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Oracle® Financials Cloud Implementing Financials
Release 13.2
Part Number E49599-02
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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

Manage Consolidations

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.

Note

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

There are two offerings predefined for financial implementations.

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

Ledgers and Subledgers: Explained

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

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

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

Single Ledger

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

Multiple Ledgers

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

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:

Note

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

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

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

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

Note

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

Reporting Currencies

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

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

Note

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

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

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

Note

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

Financial Ledgers: How They Fit Together

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

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

Enterprise Structure Components Diagram.

Primary Ledgers

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

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

Secondary Ledgers

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

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

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

Reporting Currencies

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

Legal Entities

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

Balancing Segments

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

Business Units

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

The business unit model:

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

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

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.

Note

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

Reviewing General Region Options

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

Setting Accounting Calendar Region Options

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

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

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

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

Selecting the Subledger Accounting Region Options

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

Completing the Period Close Region Options

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

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

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

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

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

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

Specifying the Journal Processing Region Options

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

    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.

Note

The balancing segment values that are assigned to the ledger represent nonlegal entity transactions, such as adjustments. If you use legal entities, you must assign balancing segment values to all legal entities before assigning values to the ledger. The only available balancing segment values that can be assigned to ledgers are those not assigned to legal entities.

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:

The figure shows the two access levels
Read Only and Read and Write and the actions enabled when an access
level is assigned to a balancing segment.

In summary, you can:

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.

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:

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

The figure shows the Data Access Set
with the two criteria for setting up security: Access Set Type, which
is Full Ledger or Primary Balancing Segment Value, and Access Level,
which consists of read only or read and write access.

Note

Security by management segment consistent with the primary balancing segment as used above is not available in V1.

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.

Defining Segment Value Security Rules

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

General Points About Segment Value Security:

Note

A distinction between setup and transactions user interfaces is that segment value security prevents you from seeing certain account values in transaction user interfaces but you can still see the account combinations with the secured values in setup user interfaces.

If you try to update the field in the setup user interface, you cannot use those secured values. For transaction, balance, and query activity type user interfaces, the segment value security prevents both the viewing and using of the secured values. Segment value security control is both for Read and Write access control.

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

The figure shows a security condition
and data role combined to create a security policy.

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:


Operator

Usage

Equal to

Secures a detail specific value.

You cannot use this operator to secure a parent value.

Not equal to

Secures all detail values except the one that you specify.

You cannot use this operator to secure a parent value.

Between

Secures a detail range of values.

Is descendent of

Secures the parent value itself and all of its descendents including mid level parents and detail values.

Is last descendent of

Secures the last descendents, for example the detail values of a parent value.

Tip:

For Is descendent of and Is last descendent of:

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.

The graphic shows the four components in a ledger, chart
of accounts, calendar, currency, and accounting method that are combined.
Then Accounting Configuration is run to create the balances cube.

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:

Note

Account balances were maintained in relational tables in Oracle E-Business Suite General Ledger, The Oracle Fusion General Ledger updates balances in real time to the relational tables and the General Ledger Balances cubes. Most inquiry and reporting are now performed from the General Ledger Balances cubes and not from the relational tables.

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.


Dimension

Description

Example

Accounting Period

Based upon the calendar of the ledger or ledger set. Report on years, quarters, or periods.

  • 2012

  • Qtr-1

  • Jan-12

Ledger or Ledger Set

Used to select a ledger for the reporting. Multiple ledgers may be in the same cube if they share a common chart of accounts.

  • InFusion North America Ledger Set

  • InFusion US Primary Ledger

Chart of Accounts Segments

Uses a separate dimension for each of the segments from the charts of accounts. Organized by hierarchy. A default hierarchy is provided that includes all detail segment values. Hierarchies published in the Publish Account Hierarchies user interface are included.

  • Company: InFusion America: 101

  • Cost Center: Sales: 400

  • Account: Cash: 1110

Scenario

Indicates if the balances represented are actual or budget amounts. Allocation related dimensions are seeded members and required for allocation solutions. Allocation dimension are not used directly by end users.

Budget scenario dimension members are user defined in the Oracle Fusion Applications value set called Accounting Scenario and appear in the cube after running the Create Scenario Dimension Members process.

  • Budget 2012

  • Actuals

  • Forecast 2013

Balance Amount

Indicates if the value is the beginning balance, period activity, or ending balance. Debit, Credit, and Net amounts are available for reporting.

  • Beginning Balance (Dr, Cr, or Net)

  • Period Activity (Dr, Cr, or Net)

  • Ending Balance (Dr, Cr, or Net)

Amount Type

Indicates whether the amounts represent Base, Period to Date, Quarter to Date, or Year to Date.

  • Base

  • PTD: Period to Date

  • QTD: Quarter to Date

  • YTD: Year to Date

Currency

Used to select the desired currency for the balances.

  • All ISO Currencies

  • USD: US Dollar

  • JPY: Japanese Yen

Currency Type

Used to select the currency type of the balances.

  • Total

  • Entered

  • Converted From (for each ISO currency)

Note

Dimensions are seeded and new ones cannot be added.

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.

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

Create Account Hierarchies

Note

From your implementation project, Navigate > Define Common Applications Configuration > Define Enterprise Structures > Define Financial Reporting Structures > Define Chart of Accounts > Manage Account Hierarchies > Go to Task.

Publish Account Hierarchies

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

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.

Note

Use Smart View to verify that the account hierarchies were correctly published.

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.

Note

If you are on a release before the Create Scenario Dimension Members process is available, you have to rebuild the cubes with the Create Cubes process to add the Scenario dimension in the cube. Follow the guidelines for creating cubes before running process.

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.


Dimension

Possible Values

Default Value

Additional Information

Accounting Period

Years, quarters, and period

Accounting Period = Accounting Period (Gen1)

You must always select an accounting period for each financial report including User Point of View, Smart View query, or allocation including Point of View. If you do not specify a valid Accounting Period, the financial reports, Smart View queries, and Account Inspector displays #MISSING.

Ledger

Includes ledgers and ledger sets

Ledger = Ledger (Gen1)

If you do not specify a specific Ledger or Ledger Set, the financial reports, Smart View queries, and Account Inspector queries display #MISSING

Chart of accounts dimensions

 

Highest level (Gen1)

There is a separate dimension for each segment of the chart of accounts used by the cube. Each segment has a default account hierarchy that includes all the detail values for the segment but not parent values. Only account hierarchies (tree versions) published from the Publish Account Hierarchies user interface are available in the cube.

Scenario

 

Scenario = Scenario represents the sum of all values: Actual + Allocated + Total for Allocations + Budget + Forecast. Select a value for this dimension.

Note

Must always select a Scenario dimension.

Seeded values are Actual, Allocated, and Total for Allocated. Additional scenario values for Budget, Forecast Q1, and Forecast Q2 may be available if they have been added to the Accounting Scenario value set. These additional values will be published to every cube.

Balance Amount

  • Beginning Balance DR, CR, or Net

  • Period Activity DR, CR, or Net

  • Ending Balance DR, CR, or Net

  • Balance Amount (same as Ending Balance)

Balance Amount = Balance Amount (Gen1) which is the equivalent of Ending Balance.

 

Amount Type

Base, PTD, QTD, YTD

Amount Type = Amount Type (Gen1) which is the equivalent of Base.

Base is necessary because this is the value used to store from posting all balances at the lowest level. PTD, QTD, and YTD are calculated values.

Currency

All ISO currencies (250+).

Highest level (Gen1)

Similar to Accounting Period and Ledger, there may not be an appropriate default for Currency since different Ledgers have different ledger currencies. If you don't specify a valid currency in a financial report, Smart View query, or allocation, you will get a result = #MISSING.

Currency Type

Total, Entered, and Converted from for each ISO currency = each ISO currency.

Currency Type = Currency Type (Gen1), which is the equivalent of Total.

 

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.

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:

Note

Similar levels and generations apply to the other dimension, including chart of accounts dimensions and those that are not chart of accounts dimensions.

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.

The image shows a combination of the
three dimension values.

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:

Obtaining Quarter Information

This example shows how to obtain quarter information.

Obtaining End of Year Information

This example shows how to obtain end of year information.

Note

Ending Balance is always the ending balance regardless of Amount Type member setting or Accounting Period member setting (period, quarter or year).

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

Oracle E-Business Suite R12 Balances

Balance Sheet Balances


Month

Beginning Balance Loaded to Cube

Activity Loaded to Cube

Ending Balance

Calculate YTD

QTD

Jan

200

20

220

20

20

Feb

220

30

250

50

50

Mar

250

25

275

75

75

Apr

275

50

325

125

50

May

325

40

365

165

90

Jun

365

45

410

210

135

Jul

410

100

510

310

100

Aug

510

200

710

510

300

Sep

710

140

850

650

440

Oct

850

150

1000

800

150

Nov

1000

100

1100

900

250

Dec

1100

400

1500

1300

650

Income Statement Balances


Month

Beginning Balance Loaded to Cube

Activity Loaded to Cube

Ending Balance

Calculate YTD

QTD

Jan

0

70

70

70

70

Feb

70

20

90

90

90

Mar

90

30

120

120

120

Apr

120

100

220

220

100

May

220

200

420

420

300

Jun

420

250

670

670

550

Jul

670

50

720

720

50

Aug

720

300

1020

1020

350

Sep

1020

130

1150

1150

480

Oct

1150

110

1260

1260

110

Nov

1260

200

1460

1460

310

Dec

1460

500

1960

1960

810

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

Oracle Fusion Balances

Balance Sheet Balances


Accounting Period

Balance Amount

Amount Type

Value

Comments

R12 Amount Type Equivalent

May

Beginning Balance

YTD

200

Jan Beginning Balance

 

May

Period Activity

YTD

165

Jan to May Activity

YTD-Actual as of May

May

Ending Balance

YTD

365

May Ending Balance

YTD-Actual as of May

May

Beginning Balance

QTD

275

Apr Beginning Balance

 

May

Period Activity

QTD

90

Apr-May Activity

QTD-Actual as of May

May

Ending Balance

QTD

365

May Ending Balance

QTD-Actual as of May

May

Beginning Balance

PTD

325

May Beginning Balance

 

May

Period Activity

PTD

40

May Activity

PTD-Actual as of May

May

Ending Balance

PTD

365

May Ending Balance

PTD-Actual as of May

May

Beginning Balance

Base

325

May Beginning Balance

 

May

Period Activity

Base

40

May Activity

PTD-Actual as of May

May

Ending Balance

Base

365

May Ending Balance

YTD-Actual as of May

Q2

Beginning Balance

QTD

275

April Beginning Balance

 

Q2

Period Activity

QTD

135

Always Apr-Jun

QTD-Actual as of Jun

Q2

Ending Balance

QTD

410

Ending Balance always as of Jun

QTD-Actual as of Jun

Q2

Ending Balance

YTD

410

Ending Balance always as of Jun

YTD-Actual as of Jun

Q2

Beginning Balance

Base

275

Apr Beginning Balance

 

Q2

Period Activity

Base

135

Always Apr-Jun

QTD-Actual as of Jun

Q2

Ending Balance

Base

410

Ending Balance always as of Jun

YTD-Actual as of Jun

Year

Beginning Balance

YTD

200

Jan Beginning Balance

 

Year

Period Activity

YTD

1300

Jan-Dec Activity

YTD-Actual as of Dec

Year

Ending Balance

YTD

1500

Ending Balance always as of Dec

YTD-Actual as of Dec

Year

Beginning Balance

Base

200

Jan Beginning Balance

 

Year

Period Activity

Base

1300

Jan-Dec Activity

YTD-Actual as of Dec

Year

Ending Balance

Base

1500

Ending Balance always as of Dec

YTD-Actual as of Dec

Income Statement Balances


Accounting Period

Balance Amount

Amount Type

Value

Comments

R12 Amount Type Equivalent

May

Beginning Balance

YTD

0

Jan Beginning Balance

 

May

Period Activity

YTD

420

Jan to May Activity

YTD-Actual as of May

May

Ending Balance

YTD

420

May Ending Balance

YTD-Actual as of May

May

Beginning Balance

QTD

120

Apr Beginning Balance

 

May

Period Activity

QTD

300

Apr-May Activity

QTD-Actual as of May

May

Ending Balance

QTD

420

May Ending Balance

QTD-Actual as of May

May

Beginning Balance

PTD

220

May Beginning Balance

 

May

Period Activity

PTD

200

May Activity

PTD-Actual as of May

May

Ending Balance

PTD

420

May Ending Balance

PTD-Actual as of May

May

Beginning Balance

Base

220

May Beginning Balance

 

May

Period Activity

Base

200

May Activity

PTD-Actual as of May

May

Ending Balance

Base

420

May Ending Balance

YTD-Actual as of May

Q2

Beginning Balance

QTD

120

Apr Beginning Balance

 

Q2

Period Activity

QTD

550

Period Activity Always Apr-Jun

QTD-Actual as of Jun

Q2

Ending Balance

QTD

670

Ending Balance always as of Jun

QTD-Actual as of Jun

Q2

Ending Balance

YTD

670

Ending Balance always as of Jun

YTD-Actual as of Jun

Q2

Beginning Balance

Base

120

Apr Beginning Balance

 

Q2

Period Activity

Base

550

Period Activity always Apr-Jun

QTD-Actual as of Jun

Q2

Ending Balance

Base

670

Ending Balance always as of Jun

YTD-Actual as of Jun

Year

Beginning Balance

YTD

0

Jan Beginning Balance (always zero for Income Statement)

 

Year

Period Activity

YTD

1960

Jan-Dec Activity

YTD-Actual as of Dec

Year

Ending Balance

YTD

1960

Ending Balance always as of Dec

YTD-Actual as of Dec

Year

Beginning Balance

Base

0

Jan Beginning Balance (always zero for Income Statement)

 

Year

Period Activity

Base

1960

Jan-Dec Activity

YTD-Actual as of Dec

Year

Ending Balance

Base

1960

Ending Balance always as of Dec

YTD-Actual as of Dec

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:


Accounting Period

Balance Amount

Amount Type

Year

Beginning Balance

QTD

Year

Period Activity

QTD

Year

Ending Balance

QTD

Year

Beginning Balance

PTD

Year

Period Activity

PTD

Year

Ending Balance

PTD

Q2

Beginning Balance

YTD

Q2

Period Activity

YTD

Q2

Beginning Balance

PTD

Q2

Period Activity

PTD

Q2

Ending Balance

PTD

GL Balance Cube Related Processes Run from User Interfaces

This list describes the processes run from the application pages (user interfaces) used to create, rebuild, publish, and maintain Oracle Fusion General Ledger balances cubes, including automatically run child processes.

Create Cube from Accounting Configuration Page

Navigate > Setup and Maintenance work area > Define Common Applications Configuration > Define Ledgers > Define Accounting Configuration > Review and Submit Accounting Configuration


Parent Process

Child Process

Description

Cube Type

Create Accounting Configuration

 

Updates the underlying table and permanently saves the settings after the accounting configuration has been completed. Some settings cannot be changed or deleted.

Standard

 

Create Accounting Configuration: Create Cubes

Creates the accounting configuration and a balances cube when setup is completed.

Standard and ADB, if enable, in same request

Publish Chart of Accounts from Publish Account Hierarchies Page

Navigate > Setup and Maintenance work area > Define Common Applications Configuration > Define Enterprise Structures > Define Financial Reporting Structures > Define Chart of Counts > Publish Account Hierarchies


Parent Process

Child Process

Description

Cube Type

Publish Chart of Account Hierarchies

 

Creates the structural hierarchy for the chart of accounts.

Standard and ADB, if enable, in same request

 

Publish Chart of Account Hierarchy Versions

One runs for each combination of value set and chart of accounts.

Standard and ADB, if enable, in same request

Create Ledger Set Processes from Ledger Set Page

Navigate > Setup and Maintenance work area > Define Common Applications Configuration > Define General Ledger Options > Manage Ledger Sets


Parent Process

Child Process

Description

Cube Type

Create Ledger Set

 

Updates the underlying tables and creates the ledger set.

Standard and ADB, if enable, in same request

 

Create Accounting Configuration: Process Accounting Configuration

Runs processes necessary to process accounting configuration and ledger set data.

Not applicable to the Cube

 

Create Ledger Set Dimension Members

Creates and updates ledger set members in a balances cube.

Standard and ADB, if enable, in same request

Other Requests Submitted from Pages or Processes


Parent Process

Child Process

Description

Cube Type

Notes

Create Ledger Dimension Member for Reporting Currency

 

Creates ledger dimension member for reporting currency.

Standard and ADB, if enable, in same request

Navigate > Setup and Maintenance work area > Define Common Applications Configuration > Define Ledgers > Define Accounting Configuration > Manage Reporting Currencies > Create Reporting Currency page, run for new reporting currencies added after accounting configuration has completed.

Update Ledger Dimension Member for Reporting Currency

 

Updates ledger dimension member for reporting currency.

Standard and ADB, if enable, in same request

Navigate > Setup and Maintenance work area > Define Common Applications Configuration > Define Ledgers > Define Accounting Configuration > Manage Reporting Currencies->Update Reporting Currency page, this job runs for new reporting currencies added after accounting configuration has completed.

 

Publish Chart of Accounts Dimension Members: Detailed Values Only

Publishes chart of accounts dimension member changes to balances cubes and updates dimension members for any new or changed segment values.

Standard and ADB, if enable, in same request

Run only from the journal posting program when detailed values do not exist in the GL balances cube during posting.

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)


Parent Process

Child Process

Description

Cube Type

Create Cube

 

Creates or rebuilds the balances cube based on the combination of chart of accounts and accounting calendar.

Automatically runs the child processes below for standard and average daily balance (ADB) cubes, if enabled.

Standard

 

Create Cube: Initialize Cube

Starts the process to import data into the balances cube.

Standard

 

Create Cube: Create Calendar Dimension Members and Hierarchies

Creates the calendar dimension members and hierarchies for a balances cube.

Standard

 

Create Cube: Create Ledger Dimension Members

Creates the ledger dimension members for a balances cube.

Standard

 

Create Cube: Publish Chart of Accounts Dimension Members and Hierarchies

Publishes chart of accounts and hierarchy changes to balances cubes and updates dimension members for any new or changed segment values.

Standard

 

Create Average Daily Balance Cube

Determines the amount needed to manually adjust general ledger account average balances to reflect the differences between the original and revalued customer open items.

Average Daily Balance (ADB)

 

Create Cube: Initialize Average Balances Cube

Begins the process to import average balances into the balances cube.

ADB

 

Create Cube: Create Daily Dimension Members and Hierarchies

Creates the daily calendar dimension members and hierarchies for a balances cube.

ADB

 

Create Cube: Create Ledger Dimension Members

Creates the ledger dimension members for a balances cube.

ADB

 

Create Cube: Publish Chart of Accounts Dimension Members and Hierarchies

Publishes chart of accounts and hierarchy changes to balances cubes and updates dimension members for any new or changed segment values.

ADB

 

Create Cube: Transfer General Ledger Balances to Essbase

Transfer balances to balances cubes.

Standard and ADB, if enable, in same request

Publish Cube Processes Run in ESS


Parent Process

Child Process

Description

Cube Type

Publish Chart of Accounts Dimension Members and Hierarchies

 

Publishes chart of accounts dimension member and hierarchy changes to balances cubes and updates dimension members for any new or changed segment values.

Standard and ADB, if enable, in same request

 

Update Chart of Accounts Dimension Members and Hierarchies

Updates chart of accounts dimension member and hierarchy changes to Essbase.

Standard and ADB, if enable, in same request

Transfer Cube Process Run in ESS


Parent Process

Description

Cube Type

Transfer General Ledger Balances to Essbase

Refreshes standard cube (and average balances cube if enabled) in the General Ledger balances cube.

Standard and ADB, if enable, in same request

Other Cube Processes Run in ESS


Parent Process

Descriptions

Cube Type

Create Accounting Period Dimension for Standard Cube

Creates the accounting period dimension members.

Standard

Create Ledger Dimension Members

Creates and updates ledger dimension members including primary ledgers, secondary ledgers, reporting currencies, and ledger sets in the balances cubes.

Standard and ADB, if enable, in same request

Create Currency Dimension Members

Creates and updates all currencies in every balances cube.

Standard and ADB, if enable, in same request

Create Scenario Dimension Members

Creates and updates all scenario dimension members when new scenarios are created or existing scenarios are changed.

Standard and ADB, if enable, in same request

Create Accounting Period Dimension for Average Daily Balances Cube

Creates the accounting period dimension members in the average daily balances cube.

ADB

Create Rules XML File for BI Extender Automation

 

Standard and ADB, if enable, in same request

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:

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:

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.

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.

Note

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

Tip

When you export or import cross validation rules using an export or import project in the Functional Setup Manager to a new Instance, you must add the Manage Messages for General Ledger task before the Manage Cross Validation Rules task. You must also perform the export or import of the messages before export or import of the cross validation rules.

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:

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:

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.

Note

Segment and account rules can be used alone or both types of mapping rules can be used in the same mapping set.

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.

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

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

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

AMX List Builder Considerations

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


List Builder

Functionality

Additional Information

Human Resources (HR) Supervisory

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

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

Job Level

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

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

Position

A relative dollar amount can be attached to a position.

Use this hierarchy if you need a hierarchy different than the HR Supervisory hierarchy. Use this hierarchy when there are multiple hierarchies that must be selected based on different attributes.

Approval Group

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

 

Dual Chain

Dual chains can be processed at the same time.

 

Note

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

Other Considerations

Other functionality to consider before defining approval rules include:

Note

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

Manage AutoPost Criteria Sets

Creating an AutoPost Criteria Set: Worked Example

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

Consider the following points while creating your criteria set:

Creating an AutoPost Criteria Set

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

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

    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.


Error

Cause

Solution

Error - Unopened accounting period

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

Open the period.

Error - Invalid or no journals

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

Correct the error that caused the journal import to fail.

Error - Invalid or no journals

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

Revise the criteria set.

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 fail 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:

Manage Journal Reversal Criteria Sets

Automatic Journal Reversals: How They Are Processed

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

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

Settings That Affect Journal Reversals

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

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


Criteria

Functionality

Options

Category

Required.

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

All journal categories are listed.

Reversal period

Required.

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

  • No default

  • Same period

  • Next period

  • Next nonadjusting

  • Next day

Reversal day

Required for average daily balance ledgers only.

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

  • First day

  • Last day

  • Next day

Reversal method

Required.

The method for changing the amounts in the reversal entry.

  • Change sign

  • Switch debit or credit

Automatic reversal option

Required.

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

  • None

  • Reverse automatically

  • Reverse and post automatically

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

If the automatic reversal option is set to reverse and post automatically, the AutoPost 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.

Note

Journals posted by the AutoReverse process always bypass approval.

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.

Note

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

Manage Period Close

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 Monitor: Overview

The Close Monitor:

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:

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.

Note

The list of managers available for assignment contains the persons defined in the Human Capital Management (HCM) module of Oracle Fusion Applications. The attributes defined in HCM, such as the picture of the person and contact details, are shown in the Close Monitor.

The ledger set serves as the foundation of this setup.

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:

Note

If matching financial data for a ledger in the selected currency is not available, a message is displayed stating that the requested financial data is not available.

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

Note

A view control panel that can be exposed on demand allows you to adjust the zoom level, pan across the hierarchy, flip the display tabs, and switch the hierarchy display format.

Configuring Social Objects in Oracle Social Network: Explained

Before you can start using the social object, for example, accounting period, journal, or intercompany transaction in Oracle Social Network, configure the social object using the Manage Oracle Social Network Objects task on the Setup and Maintenance task list page.

The configuration consists of enabling the social object and its attributes for use on the Oracle Social Network. For example, for the accounting period social object, enable the following attributes: Ledger, Period Name, Period Start Date, and Period End Date. You also configure the enablement method of the social object. The methods are: No, Manual, and Automatic.

The configuration applies to all instances of that social object in the application and to all ledgers. You can automatically create an conversation by setting the option in Managing Oracle Social Network Objects user interface.

Note

Oracle Social Network is currently only available in Oracle Cloud implementations.

Period Close Components: Explained

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

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

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

Manage Allocations and Period Entries

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

Note

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

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:

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:

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

Note

Adobe Flash Player 10 or above is a required component for the Calculation Manager. Upgrade your Adobe Flash Player if the Calculation Manager hangs after upgrading your browser.

For more information, see:

Calculation Manager: Overview

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

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

Note

The following are limitation in Oracle Fusion General Ledger.

Oracle Essbase Balances Cubes: Overview

Oracle Essbase is embedded within Oracle Fusion General Ledger and provides multidimensional balances cubes. Every time a transaction or journal is posted in General Ledger, the balances cubes are updated at the same time.

This figure shows the journal entry process for creating
allocation journals using the Calculation Manager and Essbase, including
journal import, journal, post, and allocation write-back to the GL_Interface
table.

The flowing table lists the Essbase Dimensions and examples of dimension members.


Dimension

Description

Example

Accounting Period

Based upon the calendar of the ledger or ledger set. Report on years, quarters, or periods.

  • 2012

  • Qtr-1

  • Jan-12

Ledger or Ledger Set

Used to select a ledger for the reporting. Multiple ledgers may be in the same cube if they share a common chart of accounts.

  • InFusion North America Ledger Set

  • InFusion US Primary Ledger

Chart of Accounts Segments

Uses a separate dimension for each of the segments from the charts of accounts. Organized by hierarchy. A default hierarchy is provided that includes all detail segment values. Hierarchies published in the Publish Account Hierarchies user interface are included.

  • Company: InFusion America: 101

  • Cost Center: Sales: 400

  • Account: Cash: 1110

Scenario

Indicates if the balances represented are actual or budget amounts. Allocation related dimensions are predefined members and required for allocation solutions. Allocation dimensions are not used directly by end users.

Budget scenario dimension members are user defined in the Oracle Fusion Applications value set called Accounting Scenario and appear in the cube after running the Create Scenario Dimension Members process.

  • Budget 2012

  • Actuals

  • Forecast 2013

Balance Amount

Indicates if the value is the beginning balance, period activity, or ending balance. Debit, Credit, and Net amounts are available for reporting.

  • Beginning Balance (Dr, Cr, or Net)

  • Period Activity (Dr, Cr, or Net)

  • Ending Balance (Dr, Cr, or Net)

Amount Type

Indicates whether the amounts represent Base, Period to Date, Quarter to Date, or Year to Date.

  • Base

  • PTD: Period to Date

  • QTD: Quarter to Date

  • YTD: Year to Date

Currency

Used to select the desired currency for the balances.

  • All ISO Currencies

  • USD: US Dollar

  • JPY: Japanese Yen

Currency Type

Used to select the currency type of the balances.

  • Total

  • Entered

  • Converted From (for each ISO currency)

Allocation Security: Explained

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

Manage Recurring Journals

Recurring Journals: Overview

Define recurring journal formulas for transactions that you repeat every accounting period, such as accruals, depreciation charges, and allocations. Your formulas can be simple or complex. Each formula can use:

You can quickly create recurring formulas by copying and modifying existing formulas. You can:

Recurring Journal Types: Explained

You normally use three types of recurring journal entries to reduce data entry time and increase accuracy for journal entries that repeat each period.

This graphic shows examples of the three recurring journal
types, skeleton with no amounts, standard with set amount, and formula
with variable amounts.

  1. Skeleton Journal Entries: Contain the same accounts each period, but have different amounts. After you generate skeleton journal entries, edit the unposted journal batch by entering the journal line amounts on the Edit Journals page.

    Use skeleton journal entries to record statistical journals, such as headcount, units sold, barrels of oil, or other statistical factors. For example, if you want to enter headcount for your cost centers each period:

    Note

    Set the journal entry to reverse automatically at the beginning of the next period if you enter the total headcount each period. Otherwise, if you only enter the change in the headcount each period, a reversing journal is not required.

    Best practices recommend that you create skeleton recurring journal entries in spreadsheets or copy existing journals.

    To create journals in spreadsheets:

    To copy journals:

  2. Standard Recurring Journal Entries: Contain the same accounts and amounts each period. Just as with skeleton recurring journal entries, best practices recommend that you create standard recurring journals in spreadsheets.

  3. Recurring Journal Formula Entries: Contain formulas created using the formula component and allocation wizard in the Calculation Manager. These formulas calculate journal amounts that vary from period to period and are based on existing account balances or other criteria.

    Use recurring journal entries to perform simple or complex allocations or eliminations. For example, you can allocate a portion of your rent expense to another division, or, you can allocate a pool of marketing costs to several departments based on the ratio of department revenues to total revenues.

Creating Recurring Journals: Example

This example shows how to define and generate formula recurring journals that are automatically generated every period.

You must have a role that can access the Journals work area in Oracle Fusion General Ledger and a duty that can access the Create Allocation Rules task.

Assumptions

Goals

Definitions

Configuration

  1. Navigate to the Journals work area.
  2. Click the Create Allocation Rules link on the Tasks panel.
  3. Navigate to the Administer menu option and then Calculation Manager. The Calculation Manager opens in a new browser window and a cube is highlighted based on the data access set selected in the Journals work area.
  4. Expand Essbase.
  5. Expand VF_USA_Accounting_Flexfield (your cube).
  6. Expand db.
  7. Highlight the Rules row, right click, and select New from the menu.
  8. Enter the Rule Name: Special Bad Debt Allocation, accept the other defaults, and click OK button.
  9. The Rule Designer opens in a new tab. Under New Objects, click, hold, and drag the Point of View object. Place it between the Begin and End nodes in the Rule Designer.
  10. Enter a Caption: Point of View.
  11. Perform the following steps to enter a Variable Dimension Value:
    1. Click the Value field for Accounting Period.

    2. Click the Actions icon and select Variable from the dropdown list. A new window opens.

    3. Under Category, select Database from the dropdown list.

    4. Click Accounting_Period.

    5. Click OK button.

  12. Perform the following steps to enter Other Member Dimension Values:
    1. Click the Value field for another dimension.

    2. Click the Value field for another dimension.

    3. Click the Actions icon and select Member from the dropdown list.

    4. Select a member and click on the blue select arrow pointing right.

    5. Click the OK button. Repeat for all dimensions to include in the Point of View.

      In this scenario, the following are fixed dimension values:

      • Ledger: Vision Operations (USA)

      • Company: 01

      • Department: 000

      • Subaccount: 0000

      • Product: 000

      • Currency: USD

      • Currency Type: Total

    6. Under New Objects, click, hold, and drag the Formula component. Place it between the Point of View nodes in the Rule Designer.

    7. Enter a Caption: Bad Debts Calculation.

    8. Enter the Offset member.

    9. Click Next button.

      In this scenario, the offset is defined as account 1260, the allowance for bad debt. The offset is child combination 01.000.1260.0000.000 when combined with the fixed member dimension values in the Point of View.

  13. Perform the following steps to enter the Formula Member Dimension Value:

    In this scenario, if the formula member dimension value is defined as account 7730, the bad debt expense is charged to child combination 01.000.7730.0000.000 when combined with the fixed member dimension values in the Point of View.

    1. Click the icon for the formula field and select Member from the dropdown list.

    2. Select the Account dimension value, highlight the row, and click the blue select value pointing right.

      In this scenario, the goal is to calculate an allowance for bad debt based on the PTD period activity in trade receivables account 1210. Trade receivable is child combination 01.000.1210.0000.000 when combined with the fixed member dimension values in the Point of View.

    3. Repeat for the other formula member values and click the OK button when all formula members are selected.

      In this scenario, the following dimension values are selected. Selection of members for the dimensions below is mandatory for the source in a formula component.

      • Scenario: Actual

      • Balance Amount: Period Activity

      • Amount Type: PTD

    4. Multiply the formula expression by .05.

    5. Click the Save icon.

    6. Click the Validate and Deploy icon.

Create the Run-Time Prompt Variable

  1. Navigate to the Journals work area.
  2. Click the Create Allocation Rules under Tasks.
  3. Once the Calculation Manager opens in a new browser window, a cube will be highlighted based on the current data access set selected in the Journals work area. To define the run time prompt, select Variables under the Tools menu.
  4. Expand to the db under the cube, highlight the row, right click on the row, and select New from the menu.
  5. The Variable Designer opens in a new tab. Enter the variable header and value information.

    A default value must be entered and the variable name cannot contain any spaces.


    Variable

    Header Information

    Name

    Accounting_Period

    Type

    Member


    Variable

    Value Information

    Dimension

    AccountingPeriod

    Default Value

    Apr-11

    RTP

    <Checked>

    RTP Text

    Enter Accounting Period

  6. Click the Save icon. The RTP variable is ready for use.

Create the Rule Set

  1. Navigate to the Journals work area.
  2. Click Create Allocation Rules under the Tasks pane.
  3. Once the Calculation Manager opens in a new browser window, expand to Rule Sets under the highlighted cube, highlight the row, right click on the row, and select New from the menu.
  4. Enter the rule set name and click the OK button.
  5. The Ruleset Designer opens in a new tab. Expand to the db under the cube for which the rule set will be created, expand the rules, and drag desired rules under the rule set.
  6. Click on the row for the rule set, click the Variables tab, and check Merge Variables.

    Merge Variables means that common variables among all of the rules in the rule set are merged so that the user only has to select the run-time prompt value once when submitting the Generate Allocations process.

  7. Click the Save icon.
  8. Click the Validate and Deploy icon.

Generate Allocation Journal

  1. Navigate to the Journal work area.
  2. Click Generate Allocations under Tasks.
  3. Select a rule or rule set and enter any run-time prompt values.
  4. Uncheck the Post Allocations checkbox if automatically posting the generated allocations is not desired.
  5. Click the Submit button.
  6. Generate Allocations will submit four processes consecutively (three if Post Allocations is not selected) that will calculate the allocation, write back the results to the GL_INTERFACE table, import the batches/journals, and post the batches/journals to Fusion General Ledger.

Scheduling Recurring Journals: Examples

You can create processing schedules for recurring journal entries that have been defined in the Calculation Manager. Scheduling automates the monthly generation of the entries and speeds up the close process.

You can define multiple schedules for each calendar in General Ledger. These schedules can be increment by accounting period based on the any calendar defined. Schedules are shared across ledgers.

Scenario

In this example, you have created a reserve for bad debt recurring journal entry in the Calculation Manger. Now, add a recurring schedule to the entry to generate the entry once a month on the last day.

  1. Navigator > Journals > Generate General Ledger Allocations. The Generate Allocations page opens.

  2. Select the Rule or Rule Set: Reserve for Bad Debt.

  3. Specify Accounting Period: Blank

    Note

    The Accounting Period field appears if you use the Run-Time Prompt in your rule and select Accounting Period as the run-time variable.

  4. Check Post Allocations.

  5. Select the Advanced button.

  6. Select the Schedule tab.

  7. Click Using a schedule.

  8. Select Frequency: Monthly.

  9. Select Repeat: By Date.

  10. Enter start and end dates.

  11. Click the Submit button.



  12. The generation process waits in the Schedule Processes page until the schedule time, which in this example is the last day of the current month.

Manage Allocations

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:

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

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.

Note

This topic describes the Calculation Manager menu options only.

File Menu

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

Note

Not all of these file menu options are available for the products that use Calculation Manager.

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.

Note

The Edit menu is not available within the Deployment View.

View Menu

Enables you to open different views.

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.

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.

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:

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

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.

Note

The content of the View Pane varies depending on which view you are in and whether you are working with a rule set, a rule, a template, or a component.

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


Tasks

List View

System View

Custom View

Deployment

Create, open, rename, delete, refresh, and close objects

Yes

Yes

Yes

Yes

Set preferences

Yes

Yes

Yes

Yes

Import and export objects

Yes

Yes

Yes

Yes

Show the usages of objects

Yes

Yes

Yes

Yes

Create a copy of objects

Yes

Yes

Yes

Yes

Print a business rule

Yes

Yes

Yes

Yes

Select views

Yes

Yes

Yes

Yes

Exit or log off Workspace

Yes

Yes

Yes

Yes

Work with favorites

Yes

Yes

Yes

Yes

Perform an advanced search

Yes

Yes

Yes

Yes

Access help

Yes

Yes

Yes

Yes

Filter objects in the view according to criteria you specify

Yes

 

 

 

Work with variables

Yes

Yes

 

Yes

Validate objects

Yes

 

 

Yes

Create a shortcut to a business rule

 

Yes

 

 

Import and export business rules and other objects

 

Yes

Yes

 

Validate and migrate objects

 

Yes

Yes

 

Change the owner of an object

 

 

Yes

Yes

Deploy objects

 

 

 

Yes

Filtering Objects in the List View: Examples

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

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:

  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.

Note

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

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

Generating Allocations and Periodic Entries Manually

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

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

  7. Click Submit.

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

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.

Note

The application or the balances cube that is currently selected in the General Ledger Data Access Set is automatically selected in the Calculation Manager.

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.

Tip

You can create nested folders by right-clicking the folder you want to create a folder in and selecting New Folder.

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:

Definition

When defining your revaluations, perform the following:

Note

Income statement accounts can also be revalued using YTD method.

Hierarchies and flexible account selection criteria, such as usage of parent values from your account hierarchy, streamlines maintenance of revaluation definitions. 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:

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.

Note

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

Revaluing Across Multiple Balancing Segments: Worked Example

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

Note

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

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

Defining Revaluations

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

    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.

Manage Consolidations

Consolidation Method: Overview

Select the best Oracle Fusion Accounting Hub consolidation solution for your enterprise:



Reporting Only Consolidation Method: Explained

Use the Reporting Only Consolidation method and the Oracle Fusion reporting solutions, including Financial Reporting, Smart View, online inquiry, Oracle Business Intelligence (BI) Publisher, and Oracle Fusion Transactional Business Intelligence (Oracle Fusion Transactional BI). The following scenario is illustrated in the figure.

The figure shows the Corporate Ledger Set with
on corporate ledger and the two subsidiary ledgers that are translated
into the corporate currency for consolidation.

With the Reporting Only Consolidation method, perform the following tasks:

If each entity's ledger has a different chart of accounts or calendar from the corporate chart of accounts and calendar, a secondary ledger is used to conform to the common chart of accounts and calendar and is included in the consolidation ledger set.

Balance Transfer Consolidation Method: Explained

If multiple subsidiaries and the corporate ledger do not share the same chart of accounts and calendar, use the Balance Transfer Consolidation method and the reporting solutions, including Financial Reporting, Smart View, online inquiry, Oracle Business Intelligence (BI) Publisher, and Oracle Fusion Transactional Business Intelligence (Oracle Fusion Transactional BI).

The following scenario is illustrated in the figure.

The figure shows the two subsidiary ledgers and
the corporate ledger being consolidated into the consolidation ledger
and then using various reporting solutions.

With the Balances Transfer Consolidation method, perform the following tasks:

Reporting Only Versus Balance Transfer: Points to Consider

Here are pros and cons comparing the Reporting Only Consolidation method versus the Balance Transfer Consolidation method.

Reporting Only Consolidation Pros:

Balance Transfer Consolidation Pros: Do not require a standardized chart of accounts and calendar.

Note

When reviewing balances that use either consolidation method, verify that the translation to the consolidation currency is current.

If there is a journal or subledger level reporting currency ledger, translated balances are automatically available from either Reporting Only or Balance Transfer Consolidations. Only a reporting level reporting currency ledger needs to have the translation process run when it has a different currency than the consolidation currency.

Balance Transfer Consolidation Cons:

Balance Transfers: Overview

Two methods of balance transfers are supported in Oracle Fusion General Ledger.

  1. Balances data is transferred from a primary ledger to a balance level secondary ledger assigned to it.

  2. Balances data is transferred from one ledger to another without a predefined relationship.

You can drill down from the target ledger balances to the source ledger balances. The drill down can originate from:

When the Source and Target Ledger Currency Are the Same

When the source and target ledgers currency is the same, you drill down on the entered amount from the Journal Lines page or the Journal page in target ledger which resulted from a balance transfer. The displayed page provides the source and target ledger details so you can analyze details. For example, analyze the accounting period and accounts used in the source ledger that transferred to the journal line amount in the target ledger.

Note

When there is a variance between the source and target ledger, there is a warning icon displayed next to the target amount and source amounts. The variance in this case could be due to journals that were posted to the source ledger after the balance transfer between source and target ledger.

When the Source and Target Ledgers Do Not Share the Same Ledger Currency

When the source and target ledgers do not share a ledger currency, it is also necessary to translate the source ledger to the target ledger's ledger currency before transferring balances. As such, balance transfers drill down also shows the reporting currency balances for the source ledger in the target ledger currency as part of the drill path.

Note

When there is a variance between the source (translated balance) and target ledger, there is a warning icon next to the target amount and source translated amounts.

The variance in this case can be due to:

Using Elimination Entries: Example

In this example, the formula is entered to create a fully reciprocating elimination entry for intercompany receivables and payables accounts for all subsidiaries of parent company (All Company Values) to the Elimination Company (value 95).

Scenario

This example shows eliminating balances from the source across all balancing segments, in this case company values 0 to 90, into a single target balancing segment with a company value of 95. The offset is to an intercompany clearing account.


Company

Account

Description

Target

 

 

95

1818

Intercompany Receivables

95

2378

Intercompany Payables

Source: Balances multiplied by -1

 

 

0-90

1818

Intercompany Receivables

0-90

2378

Intercompany Payables

Offset: To Record any differences between the Target and Source Balances

 

 

95

2980

Intercompany Clearing

With Oracle Fusion General Ledger functionality, you can:

Analysis

Performing Consolidations: Examples

Your company, InFusion Corporation needs to consolidate across its entities worldwide using the Reporting Only Consolidation Method.

InFusion Corporation has four entities:

The is figure shows the ledgers that make up the
InFusion Corporate Ledgers Set as listed above.

Scenario

The four entities have different charts of accounts, calendars and currencies. InFusion Corporation uses secondary ledgers and reporting currencies to align all ledgers to the corporate chart of accounts, calendar, and currency. The InFusion Corporate ledger is an elimination ledger to hold the elimination entries. Financial Reporting functionally is used to create the consolidation reports.

Reporting Consolidation with Multiple Levels: Examples

The InFusion Corporation consolidation happens at two levels.

Scenario

Level One

InFusion North America elimination ledger is used to record elimination entries between InFusion USA and InFusion Canada. A ledger set has been created for the three ledgers to enable creation of consolidation reports in Financial Reporting.



InFusion EMEA elimination ledger is used to record elimination entries between InFusion UK and InFusion Germany. A ledger set has been created for the three ledgers to enable creation of consolidation reports in Financial Reporting.



Scenario

Level Two

InFusion Corporate elimination ledger is used to record elimination entries between all four entities. A ledger set has been created for the five ledgers to enable creation of consolidation reports in Financial Reporting.



Preparing Eliminations: Examples

The following examples show how to eliminate intercompany transactions recorded in the InFusion ledgers during consolidations. The following assumptions apply to all examples.

Elimination Level One Example

This first level of elimination entries are created for transactions between the two North America ledgers and between the two European ledgers. The elimination entries are recorded during consolidation with their respective parent ledgers.

Transaction One: InFusion USA pays InFusion Canada 10,000 USD for copper wiring.


Company

Company

Debit

Credit

InFusion USA Expense paid to InFusion Canada

 

10,000 USD

 

 

InFusion USA I/C Payable with InFusion Canada

 

10,000 USD

InFusion USA I/C Receivable with InFusion USA

 

10,000 USD

 

 

InFusion Canada Revenue received from InFusion USA

 

10,000 USD

The figure shows the three entities in this journal entry,
InFusion USA, InFusion Canada, and InFusion North America.

InFusion North America Elimination Entry


Company

Company

Debit

Credit

InFusion USA I/C Payable

 

10,000 USD

 

 

InFusion USA Expense

 

10,000 USD

InFusion Canada Revenue

 

10,000 USD

 

 

InFusion Canada I/C Receivable

 

10,000 USD

Transaction Two: InFusion UK pays InFusion Germany 5,000 EUR for manufactured technical components.


Company

Company

Debit

Credit

InFusion UK Expense paid to InFusion Germany

 

5,000 EUR

 

 

InFusion UK I/C Payable with InFusion Germany

 

5,000 EUR

InFusion Germany I/C Receivable with InFusion UK

 

5,000 EUR

 

 

InFusion Germany Revenue received from InFusion UK

 

5,000 EUR

The figure shows the three entities in this journal entry,
InFusion UK, InFusion Germany, and InFusion EMEA.

InFusion EMEA Elimination Entry


Company

Company

Debit

Credit

InFusion UK I/C Payable

 

5,000 EUR

 

 

InFusion UK Expense

 

5,000 EUR

InFusion Germany Revenue

 

5,000 EUR

 

 

InFusion Germany I/C Receivable

 

5,000 EUR

Elimination Level Two Example

In addition to the two transactions above, two additional intercompany transactions took place and need to be eliminated when the four entities are all consolidated into the InFusion Corporate Elimination Ledger.

Transaction Three: InFusion Germany pays InFusion USA 20,000 USD for high technical products.


Company

Company

Debit

Credit

InFusion Germany Expense paid to InFusion USA

 

20,000 USD

 

 

InFusion Germany I/C Payable with InFusion USA

 

20,000 USD

InFusion USA I/C Receivable with InFusion Germany

 

20,000 USD

 

 

InFusion USA Revenue Received from InFusion Germany

 

20,000 USD

Transaction Four: InFusion Canada pays InFusion UK 15,000 USD for copper rolls.


Company

Company

Debit

Credit

InFusion Canada Expense paid to InFusion UK

 

15,000 USD

 

 

InFusion Canada I/C Payable with InFusion UK

 

15,000 USD

InFusion UK I/C Receivable with InFusion Canada

 

15,000 USD

 

 

InFusion UK Revenue received from InFusion Canada

 

15,000 USD

Final Elimination Entry at the Corporate Level

The elimination entries below are based on the previous cross ledger transactions. At different levels of the consolidation, certain intercompany payables and receivables balances need to be eliminated. Eliminations are only required in the context of a consolidation where the trading parties are both included in a given consolidation.

The figure shows the four entities and the relationship
that show the entries between them.

InFusion Corporation Elimination Entries

*(5,000 EUR 1.577 conversion rate to USD)


Company

Company

Debit

Credit

InFusion USA Payable

 

10,000 USD

 

 

InFusion Canada Receivable

 

10,000 USD

InFusion Germany Payable

 

20,000 USD

 

 

InFusion USA Receivable

 

20,000 USD

InFusion Canada Payable

 

15,,000 USD

 

 

InFusion UK Receivable

 

15,000 USD

InFusion UK Payable

 

7,885 USD*

 

 

InFusion Germany Receivable

 

7,885 USD*

Following is an example balance sheet showing the total elimination entries in USD.

The figure shows the consolidated balance sheet with
the elimination entries.

Financial Management Integration Option: Overview

The Oracle Fusion Accounting Hub includes integration to Oracle Hyperion Financial Management, Fusion Edition through the Enterprise Resource Planning (ERP) Integrator. For complex consolidation requirements: Use the integration to bring general ledger balances from the Oracle Fusion Accounting Hub to Oracle Hyperion Financial Management, Fusion Edition and perform advanced consolidation in Oracle Hyperion Financial Management, Fusion Edition.

Functionality includes drill through from Oracle Hyperion Financial Management, Fusion Edition to the Oracle Fusion Accounting Hub balances.



Perform the following tasks to implement this option:

Mapping Segments to Financial Management Dimensions: Explained

When integrating with Oracle Hyperion Financial Management, you can use the following dimensions for consolidation. Map one to one or concatenate segments into a single Oracle Hyperion Financial Management, dimensions.

Note

Data will be summarized across segments that are not mapped to Oracle Hyperion Financial Management, dimensions.



In this example:

Configure ERP Integrator: Overview

The following are the implementation steps that need to be performed to use the Oracle Hyperion Financial Data Quality Management ERP Integration Adapter.



Refer to Oracle Hyperion Financial Data Quality Management ERP Integration Adapter for Oracle Applications Administrator's Guide for more details on how to set up the ERP Integrator to integrate with Hyperion Financial Management.

FAQs for Manage Consolidations

How can I secure balance transfer drill down?

The balance transfer drill down feature is secured with the same privilege that controls the existing account balance inquiry features. You do not need to have the specific data access set to the drill down from the target ledger to the source ledger to view the balance transfer drill information. As long as you have read or write access to the target ledger you should be able to drill down to the source ledger. However, you are limited to just that drill path and cannot see other journals for the target ledger.