6Accounting Transformation

This chapter contains the following:

Overview of Accounting Transformation Configuration

Overview of Oracle Accounting Hub Cloud

Oracle Accounting Hub provides the flexibility and control that you need in the implementation, expansion, and maintenance of subledgers.

  • Configure user-defined subledgers to adopt in a flexible business environment.

  • Configure accounting rules to meet your corporate and statutory requirements.

  • Automate to control the processes from transforming source system data to recording of detailed, auditable journal entries.

  • Use modern reporting tools available in Oracle Cloud to reconcile accounted journal entries. This can lessen the accumulative work required at the end of the accounting period. You can also gain insightful information for your day-to-day business, corporate performance, and to make business decisions.

Oracle Accounting Hub

This figure illustrates the Accounting Hub process flow.

This figure illustrates the Accounting Hub process
flow.

For additional information about Oracle Accounting Hub Cloud, see the Oracle Financials Cloud Accounting Hub Best Practices guide on the Oracle Help Center.

Accounting Transformations

Accounting transformation refers to the process of converting transactions or activities from source systems into journal entries.

Source systems are typically industry-specific applications that are either purchased from third parties or built internally within the customer organization. Examples of such source systems include: core banking applications, insurance policy administration applications, billing applications, and point of sales applications.

Accounting Transformation Steps

Complete the steps described in the following table in the order listed to account for transactions coming from different source systems.

This table contains the steps in the uptake process which include analyze, build, and implement and test.

Implementation Phase Step Number Description

Analyze

1

Analyze transaction flows and activities to determine the transaction life cycle to capture.

 

2

Analyze your accounting, management reporting, audit, and reconciliation requirements. Ensure that the source system provides the required attributes to generate this information.

Build

3

Register the source system with transaction types and details using the rapid implementation spreadsheet template.

4

Configure accounting rules and assign accounting method definitions to ledgers.

Implement and Test

5

Upload transaction data for testing.

 

6

Perform comprehensive testing to ensure that all accounting is correctly generated.

Analyze Source Systems

As a best practice, when performing the source system analysis complete the following:

1. Analyze and Identify Transaction Type Life Cycle

A source system that generates transactions as part of a business process has potential financial impact requiring creation of accounting entries. As a key step to create accounting entries, these transactions must be distinctly identified as different transaction types.

Examples of transaction types from revenue recognition or billing source systems include:

  • Complete an invoice.

  • Record a payment.

  • Record late charges.

Examples of transaction types from a point of sale source systems include:

  • Record an order.

  • Accept a payment.

  • Receive a payment.

Examples of transaction types from retail loans source systems include:

  • Loan origination.

  • Loan interest approval.

  • Loan interest accrual reversal.

  • Loan scheduled payment.

  • Loan late payment.

  • Loan charge off.

A transaction type and its associated transaction data typically relate to a single document or transaction. However, the nature of source systems may prevent them from extracting this discrete information and sending it to Accounting Hub for processing. In some cases, summarized transaction type information, such as overall customer activity for the day, is sent for accounting transformation.

2. Analyze Accounting, Reporting, Audit, and Reconciliation Requirements for Transaction Types

Some source systems may already produce accounting entries, while others may produce raw transactions with no associated accounting.

  • As part of the analysis, determine how much transformation is required to produce subledger journal entries.

  • Next, examine the components of the journal entry rule set to determine what rules are required to produce the required subledger journal entries.

This exercise helps determine which subledger journal entry rule set components to define for source systems data to be transformed into subledger journal entries.

Journal entry rule set components include:

  • Description rules

  • Account rules

  • Journal line rules

  • Supporting references

Such an analysis should, at a minimum, answer the following questions:

  • Under what conditions are each of the lines in the subledger journal entry created?

  • What is the line type, debit or credit, of each subledger journal entry line?

  • What description is used for the subledger journal entry?

  • How are the accounts derived for the entry?

  • What information may be useful for reconciling the subledger journal entry to the source system?

Using the example of a loan origination transaction type, determine what are the sources that store the transaction information for a journal entry? Visualize the journal entries that you would like to create for a loan origination transaction type and list all the sources for its transaction information.

This table contains a journal entry, with Side, Accounting Class, Accounting and Debit and Credit amounts.

Side Accounting Class Account Debit Credit

Debit

Loan Receivables

111-000-30201-0000-206-0000-0000

500,000 USD

None

Credit

Cash

111-000-21355-0000-104-0000-0000

None

500,000 USD

  • In the table the example identifies the sources for the journal lines and accounts in a source system:

    • Each debit and credit journal line is identified and defined for each transaction type.

    • When a loan is originated, the loan receivables account is debited, and cash account is credited.

    • The cost center segment of the Loan Receivables accounts can have two values, depending on the loan type value:

      • If the loan type is adjustable rate, then the cost center is '0000'.

      • If the loan type is fixed rate, then the cost center is '2120'.

For management reporting and control, what type of information is extracted from journal entries?

For example:

  • Account group used to drill down from general ledger to subledger journal entries.

  • Total loan receivables amount booked by the loan officer.

  • Journal entry line description with loan number and transaction date.

At the end of this exercise, you have a list of transaction attributes that are required to obtain the appropriate accounting entries from Accounting Hub.

Examples of transaction attributes include:

  • Amounts including entered, accounted and conversion data

  • Dates

  • Descriptions

  • General ledger accounts

  • Customer Information

  • Transaction type information

  • Product information

3. Additional Modeling Considerations

Additional considerations when you model the subledger per your requirements.

Sample questions to ask during planning:

If you have more than one transaction type:

  • How do you report each of the transactions? This results in a number of transaction types.

  • Do you require centralized information or separate view?

    • For example, how do you plan to upload fixed and adjustable mortgage rate transactions, as one subledger source system, or as separate subledger source systems?

      • One subledger source system consolidates the transaction data upload and reporting view.

      • Separate subledger source systems enable the use of a unique accounting event class for each source system. With separate source systems, you can configure accounting rules for each accounting event class. For example, you can configure the automatic reversal on accrued subledger journal entries at a specified date or period for a specific accounting event class.

4. Analyze the Configuration of Accounting Rules in Accounting Hub

With the analyzed transaction information and subledger model completed, evaluate the usage of accounts rules. Understand the functional usage for each rule component and the requirements for accounting and reporting.

Journal Entry in Source System

This figure illustrates a journal entry.

This figure illustrates a journal entry component
created using a description rule, journal line rule, and account rule.

Accounting Rule Configuration in Accounting Hub

This image illustrates the subledger flow as detailed in the Manage Accounting Rules topics.

This image illustrates the subledger flow described
in the Manage Accounting Rules topics.

The next implementation step will be registering your source system, as detailed in additional topics.

Manage Source Systems

Register a Source System

Watch video

Watch: This video tutorial shows you how to register a source system into Oracle Accounting Hub Cloud. The content of this video is also covered in text topics.

Procedure

In this procedure you register a source system into Oracle Accounting Hub.

In Oracle Accounting Hub, download the setup template:

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH implementation project.

  4. Expand the task list: Define Accounting Entry Configuration for Rapid Implementation.

  5. Select the task: Create Subledger Application Setups in Spreadsheet.

  6. Click Go to Task.

  7. Select the Download Setup Template button.

  8. Click Save As and save the file on your local drive.

In Microsoft Excel, populate the setup template:

  1. Open the downloaded template from your local drive.

  2. Review the instructions tab for instructions on completing the template.

  3. Enter your data into the spreadsheet worksheets:

    1. Click the Source System worksheet and enter data in these fields.

      • Source System Name

      • Source System Short Name

      • Source System Transaction Name

      • Source System Transaction Short Namee

    2. Click the Transaction Information worksheet and enter data in these fields:

      • Source Name

      • Source Short Name

      • Source Type

      • Source Journal Display

    3. Click the Line Information worksheet and enter data in these fields:

      • Source Name

      • Source Short Name

      • Source Type

      • Source Chart of Accounts Value

In Microsoft Excel, validate the setup template and generate a .zip file:

  1. Click the Source System worksheet.

  2. Click Validate.

  3. Click OK on the confirmation message. The .zip file was created and saved in the same local folder as the downloaded file.

In Oracle Accounting Hub, upload the .zip file.

  1. Navigate to the task: Create Subledger Application Setups in Spreadsheet.

  2. Click Go to Task.

  3. Click the Upload Setup File button.

  4. Click Browse.

  5. Browse your local drive for the .zip file you created.

  6. Select the file.

  7. Click Open.

  8. Click Import. Wait until the process completes.

  9. Click OK.

  10. Click Done.

In Oracle Accounting Hub, review your new subledger application.

  1. Navigate to the task: Manage Subledger Application.

  2. Click Go to Task.

  3. In the Select Scope window:

    • Select the Manage Subledger Application option.

    • In the Subledger Application Setup drop-down list, select Select and Add.

    • Click Apply and Go to Task.

    • Search for the subledger name, as defined in the Source System Name field in the spreadsheet.

    • Select the subledger.

    • Click Save and Close.

  4. Preview the registered source system on the Manage Subledger Application page.

    • Expand Event Model components.

    • Click Cancel.

  5. Preview the generated sources:

    • Select the Manage Source task.

    • View the sources.

    • Click Cancel.

  6. Preview the assigned accounting attributes:

    • Select the Manage Accounting Attributes task.

    • View the accounting attributes.

    • Click Cancel.

Register a Source System Using a Spreadsheet

After completing the source system transaction flow analysis, you can use a spreadsheet to register your source systems in Accounting Hub. The spreadsheet registration accelerates the time from implementation and testing to production.

Complete the following tasks to register your source system.

1. Download the Spreadsheet Template

Download the spreadsheet template using the Create Subledger Application Setups in Spreadsheet task.

Navigate: Setup and Maintenance work area > Define Accounting Entry Configuration for Rapid Implementation > Create Subledger Application Setups in Spreadsheet

2. Populate the Spreadsheet Template

Populate source system and transaction information in the spreadsheet template.

The spreadsheet template has three worksheets:

  1. Source System

  2. Transaction Information

  3. Line Information

Source System

On the Source System worksheet, enter the name of the source system and the transaction types.

In the Source System Transactions region, enter the source system name and a short name:

This table contains definitions of the Name and Short Name fields used in the spreadsheet.

Name Short Name

Name of the source system.

  • Used as the subledger application and event class.

Maximum length 25 characters.

Used as the column name in database.

This source system name is used as the registered subledger, event class, and journal source names in Accounting Hub.

  • Event class represents the transaction and is used to group event types.

  • Event types represent an event in the life cycle of a transaction that has accounting impact.

In the Transaction Types region, enter the transaction types.

This table contains definitions of the Name and Short Name fields used in the spreadsheet.

Name Short Name

Transaction type name.

Maximum length 30 characters.

Used as the column name in database.

Transaction Information

The Transaction Information worksheet lists transaction information that can be used for accounting. These are header-level information sources.

The worksheet includes three predefined required sources.

  • By default, the Transaction Date provides the accounting date for booking the journal.

    • You can add additional source attributes for the transaction date if there are multiple date options that are used as accounting date.

  • Transaction Number links the transaction and line information.

  • Ledger Name is the reporting entity for which journal entries are booked in the general ledger.

In the Transaction Information: List of Sources region enter the sources.

This table contains definitions of the Name, Short Name, Type and Journal Display fields used in the spreadsheet.

Name Short Name Type Journal Display?

Name of sources that appears in a drop-down list for accounting rules.

Maximum length 80 characters.

Used as the column header in the transaction data template. This template is used to upload source system transactions.

Used to describe the type of values from the source system.

Available values are:

  • Text:

    • Where length can be less than the Alphanumeric source type of 100 CHAR characters.

  • Number:

    • A valid numeric data type.

  • Date:

    • A valid date data type.

  • Long Text:

    • Source type: VARCHAR2. Where length can be greater than the Alphanumeric source type of 100 CHAR characters, but is less than 1000 CHAR characters.

Up to 50 text, 10 number, 10 dates, and 5 long text sources can be defined.

This includes the three predefined required sources.

Indicates whether this attribute is shown on report and inquiries, along with the journal.

Acceptable values are Yes or No.

In the user interface, these are known as user transaction identifiers.

Up to ten rows can be used.

Line Information

The Line Information worksheet lists types of transaction information that can have more than one value per transaction. For example, an order or invoice line item amount.

The worksheet includes three predefined required sources.

  • Transaction Number links transaction and line information.

  • Default Amount holds transaction amount values for use in accounting.

  • Default Currency holds entered currency values for use in accounting.

Additional sources can be added if there are multiple different values that use the same source attribute. In that case, you must manually map the related accounting attributes with these additional sources from the user interface.

In the Transaction Lines Information: List of Sources region enter the line sources.

This table contains definitions of the Name, Short Name, Type and Chart of Accounts Value fields used in the spreadsheet.

Name Short Name Type Chart of Accounts Value?

Name of sources that appears in a drop-down list for accounting rules.

Do not add Line Number source name, as this name is reserved for automatically created internal source.

Maximum length 80 characters.

Used as the column header in the transaction data template. This template is used to upload source system transactions.

Used to describe the type of values from the source system.

Available values are:

  • Text:

    • Where length can be less than the Alphanumeric source type of 100 CHAR characters.

  • Number:

    • A valid numeric data type.

  • Date:

    • A valid date value.

  • Long Text:

    • Source type: VARCHAR2. Where length can be greater than the Alphanumeric source type of 100 CHAR characters, but is less than 1000 CHAR characters.

Up to 100 text, 30 number, 10 dates, and 5 long text sources can be defined.

This includes the three predefined required sources.

Indicates that the source can be used to derive an account.

Acceptable values are Yes or No.

Only text type sources can be used in segment rules.

Examples of sources that are typically used to derive the general ledger account:

  • Account

  • Cost center

  • Company segment value

3. Validate

To verify the accuracy of the content in the spreadsheet template, use the Validate icon on the Source System worksheet.

  • If there is an error, you receive an error message.

  • A Validation Report worksheet is created.

  • Open the Validation Report worksheet to review the error.

  • Correct the error and validate the content again.

4. Generate .zip File

Generate the .zip file by using the Generate .zip icon on the Source System worksheet.

You receive a notification that the .zip file was created and saved in the same local folder as the downloaded spreadsheet template.

5. Upload .zip File

Use the Create Subledger Application Setups in Spreadsheet task to upload the .zip file.

  • Use the Upload Setup File button.

  • Browse for your .zip file.

  • Select Import.

If there is any error during the upload process, you are prompted with an error message. Correct the error in the spreadsheet in the fields noted in the error message.

If there is no error:

  • The source system is now registered in Accounting Hub.

  • One transaction object at header and line levels is created.

6. Verify Source System

Verify the uploaded source system and transaction information from the user interface.

You can update the uploaded objects from the user interface. For example:

  • Accounting Event Types:

    • Add new event types.

  • Sources:

    • Assign and update value set and lookup type assignments. Whenever appropriate, sources can have lookup types or value sets assigned. Assigning a value set or lookup type enables you to predefine valid values for the source that is used to create accounting rules.

    • You can revise the sources. These revisions are:

      • Source names can be revised to be more business user-friendly so they are easily understood when configuring accounting rules.

      • Sources that correspond to accounting flexfield identifiers can be marked as such.

    • You can add sources from the user interface. The download of a new transaction data template includes this newly added source.

  • Accounting Attribute Assignments:

    An accounting attribute is a piece of the journal entry. The mapping of sources to accounting attributes specifies how the Create Accounting process gets the value for each piece of the journal entry. For example, the Entered Currency attribute is used to map source values to the entered currency field for subledger journal entry lines.

    • Add and update source assignments to accounting attribute.

      • You can add and make updates to the source assignment to the accounting attribute if you have other sources available. For example, when you have more than one transaction date source value.

7. Configure Accounting Rules

Next, configure the accounting rules using the sources from the transaction information.

Use the streamlined navigation across rule components to configure the accounting rules.

  • Start by using the Configure Accounting Rules task from the Setup and Maintenance work area. This task is also embedded in the Define Accounting Entry Configuration for Rapid Implementation task list.

  • Highlight the subledger application that you would like to use to configure accounting rules.

  • On the Configure Accounting Rules user interface, navigate across the rule components that you would like to create or edit.

Define Accounting Methods

Define accounting methods to group subledger journal entry rule sets. This determines how the source system transactions are accounted for a given ledger.

Assign journal entry rule sets to event class and event type combinations in an accounting method. This determines how the subledger journal entries for that class or type are created.

The following are the components of a journal entry rule set:

This table contains the accounting rule names and descriptions.

Rule Description

Journal Line Rule

Determine basic information about a subledger journal entry line. Such information includes whether the line is a debit or credit, the accounting class, the currency, the amounts, and conversion rates.

Description Rule

Determine the descriptions that are included on subledger journal entry headers and lines. Include constant values, transaction attribute, and transaction information in descriptions.

Account Rule

Determine which account is used for a subledger journal entry line.

Supporting Reference

Optionally used to store additional source information about transactions. Are useful for reconciliation of accounting to source systems, as well as reporting.

Conditions

You can attach conditions to journal line rules, description rules, and account rules components. A condition combines constants, source values, and operands to indicate when a particular journal line rule, description, or account rule is used. For example, for mortgage loans, you can elect to use a specific loan receivable account based on the loan type.

Note: To obtain a listing of accounting rule setup by ledger, submit the Subledger Accounting Method Setups Report.

To achieve a successful implementation of Accounting Hub, certain points must be considered.

Considerations

  1. Determine the subledger requirements. For example, how many subledgers are to be created?

    • Using the same subledger enables you to share subledger accounting rules, and lets you report across all data easily.

    • Using separate subledgers provides more security across applications and less data in each process run providing better performance. Specific benefits are:

      • If you run two Create Accounting processes at the same time for different applications, they are much less likely to contend for database resources.

  2. Determine what source data is required to create subledger journal entries from transactions.

  3. Analyze the transaction life cycles that create accounting impact.

  4. Determine how often to upload subledger transaction data into Accounting Hub. This may depend on the immediacy and volumes of accounting requirements in your company.

Accounting events represent transactions that may have financial significance, for example, issuing a loan and disposing of an asset. Financial accounting information can be recorded for these events and accounted by the Create Accounting process. When you define accounting events, determine from a business perspective which activities or transactions that occur in your source system may create a financial impact.

  • Events with significantly different fiscal or operational implications are classified into different accounting event types.

  • Event types are categorized into accounting event classes.

  • Accounting definitions in Accounting Hub are based on event class and event types.

  • An event type must be unique within an application.

.

This figure illustrates an accounting event model for a loan application.

This figure illustrates an accounting event model
for a loan application. With examples of process category Loan. Accounting
event classes Loans. And accounting event types; loan charge off,
loan interest accrual, loan interest accrual reversal, loan interest
adjusted, loan late payments, loan scheduled payments, loan origination.

Event Class

An event class groups the related transaction information and attributes within a source system.

The event class is created using the registered source system name. For example, the Loans source system.

Event Types

When registering a source system, you can specify the event types as the transaction types of the source system.

For example, the event types Loan Origination and Loan Scheduled Payments are the types of transactions that have differences in their functional and operational implications.

User Transaction Identifiers

User transaction identifiers constitute the user-oriented key of the underlying subledger transaction.

These identifiers are primarily used in accounting events inquiry and on accounting event reports, to uniquely identify transactions.

  • When you register the source system using the spreadsheet template, use the Journal Display column to identify sources that are the user transaction identifiers.

  • You can specify up to ten columns from the transaction sources that are available for inquiry and reports.

The transaction data that identifies the transaction varies by subledger application.

Accounting event reports and inquiries display the transaction identifiers and their labels appropriate for the corresponding event class.

The user transaction identifiers can be displayed for an event regardless of its status. This includes the case when the accounting event has not been processed.

The user transaction identifier values are displayed at the time the accounting event reports and inquiries are run.

Sources are a key component for setting up accounting rules. Sources represent transaction and reference information from source systems. Contextual and reference data of transactions that are set up as sources can be used in accounting rules definitions.

When determining what sources should be available, it's helpful to begin the analysis by considering which information from your source system has accounting impact.

Examples of sources that are accounting in nature include:

  • Transaction date

  • Entered currency

  • Transaction amounts

In addition to sources required for accounting, there may be other sources used for reporting purposes.

Examples of information that may be useful as supporting attributes for subledger journal entries are:

  • Transaction identification numbers such as:

    • Loan number

    • Customer number

    • Billing account number

  • Counterparty information

  • Transaction dates

Provide a rich library of sources from your source systems for maximum flexibility when creating definitions for subledger journal entries.

A distinct difference exists between sources and source values:

  • Source is the metadata, or name of the transaction attribute, used to create accounting rules.

    • For example: Transaction Date

  • Source values are the value of the attribute, used by the Create Accounting process to create subledger journal entries. These entries are based upon source assignments to accounting rules.

    • For example: Aug 01, 2017

Sources

Create sources from any of these user interactions:

  • Create initial sources automatically when registering a new source system configuration using the spreadsheet mechanism.

  • Add subsequent sources from the Manage Sources user interface after the initial upload of the source system.

    • This table contains the data types that can be used when adding sources:

      Source Value Data Type

      Alphanumeric and fewer than 100 characters

      Alphanumeric

      Alphanumeric and between 100 and 1000 characters

      Long

      Numeric

      Number

      Date

      Date

      Note: After adding new sources from the UI, and before importing any new transactions, you must download the latest transaction template.

To set up appropriate subledger journal entry rule sets, users and those implementing must understand the origins, meaning, and context of sources.

Use business-oriented names for sources to enable accountants and analysts to effectively create accounting rules.

  • Enables users to easily identify a source.

  • Ensures consistency in nomenclature.

The Create Accounting process uses the values of sources assigned to accounting attributes and accounting rules to create subledger journal entries.

The Create Accounting process uses the sources assigned to accounting attributes to copy values from transaction data to subledger journal entries. For example, you may map the invoice entered currency to the subledger journal entry entered currency.

Each accounting attribute is associated with a level:

  1. Header: Used when creating subledger journal entry headers.

  2. Line: Used when creating subledger journal entry lines.

Minimum Required Accounting Attribute Assignments

To create a valid journal entry the following accounting attribute assignments are required. Accounting Hub predefines the values:

This table contains the required accounting attributes.

Accounting Attribute Predefined Source Assignment

Accounting Date

Transaction Date

Distribution Type

Accounting Event Type Code

Entered Amount

Default Amount

Entered Currency Code

Default Currency

First Distribution Identifier

Line Number

The details and descriptions of these attributes are included in the Accounting Attributes section.

Accounting Attributes

Accounting attribute groups are represented in these tables.

Accounting Date

  • Accounting Hub predefines Transaction Date as the Accounting Date. The Create Accounting process uses it to derive the accounting date of journal entries.

  • The Accrual Reversal Accounting Date Source attribute is relevant to applications that must perform automatic reversal on accrued journal entries at a specified date or period. You can assign application and standard date sources to the Accrual Reversal Accounting Date in the Accounting Attribute Assignments page. When the Accrual Reversal Accounting Date Source attribute returns a value, the Create Accounting process generates an entry that reverses the accrual entry.

  • Accounting Hub does not predefine any source assignment to the Accrual Reversal Accounting Date Source accounting attribute.

This table contains the valid accounting attributes for the Accounting Date group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Accounting Date

Date

Header

Event Class

Journal Entry Rule Set

Yes

Should be in open general ledger period.

Accrual Reversal Accounting Date Source

Date

Header

Event Class

Journal Entry Rule Set

No

Should be later than the accounting date.

Distribution Identifier

  • The distribution identifier information links subledger transaction distributions to their corresponding journal entry lines.

  • The Accounting Event Type Code and First Distribution Identifier accounting attributes are predefined to the Distribution Type and Line Number sources.

This table contains the valid accounting attributes for the Distribution Identifier group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Accounting Event Type Code

Alphanumeric

Line

Event Class

Yes

 

First Distribution Identifier

Alphanumeric

Line

Event Class

Yes

 

Entered Currency

  • Entered currency accounting attributes are required for all applications. The Create Accounting process uses them to populate the journal entry line entered currency and amounts.

  • The entered currency accounting attributes must always be assigned to sources. The sources assigned to the entered currency accounting attributes must always contain a value.

  • Accounting Hub predefines source assignment to these accounting attributes. Additional sources can be manually assigned to support cross-currency transactions.

The table contains the valid accounting attributes for the Entered Currency group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Entered Currency Code

Alphanumeric

Line

Event Class

Journal Line Rule

Yes

A valid currency.

Entered Amount

Number

Line

Event Class

Journal Line Rule

Yes

 

Ledger Currency

  • The Create Accounting process uses the ledger currency accounting attributes to calculate journal entry accounted amounts.

  • Accounting Hub calculates the accounted amount as entered amount multiplied by the conversion rate. If the entered currency is the same as the ledger currency, the Create Accounting process ignores the conversion type and conversion rate.

  • For event classes that support foreign currency transactions, and therefore more than one conversion rate and reporting currency amount, multiple event class accounting attribute assignments are created.

    • If a single line of transaction data is provided and the entered currency for debit and credit lines are different, then more than one Entered Currency accounting attribute assignment is required.

This table contains the valid accounting attributes for the Ledger Currency group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Accounted Amount

Number

Line

Event Class

Journal Line Rule

No

 

Conversion Date

Date

Line

Event Class

Journal Line Rule

No

 

Conversion Rate

Number

Line

Event Class

Journal Line Rule

No

 

Conversion Rate Type

Alphanumeric

Line

Event Class

Journal Line Rule

No

A valid general ledger conversion rate type or user.

Exchange Gain Account, Exchange Loss Account

Note: If implementing the exchange gain and loss feature, you can assign predefined account sources as the exchange gain or loss account.
  • The Create Accounting process determines whether there is an exchange gain or loss. The process derives the account based on the account rule assigned to the journal line rule with the Gain or Loss side in the journal entry rule set.

  • If Gain or Loss journal line rules are not defined, then the value from the source mapped to the accounting attribute, Exchange Gain Account and Exchange Loss Account, are used as the exchange gain or loss account.

  • The Create Accounting process raises an exception if unable to create exchange gain or loss line for the transaction in these cases:

    • If Gain or Loss journal line rules are not defined and sources have not been mapped to these accounting attributes

    • If the mapped source does not contain any value.

  • Predefined assignments are not provided for these accounting attributes.

  • If the subledger supports foreign currency or cross-currency transactions that may result in exchange gain or loss, Oracle recommends that you perform one of the following:

    1. Define accounting rules to generate exchange gain or loss lines whenever applicable for the transaction.

      • Define two journal line rules if you would like to use separate account and accounting class for exchange gain and loss. Journal line rules with side Gain are used for the exchange gain. Journal line rules with the side Loss are used for the exchange loss. Optionally, you can define just one journal line rule with side the Gain or Loss if only one accounting class is used.

      • Define two account rules to return the exchange gain account and the exchange loss account. Optionally, define just one account rule if the same account is used for both the exchange gain and loss.

      • Assign the exchange gain or loss journal line rules and appropriate account rule to the journal entry rule set.

    2. Assign sources to the Exchange Gain Account and Exchange Loss Account. Populate the sources with the account combination ID of the exchange gain or loss account already defined in Oracle General Ledger.

This table contains the valid accounting attributes for the Exchange Gain Account, Exchange Loss Account group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Exchange Gain Account

Number

Header

Event Class

No

 

Exchange Loss Account

Number

Header

Event Class

No

 

Gain or Loss Reference

  • The Create Accounting process groups lines with the same Gain or Loss Reference together when calculating exchange gain or loss. The total of the accounted debit amount and the accounted credit amount are calculated for lines with the same Gain or Loss Reference within a journal entry. Then, the difference between the total of the accounted debit amount and the accounted credit amount is considered the exchange gain or loss amount and the exchange gain or loss line is created if applicable.

  • Predefined assignments are not provided for this accounting attribute.

  • Oracle recommends that you assign a header level source to this accounting attribute so that only one exchange gain or loss line is created for a subledger journal entry, should there be any exchange gain or loss.

This table contains the valid accounting attributes for the Gain or Loss Reference group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Gain or Loss Reference

Alphanumeric

Line

Event Class

No

 

Multiperiod Accounting

  • The multiperiod accounting attributes are relevant to applications that require the multiperiod accounting feature to generate accounting in more than one accounting period, for a single transaction.

  • Either no multiperiod accounting attributes should be assigned to sources or all multiperiod accounting attributes should be assigned to sources.

This table contains the valid accounting attributes for the Multiperiod Accounting group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Multiperiod Start Date

Date

Line

Event Class

Journal Line Rule

Yes, if another accounting attribute in the same group has an assignment.

Required if the Multiperiod End Date has a value.

Multiperiod End Date

Date

Line

Event Class

Journal Line Rule

Yes, if another accounting attribute in the same group has an assignment.

Required if the Multiperiod Start Date has a value.

Must be later than Multiperiod Start Date.

Reconciliation Reference

  • The Reconciliation Reference accounting attribute is relevant to all subledger applications to enable clearing account reconciliation from subledgers.

  • The reconciliation reference is stored on subledger journal entry lines and subsequently passed to general ledger for use in the clearing account reconciliation feature.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Reconciliation Reference

Alphanumeric

Line

Event Class

Journal Line Rule

No

 

Control Reference

  • Create Accounting uses control reference accounting attributes to check control totals for a transaction by summing up the line-level source values and comparing to the header-level source value.

  • In case of a difference, the process reports an error to indicate a potential data issue such as a missing transaction line.

  • Sources with no values populated are treated as zeroes by the calculation.

This table contains the valid control reference accounting attributes.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Control Header Reference

Number

Header

Event Class

No

Must be equal to the sum of Control Line Reference values for the transaction.

Control Line Reference

Number

Line

Event Class

No

 

Here are some examples of using control reference:

  • Check control totals for a transaction: Assign a header level Total Line Amount source to control header reference and a line level Default Amount source to control line reference. For a transaction of three lines with Default Amount 100, 200 and 150 respectively populate Total Line Amount in the header file with 450.

  • Check missing transaction lines: Assign a header level Total Line Count source to control header reference and a line level Line Count source to control line reference. Populate Line Count with 1 for each line and Total Line Count in the header file with the total number of lines.

Manage Accounting Rules

Create an Accounting Method

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Watch: This video tutorial shows you how to create an accounting method. The content of this video is also covered in text topics.

In this procedure, you create an accounting method.

Create an Accounting Method

Navigate to the Manage Journal Entry Rule Set page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Expand the task list: Define Accounting Rules for Rapid Implementation.

  6. Select the task: Manage Accounting Methods.

  7. Click Go to Task.

Create an accounting method.

  1. Click Create icon.

  2. Enter Name.

  3. Enter Short Name.

  4. Select Chart of Accounts.

  5. In the Journal Entry Rule Set Assignments region:

    1. Click Create icon.

    2. Enter Event Class.

    3. Enter Event Type.

    4. Enter Rule Set.

    5. Click Save.

  6. Activate the rule set assignment.

    1. In the Assignments region click Activate.

  7. Click Save and Close.

Assign the Accounting Method to the Ledger

You must assign this accounting method to the ledger you use for accounting and posting journal entries.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Ledgers.

  5. Select the task: Specify Ledger Options.

  6. Click Go to Task.

  7. On the Specify Ledger Options page, Subledger Accounting region, select the new Accounting Method.

  8. Click Save and Close.

Accounting methods group subledger journal entry rule sets. This facilitates the definition of consistent accounting treatment for each accounting event class, and accounting event type, for all subledger applications. This grouping enables a set of subledger journal entry rule sets to be assigned collectively to a ledger.

For example:

  • A subledger accounting method can be defined to group subledger journal entry rule sets that adhere to and comply with US Generally Accepted Accounting Principles (GAAP) criteria.

  • By assigning a different subledger accounting method to each related ledger, you can create multiple accounting representations of transactions.

Accounting rules can be defined with either a top-down, or a bottom-up approach.

  • Top-Down: Define the accounting method, followed by components of each rule that must be assigned to it.

  • Bottom-Up: Define components for each rule and then assign them as required.

The Create Accounting process uses the accounting method definition with active journal entry rule set assignments to create subledger journal entries.

When an accounting method is initially defined its status changes to Incomplete. The status will also be Incomplete after modifying a component of any accounting rule associated with the assigned journal entry rule set.

Caution: The accounting method must be completed, by activating its journal entry rule set assignments, so that it can be used to create accounting.

The following definitions are used to define the journal entries, and are applied as updates to the accounting method:

  • Updates to the predefined accounting method

  • Assignment of journal entry rule sets for an accounting event class and accounting event type from the accounting methods page

  • Assignment of accounting methods to ledgers

  • Activation of subledger journal entry rule set assignments

Updates on Predefined Accounting Method

You may update a predefined accounting method by end dating the existing assignment and creating an assignment with an effective start date.

Assignment of Journal Entry Rule Set for Accounting Event Class and Accounting Event Type

You create the assignment of a journal entry rule set for an accounting event class and accounting event type using the accounting method page.

The following should be considered for assigning rule sets:

  • If the accounting method has an assigned chart of accounts you can use journal entry rule sets that:

    • Use the same chart of accounts

    • Are not associated with any chart of accounts

  • You can assign to existing journal entry rule sets or create a new one.

Assignment of Accounting Methods to Ledgers

If the accounting method has an assigned chart of accounts, it may only be used by ledgers that use the same chart of accounts.

If the accounting method does not have an assigned chart of accounts, the accounting method can be assigned to any ledger.

Activation of Subledger Journal Entry Rule Set Assignments

You can activate the subledger journal entry rule set assignments from the Accounting Method page. You can also submit the Activate Subledger Journal Entry Rule Set Assignments process to validate and activate your accounting set ups.

Accounting Method and Accounting Rules

This figure illustrates the relationship of the components used in an accounting method.

The figure visually defines the flow of subledger components.
The subledger application may be set up top-down, or bottom-up, using
the components of the accounting method. These include the journal
entry rule set which is assigned journal line rules, account rules
and description rules. The journal entry rule set is assigned to the
accounting method, which is assigned to the ledger.

Create a Journal Entry Rule Set

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Watch: This video tutorial shows you how to create a journal entry rule set. The content of this video is also covered in text topics.

Procedure

In this procedure, you create a journal entry rule set.

Navigate to the Manage Journal Entry Rule Set page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Expand the task list: Define Accounting Rules for Rapid Implementation.

  6. Select the task: Manage Journal Entry Rule Set.

  7. Click Go to Task.

Create a journal entry rule set.

  1. Click Create icon.

  2. Enter Name.

  3. Enter Short Name.

  4. Select Event Class.

  5. Select Event Type.

  6. Select Chart of Accounts.

  7. In the Journal Entry region:

    1. Select Description Rule you created for the header..

  8. In the Journal Lines region create a credit line.

    1. Click Create icon.

    2. Select Line Type = Credit.

    3. Select Journal Line Rule.

    4. Select Account Combination Rule.

    5. Select Line Description Rule.

  9. In the Journal Lines region create a debit line.

    1. Click Create icon.

    2. Select Line Type = Debit.

    3. Select Journal Line Rule.

    4. Select Account Combination Rule.

    5. Select Line Description Rule.

    6. Select Segment Rule.

  10. In the Supporting References region:

    1. Click Create icon.

    2. Select Supporting Reference.

    3. Click Create icon.

    4. Select another Supporting Reference.

  11. Click Save.

  12. From the Actions menu select Activate.

  13. Click Yes.

  14. Click Save and Close.

  15. Click Done.

Subledger journal entry rule sets provide the definition for generating a complete journal entry for an accounting event.

Select the option to define the subledger journal entry rule set for a particular accounting event class or accounting event type.

If you are using multiple ledgers to meet divergent and mutually exclusive accounting requirements, you can vary journal entry rule sets by ledger. Each of the subledger journal entry rule sets can meet a specific type of accounting requirements.

For example, use US Generally Accepted Accounting Principles (GAAP) oriented subledger journal entry rule sets for a ledger dedicated to US GAAP reporting. Use French statutory accounting conventions for a ledger dedicated to French statutory reporting. These two sets of definitions have differences based on the setup of the various components that make up their subledger journal entry rule sets.

Predefined subledger journal entry rule sets are provided for all Oracle subledgers. If specific requirements are not met by predefined subledger journal entry rule sets, create a copy of the predefined definitions, rename, and modify the copied definitions and their assignments.

Subledger journal entry rule set assignments can be made at two levels, header and line. The following are the subcomponents of a subledger journal entry rule set:

  • Description rules

  • Journal line rules

  • Account rules

Assignment at Header Level

Header assignments define subledger journal header information and line assignments define journal line accounting treatment.

A header assignment includes the following:

  • Accounting date (required)

  • Accrual reversal accounting date (optional)

  • Description rule (optional)

Assignment at Line Level

You can define multiple subledger journal entry rule sets for an accounting event class or accounting event type. Using the line assignment of the journal entry rule set assigned to the accounting event class or type, a single journal entry is generated per accounting event per ledger.

The following can be assigned to a journal entry line:

  • Journal line description rule

  • Journal line rule

  • Account rule

  • Supporting references

Assignment of Description Rules

If a description rule is defined with sources, the sources must also be assigned to the accounting event class that is assigned to the journal entry rule set. The description rule may be assigned at either the header or line level of the journal entry or to both levels.

Assignment of Journal Line Rules

When assigning the journal line rule, you must identify the line type: Gain, Loss, Gain or Loss, Credit, or Debit. The journal line rule must be assigned to the same accounting event class as the one assigned to the subledger journal entry rule set.

When assigning a journal line rule that is enabled for accounting for a business flow, the account combination and certain accounting attribute values are copied from its related journal line having the same business flow class as the current line. Optionally, copy the description rule into the current line instead of assigning a separate description rule.

When assigning a journal line rule that is enabled to copy from the corresponding line within the same journal entry, you have the option to copy the account combination, the segment value, or the line description from the corresponding line into the current line.

Assignment of Account Rules

The account rule assignment defines which accounts are used for the subledger journal line. If the account rule is set up with a chart of accounts, it must have the same chart of accounts as the one assigned to the journal entry rule set. When account rules are defined with sources, the sources must also be assigned to the accounting event class that is assigned the journal entry rule set.

There are two types of account rules:

  • Account Combination Rule: Assign an account combination rule to derive the account combination.

  • Segment Rule: Assign a segment rule to derive a specific segment of an account. For example, a cost center or a natural account segment.

Assignment of Supporting References

Supporting references may be used to capture transaction values on journal entry lines. A supporting reference can be used on a journal entry rule set only if it's assigned a source from the event class of the journal entry rule set.

Create a Journal Line Rule

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Watch: This video tutorial shows you how to create a journal line rule. The content of this video is also covered in text topics.

Procedure

In this procedure you create a journal line rule.

Navigate to the Manage Journal Line Rules page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Expand the task list: Define Accounting Rules for Rapid Implementation.

  6. Select the task: Manage Journal Line Rules.

  7. Click Go to Task.

Create a journal line rule on the Manage Journal Line Rules page:

  1. Click Create icon.

  2. Enter Name.

  3. Enter Short Name.

  4. Enter Event Class.

  5. Enter Side = Credit.

  6. Enter Accounting Class.

  7. Click Save and Create Another.

Repeat these steps to create another journal line rule, with a Side = Debit.

Journal line rules are defined within the context of accounting event classes. A journal line rule can be used in a subledger journal entry rule set that has the same event class. You may also assign conditions to the journal line rule.

Journal Line Rules

Journal line rules are assigned to journal entry rule sets.

To create a journal line rule, select values for options such as:

  • Side (Debit, Credit, Gain or Loss)

    For example, when a payables invoice is generated, the liability account should normally be credited. The journal line rule must therefore specify the Side option as Credit. On the other hand, the payment of the Payables invoice must be accounted with a debit to the liability account. A separate journal line rule must be defined to create this debit line.

  • Merge Matching Lines: To summarize subledger journal entry lines within each subledger entry. Journal entry lines with matching criteria are merged. Here is the list of matching criteria that are used:

    • Account combination

    • Accounting class

    • Anchor line (for PeopleSoft Accounting Hub Cloud)

    • Budgetary control status

    • Business flow class

    • Conversion date

    • Conversion rate

    • Conversion rate type

    • Currency

    • Description

    • Encumbrance type

    • Gain or loss

    • Gain or loss reference

    • Merge matching lines

    • Multiperiod accounting class

    • Reconciliation reference

    • Replaced account

    • Rounding class

    • Supporting references

    • Switch side

    • Third party

    • Third-party site

    • Third-party type

    • Transaction rounding reference

  • Accounting Class

    • Select an accounting class to classify journal entry lines.

    • For example, when a validated Payables invoice is accounted, the Item Expense and Liability journal lines are created. In this case, the journal line rules used in the accounting rules are assigned Item Expense and Liability accounting classes respectively.

  • Switch Debit and Credit: Reverses a debit for a credit and a credit for a debit. For example, you can select this option to ensure that if a negative amount is entered for a journal, the journal line is created with positive amount in the opposite side.

  • Conditions: To restrict the use of a journal line rule by controlling when a particular journal line rule is used by the Create Accounting process.

  • Accounting Attributes: When creating a journal line rule, accounting attribute assignments are automatically established. These are based on the default accounting attribute assignments for that journal line rule's accounting event class. You can override this default mapping of standard sources to accounting attributes. The list of values for the source override includes all sources assigned to the accounting attribute, for the event class associated with the journal line rule.

  • Advanced Options

    • The Subledger Gain or Less Option: Applies only to amount calculations for the primary ledger. Gain or loss amounts are not converted to reporting currency or nonvaluation method secondary ledgers. If the option is selected, the journal line holds the gain or loss amounts calculated by the subledger.

      The gain or loss amount is calculated as the difference in applied amounts due to fluctuations in conversion rates, based upon conversion to the ledger currency. Foreign exchange gain or loss amounts occur when two related transactions, such as an invoice and its payment, are entered in a currency other than the ledger currency, and the conversion rate fluctuates between the times that the two are accounted.

    • The Rounding Class Option: Along with transaction rounding, groups journal lines together and calculates transaction rounding. Subledger transaction rounding differences can occur when a transaction has multiple-related applied-to transactions, such as a Receivables invoice that has multiple associated receipts.

    • The Link Journal Lines Option: Determines whether the journal line rule is set up to establish a link between the accounting of transactions that are related both within the same application, and across applications. The alternatives are described in this table:

This table contains the Link Journal Line Options and their descriptions.

Link Journal Lines Option Description

None

No link is established.

Copy from corresponding line

Build account for a journal line using segments from the offsetting entry of the current journal line.

For example, when the business process requires that a cost center incurring an expense must also bear the invoice liability and cash outlay.

Business flow

Link logically related business transactions.

For example, when recording the closing of a loan, you can link to the account that was used to book the loan origination. Journal line rules that are linked must also be assigned the same business flow class.

Defining Conditions for Journal Line Rules

You may set conditions to specify whether the journal line rule is used to create a subledger journal entry line. If the conditions are true, the line rule is used to create a subledger journal entry line. Use sources to create these conditions.

For example, you can set up a condition that creates a journal line to record tax, only if there is tax for an invoice. The line type and account class mentioned here are examples of sources.

  • The condition for a Payables invoice tax journal line rule could be:

    • Where Line Type = Tax

    • When this condition is true, there is tax for a payables invoice line. A journal entry line is created to record the accounting impact of the tax.

  • Similarly, the condition for an invoice tax journal line rule could be:

    • Where Account Class = Tax

    • In this case, if there is an account class of Tax, the journal line is used to record the accounting impact of the tax.

Another example is a condition that creates a journal line for freight when there are freight charges on an invoice.

Journal line rule conditions determine whether a journal line rule and its associated account rules and description rules are used to create the subledger journal entry line. If the conditions of all the journal line rules assigned to the journal entry rule set are not met, the transaction is processed without the creation of any subledger journal entries, and the event status is set to Processed.

Note: Constant values that are used in any Conditions region must not contain the following characters:
  • "

  • ,

  • &

  • |

  • (

  • )

  • '

For example, in the condition "Project Type" = ABC (123), the constant value following the equal sign, ABC (123), contains restricted characters ( ) that enclose 123 and is invalid.

Create Account Rules and Mapping Sets

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Watch: This video tutorial shows you how to create account rules and a mapping set. The content of this video is also covered in text topics.

Procedure

In this procedure you create a mapping set and account rules.

Create a Mapping Set

Navigate to the Manage Mapping Sets page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Expand the task list: Define Accounting Rules for Rapid Implementation.

  6. Select the task: Manage Mapping Set.

  7. Click Go to Task.

Create a mapping set on the Manage Mapping Sets page.

  1. Click Create icon.

  2. Enter Name.

  3. Enter Short Name.

  4. Enter Output Type.

  • In the Input Source region:

    1. Select Actions > Select and Add.

    2. Search and select Source.

    3. Click OK

  • In the Chart of Accounts region:

    1. Click Create icon.

    2. Enter Chart of Accounts.

    3. Enter Segment.

    4. Click Save.

  • In the Mappings region:

    1. Click Create icon.

    2. Enter Loan Type.

    3. Enter Output for Department.

    4. Click Create icon.

    5. Enter additional Loan Type and Output for Department.

    6. Click Save and Close.

    7. Click Done.

Create Account Rules

Create an account rule with a Constant value type on the Manage Account Rule page.

  1. Select the Manage Account Rules task.

  2. Click Create icon.

  3. Enter Name.

  4. Enter Short Name.

  5. Enter Chart of Accounts.

  6. Enter Rule Type.

  7. Click Save.

  • In the Rules region:

    1. Click Create icon.

    2. Enter Value Type = Constant.

    3. Enter Chart of Account.

    4. Click Save and Create Another.

Create an account rule using a segment rule type and a mapping set.

  1. Enter Name.

  2. Enter Short Name.

  3. Enter Chart of Accounts.

  4. Enter Rule Type = Segment.

  5. Enter Segment.

  6. Click Save.

  • In the Rules region:

    1. Click Create icon.

    2. Enter Value Type = Mapping Set.

    3. Enter Value = Mapping Set name.

    4. Click Save and Create Another.

Create an account rule using an account combination rule type:

  1. Click Create icon.

  2. Enter Name.

  3. Enter Short Name.

  4. Enter Chart of Accounts.

  5. Enter Rule Type = Account Combination.

  6. Click Save.

  • In the Rules region:

    1. Click Create icon.

    2. Enter Value Type = Constant.

    3. Enter Value.

    4. Click Save and Close.

    5. Click Done.

Manage Account Rules

Account rules are used to determine the accounts for subledger journal entry lines. In addition, you can specify the conditions under which these rules apply. Using these capabilities, you can develop complex rules for defining accounts under different circumstances to meet your specific requirements. You can define account rules for an account, segment, or value set.

Account Rules by Account

Define account rules by account to determine the entire account combination. For example, an account rule defined by account can be used to determine the complete supplier liability account in Oracle Fusion Payables.

Account Rules by Segment

Define segment rules to derive a specific segment of the general ledger account. For example, a particular segment like the company segment can be determined from the distribution account.

Another segment can be determined with the use of a constant value. Creating the account one segment at a time offers greater flexibility, but also requires more setup.

Use both segment based and account based rules to derive a single account. Segment-specific rules are used, where they are defined, and take the remaining values from an account-based rule. For example, you can use an account rule which is for all segments and also separately use a rule which is for one particular segment. Segment-specific rules take precedence over the all segments account based rule.

Combine account rules with segment rules. In this case, the segment value is derived from the segment rule to override the corresponding segment of the account. If the segment rule has conditions associated with the priorities and none are met, no override occurs and the segment value is derived from the account rule.

Note:
  • If the returned account is end dated with a date that is the same or before the subledger journal entry accounting date, and an alternate account is defined in the general ledger, the alternate account is used. The original account is stored on the journal line for audit purposes

  • If the alternate account is invalid, and the Post Invalid Accounts to Suspense Account option is selected in the Create Accounting process, then a suspense account is used. An error message is displayed if a valid suspense account is not available.

Account Rules by Value Sets

In the absence of a chart of accounts, you may define account rules based upon value sets. This enables you to share the same rule between more than one chart of accounts if the segments in these charts of accounts share the same value set.

Sharing Account Rules across Applications

You may share account rules across applications in the following ways.

  • Assign an account rule from the same or a different application to a journal line rule in the subledger journal entry rule set. For example, to derive an expense account for journal line rule Expense, assign the Projects Cost Account rule owned to the Payables journal line rule Expense.

  • Create an account rule based on an account rule from another application and assign it to a journal line rule. For example, you may create an account rule Invoice Expense Account referencing Project Cost Account assigned in the Priorities region. You may attach the Invoice Expense Account rule to the journal line rule Expense in the journal entry rule set.

Note:
  • To share an account rule across applications, all sources used by the account rule must be available for the event class.

  • If the sources are available, an account rule is assigned to a journal line rule in the journal entry rule set. Verification occurs to confirm that all sources used by the account rule are available for the journal line rule accounting event class. Journal line rules are only available if the sources are shared; such as reference objects.

Account Rules and Mapping Sets

Mapping sets can be used to associate a specific output value for an account or segment. You can use mapping sets in account rules to build the account.

Account Rules Conditions

In the account rules you may specify conditions for each rule detail line. Priorities determine the order in which account rule conditions are examined. When the condition is met, the rule associated with that priority is used. Depending on which of the defined conditions is met, a different account rule detail is employed to create the account.

The Create Accounting process evaluates conditions based on the priority of the rule detail. When the condition is met, the rule detail is applied.

You can define an account rule using the following rule types:

  • Account combination

  • Segment

  • Value Set

Account Combination Rules

Set up account combination rules based upon the following value types:

  1. Source Value Type: Derive the account combination by specifying a source.

    Sources that have been set up as accounts can be assigned to an account combination rule. Subledger Accounting then obtains the account combination identifier from the source.

  2. Constant Value Type: Establish the account as a constant value.

    For example, the constant could be a completed account combination from the chart of accounts specified. An example is the account combination, 01.000.2210.0000.000. This is the simplest way to derive an account.

  3. Mapping Set Value Type: Derive the account combination by referencing a mapping set.

    Set up a mapping set to determine the complete account combination from the chart of accounts specified.

  4. Account Rule Value Type: Derive the account by referencing another account rule.

    The chart of accounts is optional when defining this type of rule. If the account rule has a chart of accounts assigned, then all the related account rules must use the same or no chart of accounts.

Note: A chart of accounts must be specified for account combination rules using constants.
Segment Rules

Set up segment rules as follows:

  • When a chart of accounts is specified, create a rule to derive the value for a specific segment from the chart of accounts.

  • If the chart of accounts is not specified, create a rule to derive the value for an account segment with a specific qualifier.

Set up segment rules using the same methods discussed in the preceding Account Combination Rules section. By specifying different value types, users can select the way in which the segment value is derived.

Note: A chart of accounts must be specified for segment rules using constants.
Value Set Rules

Value set based rules can be created when a chart of accounts is not specified, enabling you to share the same rule between more than one chart of accounts. But, only if the segments in these charts of accounts share the same value set.

Set up value set based rules using the same methods discussed in the preceding Account Combination Rules section.

Manage Mapping Sets

Mapping sets provide an efficient way to define a segment or account combination value for one or more transaction or reference attribute values. Using such input and output mappings is simpler than using complex conditions on account rules.

Based on the value of the source input, a single segment or a full account is derived.

Examples of source input value types:

  • Transaction attributes

  • Reference attributes

With mapping sets you can:

  • Use up to 10 transaction or reference attributes as inputs into a mapping.

  • Define default output value to use when actual input values do not match the mappings.

  • Use wildcards for multiple input mapping sets to indicate that the value of a particular input should be ignored for certain mappings.

  • Enter the mappings directly on the user interface or use the spreadsheet available in the Export option, and then import.

    Export allows:

    • Exporting a template to create mappings.

    • Exporting all mappings created for the mapping set to add or edit the current mappings.

Example

Assume a business operates in several regions, including:

  • East

  • South

  • West

The business has a Region segment in their chart of accounts.

The region name can be the input for the mappings to derive the value of the region segment. You can create a mapping set that maps region names to the corresponding region code.

This table contains region names and segment values used in this example.

Input Value (Region Name) Segment Value

East

01

South

02

West

03

Additional transaction information, such as transaction type and salesperson name, could also be used as inputs to help derive a different segment value for each combination of the input values.

Define a mapping set when you have a matrix of input values that produces distinct output values. For each input value, specify a corresponding account combination or segment output value. One or more related pairs of these input values with the segment or account combination output values form a mapping set.

A mapping set definition includes the selection of input sources, output type, and mappings. The mappings section displays how input values are mapped to output values.

To define mapping sets:

  • Specify the output type:

    • The output type for a mapping set can be an account combination, segment, or value set.

    • Use value set:

      • If the value set is used by more than one chart of accounts,

      • And the mapping set can be reused across multiple charts of accounts.

    • Expected input or output combinations are constant across the charts of accounts.

    • Based on the selection, the mapping set provides the value for an account, segment, or value set.

  • Define the input source:

    • Specify the input source for mapping.

      • The input source is provided for predefined mapping sets.

  • Define the chart of accounts and value sets.

  • Specify the output value for the mapping:

    • For a given input value, enter the corresponding output value.

    • The account rule uses this value to populate either the account or the segment.

      • If the output type is a value set, the output value is an individual value from the value set entered.

      • If the output type is segment, the output value is an individual segment value.

      • If the output type is account combination, the output value is an entire account.

Mapping sets are used with account rules:

  • If the output type is account combination or segment, identify the chart of accounts assigned to the mapping set.

  • If the output type is a value set, identify the value set assigned to the mapping set.

  • If defining a mapping set for more than one chart of accounts or value set, it can be assigned to more than one account rule. This increases the ability to share the mapping set.

A mapping set with no associated chart of accounts:

  • Can be assigned to an account rule if:

    • The account rule is not associated with a chart of accounts.

    • The mapping set can have any chart of accounts or no chart of accounts.

  • Cannot be assigned to an account rule if:

    • The account rule is associated with a chart of accounts. The mapping set must have the same chart of accounts.

Example

In the following example, the chart of accounts is set up with four segments. A mapping set is defined with a value set for Supplier Type as described in the following table.

This table contains examples of input values and output values.

Input Value Output Value

Services

01-100-6120-000

Consulting

01-400-6110-000

Assume that two invoices are entered, one for a supplier with a type of Services and one for a supplier with a type of Manufacturing.

When using the mapping set, the source value Supplier Type is compared with the mapping set input values to determine the account.

In this example, there is a match for the first case; the invoice with a supplier type of Services maps to an input value. However, the invoice with a supplier type of Manufacturing does not map to an input value.

This table contains the derived accounts based on the example.

Invoice Supplier Type Output Value

1

Services

01-100-6120-000

2

Manufacturing

No account generated

Note: To ensure that transaction 2 is accounted, you may want to modify the account rule to which the mapping set is assigned. If not, a separate rule can be defined to provide for the Manufacturing supplier type, or define a default output in the existing mapping set.

Import Subledger Accounting Mappings

You can import high volume mappings that are greater than 2,000 lines using the subledger accounting import mappings spreadsheet template.

To do this, you must first use the Create Mapping Set page to create a mapping set rule definition with the corresponding input sources and output types.

Let's walk through the steps to access the template:

  1. Navigate to the File-Based Data Import for Oracle Financials Cloud guide.

  2. In the Table of Contents, click File-Based Data Imports.

  3. Click Subledger Accounting Mappings Import.

  4. In the File Links section, click the link to the Excel template.

Here are few things to keep in mind when preparing your data in the worksheet:

  • Enter the required information for each column. Refer to the tool tips on each column header for detailed instructions.

  • Don't change the order of the columns in the template.

  • You can hide or skip the columns you don't need to use, but don't delete them.

Settings That Affect the Subledger Accounting Mappings Import Process

The Subledger Accounting Mappings Import template contains an instructions tab, a tab that represents the table where the data is loaded, and some example tabs that contain sample mappings for different scenarios. This table shows the tabs in the Subledger Accounting Mappings Import template and their descriptions:

Spreadsheet Tab Description

Instructions and CSV Generation

Contains information about using the template and generating CSV files.

Mappings

Enter information about the subledger accounting mappings you are importing into the interface table.

Example1_CCID_Output

Contains an example of mappings for a mapping set rule with the account combination output type.

Example2_Segment_Output

Contains an example of mappings for a mapping set rule with the segment output type.

Example3_Value_Set_Output

Contains an example of mappings for a mapping set rule with the value set output type.

Example4_FlexAccountComb_Input

Contains an example of mappings for a mapping set rule with the account combination input source type.

Example5_FlexfieldSegment_Input

Contains an example of mappings for a mapping set rule with the segment input source type.

How Subledger Accounting Mappings Is Processed

Create the Spreadsheet

Enter the mapping information in the Mappings worksheet. Refer to the tool tips on column headers for detailed instructions. Here are some best practices that you must follow to minimize errors while uploading the mapping data:

  • Make sure that Mapping Set Short Name is in the upper case.

  • Confirm that the format for the Start Date and End Date columns is YYYY-MM-DD.

  • If the end date value is given for a mapping line, you must also provide a start date value.

  • Make sure that the Default Mapping column has only one of the following values:

    • Blank

    • N

    • Y

    Note: Don't use values such as No, n, Yes, or y because they are invalid.
  • Specify only one mapping line as the default mapping.

  • You must provide values for all mandatory fields. The mandatory fields can differ based on the output type of the mapping set. Here are the details of mandatory fields for different output types:

    Mapping Set Output Type Mandatory Fields for Output Type Mandatory Fields for Output Value

    Account Combination

    Chart of Accounts

    Account Combination

    Segment

    Chart of Accounts

    Segment

    Segment or Value Set

    Value Set

    Chart of Accounts

    Value Set

    Segment or Value Set

  • Make sure that no space or new line character is appended to the actual data as it may result in import failure because of value mismatch.

  • To delete an existing row from the Mappings sheet, select and right-click the row. Then, click Delete. Don't press the Delete key to delete a row because the application can consider such rows as blanks on validation.

You can also refer the example worksheets for more information. For example, how to use the account combination or segment value as the output for the mappings.

After you finish preparing the mapping data, click the Validate button to validate date format, line numbers, required fields, and default mapping. Correct the reported errors and save the spreadsheet template.

Generate the Zip File

After you finish preparing the spreadsheet template, you need to generate a Zip file that is used to import data into the application. Here is how you generate the Zip file:

  1. On the Instructions and CSV Generation tab of the template, click the Generate CSV File button to generate a Zip file containing one CSV file.

    You can also enter mapping information directly in a CSV file instead of the spreadsheet template. To do this, you must enter mapping information in the CSV file in the same format as in the Subledger Accounting Mappings Import template. Here is the order of columns in the Accounting Mappings Import template:

    • Line Number

    • Application Name

    • Mapping Set Short Name

    • Chart of Accounts Short Name

    • Transactions Chart of Accounts Short Name

    • Value Set Short Name

    • Segment Short Name

    • Account Combination

    • Segment or ValueSet

    • Source Value 1

    • Source Value 2

    • Source Value 3

    • Source Value 4

    • Source Value 5

    • Source Value 6

    • Source Value 7

    • Source Value 8

    • Source Value 9

    • Source Value 10

    • Effective Start Date

    • Effective End Date

    • Default Mapping

  2. Review the generated XlaImportMappingsTemplate.csv that is appended as a worksheet in the same spreadsheet. It must have the same number of mapping lines that exist in the Mappings worksheet.

Load File for Import

After you generate the Zip file and verify the CSV file, you must load the Zip file to the interface and application database tables. Let's look at the steps to load the Zip file.

  1. Navigate to Tools > Scheduled Processes.

  2. Click Schedule New Process.

  3. Select the Load Interface File for Import process and then click OK.

  4. In the Process Details dialog box, select Import Accounting Setup process.

  5. Upload the Zip file that you generated and click Submit.

    The mapping details are imported to the interface and application database tables.

Correct Import Errors

Here is how you can correct errors that occurred while loading the CSV file:

  • Review the log and output files of the Load File to Interface child process for information about the data that caused the failure.

  • The Load Interface File for Import process ends in error and the Load File to Interface child process ends in either warning or error.

  • All rows that were loaded from the CSV file are deleted, even those rows that loaded successfully. This lets you edit the erroneous data in the spreadsheet and resubmit without having to separate the successful rows from the rows that need modification.

These are the steps to correct errors caused when validations are performed by the application:

  • Review the log and output files of the Import Accounting Setup process.

  • The output file provides the summary and details of the uploaded files, including any reported error.

Secure the Upload Mapping Process

You can use the Application Implementation Consultant role to upload the mapping template. However, you can also define new roles to do this task. Make sure that you assign these rights to the new roles:

  • The privileges to manage mapping sets such as the Manage Subledger Mapping Sets and Manage Subledger Mapping Set Value privileges.

  • A duty role to load interface file for import such as the FSCM Load Interface Administration duty.

Create Description Rules

Watch video

Watch: This video tutorial shows you how to create a user-defined formula and description rules. The content of this video is also covered in text topics.

Procedure

In this procedure you create a user-defined formula and description rules.

Create a User-Defined Formula

Navigate to the Manage Mapping Sets page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Expand the task list: Define Accounting Rules for Rapid Implementation.

  6. Select the task: Manage User-Defined formulas.

  7. Click Go to Task.

Create a formula on the Manage Formulas page.

  1. Click Create icon.

  2. Enter Name. The Short Name is created but can be updated.

  3. Enter Data Type.

  4. Enter Event Class.

  5. Click Save.

  • In this formula you abbreviate a loan type value. For example, if the loan type is Fixed Rate, then its new value is FR; otherwise the value is AR.

    In the Expression region:

    1. Click Insert Function.

      1. Enter Type = Conditional.

      2. Click Search.

      3. Select IF THEN ELSE

      4. Click OK.

    2. Place the cursor after the IF,.

    3. Click Source.

      1. Select Subledger Application.

      2. Select Name = Loan Type.

      3. Click Search.

      4. Select Loan Type.

      5. Click OK.

    4. Click More.

    5. Select Equal To (=).

    6. On the IF line, after the = enter 'Fixed Rate' including the single quotes.

    7. On the THEN line, enter 'FR'.

    8. On the ELSE line, enter 'AR'.

    9. Validate the formula.

      1. Click Validate.

      2. Click OK on the Information message.

      3. Click Save.

    10. Activate the formula.

      1. Click Actions > Change Status > Activate.

    11. Click Save and Close.

Create Description Rules

In this exercise, you create a header description rule for an accounting event. In this example, we display the loan type, event type, and the customer number at the header level of the journal entry.

Navigate to the Manage Description Rules page.

  1. Click Go to Task for the Manage Description Rules task.

  2. Click Create icon.

  3. Enter Name.

  4. Enter Short Name.

  5. Click Save.

  6. In the Rules region, enter the description rule components.

    1. Click Create icon.

    2. In the Description Details text box enter Loan Type.

    3. Click Source.

      1. In the Source Search enter Type, Formula.

      2. Select the formula you created in the prior step.

      3. Click OK.

    4. In the Description Details text box, place your cursor at the end of the text and append:

    5. Click Source.

    6. Search by Name: Accounting Event Type Name.

    7. Click OK.

    8. In the Description Details text box, place your cursor at the end of the text and append:

    9. Click Source.

    10. Search by Name: Customer Number.

    11. Click OK.

  7. Click Save and Close.

  8. Click Save and Create Another.

In this exercise, you create a line description for an accounting event. In this example, we display the loan rate at the line level of the journal entry.

  1. Click Create icon.

  2. Enter Name.

  3. Enter Short Name.

  4. Click Save.

  5. In the Rules region, enter the description rule components.

    1. Click Create icon.

    2. In the Description Details text box enter Rate:.

    3. Click Source.

      1. In the Source Search enter Name, Loan Rate.

      2. Click OK.

  6. Click Save and Close.

  7. Click Save and Close.

  8. Click Done.

Use descriptions rules to define the elements of a description that appears on the subledger journal entry at the header or the line. The definition determines both the content and sequence in which the elements of the description appear. You can assign a condition to a description rule to determine that the description is selected for display if the condition is satisfied.

Description Rule Definition

A description rule can be defined with combinations of source and literal values. If sources are used in the rule, the accounting event class associated with the sources determines in which subledger journal entry rule set the description rule can be selected and used.

Build descriptions using the available sources for the application.

The following is the description details that have been entered, using a literal and a source:

  • Loan Origination Date = Origination Date

    • Literal = Loan Origination Date

    • Source = Origination Date

For example:

  • Source value of the Origination Date = 11/01/11

  • Journal entry description = Loan Origination Date 11/01/11

The following provides examples of defining an account rule with a condition.

Example 1: User-Defined Real Estate Application Account Rule Condition Example

This example defines an account rule for assignment to a loan journal line. The account rule has two priorities, a mapping set and a constant.

  • The first priority creates an output for an account based on the mapping set rule definition.

    • A condition is created using the first priority rule. This rule is only used if the condition is met.

      • The condition is Credit Status must not be null.

      • The accounts derived from the mapping set rule are used if the Credit Status has a valid value. Otherwise, the accounts derived from the entered constants value from the second priority are used.

    • This table contains the setup of the condition for the first priority:

      ( Source Operator Value )

      (

      "Credit Status"

      is not null

       

      )

  • The second priority creates an output from a constant value (0.9100030.50034206331.0.0.0). No condition is associated with the second priority.

Example 2: Oracle Fusion Assets Account Rule Condition Example

This example defines a rule for a capital purchase. The rule is applied if the distribution account cost center is the same as the liability account cost center, and the asset tracking option is Yes.

This condition can be expressed as:

  • Where Distribution Cost Center = Liability Cost Center and Asset Tracking option = Yes

This table contains the setup of the condition formula.

( Source Delimiter Segment Operator Value Delimiter Segment ) And Or

(

"Distribution Account"

.

"Cost Center"

=

"Liability Account"

.

"Cost Center"

)

'AND'

(

"Asset Indicator"

 

=

Yes

 

)

 

The following two rows of data are used in the accounting event, to which the account rule and condition applies.

Account Rule Condition Example: Accounting Event Data

This table contains the values to which the condition is applied.

Account Invoice 1 Invoice 2 Asset Indicator

Distribution Account

02-640-2210-1234

01-780-6120-0000

Yes

Liability Account

01-640-2210-0000

02-782-2210-0000

Yes

In the Accounting Event Data table, assume the cost center segment is the second segment. When the account rule with this condition is used the account rule is applied to derive the account of Invoice 1 only. For Invoice 2, (assets tracking option = Yes), the cost center for the Distribution and Liability accounts are not the same. Both conditions must be met in order for the rule to apply.

Note:
  • When an account source is used, you must also use a specific segment. Select All if the full account is required to be used in the condition instead of a specific segment.

  • The condition uses the account source and distribution account, along with a segment that you must provide. In this example, the cost center segment is provided.

Create User-Defined Formulas

Video

Watch video

Watch: This video tutorial shows you how to define a user-defined formula to return a value to be used to create subledger journal entries. The content of this video is also covered in text topics.

Procedure

In this procedure, you create a user-defined formula for an existing Payables description rule.

Create a User-Defined Formula

Navigate to the Manage Formulas page.

  1. Click Navigator.

  2. Click Setup and Maintenance.

  3. In the Setup and Maintenance work area, go to the following:

    • Offering: Financials

    • Functional Area: Any subledger (for example, Payables, Receivables, Projects, Fixed Assets, Collections, and so on)

    • Task: Manage User-Defined Formulas

Create a formula on the Manage Formulas page.

  1. Click Create icon.

  2. Enter Name. The Short Name is created but can be updated.

  3. Enter Data Type.

  4. Enter Event Class.

  5. Click Save.

  • This formula is used in a description rule for the Invoices event class.

    In the Expression region:

    1. Click Insert Function.

      1. Enter Type = Conditional.

      2. Click Search.

      3. Select IF THEN ELSE

      4. Click OK.

    2. Place the cursor after the IF.

    3. Click Source.

      1. Select Subledger Application.

      2. Select Name = Intercompany.

      3. Click Search.

      4. Select Intercompany Invoice Indicator.

      5. Click OK.

    4. Click More.

    5. Select Equal To (=).

    6. On the IF line, after the = enter 'Y' including the single quotes.

    7. On the THEN line, click Insert Function.

      1. Select Type = Alphanumeric.

      2. Click Search.

      3. Select Concatenate.

      4. Click OK.

    8. Double-click String1, and replace with 'Intercompany Invoice'.

    9. Double-click String2.

      1. Double-click Source.

      2. Select Subledger Application = Payables.

      3. Enter Name = Invoice Number.

      4. Click Search.

      5. Select Invoice Number.

      6. Click OK.

    10. Copy and pasts the THEN clause Concatenate('Intercompany Invoice',"Invoice Number") to the ELSE clause.

    11. Remove 'Intercompany Indicator'.

    12. Validate the formula.

      1. Click Validate.

      2. Click OK on the Information message.

      3. Click Save.

    13. Activate the formula.

      1. Click Actions > Change Status > Activate.

    14. Click Save and Close.

Add the User-Defined Formula to a Description Rule

Add the user-defined formula to an existing description rule.

  1. Navigate to the Setup and Maintenance work area.

  2. In the Setup and Maintenance work area, go to the following:

    • Offering: Financials

    • Functional Area: Any subledger (for example, Payables, Receivables, Projects, Fixed Assets, Collections, and so on)

    • Task: Manage Description Rules

  3. Click Edit on the Invoice Type description rule.

    1. Remove the existing source.

    2. Click Source button.

    3. Search by Type

    4. Select Invoice Header with Type.

    5. Click Save and Close.

  4. Click Save and Close.

Manage User-Defined Formulas

You can use Subledger Accounting user-defined formulas to derive a value that is used in a journal entry, such as a journal amount or description.

Formula Usage and Assignments

A user-defined formula can be used to:

  • Calculate a numeric value

  • Derive an alphanumeric value

  • Return a date value

It can also be used in any of the following accounting rule components:

  • Journal line rule

  • Account rule

  • Mapping set

  • Description rule

  • Supporting reference

Formula Definition

Define user-defined formulas using sources for the selected event class. Predefined functions and conditions can also be used to derive the resulting value.

  • Enter source in double quotes (").

  • Enter constant values in single quotes (').

  • Enter date values in the format YYYY-MON-DD.

Example 1

A user-defined formula has been defined to use in the description rule for the journal entry rule set for the Invoice event class.

Steps:

  1. Define a formula:

    • IF "Project Number" IS NOT NULL AND "Invoice Date" >= '2015-Jan-01'

      THEN Concatenate("Project Number", "Invoice Number")

      ELSE Concatenate("Supplier Name", "Invoice Number")

  2. Use the formula in a description rule.

  3. Assign the description rule to a journal entry rule set.

Results:

Accounting is created for two project invoices and one nonproject invoice.

This table contains the invoices created by example 1.

Invoice Invoice Details Journal Entry Description

1

Invoice number = MA0024

Invoice date = 2014-Dec-11

Supplier name = ABC Inc.

Project number = 12345

ABC Inc.MA0024

2

Invoice number = MA0045

Invoice date = 2015-Jan-30

Supplier name = ABC Inc.

Project number = 12345

12345MA0045

3

Invoice number = MA0012

Invoice date = 2015-Jan-15

Supplier name = ABC Inc.

ABC Inc.MA0012

Example 2

A journal entry is recorded for the actual 401k funding every quarter. The monthly accrued amount entry is created for each month of the quarter using the following user-defined formula.

Note that the accrual entry is to be reversed at the beginning of the next month by the accrual reversal feature.

Steps:

  1. Define a formula:

    • "Fund Balance" / 3 * "Month Number in the Quarter"

  2. Assign the formula to the Entered Amount accounting attribute for the event class.

  3. Use the formula as the Entered Amount for the journal line rule.

  4. Assign the journal line rule to the journal entry rule set.

Fund balance = 1,200 USD

This table contains the monthly entries created using example 2.

Month Results

1

Accrual amount for the first month in the quarter: 1200 / 3 * 1 = 400

2

Accrual amount for the second month in the quarter: 1200 / 3 * 2 = 800

3

Accrual amount for the third month in the quarter: 1200 /3 * 3 = 1200

Predefined Formula Functions

The following predefined functions are available to be used in user-defined formulas.

This table contains a listing of predefined formula functions.

Type Function Description Example

Alphanumeric

Concatenate

Concatenate two strings into one single string.

Concatenate('This is ', 'a test.') returns 'This is a test'.

Alphanumeric

Substring

Extract part of a string.

Substring('How are you?', 3,5) returns 'w are'.

Alphanumeric

ToText

Convert a numeric value to text.

ToText("Tax Rate") returns the tax rate in text format.

Note: A formula with ToText cannot be used in a rule condition.

Date

FirstDayOfYear

Return the first day of the calendar year based on the parameter.

FirstDayOfYear('2013-Jul-11') returns '01-Jan-2013' in date format.

Date

LastDayOfYear

Return the last day of the calendar year based on the parameter.

LastDayOfYear('2013-Jul-11') returns '31-Dec-2013' in date format.

Date

FirstDayOfMonth

Return the first day of the month based on the parameter.

FirstDayOfMonth('2013-Jul-11') returns '01-Jul-2013' in date format.

Date

LastDayOfMonth

Return the last day of the month based on the parameter.

LastDayOfMonth('2013-Jul-11') returns '31-Jul-2013' in date format.

Date

AddMonth

Return the date of specified number of months after the date in parameter.

AddMonth('2013-Jul-11',2) returns 11-Sep-2013 in date format.

Numeric

YearNum

Return the year of a date source in 4-digit format.

YearNum('2012-Feb-28') returns the number 2012.

Numeric

MonthNum

Return the month of a date source in numeric format.

MonthNum('2012-Feb-28') returns the number 2.

Numeric

DayNum

Return the day of date source in numeric format.

DayNum('2012-Feb-28') returns the number 28.

Numeric

Round

Round a number to a specific decimal place.

Round(183.1123, 2) returns 183.11

Round(183.1123, -1) returns 180

Numeric

RoundUp

Round up a number to integer.

RoundUp(0.01) returns 1.

RoundUp(1.50) returns 2.

Numeric

RoundDown

Round down a number to integer.

RoundDown(0.01) returns 0.

RoundDown(1.50) returns 1.

Numeric

Power

Return the power of a number.

Power(3,2) returns 9.

Numeric

NumberOfGLPeriod

Return the number of nonadjustment accounting periods between two dates.

  • If start date is not the first day of an accounting period it's counted as one period.

  • If end date is not the last day of an accounting period, it's counted as one period.

If accounting calendar is defined as Monthly, NumberOfGLPeriod('2013-Jul-11', '2013-Oct-10') returns 4.

Numeric

ToInteger

Convert a text value to integer.

ToInteger("Cost Center Segment") returns the cost center segment value as a numeric value.

Create Supporting References

Watch video

Watch: This video tutorial shows you how to create supporting references. The content of this video is also covered in text topics.

In this tutorial you create supporting references.

Navigate to the Manage Supporting References page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Expand the task list: Define Accounting Rules for Rapid Implementation.

  6. Select the task: Manage Supporting References.

  7. Click Go to Task.

Create a supporting reference.

  1. Click the With Balances tab.

  2. Click Create icon.

  3. Enter Name.

  4. Enter Short Name.

  5. In the Sources region:

    1. Search Subledger Application.

    2. Source and select Source.

    3. Click OK.

  6. Repeat these steps to create another supporting reference.

  7. Click Save and Close.

Supporting references are used to store additional source information about a subledger journal entry at the line level.

Supporting references with balances establish subledger balances for a particular source and account for a particular combination of supporting references plus the account combination.

For example:

  • If a journal line contains a supporting reference that includes two sources, Customer Type and Customer Name.

  • Balances are created for the account combination, plus customer name and customer type.

Examples of how you may want to use supporting reference balances are to:

  • Facilitate reconciliation back to the subledgers and source systems by tagging journal entries with transaction and reference attributes.

  • Create balances by dimensions not captured in the chart of accounts.

  • Reporting using dimensions not captured in the chart of accounts.

  • Enrich Oracle Fusion Business Intelligence Applications reporting on subledger journals.

  • Profit and loss balances by dimensions not captured in the chart of accounts

Define supporting references to hold additional supporting information for detailed account balance maintenance or reconciliation and reporting requirements.

Supporting Reference Assignment

Supporting references are a powerful tool to allow capture of journal entries with transaction attributes. You can use these tags to report on entries, reconcile entries back to source systems or even maintain balances at the attribute level.

  • Define supporting references once and reuse by assigning sources of different event classes or source systems to the same supporting reference.

  • You can assign one source per event class to each supporting reference. The subledger or source system uses the supporting reference name to store the source values. This standardizes supporting reference information, even if it comes from disparate source systems.

Supporting references can be defined using either of these options (located on tabs):

  • With Balances:

    • Select the With Balances tab in the definition of the supporting reference, to have balances maintained when the supporting reference is assigned.

    • For balance sheet accounts, supporting reference balances are carried forward to the first period of the accounting calendar's year.

    • For Profit and Loss accounts, supporting reference balances are set to zero in the first period of the accounting calendar's year.

    • A limit of thirty supporting references with balances can be defined. You can consider adding more source assignments to predefined supporting references, rather than creating a new one.

  • Without Balances:

    • No limit to the number of supporting references without balances is defined.

    • Consider using a journal entry header or line description if:

      • No balance is maintained for a supporting reference.

      • No supporting reference details are needed for reports.

Caution: Using supporting references instead of descriptions may impact accounting engine performance.

Migrate the Configuration

Considerations for Migrating Accounting Rules

Use the export and import functionality in the Setup and Maintenance work area to perform migration of setup data. When migrating accounting rules, you must migrate task lists in entirety and fulfill some requirements.

Full Task List Migration

This table contains the task lists used to migrate in full, depending on the offering.

Offering Task List

Oracle Fusion Accounting Hub

Define Accounting Transformation Configuration

Oracle Fusion Financials

Define Subledger Accounting Rules

Define Transaction Account Rules

Support is not provided for a partial task list migration.

You may migrate setup data for specific applications only. Note that supporting references, accounting options, and accounting class usages are migrated for all applications, regardless of the applications specified.

Migration Requirements

Prior to migration, journal entry rule sets and accounting methods must be successfully activated. Invalid journal entry rule sets or accounting methods cause import failure.

Ensure that your setup data migration includes all dependent business objects from other required setup modules, such as Define Ledgers. The import sequencing of these dependent business objects must be prior to accounting rules business objects.

Secure Accounting Transformations

Security for Accounting Transformations in Accounting Hub

Accounting transformations require both function and data security privileges.

Oracle Accounting Hub security for accounting transformations includes:

  • Setup task security

    • Security to register source systems into Accounting Hub.

    • Security to configure accounting rules to define accounting treatments for transactions.

  • Transactional task security

    • Security to create subledger journal entries (manual subledger journal entries or those generated by the Create Accounting process).

    • Security to review and generate reports of subledger journal entry headers and lines.

Security to Perform Setup Tasks

Use the Define Accounting Transformation Configuration task in the Setup and Maintenance work area to integrate your external source system with the Accounting Hub.

To register your external source system and configure accounting rules, the setup user must be provisioned with a role that includes the following duty roles:

  • Application Implementation Consultant

  • Accounting Hub Integration

  • In the security reference implementation, the Financial Application Administrator job role hierarchy includes the Accounting Hub Administration Duty role. This role provides the access to integrate your external source systems with accounting transformations.

Security to Perform Transactional Tasks

To import transaction data for accounting and posting in general ledger, the user must be provisioned with a job role that is associated with the Accounting Hub Integration duty role.

  • The Import Subledger Accounting Transactions privilege is assigned to the Accounting Hub Integration duty role. This role enables the user to submit the Import Subledger Accounting Transactions process. This process also creates accounting entries and posts them in the general ledger.

To create and view subledger journal entries as an independent task, you must have the access necessary to perform the tasks. These tasks can be opened from the Oracle General Ledger, Journals work area. You must have access to the work area, as well as all of the ledgers (primary, secondary and reporting currency) in which the journal entry is posted.

The following are defined in the security reference implementation:

  • The General Accounting Manager job role hierarchy includes duty roles that provide the entitlement to manage general accounting functions. This entitlement provides access to the general ledger, Journals work area.

The following duty role must be assigned directly to the General Accounting Manager job role to provide access to create and view subledger journal entries:

  • Accounting Hub Integration Duty

Alternatively, you can assign the Subledger Accounting Duty and Subledger Accounting Reporting Duty roles to any of the following general ledger job roles:

  • Chief Financial Officer

  • Controller

  • Financial Analyst

  • General Accountant

For more information about available setup job roles, duty roles, and privileges, see the Oracle Financials Cloud Security Reference guide on the Oracle Help Center.

Create and Process Subledger Journal Entries

How Subledger Journal Entries are Created and Processed in Accounting Hub

The Create Accounting process uses the uploaded transaction data and accounting rules to create subledger journal entries. For example, a subledger journal entry rule set specifies that the customer name should appear in the description of a subledger journal entry line. The customer name value is obtained from the customer name source data provided by the uploaded transaction data.

This figure illustrates the Create Accounting process.

This figure illustrates the Create Accounting process.

How Subledger Journal Entries Are Created and Processed in Accounting Hub

  1. The source system transactions are uploaded into Universal Content Management.

  2. The transactions are then imported into Accounting Hub using the Import Accounting Transactions process.

  3. The Create Accounting process is automatically submitted.

  4. Subledger journal entry rule set definitions and sources from transaction data are applied to create subledger journal entries.

  5. The subledger journal entries are summarized and imported to Oracle General Ledger.