Specify Ledger Options

This example demonstrates specifying the ledger options for a 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 Cloud ERP solution including Oracle General Ledger and all Oracle subledgers.

After defining your InFusion America primary ledger, in the Setup and Maintenance work area, go to the following:

• Offering: Financials

• Functional Area: General Ledger

• Task: Specify Ledger Options, with the ledger scope set to InFusion America

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

General Information Options

1. Accept the default name and description for the selected ledger.

2. Review the currency and chart of accounts for the specified ledger, which are automatically provided.

Accounting Calendar Options

1. Review the accounting calendar that defaults from your ledger.

2. Select Jan-2022 as the first open period of your ledger.

   Select a period after the first defined period in the ledger calendar to enable running translation. You can't run translation in the first defined period of a ledger calendar. In this example, your calendar began with Jan-2021.

3. Enter 3 in the Number of Future Enterable Periods field.

   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 entries in the wrong period.

Subledger Accounting Options

1. Accept the default accounting method, which you selected when you created the primary ledger.

2. In the Journal Language field, select American English as your journal language. You can configure the display of subledger journal descriptions to use either the journal language set for the ledge or the user session language.

Period Close Options

1. Enter your retained earnings account: 101-00-31330000-0000-000-0000-0000.

   This account is required. General Ledger moves the 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.

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

3. Don't enter a value for the Default Period End Rate Type or Default Period Average Rate Type fields.

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

Journal Processing Options

1. Complete the fields, as shown in this table.

   Field	Value
   Enable Suspense	General Ledger
   Default Suspense 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
   Balancing Threshold Amount	100

2. Enable the following entry and import options:

   • Enable journal approval: Enable the journal approval functionality.

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

   • Allow mixed statistical and monetary journals: Enter both monetary and statistical amounts on the same line in a journal entry.

   • Validate reference date: Require a reference date in an open or future enterable period.

   • Separate journals by accounting date during journal import: Create individual journal entries for each accounting date.

3. Select InFusion America Accrual Set from the list of values in the Journal Reversal Criteria Set field and click the Run AutoReverse after open period option to reverse accrual journal entries automatically when a new period is opened.

4. Click the Enable intercompany accounting option to enable automatic balancing for primary, second, and third balancing segments on intercompany journals and transactions.

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

   Note:

   • This example describes setting options for a standard ledger. You can convert a standard ledger to an average daily balance ledger before the first period is opened by selecting the Enable average balances check box on the Specify Ledger Options page.

   • You can also convert an average daily balance ledger to a standard ledger before submitting the Review and Submit Accounting Configuration task, provided the average daily balance ledger wasn't created through the rapid implementation process.