Legal Entity-Specific Secondary Ledgers with Controlled Replication from Primary Ledgers

Assign a secondary ledger only a subset of the primary balancing segment values that are assigned to the primary ledger and its legal entities. This effectively enables organizations to populate secondary ledgers for specific legal entities when the primary ledger represents multiple legal entities or countries.

Organizations use secondary ledgers when they require an alternative accounting representation for the legal entities represented in the primary ledger. All accounting entries in the primary ledger are typically propagated to a secondary ledger, except for adjustment-only secondary ledgers. This feature allows a journal-level or subledger-level secondary ledger to now include only a partial accounting representation of the primary ledger. Administrators can choose to assign only a subset of the primary balancing segment values that are assigned to the primary ledger and its legal entities, to a journal-level or subledger-level secondary ledger.

Journal-Level Secondary Ledgers

When journal entries are entered in the primary ledger, the accounting processes propagate to each journal-level secondary ledger only those journal lines with the primary balancing segment values assigned to the secondary ledger.

Subledger-Level Secondary Ledgers

When journal entries are created manually or through a spreadsheet or through file-based data import in the primary ledger, the accounting processes propagate to each subledger-level secondary ledger only those journal lines with the primary balancing segment values assigned to the secondary ledger.

When the journals are created in the primary ledger from subledger sources, the accounting processes propagate to each subledger-level secondary ledger the journal lines based on the subledger accounting rules, but not according to the primary balancing segment conversion rules. Therefore, administrators must configure mapping sets and/or additional journal rules conditions in the Subledger Accounting application to replicate, partially based on specific primary balancing segment values.

This implementation is useful for companies in Financial Services or other service industries that have (1) operations in multiple countries that share a single ledger currency and can be included in the same primary ledger, and (2) have light regulatory requirements that can be met through General Ledger reporting in the journal-level secondary ledger. Legal entity-specific secondary ledgers may not support full compliance with local regulations in highly regulated countries. Carefully review your reporting obligations and review the Cloud ERP Enterprise Structures White Paper (Doc ID 2415848.1) for a complete list of considerations before adopting this implementation.

You can navigate to the Map Primary to Secondary Ledger page to define the mapping and the conversion rules between primary and secondary ledgers. For the Journal and Subledger-level data conversion level mapping, you can now define primary balancing segment value conversion rules.

Here are the steps to define primary balancing segment value conversion rules.

Navigate to the Map Primary to Secondary Ledger page and enable the checkbox Replicate journals by primary balancing segment values in the Primary Balancing Segment Value Conversion Rules section.

You can enter the child and parent primary balancing segment values by selecting the value type as Single Value and Parent Value. The Primary Balancing Segment Value field will show all the child values or parent values applicable to the value type. If you would like to define the primary balancing segment values based on parent values, then you must select a tree code and version.

Primary Balancing Segment Value Conversion Rules

You can search the primary balancing segment values based on the value, description or legal entity.

The replication of journals by primary balancing segment values can be enabled for new or existing secondary ledgers.

The primary ledger posting process will stop the replication of all journals into the associated journal-level secondary ledgers that are enabled for replication by primary balancing segment values. The journals created in the primary ledgers are replicated to these secondary ledgers by running a new process, Replicate Journals by Primary Balancing Segment Values.

For subledger-level secondary ledgers, the primary ledger posting process will stop the replication of journals created manually, through a spreadsheet, or through file-based data import, into the associated subledger-level secondary ledgers that are enabled for replication by primary balancing segment values. These journals are replicated into the subledger-level secondary ledgers by running a new process, Replicate Journals by Primary Balancing Segment Values.

For subledger-level secondary ledgers, when journals are created in the primary ledger from subledger sources, the Create Accounting process will replicate partial accounting from the primary ledger to the subledger-level secondary if mapping sets and/or additional journal rules conditions are configured in the Subledger Accounting application to replicate partially based on the primary balancing segment values.

Business benefits include:

Simplifies inquiry and reporting in a secondary ledger when it only contains data for the relevant legal entity.

Improves operational efficiency of the Create Accounting and Post Journals processes when fewer journals are propagated to each secondary ledger.

Steps to Enable

To enable the feature, you must enable the lookup code GL_35799450.

Navigate to the Manage Standard Lookups task and search for the ORA_ERP_CONTROLLED_CONFIG lookup type. In the Lookup Codes section, add the lookup code GL_35799450 and select the Enabled check box. Enter the applicable start date and save.

Tips And Considerations

This feature allows you to set up the controlled replication for secondary ledgers associated with primary ledgers for Journal and Subledger data conversion levels. For subledger-level secondary ledgers, administrators must configure mapping sets in the Subledger Accounting application to replicate partial accounting from the primary ledger to the secondary ledger for journals created from subledger sources.

If you change a tree code or version after defining the primary balancing segment value conversion rules, a warning message will indicate that invalid values will be deleted for the new tree code and version. Though the application allows you to change the tree code and version at any time, it is recommended that you use a specific tree code for the replication by primary balancing segment values to address the reporting requirements.

Key Resources

Refer to the following topics in the Implementing Enterprise Structures and General Ledger guide on the Oracle Help Center:
- Primary Ledgers, Secondary Ledgers, and Reporting Currencies
- Legal Entity-Specific Secondary Ledgers with Controlled Replication from Primary Ledgers

For further details about common Oracle Fusion Cloud ERP enterprise structures, how they relate to each other, and best practice recommendations, review the Cloud ERP Enterprise Structures White Paper (Doc ID 2415848.1).

For further details on how to configure mapping sets and/or additional journal rules conditions, review the Mapping Sets topic in the Implementing Subledger Accounting guide on the Oracle Help Center.

Access Requirements

No new privileges are required to access the Primary Balancing Segment Value Conversion Rules section on the Map Primary to Secondary Ledger page. Users with the Post Journal (GL_POST_JOURNAL_PRIV) privilege can run the Replicate Journals by Primary Balancing Segment Values process.