Minimum Steps For Financial Enterprise Structures and General Ledger Setup (Doc ID 1428444.1)
How to set up Financial
Enterprise Structures and General Ledger with the minimum steps, which steps
are really required and mandatory ?
Some of the non-financial modules (Example: HCM, CRM) have pre-requisite that the Legal Entity needs to be assigned to a Primary Ledger.
To create Primary Ledger in Financials, following are the minimum steps to successfully create ledger in Financials:
Step 1 - Chart of Accounts
Some of the non-financial modules (Example: HCM, CRM) have pre-requisite that the Legal Entity needs to be assigned to a Primary Ledger.
To create Primary Ledger in Financials, following are the minimum steps to successfully create ledger in Financials:
Step 1 - Chart of Accounts
A- Create Value Sets for COA
B- Create Chart of Accounts Structures
C- Create Chart of Accounts Instances
D- Create Value Set Values (This is needed to setup mandatory retained earning account in ledger options later)
B- Create Chart of Accounts Structures
C- Create Chart of Accounts Instances
D- Create Value Set Values (This is needed to setup mandatory retained earning account in ledger options later)
Step 2 - Create Accounting
Calendars
Step 3 - Create/setup Currencies
Step 4 - Create Legal Entity
Step 5 - Create Primary Ledger
Step 6 - Assign Legal entity to Primary Ledger
Step 7 - Final step is locate the Review and Submit Accounting Configuration task in the primary ledger task list, then click the Go to Task icon.
Once on the review page, click the Submit button to process and finalize your accounting configuration.
Step 3 - Create/setup Currencies
Step 4 - Create Legal Entity
Step 5 - Create Primary Ledger
Step 6 - Assign Legal entity to Primary Ledger
Step 7 - Final step is locate the Review and Submit Accounting Configuration task in the primary ledger task list, then click the Go to Task icon.
Once on the review page, click the Submit button to process and finalize your accounting configuration.
Introduction
The Minimum Steps for Financial Enterprise Structures and General Ledger Setup - Quick Start Guide provides a quick overview of how to define your financial enterprise structures and perform your very basic general ledger setup.
Setup and Maintenance Overview
The Minimum Steps for Financial Enterprise Structures and General Ledger Setup - Quick Start Guide provides a quick overview of how to define your financial enterprise structures and perform your very basic general ledger setup.
Setup and Maintenance Overview
The Setup and
Maintenance work
area is a centralized interface for managing, configuring and maintaining setup
objects and components across Fusion Applications. You can access the Setup and Maintenance work area from the Navigator menu, under
the Tools heading.
To begin implementing your enterprise
structures, you must create a new implementation project by following the steps
below:
1- Click the Manage Implementation Projects task from the Tasks pane.
2- Click the Create action under the Actions menu of the Search Results table.
3- On the first screen of the creation flow, specify the implementation project’s basic information.
4- On the second screen of the creation flow, mark the Include check box for the Financials offering.
5- Click the Save and Open Project button to save and open your implementation project.
Chart of Accounts
All chart of accounts related tasks can be found under the Define Chart of Accounts parent task in the following hierarchical task list:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
In order to create and use your chart of accounts, follow the step-by-step diagram in Figure 1 to streamline your implementation as much as possible.
Figure 1: Flow for COA implementation
The chart of accounts implementation flow may be summarized as follows:
1- Create your value sets. A value set can be shared by different charts of accounts, or across different segments of the same chart of accounts.
2- Create your chart of accounts structure. In Fusion General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure, under which one or more chart of accounts structure instances can be created. A chart of accounts structure defines the key attributes for your chart of accounts, such as the number of segments, the segment sequences, the segment names, segment prompts, segment labels (e.g. natural account, primary balancing) and default value set. A chart of accounts structure can be shared across different chart of accounts structure instances. In Fusion General Ledger, organizations may use up to 3 balancing segments in their chart of accounts structures: primary balancing segment (required) second and third balancing segments (optional).
Note: Chart of accounts structure needs at least two mandatory segments : (1) Balancing Segment (2) Natural Account.
3- Create your chart of accounts structure instance. This is your chart of accounts that will be used and exposed in user interfaces and processes. In what follows, we will refer to chart of accounts structure instance as merely Chart of Accounts (COA). By default, a COA inherits all the attributes of the COA structure, meaning that all instances of the same structure share a common shape, and have the very same segments and in the same order. However, at the COA instance level, you may override the default value set assignments for your segments, and also assign a unique account hierarchy that determines the parent/child relationships between the value set values. At the COA instance level, organizations can determine if they wish to allow dynamic insertion where new account combinations can be dynamically generated instead of having to be pre-created.
4- Create your value set values, both detail and parent values, for each of your COA segments.
Value Sets
To create a new value set, or maintain existing value sets, navigate to the Manage Chart of Accounts Value Sets task from within your implementation project, and then click theGo to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Accounts Value Sets
To begin creating your value set, use the following steps:
1- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Value Set page.
2- Specify a unique Value Set Code, and an optional Description.
3- Pick the General Ledger value for the Module field.
4- Depending on your value set needs, choose the remaining options accordingly.
5- Click Save and Close to navigate back to the value sets landing page.
6- Repeat the above steps for every value set you would like to create.
Figure 2: Screen-shot showing list of value sets created before COA creation:
Chart of Accounts Structures
To create a new COA structure, or maintain existing COA structures, navigate to the Manage Chart of Accounts task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Accounts
To begin creating your COA structure, use the following steps:
1- You will be landing on the Manage Key Flexfields page, and the General Ledger Accounting Flexfield will be defaulted in the Search Results table. Click the Manage Structures button on the toolbar to begin defining your COA structure. You will get redirected to the Manage Key Flexfield Structures page.
2- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Key Flexfield Structure page.
3- Specify a unique Structure Code and Name, and provide an optional Description.
4- Specify a Delimiter that will be used to visually separate your segment values.
5- Click the Save button to save your COA structure definition and begin defining the constituting segments.
6- To create a new segment, click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Key Flexfield Segment page.
a. Specify all the required parameters and assign your segment a Default Value Set Code. Choose an optional Segment Label (also known as segment qualifier in R12) for your segment to indicate its purpose within your chart of accounts. Note that only 2 segment labels are required for your COA structure: primary balancing segment and natural account segment. These labels may not be shared with each other or with any other label for the same segment.
b. Click Save and Close to save your segment definition and define additional segments for your COA structure.
7- After defining all of your COA structure segments, click Save and Close to navigate back to the COA structures landing page.
8- Repeat the aforementioned steps for every COA structure you would like to define.
Figure 3: Example COA Structure: FAST_ACCOUNTING_FLEX
In above screen-shot
’FAST Legal Entity’ is Primary Balancing Segment.
‘FAST Natural Account’ is Natural Account.
Segment Description size
1 Legal Entity 3 (Primary Balancing Segment)
2 Cost Centre 4
3 Natural Account 5 (Natural Account)
4 Sub Account 5
5 Product 4
6 Intercompany 3
7 Future Use 5
Chart of Accounts Instances
To create a new COA, or maintain existing COAs, navigate to the Manage Chart of Accounts task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Acconts
To begin creating your COA, use the following steps:
1- You will be landing on the Manage Key Flexfields page, and the General Ledger Accounting Flexfield will be defaulted in the Search Results table. Click the Manage Structure Instances button on the toolbar to begin defining your chart of accounts. You will get redirected to the Manage Key Flexfield Structure Instances page.
2- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Key Flexfield Structure Instance page.
3- Specify a unique Structure Instance Code and Name, and provide an optional Description.
4- Indicate whether you want Fusion Financials pages and processes to dynamically create account combinations, by marking the Dynamic combination creation allowed check box.
5- Associate your COA with a Structure Name. By default, a COA inherits the key attributes of the COA structure, but some attributes – such as the value set for the segments – may be modified individually.
6- Click the Save button to save your COA definition and begin modifying the constituting segments.
7- To modify a COA segment, select its corresponding row from the Segment Instances table, and then click the Edit icon.
1- Click the Manage Implementation Projects task from the Tasks pane.
2- Click the Create action under the Actions menu of the Search Results table.
3- On the first screen of the creation flow, specify the implementation project’s basic information.
4- On the second screen of the creation flow, mark the Include check box for the Financials offering.
5- Click the Save and Open Project button to save and open your implementation project.
Chart of Accounts
All chart of accounts related tasks can be found under the Define Chart of Accounts parent task in the following hierarchical task list:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
In order to create and use your chart of accounts, follow the step-by-step diagram in Figure 1 to streamline your implementation as much as possible.
Figure 1: Flow for COA implementation
The chart of accounts implementation flow may be summarized as follows:
1- Create your value sets. A value set can be shared by different charts of accounts, or across different segments of the same chart of accounts.
2- Create your chart of accounts structure. In Fusion General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure, under which one or more chart of accounts structure instances can be created. A chart of accounts structure defines the key attributes for your chart of accounts, such as the number of segments, the segment sequences, the segment names, segment prompts, segment labels (e.g. natural account, primary balancing) and default value set. A chart of accounts structure can be shared across different chart of accounts structure instances. In Fusion General Ledger, organizations may use up to 3 balancing segments in their chart of accounts structures: primary balancing segment (required) second and third balancing segments (optional).
Note: Chart of accounts structure needs at least two mandatory segments : (1) Balancing Segment (2) Natural Account.
3- Create your chart of accounts structure instance. This is your chart of accounts that will be used and exposed in user interfaces and processes. In what follows, we will refer to chart of accounts structure instance as merely Chart of Accounts (COA). By default, a COA inherits all the attributes of the COA structure, meaning that all instances of the same structure share a common shape, and have the very same segments and in the same order. However, at the COA instance level, you may override the default value set assignments for your segments, and also assign a unique account hierarchy that determines the parent/child relationships between the value set values. At the COA instance level, organizations can determine if they wish to allow dynamic insertion where new account combinations can be dynamically generated instead of having to be pre-created.
4- Create your value set values, both detail and parent values, for each of your COA segments.
Value Sets
To create a new value set, or maintain existing value sets, navigate to the Manage Chart of Accounts Value Sets task from within your implementation project, and then click theGo to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Accounts Value Sets
To begin creating your value set, use the following steps:
1- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Value Set page.
2- Specify a unique Value Set Code, and an optional Description.
3- Pick the General Ledger value for the Module field.
4- Depending on your value set needs, choose the remaining options accordingly.
5- Click Save and Close to navigate back to the value sets landing page.
6- Repeat the above steps for every value set you would like to create.
Figure 2: Screen-shot showing list of value sets created before COA creation:
Chart of Accounts Structures
To create a new COA structure, or maintain existing COA structures, navigate to the Manage Chart of Accounts task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Accounts
To begin creating your COA structure, use the following steps:
1- You will be landing on the Manage Key Flexfields page, and the General Ledger Accounting Flexfield will be defaulted in the Search Results table. Click the Manage Structures button on the toolbar to begin defining your COA structure. You will get redirected to the Manage Key Flexfield Structures page.
2- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Key Flexfield Structure page.
3- Specify a unique Structure Code and Name, and provide an optional Description.
4- Specify a Delimiter that will be used to visually separate your segment values.
5- Click the Save button to save your COA structure definition and begin defining the constituting segments.
6- To create a new segment, click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Key Flexfield Segment page.
a. Specify all the required parameters and assign your segment a Default Value Set Code. Choose an optional Segment Label (also known as segment qualifier in R12) for your segment to indicate its purpose within your chart of accounts. Note that only 2 segment labels are required for your COA structure: primary balancing segment and natural account segment. These labels may not be shared with each other or with any other label for the same segment.
b. Click Save and Close to save your segment definition and define additional segments for your COA structure.
7- After defining all of your COA structure segments, click Save and Close to navigate back to the COA structures landing page.
8- Repeat the aforementioned steps for every COA structure you would like to define.
Figure 3: Example COA Structure: FAST_ACCOUNTING_FLEX
In above screen-shot
’FAST Legal Entity’ is Primary Balancing Segment.
‘FAST Natural Account’ is Natural Account.
Segment Description size
1 Legal Entity 3 (Primary Balancing Segment)
2 Cost Centre 4
3 Natural Account 5 (Natural Account)
4 Sub Account 5
5 Product 4
6 Intercompany 3
7 Future Use 5
Chart of Accounts Instances
To create a new COA, or maintain existing COAs, navigate to the Manage Chart of Accounts task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Acconts
To begin creating your COA, use the following steps:
1- You will be landing on the Manage Key Flexfields page, and the General Ledger Accounting Flexfield will be defaulted in the Search Results table. Click the Manage Structure Instances button on the toolbar to begin defining your chart of accounts. You will get redirected to the Manage Key Flexfield Structure Instances page.
2- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the Create Key Flexfield Structure Instance page.
3- Specify a unique Structure Instance Code and Name, and provide an optional Description.
4- Indicate whether you want Fusion Financials pages and processes to dynamically create account combinations, by marking the Dynamic combination creation allowed check box.
5- Associate your COA with a Structure Name. By default, a COA inherits the key attributes of the COA structure, but some attributes – such as the value set for the segments – may be modified individually.
6- Click the Save button to save your COA definition and begin modifying the constituting segments.
7- To modify a COA segment, select its corresponding row from the Segment Instances table, and then click the Edit icon.
Note – Make sure that both the Required and Displayed check boxes are both marked. For
segments intended for future use, also make sure to mark those attributes; we
recommend that you define one segment value for your future segments and set it
as a default value. This ensures that the extra segment is populated when an
account combination is used.
8- After reviewing all of your COA
segments, click Save and
Close to navigate
back to the chart of accounts landing page. Alternatively, you may proceed
directly with creating your value set values by drilling on the corresponding Value Set Code hyperlinks in the Segment Instances table. Creating value set values is
covered in detail in the following section.
9- Repeat the aforementioned steps for every COA you would like to define.
Figure 4: Screenshot showing COA Instance: Fast Accural Flex
Note – After creating the desired COA instances, it is necessary to deploy the Accounting Flexfield to ensure that the COAs are valid and usable. Deploying (a similar concept to compiling) the Accounting Flexfield validates and generates all the necessary objects, thus ensuring that the chart of accounts can be used across all the desired Accounting Hub entities. To deploy the Accounting Flexfield, click the Deploy Flexfield button on the Manage Key Flexfield page. Once all necessary validations take place, the Deployment Statuscolumn should show a green check mark indicating that the deployment has successfully taken place.
Value Set Values
To define new value set values, or maintain existing values, navigate to the Manage Chart of Accounts Value Sets task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Accounts Value Sets
Note – Alternatively, you may create your value set values by drilling on the corresponding Value Set Code hyperlinks on the definition page of the structure instance. Choosing the latter method provides the advantage of having a context and a starting point for defining your value set values.
To begin creating value set values, use the following steps:
1- On the Manage Value Sets page, search for you value set.
2- Select your value set from the Search Results table, and click the Manage Values button. You will get redirected to the Manage Values page.
3- To create a value set value, click the Create icon on the toolbar of the Search Results table, and you will get redirected to the Create Value page.
4- Specify a Value (must be unique in the value set) and an optional Description.
5- Specify an optional Start Date and End Date to determine the accounting time frame in which this specific segment value may be used.
6- Specify the value attributes, such as Summary (indicating whether the value is a parent or detail value), Allow Posting, Allow Budgeting; and additionally for natural account segment values, specify the following fields: Account Type, Third Party Control Account, Reconcile and Financial Category.
Note – You cannot specify the parent/child relationship for your segment values on this screen. You need to do this step through account hierarchies, and this will be detailed in the next section.
7- Click the Save and Close button to save your segment value and navigate back to the Manage Values page.
8- Repeat Steps 3 to 7 to define additional segment values for the selected value set.
Accounting Calendars
To create a new account calendar, or maintain existing accounting calendars, navigate to the Manage Accounting Calendars task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures > Define Calendars
- Manage Accounting Calendars
To begin creating an accounting calendar, use the following steps:
1- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the first step of the Create Accounting Calendar flow.
2- Specify a unique calendar Name, and an optional Description.
3- Specify a Start Date for your accounting calendar to determine the first day of the earliest accounting period associated with this calendar. Once you save your calendar, the Start Date can no longer be modified.
Note – In Fusion General Ledger, we currently do not allow to create a calendar year with a fewer number of periods than what the period frequency dictates. Therefore, we recommend that you add a full extra year in your accounting calendar before the first opened period of any ledger using this calendar. For example, if you plan to start transacting in Jan-11, and intend to run translation for that same Jan-11 period, start your calendar in Jan-10 (2010 calendar year), add the 2011 year to your calendar, and then assign this calendar to your ledger with Jan-11 as the first opened period.
4- Specify the Period Frequency for your accounting calendar. In Fusion General Ledger, we have streamlined the creation of accounting calendars by allowing organizations to choose from frequently used period frequencies, such as Monthly, 4-4-5, Weekly, etc. If any of those popular calendar types are chosen, the system will automatically generate all the period details for the first calendar year, and subsequently for every additional year you add. If your organization uses an irregular or uncommon type of calendar that does not fit any of the seeded frequencies, then you must choose a period frequency of Other, specify the Number of Standard Periods and then manually define the period details.
5- Specify the Adjusting Period Frequency to determine the number and frequency of the adjusting periods. Again here, the system allows you to choose from popular adjusting period frequencies, such as Once at year end, Once at beginning of the year and once at end of the year, etc. If you have other requirements for your adjusting periods, then you must choose an adjusting period frequency of Other, specify the Number of Adjusting Periods and then manually provide the details for those adjusting periods.
6- Under the Period Name Format region:
a. Specify an optional User-Defined Prefix to use in the generation of the period names.
b. Specify a Separator to separate the period number from the year number when generating
the period names.
c. Choose a Format for your period names. For the calendar year format, the system appends
the year of the start date of the period when generating the period name. For the fiscal
year format, the system appends the year associated with the period regardless of its
date range, to the period name.
7- Click the Next button to navigate to the Period Details screen. If you chose one of the seeded period frequencies, all the periods for your first accounting year will automatically be generated, thus saving you the time and effort of manually defining them.
8- Review the period details for your accounting calendar, and make modifications as necessary. Note that when making any changes, you must abide by the following basic validation rules:
a. The period name must be unique.
b. The standard (non-adjusting) periods must have non-overlapping date ranges.
c. An adjusting period date range must overlap with that of a standard period.
9- Click the Save and Close button to save your accounting calendar and navigate back to the Manage Accounting Calendars page. The system will make all the necessary validations before committing your changes.
10- To add a year to an existing accounting calendar, click the Edit icon to update your accounting calendar, and then click the Add Year button from the Period Details table. If the accounting calendar has already been associated with one or more ledgers, then adding a year to the calendar will update all balances cubes using this calendar, with the periods of the newly-added year.
Figure 5: Accounting Calendar : FAST_MONTH
Currencies
To create a new currency, or maintain existing currencies, navigate to the Manage Currencies task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures > Define Currencies
- Manage Currencies
To begin creating a new currency, use the following steps:
1- Click the Add Row icon to create a new currency row in the Search Results table.
2- Specify a unique Currency Code and Currency Name, and an optional Description. The Start Date and End Date fields may be used to provide a time frame for the validity of the currency.
3- To provide more details, you must click the Expand icon on the leftmost edge of the row. Having done that, you can specify other fields such as the Issuing Territory, Symbol, Precision and Minimum Accountable Unit.
4- Click the Save button to save the changes to your currencies.
To update an existing currency, search for it from the Search region and make the necessary changes to it from the Search Results table.
Figure 6: Screenshot showing USD currency
Legal Entity
To create a new legal entity, use the following steps:
1- Click on the Define Legal Entities for Financials task list. Since a legal reporting unit is defined in the context of a legal entity, you will be prompted to set a scope value for your legal entity. To create a new legal entity, click the Create New button in the Scope Selection window.
2- You will be redirected to the Create Legal Entity page where you can specify the basic attributes for your legal entity, including the Country, unique Name, Legal Entity Identifier, Legal Address and any other required localized fields.
3- Click the Save and Close button to navigate back to the legal entities task list.
4- Click the Select and Add button to select the legal entity that you just created and set the scope for the remainder of your setup. Search for and select your legal entity from the Manage Legal Entities secondary window, and hit the Save and Close button. This will set the scope for your task list to the selected legal entity, as indicated in the Legal Entity choice list above the Tasks and Task Lists table.
5- A legal entity registration with the same name as that of the legal entity will be created by default. If you want to verify this, locate the Manage Legal Entity Registrations task and then click the Go to Task icon. If you want to create another registration for the legal entity, you must specify the Jurisdiction Territory, Registered Address and Registered Name.
6- Other optional tasks at the legal entity level are the Manage Intercompany Exceptions, Manage Legal Entity Financial Information and Manage Legal Entity Tax Profiles tasks. All these tasks can be launched by clicking on the respective Go to Task icon.
When a legal entity is created, a legal reporting unit with the same name as that of the entity is also automatically created.
Accounting Configuration
In order to create and finalize your accounting configurations, you need to define your legal entities, create your ledgers and open the first periods for your ledgers. Optionally, you can define and maintain your general ledger options and period close components to customize your accounting configurations setup.
Figure 2: Flow for Accounting Configuration
Ledgers
To create a new ledger (primary ledger, secondary ledger (Optional) or reporting currency (Optional), or maintain existing ledgers, navigate to the Define Accounting Configurations iterative task list from within your implementation project, and then click the Go to Task List icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Ledgers
- Define Accounting Configurations
* Manage Primary Ledgers
* Assign Legal Entities [Optional]
* Specify Ledger Options
* Assign Balancing Segment Values to Legal Entities [Optional]
* Assign Balancing Segment Values to Ledger [Optional]
* Manage Reporting Currencies [Optional]
* Define Secondary Ledgers [Optional]
* Review and Submit Accounting Configuration
To begin creating your accounting configuration, use the following steps:
1- Since every accounting configuration can uniquely be identified by its primary ledger, you will be prompted to set a scope value for your primary ledger. To create a new primary ledger, click the Create New button in the Scope Selection window.
2- You will be redirected to the Create Primary Ledger page where you can specify the basic attributes for your ledger, including the Name (must be unique), Description, Chart of Accounts, Accounting Calendar, Currency and Accounting Method. The accounting method determines the rules for recording transactions from subledgers through the Subledger Accounting engine.
3- Click the Save and Edit Task List button to navigate back to the accounting configuration task list. Keep in mind that you cannot change the chart of accounts, accounting calendar or currency for your ledger after you save your ledger.
4- Click the Select and Add button to select the primary ledger that you just created and set the scope for the remainder of your accounting configuration setup. Search for and select your ledger from the Manage Primary Ledgers secondary window, and hit the Save and Close button. This will set the scope for your task list to the selected primary ledger, as indicated in the Primary Ledger choice list above the Tasks and Task Lists table.
5- Locate the Specify Ledger Options task and then click the Go to Task icon to start reviewing and modifying your primary ledger options. On the ledger options page, you must specify all the required fields and any additional fields that are required for your ledger configuration:
a. First Opened Period: If you plan to run translation, make sure that this period is after the first defined period of the associated accounting calendar.
b. Number of Future Enterable Periods: We recommend that you minimize the number of future enterable periods to prevent creating transactions in undesired accounting periods.
c. If you specified an Accounting Method, you must specify the Journal Language field. (Optional)
d. Retained Earnings Account: If you turned dynamic insertion for your chart of accounts, you may specify any valid account combination and it will automatically be created for you.
e. If you plan to run translation, you must specify the Cumulative Translation Adjustment Account, and later define your balance-level reporting currencies. (Optional)
f. If you have intercompany transactions involving companies across different legal entities, or between different balancing segment values for the same legal entity, mark the Enable intercompany accounting check box, and later define your intercompany accounting rules. (Optional)
g. If you want to enable average daily balance (ADB) processing for your ledger, you must mark the Enable average balances check box, and specify a non-postable, balance sheet Net Income Account and a Transaction Calendar. Once you save your ledger options with average balance processing, you may not undo your changes. (Optional)
h. Review your ledger options, and then click the Save and Close button to navigate back your accounting configuration task list.
6- Besides defining the basic ledger attributes, the ledger options page is the only required task to complete your accounting configuration. If you plan to assign one or more legal entities to your configuration, locate the Assign Legal Entities task and then click the Go to Task icon. (Optional)
7- To assign balancing segment values to your legal entities, locate the Assign Balancing Segment Values to Legal Entities task and then click the Go to Task icon. (Optional)
8- To assign balancing segment values directly to your ledger, locate the Assign Balancing Segment Value to Ledger task and then click the Go to Task icon. The BSVs that are assigned to the ledger represent non-legal entity transactions, such as adjustments. If you use legal entities, you must assign balancing segment values to all legal entities before assigning values to the ledger. (Optional)
9- To assign one or more reporting currencies to your ledger, locate the Manage Reporting Currencies task and then click the Go to Task icon. On this page, you will be able to assign balance, journal or subledger-level reporting currencies to your primary ledger. (Optional)
10- Note – If you plan to run translation for your primary ledger, you must create a balance level reporting currency before translating. Currently, Fusion General Ledger does not automatically create a balance level reporting currency for the target currency you run the translation for. (Optional)
11- To assign one or more secondary ledgers to your primary ledger, locate the Define Secondary Ledgers iterative task list and then click the Go to Task List icon. Note that defining secondary ledgers is by itself a task list, and that you must set the scope for your secondary ledger the same way you did it for your primary ledger. (Optional)
Define Common Applications Configuration for Financials
- Define Ledgers
- Define Accounting Configurations
- Define Secondary Ledgers
* Manage Secondary Ledgers
* Specify Ledger Options
* Complete Primary to Secondary Ledger Mapping
* Assign Balancing Segment Values to Legal Entities
* Assign Balancing Segment Values to Ledger
* Manage Reporting Currencies
12- To create a new secondary ledger, click the Create New button in the Scope Selection window. (Optional)
13- You will be redirected to the Create Secondary Ledger page where you can specify the basic attributes for your secondary ledger, including the Name (must be unique), Description, Chart of Accounts, Accounting Calendar, Currency and Accounting Method. The Data Conversion Level can be Adjustment Only, Balance, Journal and Subledger (only available if you specify an accounting method). (Optional)
14- Click the Save and Edit Task List button to navigate back to the accounting configuration task list for your secondary ledger. (Optional)
15- Click the Select and Add button to select the secondary ledger that you just created and set the scope for it. Locate your ledger from the Manage Secondary Ledgers window, and hit the Save and Close button. This will successfully set the scope for your task list to the selected secondary ledger, as indicated in the Secondary Ledger choice list above the Tasks and Task Lists table. (Optional)
16- The remaining tasks in the secondary ledger task list are similar to the ones of the primary ledger, in the sense that you must define your secondary ledger options, add reporting currencies to it, assign balancing segment values, etc. Note that you must complete the mandatory task called Complete Primary to Secondary Ledger Mapping, which allows you to the currency conversion information, chart of accounts mapping, and other critical replication information for your secondary ledger. (Optional)
17- If you are ready to complete your configuration, locate the Review and Submit Accounting Configuration task in the primary ledger task list, then click the Go to Task icon. Once on the review page, click the Submit button to process and finalize your accounting configuration.
Note – Creating a new accounting configuration will launch a process to create or update balances cubes. As a rule of thumb, a balances cube is uniquely defined by the combination of a chart of accounts and an accounting calendar. An additional average balances cube is created for the same combination of COA and calendar if at least one ADB-enabled ledger exists for this combination.
For each of the ledgers in your configuration, if the combination of COA and calendar is unique in Fusion General Ledger, then a new balances cube (and possibly additional average balances cube) will be created. If the combination of COA and calendar for a particular ledger has already been assigned to another accounting configuration, then submitting your configuration will simply add that ledger in the Ledger dimension in the corresponding balances cube.
Figure 3: Balances Cube Overview
Figure 4: Accounting Configuration and Balances Cubes
Refer to this following document screent shots from application on ledger creation:
How To Create a New Ledger in Fusion General Ledger (Doc ID 1274512.1)
Open First Period [Optional]
You must open the first period for all the ledgers you wish to transact with. This includes primary ledgers, secondary ledgers, and journal and subledger-level reporting currencies.
To open the first period for your ledgers, locate the Open First Period task in the primary ledger task list, then click the Go to Task icon. Once on the submission page, select the ledger and the period to open, and click the Submit button to launch the open period process.
Define Common Applications Configuration for Financials
- Define Ledgers
- Define Accounting Configurations
* Open First Period
9- Repeat the aforementioned steps for every COA you would like to define.
Figure 4: Screenshot showing COA Instance: Fast Accural Flex
Note – After creating the desired COA instances, it is necessary to deploy the Accounting Flexfield to ensure that the COAs are valid and usable. Deploying (a similar concept to compiling) the Accounting Flexfield validates and generates all the necessary objects, thus ensuring that the chart of accounts can be used across all the desired Accounting Hub entities. To deploy the Accounting Flexfield, click the Deploy Flexfield button on the Manage Key Flexfield page. Once all necessary validations take place, the Deployment Statuscolumn should show a green check mark indicating that the deployment has successfully taken place.
Value Set Values
To define new value set values, or maintain existing values, navigate to the Manage Chart of Accounts Value Sets task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures
* Define Chart of Accounts
* Manage Chart of Accounts Value Sets
Note – Alternatively, you may create your value set values by drilling on the corresponding Value Set Code hyperlinks on the definition page of the structure instance. Choosing the latter method provides the advantage of having a context and a starting point for defining your value set values.
To begin creating value set values, use the following steps:
1- On the Manage Value Sets page, search for you value set.
2- Select your value set from the Search Results table, and click the Manage Values button. You will get redirected to the Manage Values page.
3- To create a value set value, click the Create icon on the toolbar of the Search Results table, and you will get redirected to the Create Value page.
4- Specify a Value (must be unique in the value set) and an optional Description.
5- Specify an optional Start Date and End Date to determine the accounting time frame in which this specific segment value may be used.
6- Specify the value attributes, such as Summary (indicating whether the value is a parent or detail value), Allow Posting, Allow Budgeting; and additionally for natural account segment values, specify the following fields: Account Type, Third Party Control Account, Reconcile and Financial Category.
Note – You cannot specify the parent/child relationship for your segment values on this screen. You need to do this step through account hierarchies, and this will be detailed in the next section.
7- Click the Save and Close button to save your segment value and navigate back to the Manage Values page.
8- Repeat Steps 3 to 7 to define additional segment values for the selected value set.
Accounting Calendars
To create a new account calendar, or maintain existing accounting calendars, navigate to the Manage Accounting Calendars task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures > Define Calendars
- Manage Accounting Calendars
To begin creating an accounting calendar, use the following steps:
1- Click the Create icon on the toolbar of the Search Results table. You will be redirected to the first step of the Create Accounting Calendar flow.
2- Specify a unique calendar Name, and an optional Description.
3- Specify a Start Date for your accounting calendar to determine the first day of the earliest accounting period associated with this calendar. Once you save your calendar, the Start Date can no longer be modified.
Note – In Fusion General Ledger, we currently do not allow to create a calendar year with a fewer number of periods than what the period frequency dictates. Therefore, we recommend that you add a full extra year in your accounting calendar before the first opened period of any ledger using this calendar. For example, if you plan to start transacting in Jan-11, and intend to run translation for that same Jan-11 period, start your calendar in Jan-10 (2010 calendar year), add the 2011 year to your calendar, and then assign this calendar to your ledger with Jan-11 as the first opened period.
4- Specify the Period Frequency for your accounting calendar. In Fusion General Ledger, we have streamlined the creation of accounting calendars by allowing organizations to choose from frequently used period frequencies, such as Monthly, 4-4-5, Weekly, etc. If any of those popular calendar types are chosen, the system will automatically generate all the period details for the first calendar year, and subsequently for every additional year you add. If your organization uses an irregular or uncommon type of calendar that does not fit any of the seeded frequencies, then you must choose a period frequency of Other, specify the Number of Standard Periods and then manually define the period details.
5- Specify the Adjusting Period Frequency to determine the number and frequency of the adjusting periods. Again here, the system allows you to choose from popular adjusting period frequencies, such as Once at year end, Once at beginning of the year and once at end of the year, etc. If you have other requirements for your adjusting periods, then you must choose an adjusting period frequency of Other, specify the Number of Adjusting Periods and then manually provide the details for those adjusting periods.
6- Under the Period Name Format region:
a. Specify an optional User-Defined Prefix to use in the generation of the period names.
b. Specify a Separator to separate the period number from the year number when generating
the period names.
c. Choose a Format for your period names. For the calendar year format, the system appends
the year of the start date of the period when generating the period name. For the fiscal
year format, the system appends the year associated with the period regardless of its
date range, to the period name.
7- Click the Next button to navigate to the Period Details screen. If you chose one of the seeded period frequencies, all the periods for your first accounting year will automatically be generated, thus saving you the time and effort of manually defining them.
8- Review the period details for your accounting calendar, and make modifications as necessary. Note that when making any changes, you must abide by the following basic validation rules:
a. The period name must be unique.
b. The standard (non-adjusting) periods must have non-overlapping date ranges.
c. An adjusting period date range must overlap with that of a standard period.
9- Click the Save and Close button to save your accounting calendar and navigate back to the Manage Accounting Calendars page. The system will make all the necessary validations before committing your changes.
10- To add a year to an existing accounting calendar, click the Edit icon to update your accounting calendar, and then click the Add Year button from the Period Details table. If the accounting calendar has already been associated with one or more ledgers, then adding a year to the calendar will update all balances cubes using this calendar, with the periods of the newly-added year.
Figure 5: Accounting Calendar : FAST_MONTH
Currencies
To create a new currency, or maintain existing currencies, navigate to the Manage Currencies task from within your implementation project, and then click the Go to Task icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Enterprise Structures for Financials
- Define Financial Reporting Structures > Define Currencies
- Manage Currencies
To begin creating a new currency, use the following steps:
1- Click the Add Row icon to create a new currency row in the Search Results table.
2- Specify a unique Currency Code and Currency Name, and an optional Description. The Start Date and End Date fields may be used to provide a time frame for the validity of the currency.
3- To provide more details, you must click the Expand icon on the leftmost edge of the row. Having done that, you can specify other fields such as the Issuing Territory, Symbol, Precision and Minimum Accountable Unit.
4- Click the Save button to save the changes to your currencies.
To update an existing currency, search for it from the Search region and make the necessary changes to it from the Search Results table.
Figure 6: Screenshot showing USD currency
Legal Entity
To create a new legal entity, use the following steps:
1- Click on the Define Legal Entities for Financials task list. Since a legal reporting unit is defined in the context of a legal entity, you will be prompted to set a scope value for your legal entity. To create a new legal entity, click the Create New button in the Scope Selection window.
2- You will be redirected to the Create Legal Entity page where you can specify the basic attributes for your legal entity, including the Country, unique Name, Legal Entity Identifier, Legal Address and any other required localized fields.
3- Click the Save and Close button to navigate back to the legal entities task list.
4- Click the Select and Add button to select the legal entity that you just created and set the scope for the remainder of your setup. Search for and select your legal entity from the Manage Legal Entities secondary window, and hit the Save and Close button. This will set the scope for your task list to the selected legal entity, as indicated in the Legal Entity choice list above the Tasks and Task Lists table.
5- A legal entity registration with the same name as that of the legal entity will be created by default. If you want to verify this, locate the Manage Legal Entity Registrations task and then click the Go to Task icon. If you want to create another registration for the legal entity, you must specify the Jurisdiction Territory, Registered Address and Registered Name.
6- Other optional tasks at the legal entity level are the Manage Intercompany Exceptions, Manage Legal Entity Financial Information and Manage Legal Entity Tax Profiles tasks. All these tasks can be launched by clicking on the respective Go to Task icon.
When a legal entity is created, a legal reporting unit with the same name as that of the entity is also automatically created.
Accounting Configuration
In order to create and finalize your accounting configurations, you need to define your legal entities, create your ledgers and open the first periods for your ledgers. Optionally, you can define and maintain your general ledger options and period close components to customize your accounting configurations setup.
Figure 2: Flow for Accounting Configuration
Ledgers
To create a new ledger (primary ledger, secondary ledger (Optional) or reporting currency (Optional), or maintain existing ledgers, navigate to the Define Accounting Configurations iterative task list from within your implementation project, and then click the Go to Task List icon. This task can be found in the following hierarchy:
Define Common Applications Configuration for Financials
- Define Ledgers
- Define Accounting Configurations
* Manage Primary Ledgers
* Assign Legal Entities [Optional]
* Specify Ledger Options
* Assign Balancing Segment Values to Legal Entities [Optional]
* Assign Balancing Segment Values to Ledger [Optional]
* Manage Reporting Currencies [Optional]
* Define Secondary Ledgers [Optional]
* Review and Submit Accounting Configuration
To begin creating your accounting configuration, use the following steps:
1- Since every accounting configuration can uniquely be identified by its primary ledger, you will be prompted to set a scope value for your primary ledger. To create a new primary ledger, click the Create New button in the Scope Selection window.
2- You will be redirected to the Create Primary Ledger page where you can specify the basic attributes for your ledger, including the Name (must be unique), Description, Chart of Accounts, Accounting Calendar, Currency and Accounting Method. The accounting method determines the rules for recording transactions from subledgers through the Subledger Accounting engine.
3- Click the Save and Edit Task List button to navigate back to the accounting configuration task list. Keep in mind that you cannot change the chart of accounts, accounting calendar or currency for your ledger after you save your ledger.
4- Click the Select and Add button to select the primary ledger that you just created and set the scope for the remainder of your accounting configuration setup. Search for and select your ledger from the Manage Primary Ledgers secondary window, and hit the Save and Close button. This will set the scope for your task list to the selected primary ledger, as indicated in the Primary Ledger choice list above the Tasks and Task Lists table.
5- Locate the Specify Ledger Options task and then click the Go to Task icon to start reviewing and modifying your primary ledger options. On the ledger options page, you must specify all the required fields and any additional fields that are required for your ledger configuration:
a. First Opened Period: If you plan to run translation, make sure that this period is after the first defined period of the associated accounting calendar.
b. Number of Future Enterable Periods: We recommend that you minimize the number of future enterable periods to prevent creating transactions in undesired accounting periods.
c. If you specified an Accounting Method, you must specify the Journal Language field. (Optional)
d. Retained Earnings Account: If you turned dynamic insertion for your chart of accounts, you may specify any valid account combination and it will automatically be created for you.
e. If you plan to run translation, you must specify the Cumulative Translation Adjustment Account, and later define your balance-level reporting currencies. (Optional)
f. If you have intercompany transactions involving companies across different legal entities, or between different balancing segment values for the same legal entity, mark the Enable intercompany accounting check box, and later define your intercompany accounting rules. (Optional)
g. If you want to enable average daily balance (ADB) processing for your ledger, you must mark the Enable average balances check box, and specify a non-postable, balance sheet Net Income Account and a Transaction Calendar. Once you save your ledger options with average balance processing, you may not undo your changes. (Optional)
h. Review your ledger options, and then click the Save and Close button to navigate back your accounting configuration task list.
6- Besides defining the basic ledger attributes, the ledger options page is the only required task to complete your accounting configuration. If you plan to assign one or more legal entities to your configuration, locate the Assign Legal Entities task and then click the Go to Task icon. (Optional)
7- To assign balancing segment values to your legal entities, locate the Assign Balancing Segment Values to Legal Entities task and then click the Go to Task icon. (Optional)
8- To assign balancing segment values directly to your ledger, locate the Assign Balancing Segment Value to Ledger task and then click the Go to Task icon. The BSVs that are assigned to the ledger represent non-legal entity transactions, such as adjustments. If you use legal entities, you must assign balancing segment values to all legal entities before assigning values to the ledger. (Optional)
9- To assign one or more reporting currencies to your ledger, locate the Manage Reporting Currencies task and then click the Go to Task icon. On this page, you will be able to assign balance, journal or subledger-level reporting currencies to your primary ledger. (Optional)
10- Note – If you plan to run translation for your primary ledger, you must create a balance level reporting currency before translating. Currently, Fusion General Ledger does not automatically create a balance level reporting currency for the target currency you run the translation for. (Optional)
11- To assign one or more secondary ledgers to your primary ledger, locate the Define Secondary Ledgers iterative task list and then click the Go to Task List icon. Note that defining secondary ledgers is by itself a task list, and that you must set the scope for your secondary ledger the same way you did it for your primary ledger. (Optional)
Define Common Applications Configuration for Financials
- Define Ledgers
- Define Accounting Configurations
- Define Secondary Ledgers
* Manage Secondary Ledgers
* Specify Ledger Options
* Complete Primary to Secondary Ledger Mapping
* Assign Balancing Segment Values to Legal Entities
* Assign Balancing Segment Values to Ledger
* Manage Reporting Currencies
12- To create a new secondary ledger, click the Create New button in the Scope Selection window. (Optional)
13- You will be redirected to the Create Secondary Ledger page where you can specify the basic attributes for your secondary ledger, including the Name (must be unique), Description, Chart of Accounts, Accounting Calendar, Currency and Accounting Method. The Data Conversion Level can be Adjustment Only, Balance, Journal and Subledger (only available if you specify an accounting method). (Optional)
14- Click the Save and Edit Task List button to navigate back to the accounting configuration task list for your secondary ledger. (Optional)
15- Click the Select and Add button to select the secondary ledger that you just created and set the scope for it. Locate your ledger from the Manage Secondary Ledgers window, and hit the Save and Close button. This will successfully set the scope for your task list to the selected secondary ledger, as indicated in the Secondary Ledger choice list above the Tasks and Task Lists table. (Optional)
16- The remaining tasks in the secondary ledger task list are similar to the ones of the primary ledger, in the sense that you must define your secondary ledger options, add reporting currencies to it, assign balancing segment values, etc. Note that you must complete the mandatory task called Complete Primary to Secondary Ledger Mapping, which allows you to the currency conversion information, chart of accounts mapping, and other critical replication information for your secondary ledger. (Optional)
17- If you are ready to complete your configuration, locate the Review and Submit Accounting Configuration task in the primary ledger task list, then click the Go to Task icon. Once on the review page, click the Submit button to process and finalize your accounting configuration.
Note – Creating a new accounting configuration will launch a process to create or update balances cubes. As a rule of thumb, a balances cube is uniquely defined by the combination of a chart of accounts and an accounting calendar. An additional average balances cube is created for the same combination of COA and calendar if at least one ADB-enabled ledger exists for this combination.
For each of the ledgers in your configuration, if the combination of COA and calendar is unique in Fusion General Ledger, then a new balances cube (and possibly additional average balances cube) will be created. If the combination of COA and calendar for a particular ledger has already been assigned to another accounting configuration, then submitting your configuration will simply add that ledger in the Ledger dimension in the corresponding balances cube.
Figure 3: Balances Cube Overview
Figure 4: Accounting Configuration and Balances Cubes
Refer to this following document screent shots from application on ledger creation:
How To Create a New Ledger in Fusion General Ledger (Doc ID 1274512.1)
Open First Period [Optional]
You must open the first period for all the ledgers you wish to transact with. This includes primary ledgers, secondary ledgers, and journal and subledger-level reporting currencies.
To open the first period for your ledgers, locate the Open First Period task in the primary ledger task list, then click the Go to Task icon. Once on the submission page, select the ledger and the period to open, and click the Submit button to launch the open period process.
Define Common Applications Configuration for Financials
- Define Ledgers
- Define Accounting Configurations
* Open First Period
There are alternative ways to open the
first period, or any subsequent periods, for your ledgers, which do not involve
the Setup and Maintenance work area:
1- You can maintain your ledgers’ period statuses from the Close Status region in the General Accounting Dashboard or the Period Close work area. The Close Status work region provides real time visibility into the period close process from subledgers to General Ledger across the entire enterprise.
2- You can also maintain your ledgers’ period statuses from the Manage Accounting Periods task in the Period Close work area.
Alternatively, you can maintain your period statuses and launch the Open Period or Close Period processes directly from the Process Monitoring work area, which provides a framework for launching, monitoring and maintaining all the processes across Fusion Financials.
1- You can maintain your ledgers’ period statuses from the Close Status region in the General Accounting Dashboard or the Period Close work area. The Close Status work region provides real time visibility into the period close process from subledgers to General Ledger across the entire enterprise.
2- You can also maintain your ledgers’ period statuses from the Manage Accounting Periods task in the Period Close work area.
Alternatively, you can maintain your period statuses and launch the Open Period or Close Period processes directly from the Process Monitoring work area, which provides a framework for launching, monitoring and maintaining all the processes across Fusion Financials.
NOte :From Rel 7, Scope for primary
ledger cannot be selected from Define Accounting Configurations. There is a
column 'Select Scope' besides task for e.g. For task specify ledger
options, there is a column 'Select Scope'.
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