  • No displays value plus the segment value description, for example: 1110 Cash.

• Default value is No.

• No is necessary when there are duplicate segment value descriptions across all dimensions. The descriptions are stored in the Alias in the cube. Aliases must be unique across all dimensions in the cube. For example, if the description West existed in the Cost Center value set and the Location value set, the entire cube creation process fails.

• If duplicate segment value descriptions exist, the cube can be created with the profile set to No. At anytime the value of the profile can be changed to Yes after the duplicates are removed. At that time, the account hierarchies (tree versions) must be published or republished to the cube.

• If you set the profile value to Yes, and rebuild a cube from a process run in Enterprise Scheduler or create a cube by submitting an accounting configuration and duplicate descriptions exist, the create cubes process errors. You have two options at that point:

  • Set profile value to No and run the Create Cubes process or if you have a new ledger with a new chart of accounts and accounting calendar combination, submit the accounting configuration.

  • Remove the duplicates across all dimensions, not just a single segment. Then run the Create Cubes or resubmit the accounting configuration.

From your implementation project, Navigate > Define Common Applications Configuration > Define Enterprise Structures > Define Financial Reporting Structures > Define Chart of Accounts > Publish Account Hierarchies > Go to Task. Use the Publish Account Hierarchies page to search and publish account hierarchies.

• Select the Publish check box. This is indicator of what to include in balances cube by selecting the check box or what you don't want to include in balances cube by removing the check from the check box.

• Select the rows. Functionality allows for select multiple rows to be selected.

• Select the Publish button to update the balances cubes. A process is generated.

• Navigator > Tools > Scheduled Processes to monitor the process.

Define Scenario Dimension Members

The customer specific Scenario dimension members are defined in the Manage Value Sets and Manage Values pages in the value set called Accounting Scenario. Any customer specific Scenario dimension is included in all balances cubes.

Best practice is to setup the customer specific Scenario members in this value set before you create your first ledger and run the Accounting Configuration process. The Accounting Configuration process generates your balances cubes.

If the cubes already existed, you can run the Create Scenario Dimension Members process to update the balances cubes for the new members.

Default Dimension Values in Reporting: Explained

For Standard Balances Cube dimensions, there are default values that if used in Smart View and on financial reports created in Financial Reporting Studio cause #MISSING to appear when balances are returned on a report output. If #MISSING appears, check that all dimensions are properly set. Particularly, check the Accounting Period, Ledger, Scenario, and Currency dimensions, which all must have a value selected other than the default top level value called Gen1.

The following table lists the available and default dimension values as well as providing guidance on selecting the correct dimensions.

Average Balances Cubes Dimensions

The following dimensions are included in the average balances cube in this order. Most comments from standard cube are applicable below unless stated.

• Accounting Period: Valid values are years, quarters, accounting period and day, which is equivalent to accounting date.

• Ledger

• Separate dimension for each Chart of accounts segment

• Scenario

• Amount Type valid values are: PATD, QATD, and YATD

• Currency

• Currency Type

GL Balances Cube Terminology: Explained

Levels and generations are cube terminology used to describe hierarchies in Oracle Fusion General Ledger balances cubes.

Levels

Levels are used to describe hierarchy levels. Levels are numbered from the lowest hierarchy level. For example, the detail chart of accounts segment values are Level 0. The immediate parent is Level 1; the next parent is Level 2.

Generations

Generations (Gen) describe hierarchy levels starting with the top of the hierarchy and moving down through the generations of the same.

An example for generations is as follows:

• Accounting Period = Accounting Period is Gen 0

  • Year is Gen 1

    • Qtr is Gen 2

      • Period is Gen 3

• Ledger = Ledger is Gen 1

  • All Ledgers is Gen 2

    • VF USA is Gen 3

  • Ledger Set (any ledger set) is Gen 2

• Company = Company is Gen 1

  • All Company Values, for example detail values, is Gen 2

    • 11010 is Gen 3

  • Tree 1 V1 is Gen 2

    • [Tree 1 V1].[10000] is Gen 3

      • [Tree 1 V1].[10000].[11000] is Gen 4

  • Tree 2 V1 is Gen 2

    • [Tree 2 V1].[10000] is Gen 3

      • [Tree 1 V1].[10000].[11000] is Gen 4

Using Dimension Values in Reporting: Examples

By using various combinations of selections for the Accounting Period, Balance Amount, and Amount Type dimensions, you can derive different amounts to meet financial reporting requirements. In some cases, more than one combination of query values can return the desired information.

There is some duplication in the calculations for the balances cube to ensure complete reporting requirements.

Many reporting needs can be completed using the Balance Amount dimension, Amount Type equal to Base, and specifying the Accounting Period equal to Year, Quarter, or Month.

However, the Amount Type dimension is still required for the following reasons:

• To get the complete QTD (Quarter to Date) reporting requirements for the first and second month in a quarter can only be achieved using QTD and Accounting Period = Month.

• PTD (Period to Date) and YTD (Year to Date) are also available to ensure more consistency reporting with the E-Business Suite Release 12.

Obtaining Quarter Information

This example shows how to obtain quarter information.

• QTD for the first and second months of a quarter can only be achieved using Amount Type dimension equal to QTD.

• The end of quarter information can be derived from the Accounting Period dimension equal to Quarter or with the Amount Type equal QTD.

Obtaining End of Year Information

This example shows how to obtain end of year information.

• Accounting Period equal to Year and Balance Amount equal to Ending Balance and Amount Type equal to Base or YTD.

• Accounting Period equal to a specific month and Balance Amount equal to Period Activity and Amount Type equal to YTD.

• When the Balance Amount equals the Balance Amount or the Balance Amount equals the Ending Balance, this results in an Ending Balance.

Standard Balances: Example

You have loaded your Oracle E-Business Suite Release 12 balances into your new Oracle Fusion Standard Balances Cube. Now you want to query the results to verify that the data was loaded correctly.

Scenario

The following two tables show the amounts loaded into the balances cube from your R12 balances and the calculated balances for ending balance, year to date (YTD), and quarter to date (QTD). The first table is the balance sheet based balances and the second table is for income statement based balances.

Oracle E-Business Suite R12 Balances

Balance Sheet Balances

Income Statement Balances

Analysis

The following two tables show the results available from Oracle Fusion General Ledger from your R12 loaded and aggregated balances in the balances cube. The first table is the balance sheet based balances and the second table is for income statement based balances.

Oracle Fusion Balances

Balance Sheet Balances

Income Statement Balances

Invalid Balance Cube Dimension Combinations: Explained

By using various combinations of selections for the Accounting Period, Balance Amount, and Amount Type dimensions, you can derive different amounts to meet financial reporting requirements combinations.

Balances cubes do not return data for these combinations:

Standard Balances: Example

You have loaded your Oracle E-Business Suite Release 12 balances into your new Oracle Fusion Standard Balances Cube. Now you want to query the results to verify that the data was loaded correctly.

Scenario

The following two tables show the amounts loaded into the balances cube from your R12 balances and the calculated balances for ending balance, year to date (YTD), and quarter to date (QTD). The first table is the balance sheet based balances and the second table is for income statement based balances.

Oracle E-Business Suite R12 Balances

Balance Sheet Balances

Income Statement Balances

Analysis

The following two tables show the results available from Oracle Fusion General Ledger from your R12 loaded and aggregated balances in the balances cube. The first table is the balance sheet based balances and the second table is for income statement based balances.

Oracle Fusion Balances

Balance Sheet Balances

Income Statement Balances

GL Balance Cube Related Processes Run in ESS

This list describes the processes used to create, rebuild, publish, and maintain Oracle Fusion General Ledger balances cubes, including automatically run child processes.

Create Cube Processes Run in Oracle Enterprise Scheduler Service (ESS)

Publish Cube Processes Run in ESS

Transfer Cube Process Run in ESS

Other Cube Processes Run in ESS

To run cube process, use the following steps the Scheduled Processes work area from the Navigator menu.

1. Click the Schedule New Process button

2. Search on the Process Name.

3. Enter the desired parameters.

4. Enter the desired process options and schedule.

5. Click Submit.

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:

• Purge all translated balances

• Change the CTA account

• Rerun translation

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:

• Enter and post journals to bring the ending balances for your income statement accounts to zero at the end of each accounting year

• Purge actual translated balances

• Update the retained earnings account

• Reverse the journal entries use to bring the ending account balances to zero and rerun translation

How can I secure GL balances cubes?

Secure GL balances cubes with chart of accounts dimension values, which use data access set and segment value security. Security restricts the display of data, not the selection of dimension values.

What's the difference between balance cube security and other General Ledger security?

Balance cube security applies only to the Account Monitor, Account Inspector, Financial Reporting, Smart View, and Allocations. Balance cube security is based on cumulative data access security plus cumulative security rules rather than just the current data access set. When you create or change existing data access security or security rules, you must republish any tree version effected by the change. Use the Publish Account Hierarchies page. Republishing is required for the security to become effective in the cube.

All other General Ledger security, such as detail balances and journal entries, are based on current selected data access set.

How can I inquire on translated balances?

To inquire on translated balances, for example balance level reporting currency balances, query on Currency Type equal to Total and Currency equal to Translated Currency.

When do the GL balances cubes need to be rebuilt?

In rare cases, you may need to rebuild the cubes. Carefully consider requirements and work with Oracle Support before rebuilding a cube. Use the on demand programs to rebuild dimension members for each dimension and to refresh balances to the cubes rather than rebuilding the cube. When you rebuild a cube, the process rebuilds both the standard and average balances cubes

To rebuild cubes, run the Create Cubes process. Enter values for the following parameters: Chart of Accounts, Accounting Calendar, and Starting Period for balances.

How can I refresh balances in the GL balances cubes?

Run the General Ledger Transfer Balances to Essbase process. Select your Ledger or Ledger Set and Starting Period to refresh balances in the GL balance cubes.

Manage Cross-Validation Rules

Cross Validation Rules: Overview

In Oracle Fusion General Ledger, use cross validation rules to determine valid account combinations that are created dynamically as your users 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.

A cross validation rule is defined in terms of a condition filter and a validation filter.

• The condition filter describes the event under which the rule will be evaluated. If the event specified in the condition filter is not applicable, then the rule will not be evaluated even if it is enabled.

• When the event specified in the condition filter is applicable, the validation filter condition must be satisfied before the account combination can be created. The rule is evaluated using the following logic: If condition is satisfied, then perform specified validations.

For example, if your organization has determined that a certain company value, Operations, cannot use a specific cost center, Marketing, define the following cross validation rule to validate your accounts accordingly: If company is equal to Operations, then validate that cost center is not equal to Marketing.

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.

Creating a Cross Validation Rule: Example

Create cross validation rules to prevent specific combinations of segment values in your account combinations, for example, preventing a particular cost center from being combined with a specific company value. Cross validation rules only affect the creation of new account combinations.

Scenario

Enter a new cross validation rule to prevent your InFusion America Inc. company value 01 from being combined with your marketing department value 300 in an account combination. Your company, InFusion America Inc. does not have a marketing department.

1. Navigate to the Manage Cross-Validation Rules task from within your implementation project, and then click the Go to Task icon.

2. Select your InFusion America chart of accounts.

3. Click the Create icon.

4. Specify a unique rule Name, IFAM01, and an optional Description, Do not combine Marketing Department, 300 with InFusion America, company 01.

5. Enter an optional effective From Date of today. Check Enabled.

6. Click the Change filter condition on the Condition Filter. Enter Company equal to 01. The cross validation rule evaluates if Company 01 was entered and if it was entered, then the validation process continues to evaluate the rule.

   Note

   If you do not specify any statement in the condition filter, then the rule is always evaluated.

7. Click on the Change filter condition on the Validation Filter. Enter Cost Center is not equal to 300. When the rule is evaluated, an account combination must contain a cost center other than 300 before it can be created.

8. Enter an Error Message: Cost Center 300 is not allowed with Company 01. The message displays in the relevant user interfaces and processes when an account combination cannot be created because it violates the rule.

9. Click Save and Close.

Manage Chart of Accounts Mapping

Mapping Chart of Accounts: Explained

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 process 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 processes for balance level secondary ledgers as well as cross ledger transfers, whereby balances from one ledger are copied to another ledger.

Segment Rules

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:

• Assign a constant value for a segment in the target chart of accounts

• Copy the value from the source segment to the corresponding target segment

  Note

  To use this action, the paired target and source segments must share identical values in their value sets.

• Use roll up rules to aggregate source accounts to a corresponding target segment or account

  • Create a single value mapping when a specific detail source segment value is given a detail target segment value.

  • Use hierarchical roll up rules when a specific parent source value and all of its child segment values, are mapped to a given detail target segment value. This provides the ability to process groups of source segment values in one single roll up rule.

  • Define parent source values in roll up rules when date effective versions of the hierarchy are used with the accounting date of the transactions produced by the processes that reference the chart of accounts mapping. This gives the additional benefit of self maintaining mappings since the hierarchies referenced change with time, and the applicable child values are processed automatically.

Account Rules

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:

• Single detail account values

• Detail account value ranges

• Parent values for primary balancing and the natural account segments

  Note

  When using parent values, its child values for the date effective version of the hierarchy, are processed when the mapping is called.

FAQs for Manage Chart of Accounts Mapping

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

Segment rules serve to map each segment of the target chart of accounts to an account value or segment in the source account of a secondary chart of accounts. A segment is only one part of the account code combination.

Account rules map a complete target account code combination against one or more source account code combinations.

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 Oracle 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.

• Journal approval based on the highest journal line amount per ledger per batch.

• Journal approval based on the highest journal amount per ledger per batch.

• Journal approval action is based on where you are in the period close process. For example, are you in the beginning, middle, or end of the month, or in pre-close, close, post close, or quarter close process?

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

• Less than 50,000 United States dollars (USD), then there is no approval required.

• Between 50,000 to 100,000 USD, then the journal batch requires one level of approval.

• Greater than 100,000 USD, then the journal batch requires two levels of approval.

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.

Other Considerations

Other functionality to consider before defining approval rules include:

• Approval is for the entire journal batch regardless of the attributes used in the approval rules.

• For the job and position level approvals, the approval list continues up hierarchy until it finds the approver with the correct approval authority.

• If the journal requires approval, submitting a journal for posting automatically routes the journal for approval before posting.

• A journal can be escalated to a new approver by the administrator.

• The Withdraw Approval button on the Journals page is used at anytime in the approval process to withdraw journals from the process. Clicking this button allows you to edit to the journal. After your changes are made, submit the entry for approval again. When a journal is withdrawn, the completion status is set to Incomplete.

• Approval notifications display a table of key journal attributes for each journal and a list of past, current, and future approvers.

• The Journals region of the dashboard displays the journals requiring your approval (if you have the privilege to approve journals) and journals with pending approval from others.

• The Journals page allows you to approve or reject journals if you are the current approver.

• Allocation journals are not routed through 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:

• Use the All option for category and accounting period to reduce maintenance and ensure that all journal imports are included in the posting process.

• Create a criteria set that includes all your subledger sources. Create multiple criteria sets by source only if you need to schedule different posting times to balance close activities or reduce processing time.

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:

   Priority	Ledger or Ledger Set	Source	Category	Accounting Period
   1	InFusion Corporation Ledger	Payables	All	All
   2	InFusion Corporation Ledger	Receivables	All	All
   3	InFusion Corporation Ledger	Fast Assets	All	All

   
   
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 process 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 Process: Examples

Create an AutoPost criteria set and schedule the AutoPost process 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 process. The following scenarios illustrate the kinds of errors that could occur and how you can resolve these errors.

Scenario

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

After you correct the errors, manually run the AutoPost process 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 process?

After you define an automatic posting criteria set, run the AutoPost process by clicking the Generate button on the Manage AutoPost Criteria Sets page or the Launch AutoPost link from the Journals task pane. The AutoPost process posts the journal batches that meet the criteria defined. Optionally, schedule the AutoPost process 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 process 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 process 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:

• Journal imports completed successfully.

• Journal batches are error free and ready to post.

• Desired accounting period is open.

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.

Settings That Affect Journal Reversals

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

• Balance type is Actual.

• Category is enabled to be automatically reversed.

• Reversal period is open or future enterable.

• Posted but not yet reversed.

• Not a reversal journal. Reversal journals cannot be reversed in Oracle Fusion General Ledger.

• Not a posted journal for a reporting currency that was replicated from its source journal. Reporting currency journals that were replicated from a source journal will be reversed when the source journal is reversed.

• Not a posted journal that originated from Oracle Fusion Subledger Accounting with a frozen source.

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 process 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:

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 process posts all the reversal journals that were generated by the AutoReverse process. The process does not pick up other journals. You manually post reversal journals that were generated outside of the AutoReverse process.

General Ledger automatically creates the AutoReverse Execution report when the AutoReverse process 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 process finishes. These reports help you diagnose any problems and verify that all journals were processed properly.

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 Revaluations

• Manage Historical Rates

Manage Allocations and Period Entries

Manage Allocations and Period Entries is a manual task in the implementation project. Use the Calculation 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 Calculation 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.

Close Monitor: Overview

The Close Monitor:

• Provides information on the period close status for a given accounting period across multiple products for related ledgers in a hierarchical ledger set based display.

• Uses the hierarchical ledger set to mirror the consolidation relationships and roll ups of entities across the enterprise.

• Summarizes period close status information for each ledger across multiple products and for each consolidation node across multiple ledgers.

• Provides the contact information of the manager for a given node on the ledger set hierarchy.

• Summarizes high level income statement results for each entity and aggregates this financial information at each consolidation node.

• Displays each of these elements of information, period status, manager information, and financial data, in separate tags that are navigated to for each node of the interactive hierarchical display.

• Provides views for a given ledger set, for a particular accounting period, and currency.

The period status information that is displayed is broken down by application module including General Ledger, Payables, Receivables, Asset, Projects, and Costing. Some modules track their entity at a more granular level, such as:

• Business units for Payables, Receivables, and Projects

• Asset Books for Assets

• Cost Organization Books for Costing

The Close Monitor indicates the number of the subunits by module for the ledgers. It also displays the fractional indicator, where applicable, of how many of the subunits are at the closed status.

Secondary ledgers, journal level, or transaction level reporting currencies cannot be associated with subledger business units for Payables, Receivables, and Projects. As such, if the ledger set displayed in the hierarchy includes members that are secondary ledgers, journal, or subledger level reporting currencies, the period status indicated in the Close Monitor for such subledger modules is based on its related primary ledger. Asset books and cost organization books can be associated with all types of ledgers. Therefore in the case of the Assets and Costing modules, their period status for secondary ledger or reporting currencies is shown accordingly for the books directly associated with them. Otherwise, their period statuses are derived from the books associated with their primary ledgers.

Setting Up the Close Monitor

The Close Monitor setup is comprised of a ledger set hierarchy definition whereby a predefined ledger set is addressed, with each ledger and ledger set assigned a manager who is responsible for its financial close, and a logo to represent the entity in the display.

The ledger set serves as the foundation of this setup.

• The members of the Close Monitor hierarchy must share a common chart of accounts and calendar.

• The financial data displayed in the Close Monitor is derived from the account group assigned to the ledger set, therefore, an assignment is required. The account group:

  • Must include two line items whose account designations respectively query the total revenues and total expenses of the organization.

  • Reflects a summarized income statement in the financial data tab of the Close Monitor.

• All ledgers in the ledger set share a common chart of accounts and the selection of accounts are equally applicable throughout the nodes in the ledger set hierarchy.

• When working with ledger sets that include members that are also ledger sets, you can choose any of the ledger sets in the selector to indicate the top starting ledger set to display in the Close Monitor.

• If different account groups are assigned to each ledger set member in such a ledger set, the account group used to display the financial data is the one assigned to the ledger set specified in the selector in the Close Monitor.

• To have meaningful comparison and summation along the ledger set hierarchy:

  • Assign ledgers to the ledger set that have a relevant currency representation that matches the intended group currency that the Close Monitor displays the financial data in.

  • Select the appropriate primary, secondary, or reporting currency ledger for assignment to the ledger set.

  • Alternately, use translated balances (balance level reporting currency) in the ledger set selection to satisfy the common group currency requirement if needed.

Viewing the Close Monitor

You choose a ledger set, an accounting period, and currency as the view criteria for the Close Monitor display. You can alter this selection at any time.

For example, change the currency displayed by:

• Working with a global ledger set.

• Shifting the focus to a lower level ledger set that is aggregating at the continental level, such as North America, that uses a different group currency.

• Including the ledger with the relevant currency representation that matches the selected group currency that the Close Monitor financial data is displayed in.

The Close Monitor supports different zoom levels to enable you to:

• Accommodate viewing a larger ledger set hierarchy in its entirety, given the limited display area of the user interface.

• Show detail information for each node which can vary, decreasing and simplifying in content as you zoom out further to be able to accommodate showing more nodes in a single view.

• Hover over the more summarized node and view a punch out of that particular node that shows the complete set of information available at the 100% zoom level.

• Leave the zoom level at 100% and move around the display to other ledger sets or ledgers currently not in view.

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:

• Close Status region in the General Accounting Dashboard. The Close Status region provides real time visibility into the period close process from your subledgers to your General Ledger across the entire enterprise.

• Manage Accounting Periods task in the Period Close work area.

• Process Monitoring work area, which provides a framework for launching, monitoring and maintaining processes across Oracle Fusion Financials.

Manage Allocations and Periodic Entries

Allocation and Periodic Entries: Overview

In Oracle Fusion General Ledger, use the Calculation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically. Allocations are defined and generated from preaggregated balances in the GL Balances cubes, which provide the following benefits:

• Immediate real-time access to financial balances for allocations and periodic entries.

• Accelerated performance for complex allocations.

You can 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 Calculation Manager provides flexibility, automation, intelligence, and control in distributing costs and revenues across the enterprise. In addition, the Calculation Manager:

• Includes run time variables, rules, formulas, and rule sets stored in Oracle Essbase.

• Distributes revenues or costs with recursive allocation rules.

• Creates complex formula rules using formula components.

• Contains an Allocation Wizard to define allocation and formula rules.

• Uses real-time checking of rule definitions to validate correctness of rules.

• Minimizes setup and maintenance time with reusable components.

• Simplifies allocation generation mechanism by integrating with enterprise schedule.

• Groups rules together in rule sets and cascading allocations for processing efficiencies.

• Creates primary, statistical, or foreign currency allocation and formula rules.

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

• Define Allocation Rules link to define or modify allocation definitions

• Generate Allocations link to run the allocation process

Calculation Manager: Overview

The Calculation Manager creates, validates, deploys, and administers sophisticated allocation rules. In the Calculation Manager:

• Base formulas on multiple criteria, such as account balances or statistical amounts, to allocate shared revenue or costs across multiple organizational units.

• Use complex computations based on different variables to automatically calculate allocated amounts.

• Group journal formulas together and executed sequentially to update account balances step-by-step.

There are three types of objects that can be created in Calculation Manager:

• Components: Contain formulas, points of view, or allocation objects.

• Rules: Contain components such as points of view, formulas, and templates, which are used to create allocation calculations.

• Rule Sets: Contain sets of rules that can be calculated sequentially

Allocation Security: Explained

The following privileges and permissions are associated with the Calculation Manager:

• Generate General Ledger Allocation Formula - Generate Allocation and Periodic Entries: Permits generation of allocation and periodic entries.

• Define General Ledger Allocation Formula - Manage Allocation Rules or Rulesets via Calculation Manager: Grants the ability to update allocation rules or rulesets owned by the user with view access to all allocation rules or rulesets regardless of their ownership.

• Define Self Managed General Ledger Allocation Formula - Manage Allocation Rules or RuleSets via Calculation Manager: Grants the ability to update allocation rules or rulesets, but limited to the ones owned by the user.

• Administer General Ledger Allocation Formula - Administer Allocation Rules or RuleSets via Calculation Manager: Grants the ability to update all aspect of allocation rules or rulesets including the ownership attribute, regardless of the original definition's ownership.

Calculation Manager Toolbar: Explained

In addition to the Oracle Hyperion Enterprise Performance Management Workspace buttons, the Calculation Manager toolbar displays buttons that are specific to the Calculation Manager. Not all buttons display in all the views and designers within the Calculation Manager.

The Calculation Manager toolbar consists of the following buttons:

• Home: Displays the default startup option for the content area.

• System View: Displays the main view within the Calculation Manager. (This is the default view).

• List View: Displays a list of objects that you can filter by application type, application, object or database type, deployment status, and validation status.

• Custom View: Displays a view you can customize with folders you create and objects you drag and drop into them.

• Filter Options: Opens the Filter dialog that you can use to filter objects in the List View.

• Refresh: Refreshes the view with your latest changes.

The Calculation Manager toolbar adds the following buttons when you open a rule:

• Save: Saves the object with which you are working.

• Validate: Validates the object with which you are working.

• Validate and Deploy: Validates and deploys the object with which you are working.

Calculation Manager Menus: Explained

Calculation Manager menus and menu options display in addition to Oracle Hyperion Enterprise Performance Management Workspace menus and menu options. The menus and options vary depending on the view you are using and the object with which you are working. The default view of the Calculation Manager displays the following menus when you launch Calculation Manager, System View.

File Menu

Enables you to create new objects, open and close objects, import and export objects, print rules, and log off.

• New, Rule: Creates a new rule

• New, Ruleset: Creates a new rule set

Edit Menu

Enables you to edit objects you select. It is available from most of the views and from within the Rule and Component definition pages.

• Edit, Delete: Deletes an object selected in the System, List, or Custom View

• Edit, Copy: Copies selected text

• Edit, Paste: Pastes text copied to the clipboard to the right of the cursor

• Edit, Copy Group: Copies a component group

View Menu

Enables you to open different views.

• View, View Pane: Displays or hides a list of existing and/or new objects that you can add to rules, rule sets, components, and templates by dragging and dropping them.

  Note

  This is the only View menu option available from within the Rule Designer and Ruleset Designer.

• View, List View: Displays a list of the objects you select on the Filter dialog. The filter dialog enables you to create a filtered list, by application type of applications, databases, and objects.

• View, System View: Displays a list of the Essbase applications, databases, and objects to which you have access. This is the default view.

• View, Custom View: Displays a view that you can customize with folders you create and drag and drop objects into them. This view enables you to organize objects in a way that is meaningful to you.

• View, Deployment View: Displays a list, by application type and application, of the rules and rule sets that are deployed and not deployed with their deployment and validation status.

Tools Menu

Enable you to install other products, search for objects, create a filtered list of objects for the List View, edit the caption of an object, and access the Variable Navigator and Variable Designer.

• Tools, Filter: Opens the Filter dialog from which you can filter by application type, application, object type (rule, rule set, formula or script component, or template), calculation type, plan type, database, deployment status, and validation status. You can also select All to display all application types, applications, objects, and databases, regardless of their deployment and validation status.

• Tools, Variables: Opens the Variable Navigator in which you can navigate to a location for which you want to create, edit, copy, or delete a variable. From the location you select in the Variable Navigator, you can display the Variable Designer in which you can create, edit, copy, and delete variables for components.

  Note

  The two menu option listed above are not available within the Deployment View.

Actions Menu

Enables you to validate and deploy objects you select in the views and from within the Rule and Ruleset Designers. Not all of the Actions menu options are available from within the views and designers.

• Actions, Validate: Validates the rule, rule set, and formula component you selected

  Note

  This is the only Actions menu option available from within the Deployment View.

• Actions, Deploy: Deploys the rules or rulesets you selected.

• Actions, Quick Deploy: Deploys the rule in fewer steps than regular deployment by using a shortcut to one or more applications.

  Note

  This feature is available only from within the Rule Designer for Essbase business rules.

Using Flow Charts: Explained

View rules and templates, and the components that comprise them, in a flow chart within the Rule Designer. When you open a rule, move amongst the components that comprise it, for example, formulas, ranges, and loops, by selecting them in the flow chart. Increase or decrease the size of the flow chart to view or hide details of the components.

When you select a component in the flow chart, its properties, usages, and other information are displayed in tabs below the flow chart. As you move among the components, the tabs below the flow chart change. For example, if you open an allocation rule that contains a formula component, and select the formula component in the flow chart the following properties are displayed:

• Properties of the formula, such as name, description, application, and application type to which it belongs

• Usages of the formula, such as which rules and templates it is used in

• Text of the formula, such as the variables, members, and functions, that are displayed in the tabs below the flow chart

Views: Explained

Views enable you to see Calculation Manager objects in different contexts. For example, the Deployment View displays objects according to whether they are deployed or not deployed. The Custom View displays objects according to filters and criteria that you select.

The Calculation Manager contains the following views:

• List View

• System View

• Custom View

• Deployment View

• View Pane

List View

The List View contains a filtered list of Essbase applications, or databases, and objects, rule sets, rules, or formula components, according to filter criteria you specify.

System View

The System View is the default view that is displayed when you launch the Calculation Manager. It contains a list of all of the applications and objects to which you have access. Your access privileges are determined by the role you are assigned in Shared Services. For each object, the owner, the user who made the last change, and the date the changes were last made are listed.

Custom View

The Custom View enables you to create folders and drag and drop objects into them to create a view that contains only the objects you want. This view enables you to organize objects in a way that is meaningful to you.

Deployment View

The Deployment View contains a list, by application type and application, of the rules and rule sets that are deployable with their deployment and validation status. From this view, select rules and rules sets in an application to make them deployable. Then deploy one or more rules or rule sets (known as a partial deployment), or you can deploy all rules and rule sets in an application (known as a full deployment).

View Pane

The View Pane enables you to create or open an object. Display the View Pane in the left frame of the window. Depending on whether you are working in a rule or a rule set, the Rule or Ruleset Palette, is displayed in the View Pane. In the Palette, drag new and existing objects and drop them into the rule, rule set, or flow chart.

When working with views, display or hide the View Pane using the View menu. In the Custom View, drag and drop new and existing objects from the View Pane into the custom folders you create. In the System and List views, the View Pane is hidden by default. In the Deployment View, the View Pane is not available.

The following table lists the tasks that can be performed from the various views in the Calculation Manager.

Filtering Objects in the List View: Examples

You can use filters in the List View to filter objects according to:

• Application Type that is populated by default with the application type, such as Essbase, your application or database, in which you are creating the new rule.

• Object type, such as allocation rules, allocation rule sets, and formula components

• Deployment or validation status

Scenario

To create a filtered list of objects in the List View:

1. From the System View, select View, List View.

   The Filter dialog is displayed the first time you open the List View. If you select filtering options, then close the List View to work in the System or Custom View. When you reopen the List View, the filter dialog is not displayed. If you want to change the filtering options when you reopen the List View, select Tools, Filter to open the Filter dialog.

2. In the Filter dialog, on Filter Options, under Application Type, select Essbase.

3. Do one of these tasks:

   • For Essbase: In the Application and Object Type fields, select the applications and object types you want to display in the List View. The default is All.

   • Under Deployed Status and Validated Status, clear any check boxes of selections you do not want to display. All check boxes are selected by default.

     Tip

     Click Reset to reset the dialog with default values.

   • On Advanced Options, for Object Label, select one of these options to display only objects whose names match the criteria:

     • Starts With, to display only objects whose names start with characters you specify.

     • Ends With, to display only objects whose names end with characters you specify.

     • Contains, to display only objects whose names contain characters you specify.

     • Matches, to display only objects whose names match characters you specify.

   • Enter the characters that are common to the names of the objects you want to display.

   • Select Ignore case, if you want to display objects whose names contain characters in either upper or lower case, even if the case does not match the case of the text you entered in step 6.

   • In Created By, enter the name of the user who created objects you want to display.

   • In Modified By, enter the name of the user who modified objects you want to display.

   • For Created Date, select After, Before, or Between to display only objects that were created after, before, or between dates you specify. Between is the default. Click the drop down arrows to display calendars from which you can select dates.

   • For Modified Date, select After, Before, or Between to display only objects that were modified after, before, or between dates you specify. (Between is the default.) Click the dropdown arrows to display calendars from which you can select dates.

   • For Any Text, select an option to display only objects containing text that starts with, ends with, contains, or matches text that you enter. To display objects that include this text regardless of its case, select Ignore case.

4. Click OK.

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.

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

• The period is set to Open or Future Enterable. You post in open periods, but generation can take place in either an open or future enterable period.

• The rules or rules sets have been defined, validated, and deployed successfully from the Calculation Manager.

• The journal balances, that are inputs for the allocation or periodic rules, are entered and posted in the proper period.

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:

   • Print Output

   • E-mail me the output

   • Notify me when this process ends

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.

FAQs for Manage Allocations and Periodic Entries

How can I access the Calculation Manager?

Login into the Oracle Fusion General Ledger application and navigate to the Journals work area. From the Journals work area select the Create Allocation Rules link and automatically log into the Calculation Manager in Workspace to create new allocation rules or rule sets.

How can I create a folder in the Custom View?

In the Custom View, create folders that contain only the allocation rules, allocation rule sets, and formulas you want to view and work with. To add objects to your folders, drag them from the Existing Objects pane and drop them into the folders.

To create a folder in the Custom View:

1. In the System View, select View, Custom View.

2. In the Custom View, right-click the Essbase application type, and select New Folder.

3. In New Folder, enter a name for the folder.

4. Click OK.

How can I rename a folder in the Custom View?

Rename the folders you create in the Custom View.

To rename a folder in the Custom View:

1. In the System View, select View, Custom View.

2. In the Custom View, expand the Essbase application type.

3. Right-click the folder you want to rename, and select Rename.

4. In the Rename Folder, enter a new name for the folder.

5. Click OK.

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:

• Full multicurrency functionality to eliminate currency barriers across a global business

• Predefined revaluation rules to ensure consistency in generation of revaluation entries each period

• Usage of prevailing currency normalization accounting standards including:

  • US Financial Accounting Standards Board (FASB) Financial Accounting Statement No. 52 (FAS 52), Foreign Currency Translation

  • International Financial Reporting Standards (IFRS) International Accounting Standard No. 21 (IAS 21), The Effects of Changes in Foreign Exchange Rates

• Support for multiple balancing segments to provide clarity in tracking the profitability and performance for more distinct segments of the your enterprise in any currency

Definition

When defining your revaluations, perform the following:

• Include accounts for tracking gains and losses, currency conversion rates, and the number of transaction currencies to revalue.

• Define separate revaluation definitions for each class of accounts, using a different rate type for each class.

• Choose various conversion types and methodologies for different account ranges, such as current rates and year-to-date (YTD) method for balance sheet accounts, and average rates and period-to-date (PTD) method for income statement accounts.

Hierarchies and flexible account selection criteria, such as usage of parent values from your account hierarchy, streamlines maintenance of revaluation definitions. The parent values can be selected for the primary balancing and the natural account segments using the Is a last descendant of operator. 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.

Generation

Generating revaluations include:

• Using defined revaluation criteria and automatically generating entries to shorten your close process.

• Selecting automatic posting as part of the generate revaluation criteria to help you to achieve processing efficiency.

• Scheduling revaluations to run during off peak hours to save your system resources.

• Utilizing date effective account hierarchies to generate revaluations to keep results in line with your current organization structures.

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

Revaluation Execution Report

The Revalue Balances process 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 process 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 process 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 process 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.

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.

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

• Revaluation posts the resulting gain or loss amounts against the unrealized gain or loss accounts, substituting the balancing segment values appropriately for all balancing segments.

• Gain or loss accounts and revaluation account ranges are not validated against your data access set security when the revaluation definition is created because the ledger context is not known at the time of definition.

• Data access set security is enforced when the Revalue Balances process is executed. Limited write access to the gain or loss accounts due to inadequate access results in an error.

• Segment value security rules are enforced when you enter the account ranges and the unrealized gain and loss accounts. Only segment values you have access to are available in the list of values.

• Account ranges you have read and write access to are revalued. Account combinations that you do not have access to are ignored.

• Revaluation expands the parent primary balancing segment to the child values. Data access set security applies to the child values only, not the parent value.

• Posting supports multiple balancing segments for calculating the entry to the Cumulative Translation Adjustment accounts when replicating revaluation journals to reporting currencies.

Defining Revaluations

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

   Field	Value
   Name	InFusion America Revaluation
   Description	Revaluation for all foreign currency balances.
   Chart of Accounts	InFusion America Chart of Accounts
   Currency	Leave blank Note If left blank, all currencies are revalued and after saving, the field automatically displays: All currencies.
   Conversion Rate Type	Daily
   Days to Roll Forward	5
   Unrealized Gain Account	011-00-96600000-0000-000-000
   Unrealized Loss Account	011-00-96700000-0000-000-000
   Income Statement Account Basis	PTD
   Post Automatically	Yes

   
   
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.

   Field	Value
   Equals	011

   
   
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.

   Field	Value
   Between	30
   	40

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

   Field	Value
   Between	10000000
   	29999999

   
   
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.

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