How You Create a Chart of Account to Create a Department

In this example you can see how to create a chart of account for HCM implementations. You must set up a minimal chart of account to associate a company and cost center with departments.

This topic describes a simple scenario primarily intended for use within HCM. For more detailed information on setting up a chart of account, refer to the Financials product documentation.

Vision Corporation US is a US-based legal entity with cost centers in Arizona and California. In this example, we will create a Arizona cost center and associate it with the Sales Department.

The following table summarizes key decisions that you must consider when creating a chart of .

Decisions to Consider	In this Example
What should be the validation type for the value set?	Independent. Only this type is supported for creating General Ledger (GL) cost center information for departments in HCM.
What should be the segment labels for the chart of account?	The first segment is Primary Balancing Segment and the second segment is Cost Center Segment. Selecting these labels in this order is crucial in specifying the General Ledger cost center information for a department.

Summary of Tasks

In the Setup and Maintenance work area, create a chart of account and cost center value sets to create a chart of account structure and instance, and then associate it with the department.

1. Create the chart of account value set for the Vision Corporation US enterprise.

2. Specify Arizona and California as the values for the chart of account value set

3. Create the cost center value set for the Vision Corporation US enterprise.

4. Specify Arizona and California as the values for the cost center value set.

5. Create the chart of account structure by associating it with the chart of account and cost center value sets you created earlier.

6. Create the chart of account structure instance by associating it with the structure.

7. Specify the General Ledger cost center information by associating it with the chart of account and the cost center you created earlier, for creating the sales department.

Create a Chart of Account Value Set

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

   • Offering: Workforce Deployment

   • Functional Area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Value Sets

2. Click Create.

3. Complete the fields as shown in this table.

   Field	Value
   Value Set Code	Vision Corporation US Value Set 1
   Description	Vision Corporation US Value Set 1
   Module	Common Shared Setups
   Validation Type	Independent
   Value Data Type	Character
   Value Subtype	Text
   Maximum Length	5

4. Click Save and Close.

Specify Values for the Chart of Account Value Set

1. On the Manage Chart of Accounts Value Sets page, search and select Vision Corporation US Value Set 1 from the search results.

2. Click Manage Values.

3. Click Create.

4. Complete the fields as shown in this table.

   Field	Value
   Value	AZ
   Description	Arizona
   Enabled	Select the check box

5. Click Save and Close.

6. Create additional values for the Vision Corporation US Value Set 1 as shown in this table.

   Field	Value
   Value	CA
   Description	California
   Enabled	Select the check box

7. On the Manage Values page, click Save and Close.

Create a Cost Center Value Set

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

   • Offering: Workforce Deployment

   • Functional Area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Value Sets

2. Click Create.

3. Complete the fields as shown in this table.

   Field	Value
   Value Set Code	Vision Corporation US Cost Center Value Set 1
   Description	Vision Corporation US Cost Center Value Set 1
   Module	Common Shared Setups
   Validation Type	Independent
   Value Data Type	Character
   Value Subtype	Text
   Maximum Length	5

4. Click Save and Close.

Create a Chart of Account Structure

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

   • Offering: Workforce Deployment

   • Functional Area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Structures

2. Search and select the GL# key flexfield code.

3. Click Manage Structures.

4. Click Create.

5. Complete the fields as shown in this table.

   Field	Value
   Structure Code	Vision Corp CoA Cost Center
   Name	Vision Corp CoA Cost Center
   Description	Vision Corporation Chart of Account Cost Center
   Delimiter	Select any value

6. Click Save.

7. In the Segments section, click Create.

8. Complete the fields as shown in this table.

   Field	Value
   Segment Code	Vision_Corp_COA
   API Name	visionCorpCoa
   Name	Vision Corporation COA
   Sequence Number	1
   Prompt	Vision Corporation COA
   Short Prompt	Vision
   Enabled	Select the check box
   Display Width	1
   Range Type	Low
   Column Name	SEGMENT1
   Default Value Set Code	Vision Corporation US Value Set 1
   Selected Labels	Primary Balancing Segment

9. Click Save and Close.

10. Create another segment with the following values

    Field	Value
    Segment Code	Vision_Corp_CostCenter_COA
    API Name	visionCorpCostcenterCoa
    Name	Vision Corporation Cost Center COA
    Sequence Number	2
    Prompt	Vision Corporation Cost Center COA
    Short Prompt	Vision1
    Enabled	Select the check box
    Display Width	1
    Range Type	Low
    Column Name	SEGMENT2
    Default Value Set Code	Vision Corporation US Cost Center Value Set 1
    Selected Labels	Cost Center Segment

11. Click Save and Close.

12. On the Create Key Flexfield Structure page, click Save and Close.

Create a Chart of Accounts Structure Instance

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

   • Offering: Workforce Deployment

   • Functional Area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Structure Instances

2. Search and select the GL# key flexfield code.

3. Click Manage Structure Instances.

4. Click Create.

5. Complete the fields as shown in this table.

   Field	Value
   Structure Instance Code	Vision COA Structure Instance
   API name	VisionCoaStructureInstance
   Name	Vision Corporation COA Structure Instance
   Structure Name	Vision Corp CoA Cost Center

6. Click Save and Close.

Specify the General Ledger Cost Center Information for Creating a Department

1. In the Workforce Structures work area, click the Manage Departments tab.

2. Click Create.

3. Select the Create new option.

4. Enter Sales Department in the Name field.

5. Click Next.

6. In the GL Cost Center Information section, complete the fields as shown in this table.

   Field	Value
   Record Identifier	10
   Company Value Set	Vision Corporation US Value Set 1
   Company	AZ
   Cost Center Value Set	Vision Corporation US Cost Center Value Set 1
   Cost Center	AZ

7. Click Next to review the specified information.

8. Click Submit.