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 |
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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.
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Create the chart of account value set for the Vision Corporation US enterprise.
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Specify Arizona and California as the values for the chart of account value set
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Create the cost center value set for the Vision Corporation US enterprise.
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Specify Arizona and California as the values for the cost center value set.
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Create the chart of account structure by associating it with the chart of account and cost center value sets you created earlier.
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Create the chart of account structure instance by associating it with the structure.
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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
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In the Setup and Maintenance work area, go to the following:.
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Offering: Workforce Deployment
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Functional Area: Financial Reporting Structures
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Task: Manage Chart of Accounts Value Sets
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Click Create.
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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
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Click Save and Close.
Specify Values for the Chart of Account Value Set
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On the Manage Chart of Accounts Value Sets page, search and select Vision Corporation US Value Set 1 from the search results.
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Click Manage Values.
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Click Create.
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Complete the fields as shown in this table.
Field
Value
Value
AZ
Description
Arizona
Enabled
Select the check box
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Click Save and Close.
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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
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On the Manage Values page, click Save and Close.
Create a Cost Center Value Set
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In the Setup and Maintenance work area, go to the following:
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Offering: Workforce Deployment
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Functional Area: Financial Reporting Structures
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Task: Manage Chart of Accounts Value Sets
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Click Create.
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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
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Click Save and Close.
Create a Chart of Account Structure
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In the Setup and Maintenance work area, go to the following:.
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Offering: Workforce Deployment
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Functional Area: Financial Reporting Structures
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Task: Manage Chart of Accounts Structures
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Search and select the GL# key flexfield code.
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Click Manage Structures.
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Click Create.
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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
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Click Save.
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In the Segments section, click Create.
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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
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Click Save and Close.
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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
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Click Save and Close.
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On the Create Key Flexfield Structure page, click Save and Close.
Create a Chart of Accounts Structure Instance
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In the Setup and Maintenance work area, go to the following:
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Offering: Workforce Deployment
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Functional Area: Financial Reporting Structures
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Task: Manage Chart of Accounts Structure Instances
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Search and select the GL# key flexfield code.
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Click Manage Structure Instances.
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Click Create.
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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
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Click Save and Close.
Specify the General Ledger Cost Center Information for Creating a Department
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In the Workforce Structures work area, click the Manage Departments tab.
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Click Create.
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Select the Create new option.
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Enter Sales Department in the Name field.
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Click Next.
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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
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Click Next to review the specified information.
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Click Submit.