Example of Segment Labels

For a chart of accounts, each segment can be qualified by a label to distinctly indicate its purpose. The label designation is used by Oracle Fusion General Ledger processes to determine how to display and process transactions and balances that are recorded.

Scenario

You are creating your chart of accounts with six segments. General Ledger permits selection of up to 30 segments for your chart of accounts. You must have a minimum of three required segments, as determined by the number of required segment labels (qualifiers). Required segment labels are:

• Primary Balancing Segment: Main balancing segment typically used to represent the company dimension of the organization. The segment set with this label can't be set with another label.

• Cost Center Segment: Smallest segment of an organization for which you collect and report costs. You are required to create this segment if you're implementing Oracle Fusion Assets.

• Natural Account Segment: Classification of transactions and balances according to distinct account types: asset, liability, equity, revenue, and expense accounts. The segment set with this label can't be set with another label.

The following optional segment labels are available, and you are implementing all of them:

• Second Balancing Segment: Used to balance transactions, as needed, by an additional dimension beyond the primary balancing segment.

• Third Balancing Segment: Used to balance transactions, as needed, by an additional dimension beyond the primary and second balancing segments.

• Intercompany Segment: Used to track intercompany due to and due from balances by identifying the specific trading company. The intercompany qualified segment cannot be set with any of the three balancing segment qualifiers. The values in this segment's value set must be the same as the primary balancing segment.

Segment labels can only be assigned once within a chart of accounts. The following table shows the segment labels that are assigned to each segment in the chart of accounts.

Segment	Label
Company	Primary Balancing Segment
Cost Center	Cost Center and Second Balancing Segment
Location	Third Balancing Segment
Account	Natural Account Segment
Product Line	Not Applicable
Intercompany	Intercompany Segment

Note: Validations aren't performed when segment labels are assigned, so verify that all are assigned correctly before using your chart of accounts.

For Oracle Transactional Business Intelligence reporting, all labeled segments of the chart of accounts are automatically maintained in the data that reporting is based on. The granularity of information stored in the nonqualified segments is summarized and Oracle Transactional Business Intelligence isn't able to provide detailed reporting by segments. To maintain the ability to perform detailed reporting on such segments, create user-defined labels to qualify these segments.

For example, one of the segments of the chart of accounts is based on product line, and none of the segment labels are applicable. The organization must derive product line-based Oracle Transactional Business Intelligence reports. Create a user-defined label called Product Line to use to qualify the Product Line segment of the chart of accounts.