Setup Task List for Financials

Because payroll and payroll costing rely on and integrate with components of other applications, you must set up the components in Financials, such as charts of accounts and ledgers.

Set up the financial components before you set up components in Payroll, such as banks to process payments, associate a ledger to a payroll definition, and run processes to distribute costing results.

Complete these setup tasks to create the chart of accounts and ledgers. You can perform these tasks with the application implementation consultant job role can perform these tasks.

Chart of Account Setup

Complete these tasks to set up your chart of accounts information. Later, you associate the chart of accounts to a ledger.

Task	Action
Value Sets	Create new or review existing value sets, which you will associate with a key flexfield segment.
Structures	Create account structures that specify the segments to include, their order, and the value sets that will validate the data entered in the segments. General Ledger predefines the Accounting key flexfield.
Structure Instances	Create account structure instances, which you will use to record transactions and maintain account balances.
Value Set Values	Create groups of values, which you will assign to a key flexfield segment.
Account Hierarchies	Search, create, and edit hierarchical groupings of accounts.
Accounting Calendars	Set up accounting calendar period details. Determine the total number, frequency, and duration of the accounting periods.
Account Combinations	Create account combinations if the structure instance of your chart of accounts flexfield doesn't allow dynamically created account combinations Create accounts for each account combination used in payroll. As a best practice, use the same account numbers for your payroll and general ledger accounts. If you reconcile payments in Cash Management, create an account combination for reconciliation differences.

Ledger Setup

You perform these tasks as part of the accounting configuration setup for Global Payroll.

Task	Action
Primary Ledgers	Create a ledger with a chart of accounts, accounting calendar, currency and subledger accounting method. Note: If you're creating bank information, you must create a primary ledger.
Legal Entities	Add the legal entities that use the ledger. The Legal Entity HCM Information task associates the payroll statutory units for legal entities to the legislative data group.
Ledger Options	Complete all the fields for the General Information and Accounting Calendar, and Subledger Accounting sections. In the Period Close section, select the Retained Earnings Account you will use for payroll. In the Journal Processing Intercompany subsection, select the option to launch AutoReverse after the open period.
Balancing Segment Values to Legal Entities	Assign specific balancing segment values to each legal entity before assigning values to the ledgers. By specifying this information, you can more easily identify legal entities during transaction processing and reporting
Balancing Segment Values to Ledger	Optionally, assign specific primary balancing segment values to the primary and secondary ledgers to represent transactions for nonlegal entities, such as adjustments.
Reporting Currencies	Review and update reporting currencies. Reporting currencies maintain and record subledger and general ledger journal entries in additional currencies.
Review and Submit Accounting Configuration	Submit your configuration.
Open First Period	Open the first period when you're ready to process transactions for the ledger. After you open the first period, use the Accounting Periods task in General Ledger to open and close periods, and to specify the target period that concludes the series of calendar periods.