1. Copyright © 2007, Oracle. All rights reserved. Accounting Setup Manager R12 General Ledger Management Fundamentals

2. Copyright © 2007, Oracle. All rights reserved. Objectives After completing this lesson, you should be able to do the following: Describe Accounting Setups –Ledger Processing Options –Secondary Ledgers Describe Reporting Currencies Describe Accounting Setup Considerations –Accounting Setups with One Legal Entity –Accounting Setups with Multiple Legal Entities –Accounting Setups with No Legal Entities

3. Copyright © 2007, Oracle. All rights reserved. Accounting Setups An accounting setup is based on several factors, such as: legal environment number of legal entities maintained in the same primary ledger business needs transaction processing needs

4. Copyright © 2007, Oracle. All rights reserved. Ledger Processing Options Ledger Attributes U.S. East Operations U.S. West Operations U.K. Operations France Operations Chart of AccountsCorporate French Statutory Accounting Calendar/Period Type Monthly/Month Fiscal/Fiscal CurrencyUSD EUR Subledger Accounting Method Standard Accrual Standard Accrual Standard Accrual French GAAP Ledger OptionsEnable Average Balances Enable Journal Approval No Average Balances or Journal Approval enabled This table is an example of ledger attributes for a global company that has four legal entities—two in the U.S., one in the U.K., and one in France.

5. Copyright © 2007, Oracle. All rights reserved. Secondary Ledgers Additional ledgers called secondary ledgers can optionally be assigned to an accounting setup to maintain multiple accounting representations for the same legal entity. For example: Subledger Level Secondary Ledgers Journal Level Secondary Ledgers Balance Level Secondary Ledgers Adjustments Only Secondary Ledgers

6. Copyright © 2007, Oracle. All rights reserved. Reporting Currencies If you only need a different currency representation of the primary or secondary ledgers, assign reporting currencies to them. For example: Subledger Level Reporting Currency Journal Level Reporting Currency Balance Level Reporting Currency

7. Copyright © 2007, Oracle. All rights reserved. Accounting Setup Considerations Legal EntityVision Credit Group Legal Entity Vision Services & Vision Consulting Legal Entities Vision Operations Legal Entity Number of Legal Entities OneMultipleOne Primary LedgerVision Credit GroupVision ServicesVision Operations Chart of AccountsCorporate CalendarMonthly CurrencyUSD

8. Copyright © 2007, Oracle. All rights reserved. Accounting Setups with One Legal Entity One Legal Entity Assign one legal entity to an accounting setup type… …Provided your legal entities meet certain criteria.

9. Copyright © 2007, Oracle. All rights reserved. Accounting Setups with Multiple Legal Entities Multiple Legal Entities When an accounting setup has more than one legal entity… …Multiple legal entities can share the same primary ledger attributes.

10. Copyright © 2007, Oracle. All rights reserved. Accounting Setups with No Legal Entities No Legal Entities Accounting setups that have no legal entities assigned… …Can be used for multiple purposes according to business needs.

11. Copyright © 2007, Oracle. All rights reserved. Designing the Chart of Accounts Feature Comparison by Accounting Setup The number of legal entities assigned to an accounting setup affects different key features available in the E-Business Suite. Review the features in the following table to understand how different features are affected. FeatureOne Legal Entity Assigned Multiple Legal Entities Assigned No Legal Entities Assigned Open/Close GL Accounting Periods Legal entities can open/close periods at different times. All legal entities in a ledger must open/ close periods at the same time. The standalone ledger can open/close periods independently. Document SequencingLegal entities can have autonomous document sequencing rules. All legal entities in a ledger must share the same document sequencing rules. The ledger can have autonomous document sequencing rules. Multiple Legal Entity Journals NoJournal entries can cross multiple legal entities. N/A No legal entities exist.

12. Copyright © 2007, Oracle. All rights reserved. Summary In this lesson, you should have learned how to: Describe Accounting Setups –Ledger Processing Options –Secondary Ledgers Describe Reporting Currencies Describe Accounting Setup Considerations –Accounting Setups with One Legal Entity –Accounting Setups with Multiple Legal Entities –Accounting Setups with No Legal Entities