Oracle Fusion Cloud Financials

Oracle Fusion

Cloud Financials

Implementing Enterprise Structures

and General Ledger

24C

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

24C

F97268-03

Author: Barbara Kostelec

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Contents

Get Help ................................................................................................................................ i

Enterprise Structures Introduction

Overview of Enterprise Structures .............................................................................................................................................. 1

Enterprise Structures Business Process Model ....................................................................................................................... 4

Guidelines for Configuring Global Enterprises ........................................................................................................................ 6

Model Your Enterprise Management Structure ....................................................................................................................... 7

Overview of Diagnostic Tests for Enterprise Structures Setup ........................................................................................... 11

Enterprise Structures Setup Report ........................................................................................................................................... 11

Setup Data Import and Export for Oracle Fusion Financials ............................................................................................... 12

Initial Configuration ...................................................................................................................................................................... 17

Reference Data Sharing

Reference Data Sharing .............................................................................................................................................................. 23

Reference Data Sets ..................................................................................................................................................................... 23

Reference Data Sets and Sharing Methods ........................................................................................................................... 24

How Business Units Work with Reference Data Sets ........................................................................................................... 26

How You Create Reference Data Sets in the Enterprise Structures Configurator .......................................................... 29

Assignment of Reference Data Sets to Reference Objects ................................................................................................. 29

Items and Supplier Site Reference Data Sharing .................................................................................................................. 30

FAQs for Reference Data Sharing .............................................................................................................................................. 31

Enterprise

Define Enterprises ........................................................................................................................................................................ 37

Enterprise Information for Non-HCM Users .......................................................................................................................... 37

Manage Locations ........................................................................................................................................................................ 37

Legal Jurisdictions and Authorities ......................................................................................................................................... 40

Geographies

Overview of Geographies ........................................................................................................................................................... 45

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Legal Entities

Overview ......................................................................................................................................................................................... 47

Model Legal Entities .................................................................................................................................................................... 48

How You Create Legal Entities in the Enterprise Structures Configurator ....................................................................... 51

Create Legal Entities, Registrations, and Reporting Units .................................................................................................. 53

How Legal Employers Work with Payroll Statutory Units and Tax Reporting Units ....................................................... 55

Party Tax Profiles ......................................................................................................................................................................... 55

Considerations for Specifying First-Party Tax Profile Options ........................................................................................... 57

Plan Legal Reporting Units ........................................................................................................................................................ 59

FAQs for Legal Entities ............................................................................................................................................................... 59

Financial Structures

Overview ......................................................................................................................................................................................... 61

Rapid Implementation ................................................................................................................................................................. 61

Chart of Accounts ......................................................................................................................................................................... 81

Value Sets .................................................................................................................................................................................... 104

Chart of Accounts Structures and Instances ........................................................................................................................ 110

Flexfield Deployment .................................................................................................................................................................. 118

General Ledger Security ............................................................................................................................................................ 123

Cross-Validations ........................................................................................................................................................................ 154

Cross-Validation Rules ............................................................................................................................................................... 155

Cross-Validation Combination Sets ........................................................................................................................................ 175

Related Value Sets ..................................................................................................................................................................... 190

Account Hierarchies ................................................................................................................................................................... 196

Account Combinations .............................................................................................................................................................. 225

Accounting Calendars ............................................................................................................................................................... 234

Currencies .................................................................................................................................................................................... 239

Conversion Rate Types .............................................................................................................................................................. 241

Daily Rates ................................................................................................................................................................................... 244

Historical Rates ........................................................................................................................................................................... 249

Ledgers

251

Overview ....................................................................................................................................................................................... 251

Ledger Options ........................................................................................................................................................................... 259

Legal Entity and Balancing Segment Assignment ............................................................................................................. 263

Legal Entity-Specific Secondary Ledgers with Controlled Replication from Primary Ledgers .................................. 265

Reporting Currency Balances .................................................................................................................................................. 270

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Accounting Configuration Review and Submission ........................................................................................................... 273

First Period .................................................................................................................................................................................. 293

Opening Balance Initialization for New Reporting Currencies and Secondary Ledgers ............................................. 293

Clearing Accounts Reconciliation ........................................................................................................................................... 302

Average Balance Processing ................................................................................................................................................... 309

FAQs for Ledgers ........................................................................................................................................................................ 313

Intercompany Setup

317

System Options ........................................................................................................................................................................... 317

Define Organizations ................................................................................................................................................................. 319

Invoicing Options ....................................................................................................................................................................... 320

Balancing Rules ........................................................................................................................................................................... 321

Allocations ................................................................................................................................................................................... 338

Multitier Intercompany Operations Setup ............................................................................................................................ 349

Examples to Configure Intercompany Organizations ........................................................................................................ 352

General Ledger Options

359

Ledger Sets .................................................................................................................................................................................. 359

Data Access Sets ........................................................................................................................................................................ 359

Accounting Automation ........................................................................................................................................................... 360

Accounting and Reporting Sequences ................................................................................................................................. 367

Journal Approval Rules .............................................................................................................................................................. 371

Journal Approval Notifications ............................................................................................................................................... 408

AutoPost ....................................................................................................................................................................................... 425

Manage Journal Reversals ....................................................................................................................................................... 428

Lookups ........................................................................................................................................................................................ 435

Descriptive Flexfields ................................................................................................................................................................ 445

Profile Options ........................................................................................................................................................................... 460

Workflow Transaction Console ............................................................................................................................................... 465

Processing Schedules ............................................................................................................................................................... 470

Period Close

471

Overview ....................................................................................................................................................................................... 471

Revaluation .................................................................................................................................................................................. 474

Translation ................................................................................................................................................................................... 489

Foreign Currency Valuation Accounting .............................................................................................................................. 496

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Allocations and Periodic Entries

505

Overview ...................................................................................................................................................................................... 505

Recurring Journals .................................................................................................................................................................... 509

Calculation Manager .................................................................................................................................................................. 515

Allocation Rules ........................................................................................................................................................................... 521

Allocation Rule Sets ................................................................................................................................................................... 539

Allocation Components ............................................................................................................................................................ 546

Allocation Variables .................................................................................................................................................................... 561

FAQs for Allocations and Periodic Entries ........................................................................................................................... 566

Business Units

573

Business Units ............................................................................................................................................................................. 573

Business Functions .................................................................................................................................................................... 574

Considerations for Creating Business Units in the Enterprise Structures Configurator ............................................. 576

Copy Business Unit Configurations ....................................................................................................................................... 579

Examples of Override Business Unit Account Segment Values ....................................................................................... 581

Service Provider Models ........................................................................................................................................................... 583

Shared Service Centers ............................................................................................................................................................ 584

Guidelines for Shared Service Centers .................................................................................................................................. 585

Workforce Structures and Facilities

587

Divisions and Departments ..................................................................................................................................................... 587

Jobs and Positions ..................................................................................................................................................................... 593

Facility Shifts, Workday Patterns, and Schedules ............................................................................................................... 598

Inventory Organizations and Item Organizations .............................................................................................................. 602

Budgets

611

Overview of Budget Uploads .................................................................................................................................................... 611

How General Ledger Budget Balance Import Data Is Processed ..................................................................................... 613

Import Budget Data from a Flat File ...................................................................................................................................... 614

Import Budget Data from a Spreadsheet ............................................................................................................................. 616

Correct Budget Import Errors Using a Spreadsheet ........................................................................................................... 616

Overview of Oracle Hyperion Planning ................................................................................................................................. 617

Overview of Integration with Oracle Enterprise Planning and Budgeting Cloud Service ........................................... 617

Financial Reporting

619

Overview of Financial Reporting Center ............................................................................................................................... 619

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Set Up Financial Reporting Center and Smart View ........................................................................................................... 621

How to Access EPM Narrative Reporting Reports in Financial Reporting Center ....................................................... 624

Considerations for Implementing Financial Reporting Center ........................................................................................ 625

Overview of Financial Reporting Web Studio ...................................................................................................................... 626

Overview of Reporting Web Studio ....................................................................................................................................... 626

How Financial Reporting Reports and Account Groups Are Generated ........................................................................ 627

Create a Financial Report ......................................................................................................................................................... 629

Configure an Account Group .................................................................................................................................................. 635

General Ledger Subject Areas, Folders, and Attributes .................................................................................................... 638

Schedule Financial Reporting Reports ................................................................................................................................. 640

Display Only Segment Value Descriptions in Reports ...................................................................................................... 640

FAQs for Financial Reporting ................................................................................................................................................... 641

Accounting Data Archive and Purge

643

Overview of Accounting Data Archive and Purge .............................................................................................................. 643

How You Archive and Purge Accounting Data ................................................................................................................... 645

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

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this guide are provided as a media alternative for text-based topics also available in this guide.

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Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

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Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

1 Enterprise Structures Introduction

Overview of Enterprise Structures

Oracle Fusion Applications have been designed to ensure your enterprise can be modeled to meet legal and

management objectives.

The decisions about your implementation of Oracle Fusion Applications are affected by your:

• Industry

• Business unit requirements for autonomy

• Business and accounting policies

• Business functions performed by business units and optionally, centralized in shared service centers

• Locations of facilities

Every enterprise has three fundamental structures that describe its operations and provide a basis for reporting.

• Legal

• Managerial

• Functional

In Oracle Fusion, these structures are implemented using the chart of accounts and organization hierarchies. Many

alternative hierarchies can be implemented and used for reporting. You are likely to have one primary structure that

organizes your business into:

• Divisions

• Business Units

• Departments

Align these structures with your strategic objectives.

This figure illustrates a grid with Business Axis, representing the enterprise division, Legal Axis representing the

companies, and the Functional Axis representing the business functions.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Legal Structure

The figure illustrates a typical group of legal entities, operating various business and functional organizations. Your

ability to buy and sell, own, and employ comes from your charter in the legal system. A corporation is:

• A distinct legal entity from its owners and managers.

• Owned by its shareholders, who may be individuals or other corporations.

Many other kinds of legal entities exist, such as sole proprietorships, partnerships, and government agencies.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

A legally recognized entity can own and trade assets and employ people in the jurisdiction in which the entity is

registered. When granted these privileges, legal entities are also assigned responsibilities to:

• Account for themselves to the public through statutory and external reporting.

• Comply with legislation and regulations.

• Pay income and transaction taxes.

• Process value added tax (VAT) collection on behalf of the taxing authority.

Many large enterprises isolate risk and optimize taxes by incorporating subsidiaries. They create legal entities to

facilitate legal compliance, segregate operations, optimize taxes, complete contractual relationships, and isolate risk.

Enterprises use legal entities to establish their enterprise's identity within the laws of each country in which their

enterprise operates.

The figure illustrates:

• A separate card represents a series of registered companies.

• Each company, including the public holding company, InFusion America, must be registered in the countries

where they do business.

• Each company contributes to various divisions created for purposes of management reporting. These are

shown as vertical columns on each card.

For example, a group might have a separate company for each business in the United States (US), but have its United

Kingdom (UK) legal entity represent all businesses in that country.

The divisions are linked across the cards so that a business can appear on some or all of the cards. For example, the

air quality monitoring systems business might be operated by the US, UK, and France companies. The list of business

divisions is on the Business Axis.

Each company's card is also horizontally striped by functional groups, such as the sales team and the finance team.

This functional list is called the Functional Axis. The overall image suggests that information might, at a minimum, be

tracked by company, business, division, and function in a group environment. In Oracle Fusion Applications, the legal

structure is implemented using legal entities.

Management Structure

Successfully managing multiple businesses requires that you segregate them by their strategic objectives, and measure

their results. Although related to your legal structure, the business organizational hierarchies don't have to be reflected

directly in the legal structure of the enterprise. The management structure can include divisions, subdivisions, lines

of business, strategic business units, profit, and cost centers. In the figure, the management structure is shown on the

Business Axis. In Oracle Fusion Applications, the management structure is implemented using divisions and business

units as well as being reflected in the chart of accounts.

Functional Structure

Straddling the legal and business organizations is a functional organization structured around people and their

competencies. For example, sales, manufacturing, and service teams are functional organizations. This functional

structure is represented by the Functional Axis in the figure. You reflect the efforts and expenses of your functional

organizations directly on the income statement. Organizations must manage and report revenues, cost of sales, and

functional expenses such as research and development and selling, general, and administrative expenses. In Oracle

Fusion Applications, the functional structure is implemented using departments and organizations, including sales,

marketing, project, cost, and inventory organizations.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Enterprise Structures Business Process Model

In Oracle Fusion Cloud Applications, the Enterprise Performance and Planning Business Process Model illustrates the

major implementation tasks that you perform to create your enterprise structures.

This process includes:

• Set Up Enterprise Structures business process, which consists of implementation activities that span many

product families.

• Information Technology, a second Business Process Model which contains the Set Up Information Technology

Management business process.

• Define Reference Data Sharing, which is one of the activities in this business process and is important in the

implementation of the enterprise structures. This activity creates the mechanism to share reference data sets

across multiple ledgers, business units, and warehouses, reducing the administrative burden and decreasing

the time to implement.

The following figure and table describe the Business Process Model structures and activities.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

The table describes each BPM activity.

BPM Activities Description

Define Enterprise

Define the enterprise to get the name of the deploying enterprise and the location of the headquarters.

Define Enterprise Structures

Define enterprise structures to represent an organization with one or more legal entities. Define

organizations to represent each area of business within the enterprise.

Define Legal Jurisdictions and Authorities

Define information for governing bodies that operate within a jurisdiction.

Define Legal Entities

Define legal entities and legal reporting units for business activities handled by the Oracle Fusion

Applications.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

BPM Activities Description

Define Business Units

Define business units of an enterprise to perform one or many business functions that can be rolled up

in a management hierarchy. A business unit can process transactions on behalf of many legal entities.

Normally, it has a manager, strategic objectives, a level of autonomy, and responsibility for its profit

and loss.

Define Financial Reporting Structures

Define financial reporting structures, including organization structures, charts of accounts,

organizational hierarchies, calendars, currencies and rates, ledgers, and document sequences which

are used in organizing the financial data of a company.

Define Chart of Accounts

Define chart of accounts including hierarchies and values to enable tracking of financial transactions

and reporting at legal entity, cost center, account, and other segment levels.

Define Ledgers

Define the primary accounting ledger and any secondary ledgers that provide an alternative

accounting representation of the financial data.

Define Accounting Configurations

Define the accounting configuration that serves as a framework for how financial records are

maintained for an organization.

Define Facilities

Define your manufacturing and storage facilities as Inventory Organizations if Oracle Fusion

Applications track inventory balances there and Item Organizations if Oracle Fusion Applications only

track the items used in the facility but not the balances.

Define Reference Data Sharing

Define how reference data in the applications is partitioned and shared.

Note: Some product-specific implementation activities aren't listed here and depend on the applications you're

implementing. For example, you can implement Define Enterprise Structures for Human Capital Management, Project

Management, and Sales Management.

Guidelines for Configuring Global Enterprises

Start your global enterprise structure configuration by discussing what your organization's reporting needs are and how

to represent those needs in the Oracle Fusion Cloud Applications.

The following are some questions and points to consider as you design your global enterprise structure in Oracle Fusion

Applications.

• Enterprise Configuration

• Business Unit Management

• Security Structure

• Compliance Requirements

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Enterprise Configuration

• What is the level of configuration needed to achieve the reporting and accounting requirements?

• What components of your enterprise do you need to report on separately?

• Which components can be represented by building a hierarchy of values to provide reporting at both detail and

summary levels?

• Where are you on the spectrum of centralization versus decentralization?

Business Unit Management

• What reporting do I need by business unit?

• How can you set up your departments or business unit accounts to achieve departmental hierarchies that

report accurately on your lines of business?

• What reporting do you need to support the managers of your business units, and the executives who measure

them?

• How often are business unit results aggregated?

• What level of reporting detail is required across business units?

Security Structure

• What level of security and access is allowed?

• Are business unit managers and the people that report to them secured to transactions within their own

business unit?

• Are the transactions for their business unit largely performed by a corporate department or shared service

center?

Compliance Requirements

• How do you comply with your corporate external reporting requirements and local statutory reporting

requirements?

• Do you tend to prefer a corporate first or an autonomous local approach?

• Where are you on a spectrum of centralization, very centralized or decentralized?

Model Your Enterprise Management Structure

This example uses a fictitious global company to demonstrate the analysis that can occur during the enterprise

structure configuration planning process.

Scenario

Your company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the

United Kingdom (UK). InFusion has purchased an Oracle Fusion Cloud Enterprise Resource Planning (ERP) solution

including Oracle General Ledger and all of the Oracle Fusion Cloud Applications subledgers. You are chairing a

committee to discuss creation of a model for your global enterprise structure including both your US and UK operations.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

InFusion Corporation

InFusion Corporation has 400 plus employees and revenue of 120 million US dollars. Your product line includes all

the components to build and maintain air quality monitoring applications for homes and businesses. You have two

distribution centers and three warehouses that share a common item master in the US and UK. Your financial services

organization provides funding to your customers for the initial costs of these applications.

The following are elements you must consider in creating your model for your global enterprise structure.

• Your company is required to report using US Generally Accepted Accounting Principles (GAAP) standards and

UK Statements of Standard Accounting Practice and Financial Reporting Standards. How many ledgers do you

want to achieve proper statutory reporting?

• Your managers need reports that show profit and loss (revenue and expenses) for their lines of business. Do

you use business units and balancing segments to represent your divisions and businesses? Do you secure data

by two segments in your chart of accounts which represents each department and legal entity? Or do you use

one segment that represents both to produce useful, but confidential management reports?

• Your corporate management requires reports showing total organizational performance with drill-down

capability to the supporting details. Do you need multiple balancing segment hierarchies to achieve proper

rollup of balances for reporting requirements?

• Your company has all administrative, account payables, procurement, and Human Resources functions

performed at their corporate headquarters. Do you need one or more business units in which to perform all

these functions? How is your shared service center configured?

Global Enterprise Structure Model

The following figure and table summarize the model that your committee has designed and uses numeric values to

provide a sample representation of your structure. The model includes the following recommendations:

• Creation of three separate ledgers representing your separate legal entities:

◦

InFusion America Inc.

◦

InFusion Financial Services Inc.

◦

InFusion UK Services Ltd.

• Consolidation of results for application components, installations, and maintenance product lines across the

enterprise

• All UK general and administrative costs processed at the UK headquarters

• US Systems' general and administrative costs processed at US Corporate headquarters

• US Financial Services maintains its own payables and receivables departments

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

In this chart, the green globe stands for required and gold globe stands for optional setup. The following statements

expand on the data in the chart.

• The enterprise is required because it serves as an umbrella for the entire implementation. All organizations are

created within an enterprise.

• Legal entities are also required. They can be optionally mapped to balancing segment values or represented

by ledgers. Mapping balancing segment values to legal entities is required if you plan to use the intercompany

functionality. The InFusion Corporation is a legal entity but isn't discussed in this example.

• At least one ledger is required in an implementation in which you record your accounting transactions.

• Business units are also required because financial transactions are processed in business units.

• A shared service center is optional, but if used, must be a business unit.

• Divisions are optional and can be represented with a hierarchy of cost centers or by a second balancing

segment value.

• Departments are required because they track your employees.

• Optionally, add an item master organization and inventory organizations if you're tracking your inventory

transactions in Oracle Fusion Applications.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Note: Some Oracle Fusion Cloud Human Capital Management implementations don't require recording accounting

transactions and therefore, don't require a ledger.

Overview of Diagnostic Tests for Enterprise Structures

Setup

You can run diagnostic tests to perform a health check and data validation on the data for these enterprise structure

setups.

• Chart of accounts

• Value sets and values

• Account hierarchies versions

• Accounting calendars

• Legal entities and legal reporting units

• Ledgers setup

To access the Diagnostic Dashboard and run the diagnostic tests, you must be granted the Application Diagnostics

Regular User job role. After you have been granted the role, you can run the diagnostics tests by selecting the Run

Diagnostics Tests link in the Settings and Actions menu.

Note: If you have the Application Diagnostics Viewer job role, you can view the diagnostic test results, but not run the

diagnostic tests.

Enterprise Structures Setup Report

Validate your enterprise structures configuration using the Enterprise Structures Setup Report. This report provides the

detailed listing of chart of accounts, segments, value sets, ledgers, legal entities, business units, and account hierarchy

information.

Use this auditable report in multiple formats such as HTML, PDF, RTF, Excel, Power Point, and CSV to improve your off-

line analysis requirements.

How it Works

Run as a scheduled process with a value for the Chart of Accounts parameter.

Report Security

The following duty roles are assigned privileges that include managing and reviewing accounting configurations.

• General Accounting Setup Review

• Enterprise Structures Administration

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Setup Data Import and Export for Oracle Fusion

Financials

The following table describe the manual tasks that you must complete as part of the setup data export and import

processes for the Oracle Fusion Financials offering.

Section Description

Setup tasks performed before export

Perform these tasks prior to starting export processes for the Financials offering.

Setup tasks performed before import

Perform these tasks prior to starting import processes for the Financials offering.

Setup tasks performed after import

Review and perform the manual setup steps on the target instance as required. Setup data for these

tasks isn't imported from the source instance.

Setup tasks not requiring data import

Perform these tasks on the target instance as required. These setup tasks don't require data import.

Refer to the Oracle Fusion Functional Setup Manager User's Guide for the steps to perform setup data export and

import processes.

Setup Tasks Performed Before Export

Prior to starting the export processes from the source instance, you must verify and update setup for the following task

described in the table. Verifying the setup ensures that data is correctly imported into the target instance.

Activity Name Task Name Setup Steps

Define Chart of Accounts

Manage Account Combinations

Account combinations aren't exported from

the source instance. Before exporting, navigate

to the Manage Chart of Accounts Instance

page on the source instance and verify that

dynamic insertion is enabled for your charts

of accounts. As long as dynamic insertion is

enabled, account combinations are created

automatically as needed on the target instance.

Setup Tasks Performed Before Import

Prior to starting import processes into the target instance, you must verify and update setup for the following task

described in the table.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Activity Name Task Name Setup Steps

Define Common Applications Configuration for

Financials

Define Implementation Users

The import process doesn't include

implementation users and roles associated with

them.

For more information, see Oracle Fusion

Middleware Enterprise Deployment Guide for

Oracle Identity Management.

Setup Tasks Performed After Import

Setup data for the following tasks listed in the table aren't imported. Review these tasks for relevance to your

implementation. For relevant tasks, open the corresponding setup pages from your implementation project to create

the setup on the target instance as needed.

Activity Name Task Name

Define General Ledger Options

Manage Journal Approval Rules

Define Approval Management for

Financials

• Manage Task Configurations for Financials

• Manage Approval Groups for Financials

Define Tax Geographies

Manage Tax Geographies

Define Payables

• Define Automated Invoice Processing Configuration

• Manage Payables Document Sequences

Define Image Processing

Configure Document Capture Parameters

Define Customer Billing Configuration

Manage Salesperson Account References

Define Customer Payments

Manage Receivables Specialist Assignment Rules

Setup data for the following tasks listed in the table aren't imported from the source instance. Review the steps in the

following table to create the setup on the target instance as needed.

Activity Name Task Name Setup Steps

Define Credit Card Data

Extend Employee Matching Rules

Write user-defined PL/SQL code to extend

the predefined criteria for automatically

matching new corporate cards to employees to

incorporate your company-specific criteria. If

you use a user-defined matching rule, then the

PL/SQL package isn't imported to the target

instance. You can create the package in the

target instance or copy the package to the

target instance and compile it.

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Activity Name Task Name Setup Steps

Define Customer

Create Customer

Manually create customers, using the Create

Customer task in Functional Setup Manager,

or import customer information by running

the Trading Community Model Data Import

program.

Define Customer

Manage Customers

Manually maintain customer information using

the Manage Customer task in Functional Setup

Manager, or by running the Trading Community

Model Data Import program.

Configure Payment System Connectivity

Manage BI Publisher Templates

Manually import any new or updated BI

Publisher templates. Use the BI Publisher

archiving feature, or alternatively perform the

following steps:

1. Download the template file from the

source Oracle BI Publisher catalog.

2. Update or create a new template in the

target Oracle BI Publisher catalog.

3. Upload the source template file to the

target template.

Define Subledger Accounting Rules

Import Supporting Reference Initial Balances

This task allows upload of initial subledger

balances for supporting references. These

balances aren't imported from the source

instance, but can be loaded directly to the

target instance.

For more information, see Oracle Fusion

Accounting Hub Implementation Guide, Define

Accounting Transformation.

Configure Payment System Connectivity

Integrate External Payment Systems

Setup entities resulting from this integration

are exported and imported through the

Transmission Configuration service. However,

any work performed outside of Oracle Fusion

Applications to integrate with a payment

system must be applied to the production

environment manually. Examples include user-

defined code, routers, or dedicated lines to

facilitate communication.

Define Payments Security

Manage System Security Options

This setup can't be imported and must be set

up again in a production instance. Use the steps

documented in the Oracle Fusion Applications

Post-Installation Guide.

Define Financial Reporting Center

Configuration

Configure Smart View Client for Users

Manually reconfigure the Smart View client to

point to the production instance.

For more information about configuring the

Smart View client for users, see:

Oracle Fusion Cloud Financials

Implementing Enterprise Structures and General Ledger

Chapter 1

Enterprise Structures Introduction

Activity Name Task Name Setup Steps

• Oracle Fusion Accounting Hub

Implementation Guide, Define Financial

Reporting

• Oracle Enterprise Performance

Management System Installation and

Configuration Guide for Oracle Enterprise

Performance Management, Installing

Smart View and other topics

• Oracle Hyperion Smart View for Office

User's Guide for Oracle Hyperion Smart

View

Define Financial Reporting Center

Configuration

Define Essbase Database Connection in

Workspace

Manually reconfigure the Essbase database

connection in Hyperion Workspace.

For more information about configuring the

Hyperion Workspace Database Connection, see

Oracle Fusion Accounting Hub Implementation

Guide, Define Financial Reporting,

Define Financial Reporting

Create Financial Statements

Export the financial report definitions from

Workspace in the source environment.

When exporting, you can export a single report,

multiple reports in a .zip file, or an entire folder

structure in a .zip file.

1. Navigator > General Accounting: Financial

Reporting Center > Open Workspace for

Financial Reports.

2. Navigate > Applications > BI Catalog.

3. File > Export.

4. Save the file to the local desktop.

Import the file into Workspace in the target

environment.

1. Navigator > General Accounting: Financial

Reporting Center > Open Workspace for

Financial Reports.

2. Navigate > Applications > BI Catalog.

3. File > Import.

4. Select the file you had saved during the

export.

If you import the folder structure, the entire

structure from the source instance is imported

into the existing structure on the target

instance. This could result in some redundant

folders. In this case, you can reorganize child

folders in the structure on the target instance

and delete any unneeded folders.

Define Period Close Components

Manage Allocations and Periodic Entries

Export the allocation rules, rule sets,

variables, and run time prompt definitions

from Calculation Manager in the source

environment.

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Activity Name Task Name Setup Steps

When exporting, you can export at the

application level or at a single rule or rule set

level.

Note:

You must export and import rules for each

application on the Essbase server separately.

1. Navigator > General Accounting: Journals

> Create Allocation Rules.

2. Navigator > Administer > Calculation

Manager

3. File > Export.

4. Save the file to the local desktop.

Import the file into Calculation Manager in the

target environment.

1. Navigator > General Accounting: Journals

> Create Allocation Rules.

2. Navigator > Administer > Calculation

Manager

3. Navigate to File > Import.

4. Select the file you saved during the export.

Define Hyperion Financial Management

Integration

Define Hyperion Financial Management

Configuration

Manually import the rules using the Oracle

Enterprise Performance Management Lifecycle

Management tool.

For more information, see the Oracle Hyperion

Artifact Lifecycle Management Utility User's

Guide.

Define Hyperion Financial Management

Integration

Define ERP Integrator Configuration for

Hyperion Financial Management

Manually import the rules using the Oracle

Enterprise Performance Management Lifecycle

Management tool.

For more information, see the Oracle Hyperion

Artifact Lifecycle Management Utility User's

Guide.

Define Budget Configuration

Define Budget Configuration in Hyperion

Planning

Manually import the rules using the Oracle

Enterprise Performance Management Lifecycle

Management tool.

For more information, see the Oracle Hyperion

Artifact Lifecycle Management Utility User's

Guide.

Define Budget Configuration

Define ERP Integrator Configuration for

Hyperion Planning

Manually import the rules using the Oracle

Enterprise Performance Management Lifecycle

Management tool.

For more information, see the Oracle Hyperion

Artifact Lifecycle Management Utility User's

Guide.

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Setup Tasks Not Requiring Data Import

The following tasks in the setup task list are available to support your overall implementation approach. These tasks

listed in the following table don't require any data to be imported. You can perform these tasks on the target instance as

required.

Activity Name Task Name

Define Tax Configuration

• Run Jurisdiction and Rates Upload Program

• Manage Simulator Transactions

Define Fixed Assets Configuration

Verify Data Role Generation for Asset Books

Define Disbursements

Grant Payment Function Access

Configure Payment System Connectivity

View Validations

Initial Configuration

How You Establish Enterprise Structures Using the Enterprise

Structures Configurator

The Enterprise Structures Configurator is an interview-based tool that guides you through the process of setting up a

basic enterprise structure.

By answering questions about your enterprise, the tool creates a structure of divisions, legal entities, business units,

and reference data sets that reflects your enterprise structure. After you create your enterprise structure, you also

follow a guided process to determine whether to use positions, and whether to set up additional attributes for jobs and

positions. After you define your enterprise structure and your job and position structures, you can review them, make

any necessary changes, and then load the final configuration.

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This figure illustrates the process to configure your enterprise using the Enterprise Structures Configurator.

To be able to use the Enterprise Structures Configurator, you must select the Enterprise Structures Guided Flow feature

for your offerings on the Configure Offerings page in the Setup and Maintenance work area. If you don't select this

feature, then you must set up your enterprise structure using individual tasks provided elsewhere in the offerings, and

you can't create multiple configurations to compare different scenarios.

Establish Enterprise Structures

To define your enterprise structures, use the guided flow within the Establish Enterprise Structures task to enter basic

information about your enterprise, such as the primary industry. You then create divisions, legal entities, business

units, and reference data sets. The Establish Enterprise Structures task enables you to create multiple enterprise

configurations so that you can compare different scenarios. Until you load a configuration, you can continue to create

and edit multiple configurations until you arrive at one that best suits your enterprise.

Establish Job and Position Structures

You also use a guided process to determine whether you want to use jobs only, or jobs and positions. The primary

industry that you select in the Establish Enterprise Structures task provides the application with enough information to

make an initial recommendation. You can either accept the recommendation, or you can answer additional questions

about how you manage people in your enterprise, and then make a selection. After you select whether to use jobs or

positions, you're prompted to set up a descriptive flexfield structure for jobs, and for positions if applicable. Descriptive

flexfields enable you to get more information when you create jobs and positions.

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Review Configuration

You can view a result of the interview process prior to loading the configuration. The review results, show the divisions,

legal entities, business units, reference data sets, and the management reporting structure that the application will

create when you load the configuration.

Load Configuration

You can load only one configuration. When you load a configuration, the application creates the divisions, legal entities,

business units, and so on. After you load the configuration, you then use individual tasks to edit, add, and delete

enterprise structures.

This table lists the order of creation of business objects by the Enterprise Structures Configurator

Business Object Task

Location Location Details

Division Manage Divisions

Business Unit Manage Business Units

Set Assignment Override Manage Set Assignments

Legislative Data Group Manage Legislative Data Groups

Enterprise Manage Enterprise HCM Information

Job and Position Flexfield

Definitions

Manage Descriptive Flexfields

Legal Entity

• Manage Legal Entities

• Manage Legal Entity HCM Information

• Manage Legal Reporting Unit HCM Information

Organization Tree Manage Organization Trees

How You Roll Back an Enterprise Structure Configuration

The Enterprise Structures Configurator provides the ability to roll back an enterprise configuration.

Roll Back a Configuration Manually

You can manually roll back an enterprise configuration after loading it, for example, because you decide you don't

want to use it. Clicking the Roll Back Configuration button on the Manage Enterprise Configuration page rolls back any

enterprise structures that were created as a part of loading the configuration.

Roll Back a Configuration Automatically

If an error occurs during the process of loading the configuration, then the application automatically rolls back any

enterprise structures that were created before the error was encountered.

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Design an Enterprise Configuration

This example illustrates how to set up an enterprise based on a global company operating mainly in the US and the UK

with a single primary industry.

Scenario

InFusion Corporation is a multinational enterprise in the high technology industry with product lines that include all

the components that are required to build and maintain air quality monitoring systems for homes and businesses.

Its primary locations are in the US and the UK, but it has smaller outlets in France, Saudi Arabia, and the United Arab

Emirates (UAE).

Enterprise Details

In the US, InFusion employs 400 people and has company revenue of 120 million US dollars. Outside the US, InFusion

employs 200 people and has revenue of 60 million US dollars.

InFusion requires three divisions.

• The US division covers the US locations.

• The Europe division covers UK and France.

• Saudi Arabia and the UAE are covered by the Middle East division.

InFusion requires legal entities with legal employers, payroll statutory units, tax reporting units, and legislative data

groups for the US, UK, France, Saudi Arabia, and UAE, to employ and pay its workers in those countries.

InFusion requires a number of departments across the enterprise for each area of business, such as sales and

marketing, and a number of cost centers to track and report on the costs of those departments.

InFusion has general managers responsible for business units within each country. Those business units may share

reference data. Some reference data can be defined within a reference data set that multiple business units may

subscribe to. Business units are also required for financial purposes. Financial transactions are always processed within

a business unit.

Resulting Enterprise Configuration

Based on this analysis, InFusion requires an enterprise with multiple divisions, ledgers, legal employers, payroll statutory

units, tax reporting units, legislative data groups, departments, cost centers, and business units.

This figure illustrates the enterprise configuration that results from the analysis of InFusion Corporation.

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FAQs for Initial Configuration

What happens if I don't use the Enterprise Structures Configurator to set up my

enterprise structures?

The Enterprise Structures Configurator is an interview-based tool that guides you through setting up divisions, legal

entities, business units, and reference data sets.

If you don't use the Enterprise Structures Configurator, then you must set up your enterprise structure using the

individual tasks that correspond to each enterprise component. In addition, you can't set up multiple configurations and

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compare different scenarios. Using the Enterprise Structures Configurator is the recommended process for setting up

your enterprise structures.

What's an ultimate holding company?

The legal entity that represents the top level in your organization hierarchy, as defined by the legal name entered for the

enterprise. This designation is used only to create an organization tree, with these levels:

• Ultimate holding company as the top level

• Divisions and country holding companies as the second level

• Legal employers as the third level

What's the default reference data set?

The reference data set that is assigned to a business unit for all reference data groups, such as grades, locations,

departments, and jobs. You can override the default reference data set for any reference data group.

Related Topics

•

What happens if I override the set assignment?

For the selected business unit, you can override the default reference data set for one or more reference data groups.

For example, assume you have three reference data groups: Vision 1 SET, Vision 2 SET, and Vision 3 SET, where Vision

SET 1 is the default set for business unit United Kingdom Vision 1 BU. You can override the default so that:

• Grades are assigned to Vision 2 SET.

• Departments are assigned to Vision 3 SET.

• Jobs are assigned to the default set, Vision 3 SET.

When do I create or edit ISO languages?

Edit the names and descriptions of International Organization for Standardization (ISO) languages to determine how

they appear in the application. The ISO languages are a part of the ISO 639 standard.

If any change to the ISO standard doesn't reflect in the application, you can update the ISO alpha-2 code or add

languages to provide up-to-date information.

Can I add or edit time zones?

You usually don't add or edit time zones because all standard time zones are provided. However, you may create time

zones if new zones become standard and the application isn't yet updated with the latest values.

You can rename existing time zones and enable them. Only the enabled time zones are available for all users to select

while setting their regional general preferences.

To add or edit time zones, use the following in the Setup Maintenance work area:

• Functional Area: Application Extensions

• Task: Manage Time Zones

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2 Reference Data Sharing

Reference Data Sharing

Reference data sharing facilitates sharing of configuration data such as jobs and payment terms, across organizational

divisions or business units.

You define reference data sets and determine how common data is shared or partitioned across business entities to

avoid duplication and reduce maintenance effort. Depending on the requirement (specific or common), each business

unit can maintain its data at a central location, using a set of values either specific to it or shared by other business

units.

A common reference data set is available as the default set, which can be assigned to several business units sharing

the same reference data. For commonly used data such as currencies, you can use the common reference data set and

assign it to multiple business units in various countries that use the same currency. In cases where the default set can't

be assigned to an entity, you can create specific sets. The data set visible on the transactional page depends on the

sharing method used to share reference data.

For example, XYZ Corporation uses the same grades throughout the entire organization. Instead of different business

units setting up and using the same grades, XYZ Corporation decides to create a set called Grades, which contains the

grades. All business units in the organization have the Grades set so that the grades can be shared and used.

Note: For specific information about configuring reference data sharing for a particular object or product, refer to the

relevant product documentation.

Related Topics

•

Reference Data Sets

•

Reference Data Sets and Sharing Methods

•

Assignment of Reference Data Sets to Reference Objects

Reference Data Sets

Reference data sets are logical groups of reference data that various transactional entities can use depending on the

business context. You can get started using either the common reference data set or the enterprise set depending on

your implementation requirement.

You can also create and maintain additional reference data sets, while continuing to use the common reference data set.

Consider the following scenario. Your enterprise can decide that only some aspects of corporate policy should affect all

business units. The remaining aspects are at the discretion of the business unit manager to implement. This enables

your enterprise to balance autonomy and control for each business unit.

For example, your enterprise holds business unit managers accountable for their profit and loss, but manages working

capital requirements at a corporate level. Then, you can let managers define their own sales methods, but define

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payment terms centrally. As a result, each business unit has its own reference data set for sales methods and one central

reference data set for payment terms assigned to all business units.

Partitioning

Partitioning reference data and creating data sets provide you the flexibility to handle the reference data to fulfill your

business requirements. You can share modular information and data processing options among business units with

ease. You can create separate sets and subsets for each business unit. Alternatively, you can create common sets or

subsets to enable sharing reference data between several business units, without duplicating the reference data.

The following figure illustrates the reference data sharing method. The user can access the data assigned

to a specific set in a particular business unit, as well as access the data assigned to the common set.

Related Topics

•

Reference Data Sets and Sharing Methods

•

Assignment of Reference Data Sets to Reference Objects

Reference Data Sets and Sharing Methods

Oracle Fusion Cloud Applications reference data sharing feature is also known as Set ID. The reference data sharing

functionality supports operations in multiple ledgers, business units, and warehouses.

As a result, there's a reduction in the administrative burden and the time to implement new business units. For example,

you can share sales methods, or transaction types across business units. You may also share certain other data across

asset books, cost organizations, or project units.

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The reference data sharing features use reference data sets to which reference data is assigned. The reference data sets

group assigned reference data. The sets can be understood as buckets of reference data assigned to multiple business

units or other application components.

Reference Data Sets

You begin this part of your implementation by creating and assigning reference data to sets. Make changes carefully as

changes to a particular set affect all business units or application components using that set. You can assign a separate

set to each business unit for the type of object that's being shared. For example, assign separate sets for payment

terms, transaction types, and sales methods to your business units.

Your enterprise can determine that certain aspects of your corporate policy can affect all business units. The remaining

aspects are at the discretion of the business unit manager to implement. This allows your enterprise to balance

autonomy and control for each business unit. For example, your enterprise holds business unit managers accountable

for their profit and loss, but manages working capital requirements at a corporate level. In such a case, you can let

managers define their own sales methods, but define payment terms centrally. In this example:

• Each business unit has its own reference data set for sales methods.

• One central reference data set for payment terms is assigned to all business units.

The reference data sharing is especially valuable for lowering the cost of setting up new business units. For example,

your enterprise operates in the hospitality industry. You're adding a new business unit to track your new spa services.

The hospitality divisional reference data set can be assigned to the new business unit to quickly set up data for this

entity component. You can establish other business unit reference data in a business unit-specific reference data set as

needed.

Reference Data Sharing Methods

Variations exist in the methods used to share data in reference data sets across different types of objects. The following

list identifies the methods:

• Assignment to one set only, no common values allowed. This method is the simplest form of sharing reference

data that allows assigning a reference data object instance to one and only one set. For example, Asset Prorate

Conventions are defined and assigned to only one reference data set. This set can be shared across multiple

asset books, but all the values are contained only in this one set.

• Assignment to one set only, with common values. This method is the most commonly used method of sharing

reference data that allows defining reference data object instance across all sets. For example, Receivables

Transaction Types are assigned to a common set that's available to all the business units. You need not

explicitly assign the transaction types to each business unit. In addition, you can assign a business unit-specific

set of transaction types. At transaction entry, the list of values for transaction types includes the following:

◦

Transaction types from the set assigned to the business unit.

◦

Transaction types assigned to the common set that's shared across all business units.

• Assignment to multiple sets, no common values allowed. The method of sharing reference data that allows

a reference data object instance to be assigned to multiple sets. For instance, Payables Payment Terms use

this method. It means that each payment term can be assigned to one or more than one set. For example,

you assign the payment term Net 30 to several sets, but assign Net 15 to a set specific only to your business

unit. At transaction entry, the list of values for payment terms consists of only the set that's assigned to the

transaction's business unit.

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Note: Oracle Fusion Applications contains a reference data set called Enterprise. Define any reference data that

affects your entire enterprise in this set. Also update the data set going forward as you create reference data items.

Related Topics

•

Items and Supplier Site Reference Data Sharing

•

What reference data objects can be shared across cost organizations?

•

What reference data objects can be shared across project units?

•

What reference data objects can be shared across business units?

•

What reference data objects can be shared across asset books?

How Business Units Work with Reference Data Sets

Reference data sharing enables you to group set-enabled reference data such as jobs or grades to share the data across

different parts of the organization.

Sets also enable you to filter reference data at the transaction level so that only data assigned to certain sets is available

to be selected. To filter reference data, Oracle Fusion Human Capital Management (HCM), applications use the business

unit on the transaction. To set up reference data sharing in Oracle Fusion HCM, you create business units and sets, and

then assign the sets to the business units.

Common Set Versus Specific Sets

Some reference data in your organization may be considered global, and should therefore be made available for use

within the entire enterprise. You can assign this type of data to the Common Set, which is a predefined set. Regardless

of the business unit on a transaction, reference data assigned to the Common Set is always available, in addition to the

reference data assigned to the set that corresponds to the business unit on the transaction.

Other types of reference data can be specific to certain business units, so you can restrict the use of the data to those

business units. In this case, you can create sets specifically for this type of data, and assign the sets to the business

units.

Business Unit Set Assignment

When you assign reference data sets to business units, you assign a default reference data set to use for all reference

data types for that business unit. You can override the set assignment for one or more data types.

Example: Assigning Sets to Business Units

InFusion Corporation has two divisions: Lighting and Security, and the divisions each have two locations. Each location

has one or more business functions.

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The following figure illustrates the structure of InFusion Corporation.

When deciding how to create business units, InFusion decides to create them using the country and business function

level. Therefore, they created the following business units:

• Sales_Japan

• Marketing_Japan

• Sales_US

• Sales_UK

• Marketing_India

• Sales_India

Because locations, departments, and grades are specific to each business unit, InFusion does not want to share these

types of reference data across business units. They create a reference data set for each business unit so that data

of those types can be set up separately. Because the jobs in the Sales business function are the same across many

locations, InFusion decides to create one additional set called Jobs. They override the set assignment for the Jobs

reference data group and assign it to the Jobs set. Based on these requirements, they create the following sets:

• Sales_Japan_Set

• Mktg_Japan_Set

• Sales_US_Set

• Sales_UK_Set

• Mktg_India_Set

• Sales_India_Set

• Grades_Set

The following table describes the default set assignment and the set assignment overrides for each business unit in

InFusion:

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Business Unit Default Set Assignment Set Assignment Overrides

Sales_Japan

Sales_Japan_Set for grades, departments, and

locations

Jobs set for jobs

Marketing_Japan

Mktg_Japan_Set for grades, departments, and

locations

None

Sales_US

Sales_US_Set for grades, departments, and

locations

Jobs set for jobs

Sales_UK

Sales_UK_Set for grades, departments, and

locations

Jobs set for jobs

Marketing_India

Mktg_India_Set for grades, departments, and

locations

None

Sales_India

Sales_India_Set for grades, departments, and

locations

Jobs set for jobs

When setting up grades, departments, and locations for the business units, InFusion assigns the data to the default set

for each business unit. When setting up jobs, they assign the Jobs set and assign the Common Set to any jobs that may

be used throughout the entire organization.

When using grades, departments, and locations at the transaction level, users can select data from the set that

corresponds to the business unit they enter on the transaction, and any data assigned to the Common Set. For example,

for transactions for the Marketing_Japan business unit, grades, locations, and departments from the Mktg_Japan_Set is

available to select, as well as from the Common Set.

When using jobs at the transaction level, users can select jobs from the Jobs set and from the Common Set when they

enter a sales business unit on the transaction. For example, when a manager hires an employee for the Sales_India

business unit, the list of jobs is filtered to show jobs from the Jobs and Common sets.

The following figure illustrates what sets of jobs can be accessed when a manager creates an assignment for a worker.

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How You Create Reference Data Sets in the Enterprise

Structures Configurator

If you created business units automatically, then the Enterprise Structures Configurator automatically creates reference

data sets for you. The Enterprise Structures Configurator creates one reference data set for each business unit.

You can add additional sets, but you cannot delete any of the sets that were created automatically. The Enterprise

Structures Configurator creates one reference data set for each business unit. You can add additional sets, but you

cannot delete any of the sets that were created automatically. A standard set called the Enterprise set is predefined.

Common Set

The Common set is a predefined set that enables you to share reference data across business units. When you select

set-enabled data at the transaction level, the list of values includes data in the:

• Common set

• Set associated with the data type for the business unit on the transaction

For example, when you create an assignment, the list of values for grades includes grade in the:

• Common set

• Set that is assigned to grades for the business unit in which you creating the assignment

Assignment of Reference Data Sets to Reference Objects

You can assign the reference data sets to reference objects using the Manage Reference Data Set Assignments page.

For multiple assignments, you can classify different types of reference data sets into groups and assign them to the

reference entity objects.

The assignment takes into consideration the determinant type, determinant, and reference group, if any.

Determinant Types

The partitioned reference data is shared using a business context setting called the determinant type. A determinant

type is the point of reference used in the data assignment process. The following table lists the determinant types used

in the reference data assignment.

Determinant Type Description

Asset Book

Information about the acquisition, depreciation, and retirement of an asset that belongs to a ledger or

a business unit.

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Determinant Type Description

Business Unit

The departments or organizations within an enterprise.

Cost Organization

The organization used for cost accounting and reporting on various inventory and cost centers within

an enterprise.

Project Unit

A logical organization within an enterprise that's responsible for enforcing consistent project

management practices.

Reference Data Set

References to other shared reference data sets.

Determinant

The determinant (also called determinant value) is a value that corresponds to the selected determinant type. The

determinant is one of the criteria for selecting the appropriate reference data set.

Reference Groups

A transactional entity may have multiple reference entities (generally considered to be setup data). However, all

reference entities are treated alike because of similarity in implementing business policies and legal rules. Such

reference entities in your application are grouped into logical units called reference groups. For example, all tables

and views that define Sales Order Type details might be a part of the same reference group. Reference groups are

predefined in the reference groups table.

Items and Supplier Site Reference Data Sharing

Some products, such as items and supplier sites, required special logic for reference data sharing and have

implemented their own domain-specific ways for sharing data.

Items

If you share your items across warehouses or manufacturing facilities, you can access them through a common item

master. Configure one or multiple item masters for your enterprise, based your enterprise structure. A single item

master is recommended because it provides simpler and more efficient maintenance. However, in rare cases, it may be

beneficial to keep multiple item masters. For example, if you acquire another enterprise and want to continue to operate

your lines of business separately, maintaining a second item master might be the best decision.

Suppliers Sites

You can approve particular suppliers to supply specified commodities and authorize your business units to buy from

those suppliers when the need arises. For example, you might be a household cleaning products manufacturer and

need dyes, plastics, and perfumes to make your products. You purchase from a central supplier 70% of your perfume

supplies with an additional supplier, in reserve, from whom you purchase the remaining 30%. At the same time, each of

your business units purchases plastics and dyes from the same supplier, but from different local supplier sites to save

transportation costs.

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To implement business unit-specific supplier sites, Oracle Fusion Cloud Procurement supports a method for defining

suppliers sites as owned and managed by the business unit responsible for negotiating the supplier terms. Your other

business units that have a service provider relationship defined with your procurement business unit subscribe to the

supplier sites using the supplier site assignments feature. In addition, Procurement allows sharing of the following

procurement data objects across business units:

• Supplier qualification data, such as approved supplier lists

• Catalog content, such as agreements, smart forms, public shopping lists, and content zones

• Procurement configuration data

Related Topics

•

What reference data objects can be shared across cost organizations?

•

What reference data objects can be shared across project units?

•

What reference data objects can be shared across business units?

•

What reference data objects can be shared across asset books?

FAQs for Reference Data Sharing

What reference data objects can be shared across business units?

The following table contains the reference data objects for the Oracle Fusion Applications that can be shared across

business units and the method in which the reference data for each is shared.

Application Name Reference Data Object Method of Sharing

Trading Community Model

Customer Account Relationship

Assignment to one set only, no common values

allowed

Trading Community Model

Customer Account Site

Assignment to one set only, no common values

allowed

Trading Community Model

Salesperson

Assignment to one set only, no common values

allowed

Opportunity Management

Sales Method Group

Assignment to one set only, with common

values

Work Management

Assessment Templates

Assignment to one set only, with common

values

Enterprise Contracts

Contract Types

Assignment to one set only, with common

values

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Application Name Reference Data Object Method of Sharing

Sales

Sales Method

Assignment to one set only, with common

values

Common Components

Activity Templates

Assignment to one set only, with common

values

Payables

Payment Terms

Assignment to multiple sets, no common values

allowed

Receivables

Accounting Rules

Assignment to one set only, with common

values

Receivables

Aging Buckets

Assignment to one set only, with common

values

Receivables

Auto Cash Rules

Assignment to one set only, with common

values

Receivables

Collectors

Assignment to one set only, with common

values

Receivables

Lockbox

Assignment to one set only, with common

values

Receivables

Memo Lines

Assignment to one set only, with common

values

Receivables

Payment Terms

Assignment to one set only, with common

values

Receivables

Remit To Address

Assignment to one set only, with common

values

Receivables

Revenue Contingencies

Assignment to one set only, with common

values

Receivables

Transaction Source

Assignment to one set only, with common

values

Receivables

Transaction Type

Assignment to one set only, with common

values

Advanced Collections

Collections Setups

Assignment to one set only, with common

values

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Application Name Reference Data Object Method of Sharing

Advanced Collections

Dunning Plans

Assignment to one set only, with common

values

Tax

Tax Classification Codes

Assignment to multiple sets, no common values

allowed

Human Resources

Departments

Assignment to one set only, with common

values

Human Resources

Jobs

Assignment to one set only, with common

values

Human Resources

Locations

Assignment to one set only, with common

values

Human Resources

Grades

Assignment to one set only, with common

values

Project Billing

Project and Contract Billing

Assignment to multiple sets, no common values

allowed

Project Foundation

Project Accounting Definition

Assignment to one set only, no common values

allowed

Project Foundation

Project Rates

Assignment to one set only, with common

values

Order Management

Hold Codes

Assignment to one set only, with common

values

Order Management

Orchestration Process

Assignment to one set only, with common

values

What reference data objects can be shared across asset books?

The following list contains the reference data objects for Oracle Fusion Assets that can be shared across asset books

and the method in which the reference data for each is shared.

Application Name Reference Data Object Method of Sharing

Assets

Bonus Rules

Assignment to one set only, no common values

allowed

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Reference Data Sharing

Application Name Reference Data Object Method of Sharing

Assets

Depreciation Ceilings

Assignment to one set only, no common values

allowed

Assets

Depreciation Methods

Assignment to one set only, with common

values

Assets

Asset Descriptions

Assignment to one set only, no common values

allowed

Assets

Property Types

Assignment to one set only, with common

values

Assets

Prorate Conventions

Assignment to one set only, no common values

allowed

Assets

Asset Queue Names

Assignment to one set only, with common

values

Assets

Retirement Types

Assignment to one set only, with common

values

Assets

Unplanned Types

Assignment to one set only, with common

values

What reference data objects can be shared across cost

organizations?

The following table contains the reference data objects for Oracle Fusion Cost Management that can be shared across

cost organizations and the method in which the reference data for each is shared.

Application Name Reference Data Object Method of Sharing

Cost Management

Cost Structure

Assignment to one set only, no common values

allowed

What reference data objects can be shared across project units?

The following table contains the reference data objects for Oracle Fusion Project Foundation that can be shared across

project units and the method in which the reference data for each is shared.

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Reference Data Sharing

Application Name Reference Data Object Method of Sharing

Project Foundation

Project Definition

Assignment to multiple sets, no common values

allowed

Project Foundation

Project Transaction Types

Assignment to multiple sets, no common values

allowed

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Enterprise

3 Enterprise

Define Enterprises

An enterprise is a collection of legal entities sharing common control and management.

Enterprise Defined

When implementing Oracle Fusion Cloud Applications you operate within the context of an enterprise that has already

been created in the application for you. This is either a predefined enterprise or an enterprise that has been created in

the application by a system administrator. An enterprise organization captures the name of the deploying enterprise

and the location of the headquarters. In Oracle Fusion Applications, an organization classified as an enterprise is

defined before defining any other organizations in the HCM Common Organization Model. All other organizations are

defined as belonging to an enterprise.

Enterprise Information for Non-HCM Users

The Manage Enterprise HCM Information task includes default settings for your enterprise such as the employment

model, worker number generation, and so on.

If you're not implementing Oracle Fusion Human Capital Management (HCM), then the only action you may need to

perform using this task is to change the enterprise name, if necessary. The other settings are HCM-specific and aren't

relevant outside of Oracle Fusion HCM.

Manage Locations

Locations

A location identifies physical addresses of a workforce structure, such as a department or a job. You create and manage

locations using the Location Details quick action in the Workforce Structures area on the My Client Groups tab.

You can also create locations to enter the addresses of external organizations that you want to maintain, such as

employment agencies, tax authorities, and insurance or benefits carriers.

When specifying the location address, you can default the country in the location responsive pages. You configure the

default location country on the Manage Enterprise HCM Information page. If you don't configure any default country,

then the country is automatically defaulted to United States in the location address.

The locations that you create exist as separate structures that you can use for reporting purposes, and in rules that

determine employee eligibility for various types of compensation and benefits. You enter information about a location

only once. Subsequently, when you set up other workforce structures you select the location from a list.

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A point to note is that the Ship-to Site, Receiving Site, Bill-to Site, Office Site, and Designated Receiver fields in the

Shipping Details section of a location setup are for information purpose only and can be used to report upon. They

aren’t currently used by any feature or process within HCM.

Location Sets

When you create a location, you must associate it with a set. Only those users who have access to the set's business unit

can access the location set and other associated workforce structure sets, such as those that contain departments and

jobs.

Note the following:

• You can also associate the location to the common set so that users across your enterprise can access the

location irrespective of their business unit.

• You can also configure a location as an employee location on the Location Details page.

• When users search for locations, they can see the locations that they have access to along with the locations in

the common set.

The following figure shows how locations sets restrict access to users.

Upload Locations Using a Spreadsheet

If you have a list of locations already defined for your enterprise, you can upload them from a spreadsheet.

To use this option:

• Download a spreadsheet template

• Add your location information to the spreadsheet

• Upload directly to your enterprise configuration

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You can upload the spreadsheet multiple times to accommodate revisions.

Update Location Details

If you need to update or correct the details of a location, here's how you can do that:

1. Go to My Client Groups > Location Details.

2. On the page, click Show Filters.

3. Search for the location you need to correct or update using the filters and select it.

4. On the location's details page, click Actions and select Update or Correct.

5. Update the details as required and click Submit.

Related Topics

•

Why can't I see my location in the search results?

•

What happens if I inactivate a location?

•

Upload Workforce Structures Using a Spreadsheet

FAQs for Locations

Why can't I see my location in the search results?

You can search for approved locations only. Also, if you created a location in Oracle Fusion Trading Community Model,

then you can't access that location from Oracle Fusion Global Human Resources.

For use in Oracle Fusion HCM, you must recreate the location from the Manage Locations page.

What happens if I select a geographic hierarchy node when I create or edit a location?

The calendar events that you created for the geographic node start to apply for the location and may impact the

availability of worker assignments at that location.

You manage locations using the Manage Locations task in the Workforce Structures work area.

The geographical hierarchy nodes available for selection on the Locations page display from a predefined geographic

hierarchy.

Related Topics

•

How an Individual's Schedule Is Identified

What happens if I select an inventory organization when I am creating or editing a

location?

The location is available for selection in purchase documents of that inventory organization in Oracle Fusion Inventory

Management. If you don't select an inventory organization, then the location is available in purchase documents across

all inventory organizations.

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What happens if I inactivate a location?

Starting from the effective date that you entered, you can no longer associate the location with other workforce

structures, assignments, or applications.

If the location is already in use, it will continue to be available to the components that currently use it.

How can I associate a location with an inventory organization?

From the Oracle Fusion Global Human Resources, go to the Manage Locations page. Use the Manage Locations task in

the Workforce Structures work area.

To appear on the Create or Edit Location pages, your inventory organization must be effective as of the current date and

must exist in the location set that you selected.

Legal Jurisdictions and Authorities

Overview of Legal Jurisdiction and Authorities

You are required to register your legal entities with legal authorities in the jurisdictions where you conduct business.

For example, register your legal entities for tax reporting to report sales taxes or value added taxes.

Define jurisdictions and related legal authorities to support multiple legal entity registrations, which are used by Oracle

Fusion Tax and Oracle Fusion Payroll. When you create a legal entity, the Oracle Fusion Legal Entity Configurator

automatically creates one legal reporting unit for that legal entity with a registration.

Jurisdictions

Jurisdiction is a physical territory such as a group of countries, country, state, county, or parish where a particular piece

of legislation applies.

French Labor Law, Singapore Transactions Tax Law, and US Income Tax Laws are examples of particular legislation

that apply to legal entities operating in different countries' jurisdictions. Judicial authority may be exercised within a

jurisdiction.

Types of jurisdictions are:

• Identifying Jurisdiction

• Income Tax Jurisdiction

• Transaction Tax Jurisdiction

Identifying Jurisdiction

For each legal entity, select an identifying jurisdiction. An identifying jurisdiction is your first jurisdiction you must

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register with to commence business, select one as the identifying jurisdiction. Typically the identifying jurisdiction is the

one you use to uniquely identify your legal entity.

Income tax jurisdictions and transaction tax jurisdictions don't represent the same jurisdiction. Although in some

countries, the two jurisdictions are defined at the same geopolitical level, such as a country, and share the same legal

authority, they're two distinct jurisdictions.

Income Tax Jurisdiction

Create income tax jurisdictions to properly report and remit income taxes to the legal authority. Income tax jurisdictions

by law impose taxes on your financial income generated by all your entities within their jurisdiction. Income tax is a key

source of funding that the government uses to fund its activities and serve the public.

Transaction Tax Jurisdiction

Create transaction tax jurisdictions through Oracle Tax in a separate business flow, because of the specific needs and

complexities of various taxes. Tax jurisdictions and their respective rates are provided by suppliers and require periodic

maintenance. Use transaction tax jurisdiction for legal reporting of sales and value added taxes.

Legal Authorities

A legal authority is a government or legal body that's charged with powers to make laws, levy and collect fees and taxes,

and remit financial appropriations for a given jurisdiction.

For example, the Internal Revenue Service is the authority for enforcing income tax laws in United States. In some

countries, such as India and Brazil, you're required to print legal authority information on your tax reports. Legal

authorities are defined in the Oracle Legal Entity Configurator. Tax authorities are a subset of legal authorities and are

defined using the same setup flow.

Legal authorities aren't mandatory in Oracle Fusion Cloud Human Capital Management (HCM), but are recommended

and are generally referenced on statutory reports.

Create Legal Jurisdictions, Addresses and Authorities

Define legal jurisdictions and related legal authorities to support multiple legal entity registrations, which are used by

Oracle Fusion Tax and Oracle Fusion Payroll.

Legal Jurisdictions

Create a legal jurisdiction by following these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Jurisdictions task.

2. Select Create.

3. Enter a unique Name, United States Income Tax.

4. Select a Territory, United States.

5. Select a Legislative Category, Income tax.

6. Select Identifying, Yes. Identifying indicates the first jurisdiction a legal entity must register with to do business

in a country.

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7. Enter a Start Date if desired. You can also add an End Date to indicate a date that the jurisdiction may no

longer be used.

8. Select a Legal Entity Registration Code, EIN or TIN.

9. Select a Legal Reporting Unit Registration Code, Legal Reporting Unit Registration Number.

10. Optionally enter one or more Legal Functions.

11. Save and Close.

Legal Addresses for Legal Entities and Reporting Units

Create a legal address for legal entities and reporting units by following these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Address task.

2. Select Create.

3. Select Country.

4. Enter Address Line 1, Oracle Parkway.

5. Optionally enter Address Line 2, and Address Line 3.

6. Enter or Select the postal code, 94065.

7. Select Geography 94065 and Parent Geography Redwood Shores, San Mateo, CA.

8. Optionally enter a Time Zone, US Pacific Time.

9. OK.

10. Save and Close.

Legal Authorities

Create a legal authority by following these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Authorities task.

2. Enter the Name, California Franchise Tax Board.

3. Enter the Tax Authority Type, Reporting.

Note: Create an address for the legal authority.

4. Select Create.

5. The Site Number is automatically assigned.

6. Optionally enter a Mail Stop.

7. Select Country, United States

8. Enter Address Line 1, 121 Spear Street, Suite 400.

9. Optionally enter Address Line 2, and Address Line 3.

10. Enter or Select the postal code, 94105.

11. Select Geography 94105 and Parent Geography San Francisco, San Francisco, CA.

12. OK.

13. Optionally enter a Time Zone, US Pacific Time.

14. Optionally click the One-Time Address check box.

15. The From Date displays today's date. Update if necessary.

16. Optionally enter a To Date to indicate the last day the address can be used.

Note: You can optionally enter Address Purpose details.

17. Select Add Row.

18. Select Purpose.

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19. The Purpose from Date will default to today's date.

20. Optionally enter a Purpose to Date.

21. OK.

22. Save and Close.

Related Topics

•

Legal Authorities

•

Overview of Legal Jurisdiction and Authorities

•

How do I update existing setup data?

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Oracle Fusion Cloud Financials

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Chapter 4

Geographies

4 Geographies

Overview of Geographies

Setting up your geography structure and master geographies correctly in the Trading Community Model is critical to the

proper use and management of Oracle Enterprise Resource Planning (ERP) Cloud applications.

The geography structure and master geography data is shared across multiple product families and applications.

Address validation ensures complete and valid master address data across all location entities across product

applications. In addition, complete and valid master data is critical for accurate transaction tax calculation.

You can either define your geography structure and corresponding master geographies manually or import these

geography entities. You can use the:

1. Manage Geographies page

2. Import Management process

For more information about managing your geographies, see the Geographies section in the Define Enterprise

Structures chapter in the Oracle ERP Cloud Implementing Common Features for Financials and Project Management

guide on Oracle Help Center (https://docs.oracle.com).

Manage Geographies

Use the Manage Geographies page to manually define your geography structure, hierarchy, mapping, and validation.

Manually define your geographies when you have a simple geography requirement with a limited number of

geographies within an individual country.

Import Management

Use the Import Management process to read the data included in your XML or text file and import the data into the

application.

To access Import Management functionality, go to Navigator > Tools > Import Management.

For more information, see the Import Your Geography Data topic.

Related Topics

•

How do I manage Geography Structures, Hierarchies, and Validation?

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Chapter 4

Geographies

Oracle Fusion Cloud Financials

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Chapter 5

Legal Entities

5 Legal Entities

Overview

A legal entity is a recognized party with rights and responsibilities given by legislation.

Legal entities have the following rights and responsibilities to:

• Own property

• Trade

• Repay debt

• Account for themselves to regulators, taxation authorities, and owners according to rules specified in the

relevant legislation

Their rights and responsibilities may be enforced through the judicial system. Define a legal entity for each registered

company or other entity recognized in law for which you want to record assets, liabilities, expenses and income, pay

transaction taxes, or perform intercompany trading.

A legal entity has responsibility for elements of your enterprise for the following reasons:

• Facilitating local compliance

• Minimizing the enterprise's tax liability

• Preparing for acquisitions or disposals of parts of the enterprise

• Isolating one area of the business from risks in another area. For example, your enterprise develops property

and also leases properties. You could operate the property development business as a separate legal entity to

limit risk to your leasing business.

The Role of Your Legal Entities

In configuring your enterprise structure in Oracle Fusion Cloud Applications, the contracting party on any transaction is

always the legal entity. Individual legal entities:

• Own the assets of the enterprise

• Record sales and pay taxes on those sales

• Make purchases and incur expenses

• Perform other transactions

Legal entities must comply with the regulations of jurisdictions, in which they register. Europe now allows for companies

to register in one member country and do business in all member countries, and the US allows for companies to register

in one state and do business in all states. To support local reporting requirements, legal reporting units are created and

registered.

You are required to publish specific and periodic disclosures of your legal entities' operations based on different

jurisdictions' requirements. Certain annual or more frequent accounting reports are referred to as statutory or external

reporting. These reports must be filed with specified national and regulatory authorities. For example, in the United

States (US), your publicly owned entities (corporations) are required to file quarterly and annual reports, as well as other

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periodic reports, with the Securities and Exchange Commission (SEC), which enforces statutory reporting requirements

for public corporations.

Individual entities privately held or held by public companies don't have to file separately. In other countries, your

individual entities do have to file in their own name, as well as at the public group level. Disclosure requirements are

diverse. For example, your local entities may have to file locally to comply with local regulations in a local currency, as

well as being included in your enterprise's reporting requirements in different currency.

A legal entity can represent all or part of your enterprise's management framework. For example, if you operate in a

large country such as the United Kingdom or Germany, you might incorporate each division in the country as a separate

legal entity. In a smaller country, for example Austria, you might use a single legal entity to host all of your business

operations across divisions.

Model Legal Entities

Oracle Fusion Cloud Applications support the modeling of your legal entities. If you make purchases from or sell to

other legal entities, define these other legal entities in your customer and supplier registers.

These registers are part of the Oracle Trading Community Architecture.

When your legal entities are trading with each other, represent them as legal entities and as customers and suppliers in

your customer and supplier registers. Use legal entity relationships to determine which transactions are intercompany

and require intercompany accounting. Your legal entities can be identified as legal employers and therefore, are

available for use in Human Capital Management (HCM) applications.

Several decisions you should consider when you create legal entities.

• The importance of using legal entity on transactions

• Legal entity and its relationship to business units

• Legal entity and its relationship to divisions

• Legal entity and its relationship to ledgers

• Legal entity and its relationship to balancing segments

• Legal entity and its relationship to consolidation rules

• Legal entity and its relationship to intercompany transactions

• Legal entity and its relationship to worker assignments and legal employer

• Legal entity and payroll reporting

• Legal reporting units

The Importance of Using Legal Entities on Transactions

All of the assets of the enterprise are owned by individual legal entities. Oracle Fusion Cloud Financials allow your users

to enter legal entities on transactions that represent a movement in value or obligation.

For example, a sales order creates an obligation on the legal entity that books the order and promises to deliver the

goods on the acknowledged date. The creation also creates an obligation on the purchaser to receive and pay for those

goods. Contract law in most countries contains statutes that state damages can be sought for both:

• Actual losses, putting the injured party in the same state as if they had not entered into the contract.

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• What is called loss of bargain, or the profit that would have made on a transaction.

In another example, if you revalued your inventory in a warehouse to account for raw material price increases,

the revaluation and revaluation reserves must be reflected in your legal entity's accounts. In Oracle Fusion Cloud

Applications, your inventory within an inventory organization is managed by a single business unit and belongs to one

legal entity.

Legal Entity and Its Relationship to Business Units

A business unit can process transactions on behalf of many legal entities. Frequently, a business unit is part of a single

legal entity. In most cases, the legal entity is explicit on your transactions. For example, a payables invoice has an explicit

legal entity field. Your accounts payables department can process supplier invoices on behalf of one or many business

units.

In some cases, your legal entity is inferred from your business unit that's processing the transaction. For example,

Business Unit ACM UK has a default legal entity of InFusion UK Ltd. When a purchase order is placed in ACM UK,

the legal entity InFusion UK Ltd is legally obligated to the supplier. Oracle Procurement, Oracle Fusion Cloud Project

Management, and Oracle Fusion Cloud Supply Chain and Manufacturing applications rely on deriving the legal entity

information from the business unit.

Legal Entity and Its Relationship to Divisions

The division is an area of management responsibility that can correspond to a collection of legal entities. If wanted, you

can aggregate the results for your divisions by legal entity or by combining parts of other legal entities. Define date-

effective hierarchies for your cost center or legal entity segment in your chart of accounts to facilitate the aggregation

and reporting by division. Divisions and legal entities are independent concepts.

Legal Entity and Its Relationship to Ledgers

One of your major responsibilities is to file financial statements for your legal entities. Map legal entities to specific

ledgers using the Oracle General Ledger Accounting Configuration Manager. Within a ledger, you can optionally map a

legal entity to one or more balancing segment values.

Legal Entity and Its Relationship to Balancing Segments

General Ledger supports up to three balancing segments. Best practices recommend one segment represents your legal

entity to ease your requirement to account for your operations to regulatory agencies, tax authorities, and investors.

Accounting for your operations means you must produce a balanced trial balance sheet by legal entity. If you account

for many legal entities in a single ledger, you must:

1. Identify the legal entities within the ledger.

2. Balance transactions that cross legal entity boundaries through intercompany transactions.

3. Decide which balancing segments correspond to each legal entity and assign them in General Ledger

Accounting Configuration Manager. Once you assign one balancing segment value in a ledger, then all your

balancing segment values must be assigned. This recommended best practice facilitates reporting on assets,

liabilities, and income by legal entity.

Represent your legal entities by at least one balancing segment value. You may represent it by two or three balancing

segment values if more granular reporting is required. For example, if your legal entity operates in multiple jurisdictions

in Europe, you might define balancing segment values and map them to legal reporting units. You can represent a legal

entity with more than one balancing segment value. Do not use a single balancing segment value to represent more

than one legal entity.

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In General Ledger, there are three balancing segments. You can use separate balancing segments to represent your

divisions or strategic business units to enable management reporting at the balance sheet level for each. This solution

is used to empower your business unit and divisional managers to track and assume responsibility for their asset

utilization or return on investment. Using multiple balancing segments is also useful when you know at the time of

implementation that you're disposing of a part of a legal entity and want to isolate the assets and liabilities for that

entity.

Implementing multiple balancing segments requires every journal entry that isn't balanced by division or business unit,

to generate balancing lines. You can't change to multiple balancing segments after you begin using the ledger because

your historical data isn't balanced by the new balancing segments. Restating historical data must be done at that point.

If your enterprise regularly spins off businesses or holds managers accountable for utilization of assets, identify the

business with a balancing segment value. If you account for each legal entity in a separate ledger, no requirement exists

to identify the legal entity with a balancing segment value.

While transactions that cross balancing segments don't necessarily cross legal entity boundaries, all transactions that

cross legal entity boundaries must cross balancing segments. If you make an acquisition or are preparing to dispose of

a portion of your enterprise, you may want to account for that part of the enterprise in its own balancing segment even

if the portion isn't a separate legal entity. If you don't map legal entities sharing the same ledger to balancing segments,

you can't distinguish them using intercompany functionality or track individual equity.

Legal Entity and Its Relationship to Consolidation Rules

In Oracle Fusion Applications you can map legal entities to balancing segments and then define consolidation rules

using your balancing segments. You are creating a relationship between the definition of your legal entities and their

role in your consolidation.

Legal Entity and Its Relationship to Intercompany Transactions

Use Oracle Intercompany features to create intercompany entries automatically across your balancing segments.

Intercompany processing updates legal ownership within the enterprise's groups of legal entities. Invoices or journals

are created as needed. To limit the number of trading pairs for your enterprise, set up intercompany organizations

and assign then to your authorized legal entities. Define processing options and intercompany accounts to use when

creating intercompany transactions and to assist in consolidation elimination entries. These accounts are derived

and automatically entered on your intercompany transactions based on legal entities assigned to your intercompany

organizations.

Intracompany trading, in which legal ownership isn't changed but other organizational responsibilities are, is also

supported. For example, you can track assets and liabilities that move between your departments within your legal

entities by creating departmental level intercompany organizations.

Tip: In the Oracle Fusion Supply Chain and Manufacturing applications, you can model intercompany relationships

using business units, from which legal entities are derived.

Legal Entity and Its Relationship to Worker Assignments and Legal

Employer

Legal entities that employ people are called legal employers in the Legal Entity Configurator. You must enter legal

employers on worker assignments in Oracle Fusion Cloud HCM.

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Legal Entities

Legal Entity and Payroll Reporting

Your legal entities are required to pay payroll tax and social insurance such as social security on your payroll. In Oracle

Fusion Applications, you can register payroll statutory units to pay and report on payroll tax and social insurance for

your legal entities. As the legal employer, you might be required to pay payroll tax, not only at the national level, but

also at the local level. You meet this obligation by establishing your legal entity as a place of work within the jurisdiction

of a local authority. Set up legal reporting units to represent the part of your enterprise with a specific legal reporting

obligation. You can also mark these legal reporting units as tax reporting units, if the legal entity must pay taxes as a

result of establishing a place of business within the jurisdiction.

How You Create Legal Entities in the Enterprise

Structures Configurator

Use the Enterprise Structures Configurator, to create legal entities for your enterprise automatically, based on the

countries in which divisions of your business operate, or you can upload a list of legal entities from a spreadsheet.

Automatically Creating Legal Entities

If you are not certain of the number of legal entities that you need, you can create them automatically. To use this

option, you first identify all of the countries in which your enterprise operates. The application opens the Map Divisions

by Country page, which contains a matrix of the countries that you identified, your enterprise, and the divisions that you

created. You select the check boxes where your enterprise and divisions intersect with the countries to identify the legal

entities that you want the application to create. The enterprise is included for situations where your enterprise operates

in a country, acts on behalf of several divisions within the enterprise, and is a legal employer in a country. If you select

the enterprise for a country, the application creates a country holding company.

The application automatically creates the legal entities that you select, and identifies them as payroll statutory units

and legal employers. For each country that you indicated that your enterprise operates in, and for each country that you

created a location for, the application also automatically creates a legislative data group.

Any legal entities that you create automatically cannot be deleted from the Create Legal Entities page within the

Enterprise Structures Configurator. You must return to the Map Divisions by Country page and deselect the legal

entities that you no longer want.

Example: Creating Legal Entities Automatically

InFusion Corporation is using the ESC to set up its enterprise structure. The corporation has identified two divisions,

one for Lighting, and one for Security. The Lighting division operates in Japan and the US, and the Security division

operates in the UK and India.

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This figure illustrates InFusion Corporation's enterprise structure.

This table represents the selections that InFusion Corporation makes when specifying which legal entities to create on

the Map Divisions by Country page.

Country Enterprise InFusion Lighting InFusion Security

Japan

Yes

India

Yes

Based on the selections made in the preceding table, the ESC creates the following four legal entities:

• InFusion Lighting Japan LE

• InFusion Lighting US LE

• InFusion Security UK LE

• InFusion Security India LE

Creating Legal Entities Using a Spreadsheet

If you have a list of legal entities already defined for your enterprise, you can upload them from a spreadsheet. To use

this option, you first download a spreadsheet template, then add your legal entity information to the spreadsheet, and

then upload directly to your enterprise configuration. You can export and import the spreadsheet multiple times to

accommodate revisions.

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Related Topics

•

What's an ultimate holding company?

•

How Legal Employers Work with Payroll Statutory Units and Tax Reporting Units

•

Examples of HCM Organization Models

•

Guidelines for Using Desktop Integrated Excel Workbooks

Create Legal Entities, Registrations, and Reporting Units

Define a legal entity for each registered company or other entity recognized in law for which you want to record assets,

liabilities, and income, pay transaction taxes, or perform intercompany trading.

Legal Entity

Create a legal entity by following these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Entity task.

2. Accept the default Country, United States.

3. Enter Name, InFusion USA West.

4. Enter Legal Entity Identifier, US0033.

5. Optionally enter Start Date. When the start date is blank the legal entity is effective from the creation date.

6. Optionally enter an End Date.

7. Optionally, if your legal entity should be registered to report payroll tax and social insurance, select the Payroll

statutory unit check box.

8. Optionally, if your legal entity has employees, select the Legal employer check box.

9. Optionally, if this legal entity isn't a payroll statutory unit, select an existing payroll statutory unit to report

payroll tax and social instance on behalf of this legal entity.

10. Enter the Registration Information

11. Accept the default Identifying Jurisdiction, United States Income Tax.

12. Search for and select a Legal Address, 500 Oracle Parkway, Redwood Shores, CA 94065.

The legal address must have been entered previously using the Manage Legal Address task.

13. OK.

14. Optionally enter a Place of Registration.

15. Enter the EIN or TIN.

16. Enter the Legal Reporting Unit Registration Number.

17. Save and Close.

18. In the Setup and Maintenance work area, go to the Manage Legal Entity page and Select to set scope.

19. Select the Manage Legal Entity.

20. In the *Legal Entity list, select Select and Add.

21. Click Apply and Go to Task.

22. Select your legal entity.

23. Save and Close.

This sets the scope for your task list to the selected legal entity.

24. Save and Close.

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Legal Entity Registrations

A legal entity registration with the same name as that of the legal entity is created by default. To verify this, locate the

Manage Legal Entity Registrations task and then select Go to Task. To create another registration for the legal entity

follow these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Entity Registrations task. Verify that the

Legal Entity scope value is set correctly.

2. Go to Task.

3. Select Create.

4. Enter Jurisdiction.

5. Enter Registered Address.

6. Enter Registered Name.

7. Optionally enter Alternate Name, Registration Number, Place of Registration, Issuing Legal Authority, and

Issuing Legal Authority Address, Start Date, and End Date.

8. Save and Close.

Legal Reporting Unit

When a legal entity is created, a legal reporting unit with the same name as that of the entity is also automatically

created. To create more legal reporting units or modify the settings follow these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Reporting Unit task. Verify that the Legal

Entity scope value is set correctly.

2. Go to Task

3. Select Create.

4. Enter Territory, United States.

5. Enter Name.

6. Optionally enter a Start Date.

7. Enter Registration Information.

8. Search for and select Jurisdiction.

9. Enter Main Legal Reporting Unit information.

10. Select the value Yes or No for the Main Legal Reporting Unit. Set value to yes only if you're creating a new

main (primary) legal reporting unit.

11. Enter the Main Effective Start Date, 1/1/11.

12. Save and Close.

Related Topics

•

Overview

•

Plan Legal Reporting Units

•

Model Legal Entities

•

How do I update existing setup data?

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Chapter 5

Legal Entities

How Legal Employers Work with Payroll Statutory Units

and Tax Reporting Units

You can designate legal entities as legal employers and payroll statutory units, which makes them available for use in

Oracle Fusion Human Capital Management (HCM).

You can have only one legal entity that's also a payroll statutory unit and legal employer, or multiple legal entities,

payroll statutory units and legal employers. Payroll statutory units and tax reporting units share a parent child

relationship with the payroll statutory unit being a parent of a tax reporting unit

Legal Employers and Payroll Statutory Units

You can designate payroll statutory units to group legal employers to do statutory calculations at a higher level. For

example, you can use payroll statutory units for court orders, or to calculate the United Kingdom (UK) statutory sick pay.

A legal employer can exist independently of an enterprise or be a part of a payroll statutory unit. There can be many

legal employers belonging to a payroll statutory unit, but a legal employer can belong only to one payroll statutory unit.

Legal Employers and Tax Reporting Units

Tax reporting units are indirectly associated with a legal employer through the payroll statutory unit. One or more

tax reporting units can be used by a single legal employer, and a tax reporting unit can be used by one or more legal

employers.

For example, if a single tax reporting unit is linked to a payroll statutory unit and two legal employers are associated with

this payroll statutory unit, then both legal employers are associated with the tax reporting unit. Use the Manage Legal

Reporting Unit HCM Information task to designate an existing legal reporting unit as a tax reporting unit. You need to

select a parent payroll statutory unit when you create a legal reporting unit belonging to a legal employer (that isn't a

payroll statutory unit as well). Next, you need to designate the legal reporting unit as a tax reporting unit and select the

legal employer.

Related Topics

•

Overview

•

What's a legal employer?

•

What's a payroll statutory unit?

•

Examples of HCM Organization Models

•

What's a tax reporting unit?

Party Tax Profiles

A tax profile is the body of information that relates to a party's transaction tax activities. A tax profile can include main

and default information, tax registration, tax exemptions, party fiscal classifications, tax reporting codes, configuration

options, and service subscriptions.

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Set up tax profiles for the following parties involved in your transactions:

• First parties

• Third parties

• Tax authorities

First Parties

Set up tax profiles for your first-party legal entities, legal reporting units, and business units.

First-party legal entities identify your organization to the relevant legal authorities, for example, a national or

international headquarters. Legal entities let you model your external relationships to legal authorities more accurately.

The relationships between first-party legal entities and the relevant tax authorities normally control the setup of the

transaction taxes required by your business. In most circumstances, the tax setup is used and maintained based on

the configuration of the legal entity. Enter the default information, party fiscal classifications, tax reporting codes, and

configuration options for your legal entities. You can also specify if you're using the tax services of an external service

provider for tax calculation.

First-party legal reporting units identify each office, service center, warehouse, and any other location within the

organization with a tax requirement. A legal reporting unit tax profile is automatically created for the headquarter legal

entity. Set up additional legal reporting unit tax profiles for those needed for tax purposes. For legal reporting units,

enter the default information, tax registrations, party fiscal classifications, and tax reporting codes. Also, define tax

reporting details for your VAT and global tax reporting needs for tax registrations of tax regimes that allow this setup.

Business units organize your company data according to your internal accounting, financial monitoring, and reporting

requirements. To help you manage the tax needs of your business units, you can use the business unit tax profile in

either of two ways:

• Indicate that business unit tax setup is used and maintained based on the configuration of the associated legal

entity at transaction time. The tax setup of the associated legal entity setup is either specific to the legal entity

or shared across legal entities using the Global Configuration Owner setup.

• Indicate that tax setup is used and maintained by a specific business unit. Create configuration options for the

business unit to indicate that the subscribed tax content is used for the transactions created for the business

unit.

For business units that maintain their own setup, enter the default information, tax reporting codes, configuration

options, and service providers as required.

Third Parties

Set up third-party tax profiles for parties with the usage of customer, supplier, and their sites. Enter the default

information, tax registrations, party fiscal classifications, and reporting codes required for your third parties or third-

party sites. You can set up tax exemptions for your customers and customer sites.

Banks are also considered third parties. When a bank is created, the tax registration number specified on the bank

record is added to the party tax profile record in Oracle Fusion Tax. You can't modify the party tax profile for a bank as

it's view only. You can only modify the bank record.

Note: You don't need to set up party tax profiles for third parties. Taxes are still calculated on transactions for third

parties that don't have tax profiles.

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Tax Authorities

Set up a tax authority party tax profile using the Legal Authorities setup task. The tax authority party tax profile

identifies a tax authority party as a collecting authority or a reporting authority or both. A collecting tax authority

manages the administration of tax remittances. A reporting tax authority receives and processes all company

transaction tax reports.

The collecting and reporting tax authorities appear in the corresponding list of values on all applicable Oracle Fusion

Tax pages. All tax authorities are available in the list of values as an issuing tax authority.

Related Topics

•

Considerations for Specifying First-Party Tax Profile Options

•

When does a party tax profile get created for a legal entity?

•

Considerations for Specifying Third-Party Tax Profile Options

•

When does a party tax profile get created for a third party?

Considerations for Specifying First-Party Tax Profile

Options

Set up first-party tax profiles for all legal entities, legal reporting units, and business units in your organization that have

a transaction tax requirements. How you set up your first parties can impact the tax calculation on your transactions.

The first-party tax profile consists of:

• Defaults and controls: Applicable to legal entities and legal reporting units. Business units that use their own tax

setup don't have defaults and controls.

• Tax registrations: Applicable to legal reporting units.

• Party fiscal classifications: Applicable to legal entities and legal reporting units.

• Tax reporting codes: Applicable to legal entities, legal reporting units, and business units who don't use the tax

setup of the legal entity.

• Configuration options: Applicable to legal entities and business units who don't use the tax setup of the legal

entity.

• Service subscriptions: Applicable to legal entities and business units who don't use the tax setup of the legal

entity.

Defaults and Controls

The following table describes the defaults and controls available at the first-party tax profile level:

Option Description

Set as self-assessment (reverse charge)

Automatically self-assess taxes on purchases.

Rounding Level Perform rounding operations on the:

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Option Description

• Header: Applies rounding to calculated tax amounts once for each tax rate per invoice.

• Line: Applies rounding to the calculated tax amount on each invoice line.

Rounding Rule

The rule that defines how the rounding must be performed on a value involved in a taxable

transaction. For example, up to the next highest value, down to the next lowest value, or nearest.

Note:

If you defined a rounding precedence hierarchy in the configuration owner tax option settings for

the combination of configuration owner and event class, Oracle Fusion Tax considers the rounding

details in the applicable tax profile.

Set Invoice Values as Tax Inclusive

This first party intends to send or receive invoices with invoice line amount inclusive of the tax amount.

Note:

This option overrides the tax inclusive handling setting at the tax level, but not at the tax rate level.

Tax Registrations

Set up a separate tax registration to represent each distinct registration requirement for a first-party legal reporting

unit. Oracle Fusion Tax uses tax registrations in tax determination and tax reporting. If your first party has more

than one tax registration in the same tax regime, then the application considers the tax registration in the order: tax

jurisdiction; tax; tax regime.

You must enable the Use tax reporting configuration option on the first-party tax regime to allow entry of global tax

reporting configuration details during tax registration setup for legal reporting units for these tax regimes.

Party Fiscal Classifications

If applicable, associate first-party fiscal classification codes with this party. The party fiscal classification codes you enter

become part of tax determination for invoices associated with this party. Specify start and end dates to control when

these fiscal classifications are applicable for this party and transaction.

For legal entities, you can view the associated legal classifications that were assigned to the tax regime defined for this

first party. The legal classifications are used in the tax determination process, similar to the party fiscal classifications.

Tax Reporting Codes

Set up tax reporting types to capture additional tax information on transactions for your tax reports for your first

parties. Depending on the tax reporting type code, you either enter or select a tax reporting code for this party. Specify

start and end dates to control when these tax reporting codes are applicable.

Configuration Options

The legal entities and business units in your organization are each subject to specific sets of tax regulations as

designated by the tax authorities where you do business. Use configuration options to associate legal entities and

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business units with their applicable tax regimes. You can set up tax configuration options when you create a tax regime

or when you create a party tax profile. Both setup flows display and maintain the same party and tax regime definitions.

Service Subscriptions

You can use a service subscription to reference a specific transaction tax offering or offerings provided by an external

tax partner. The transaction tax offering provided by an external tax partner can be related to content, calculation

services, or both. Oracle Fusion Tax supports the use of transaction tax offerings provided by external tax partners

for transaction tax calculation processing. Depending on the specific depth and scope of an individual tax partner's

offerings, you can use either Oracle Fusion Tax or a Partner Tax Application to perform the transaction tax calculation.

Related Topics

•

Tax Registrations

•

Tax Configuration Options

•

Considerations for Setting Tax Reporting Configuration Controls for VAT

•

Party Information

Plan Legal Reporting Units

Each of your legal entities has at least one legal reporting unit. Some legal reporting units can also be referred to as

establishments. You can define either domestic or foreign establishments.

Define legal reporting units by physical location, such as sales offices. For example, set up legal reporting units to

represent your company and its offices for tax reporting.

Planning Legal Reporting Units

Plan and define your legal reporting units at both the local and national levels if you operate within the administrative

boundaries of a jurisdiction that's more granular than country. For example, your legal entity establishes operations in

a country that requires reporting of employment and sales taxes locally as well as nationally. Therefore, you need more

than one legally registered location to meet this legal entity's reporting requirements in each area. Additionally, legal

entities in Europe operate across national boundaries, and require you to set up legal reporting units for the purposes

of local registration in each country. There can be multiple registrations associated with a legal reporting unit. However,

only one identifying registration can be defined by the legal authority used for the legal entity or legal reporting unit

and associated with the legal reporting unit.

FAQs for Legal Entities

What's a legal employer?

A legal employer is a legal entity that employs workers. You define a legal entity as a legal employer in the Oracle Fusion

Legal Entity Configurator.

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The legal employer is captured at the work relationship level, and all assignments within that relationship are

automatically with that legal employer. Legal employer information for worker assignments is also used for reporting

purposes.

What's a payroll statutory unit?

Payroll statutory units are legal entities that are responsible for paying workers, including the payment of payroll tax and

social insurance.

A payroll statutory unit can pay and report on payroll tax and social insurance on behalf of one or many legal entities,

depending on the structure of your enterprise. For example, if you're a multinational, multiple company enterprise,

then you register a payroll statutory unit in each country where you employ and pay people. You can optionally register

a consolidated payroll statutory unit to pay and report on workers across multiple legal employers within the same

country. You associate a legislative data group with a payroll statutory unit to provide the correct payroll information for

workers.

When does a party tax profile get created for a legal entity?

A legal entity party tax profile is autocreated when you create a legal entity record.

You can also use other methods to create a legal entity party tax profile. For example, it's created when a back-end

process creates a legal entity, but only when you do these:

• Save a tax regime to which the legal tax entity subscribes.

• Save the configuration owner tax option that's defined for the legal entity.

You can also create one manually. Just use the Create Legal Entity Tax Profile page. You can also edit the autogenerated

tax profile with relevant tax information.

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Financial Structures

6 Financial Structures

Overview

Financial structures setup includes rapid implementation, chart of accounts, value sets, General Ledger security, cross-

validation rules, related value sets, account hierarchies, account combinations, accounting calendars, currencies, and

currency daily rates.

Rapid Implementation

Overview of Enterprise Structures Rapid Implementation

You can use the Rapid Implementation for General Ledger workbook template to rapidly implement these common

setup objects for enterprise structures.

• Chart of accounts, including value sets, value set values, structures, and structure instances

• Account hierarchies, represented in the application through trees and tree versions

• Accounting calendars (monthly type only)

• Legal entities

• Primary ledgers with legal entity assignments to primary balancing segment values

• Business units

• Rules of generating sequential IDs for transactions recorded in the application

• Select setup objects along with their accounting specifications, for various Financial applications

Completion of the rapid implementation enterprise structure setup also automatically generates sample financial

reports and account groups based on your enterprise structure. Account groups are used in reporting dashboards such

as the Revenues and Expenses infolets, and the Close Monitor.

Plan your implementation carefully, considering the following requirements.

• Determine your chart of accounts segments.

• Create your segment values and hierarchies data in the specified format.

• Identify your legal entities, addresses, and business units.

• Determine the key accounts for tracking accounting activities, for example, retained earnings, cash, accounts

receivable, accounts payable, and top revenue and expenses parent accounts.

• Determine your calendar start date and its periodic pattern.

• Finalize your primary balancing segment value, legal entity, and business unit relationships.

• Determine your document and journal sequencing requirements.

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In the Setup and Maintenance work area, create an implementation project that includes the Define Financials

Configuration for Rapid Implementation task list. Download the workbook using the Create Chart of Accounts, Ledger,

Legal Entities, and Business Units in Spreadsheet task.

CAUTION: The rapid implementation enterprise structure configuration is meant to be used for a one-time

initialization. To the extent that you want to make certain allowed modifications to the configuration, you generally

have to make those changes directly in the application. After initial upload of the ledger, legal entity, and business

unit file, the fundamental accounting configuration framework is only created once and is permanently set. The

framework includes the ledger and its assigned chart of accounts, calendar and currency assignment, and the

associated definitions of those components.

Related Topics

•

Manage Setup Using Implementation Projects

Create Chart of Accounts, Ledger, Legal Entities, and Business

Units in Spreadsheets

Represent your enterprise structures in your chart of accounts, ledger, legal entities, and business unit configuration to

track and report on financial objectives and meet reporting requirements. These components provide the underlying

structure for organizing financial information and reporting.

The chart of accounts within the ledger facilitates:

• Aggregating data from different operations, from within an operation, and from different business flows

• Consistent definitions to your stakeholders in compliance with legislative and corporate reporting standards

and aids in management decisions

Rapid implementation is a way to configure a financial enterprise and financial reporting structures quickly using sheets

in a workbook that upload lists of:

• Companies (legal entities)

• Ledgers by country

• Business units

• Chart of accounts and segment values

• Segment value hierarchies

• Financial sequences

• Required subledger accounts

Once the sheets have been uploaded, the application creates:

• Chart of accounts structure and instance

• Segment value hierarchies

• Key accounts such as retained earnings

• Required subledger accounts

• Accounting calendar

• Primary ledger for each country represented on the legal entities sheet

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• Legal entities and their locations

• Business units

• Document and journal sequencing

• Set of Financial Reporting reports

• Three account groups

CAUTION: Once you begin using your chart of accounts, calendar, and ledger, making changes to their fundamental

attributes is neither recommended nor supported. This includes your chart of account segments, including the

segment labels as well as other characteristics of those segments, and your calendar structure or pattern.

The following figure illustrates the flow of the enterprise structure setup.

Legal entities (companies) incur transactions that are identified by business units with business functions. Transactions

that are recorded in subledgers are transferred to the ledger. A ledger is characterized by a calendar, a currency, and a

chart of accounts. A chart of accounts consists of segments, some of which are assigned segment labels, such as cost

center, natural account, and primary balancing segment. Legal entities can be assigned primary balancing segment

values.

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Additional information for some of the common setup objects depicted in the figure follows:

• Legal Entity: Identifies a recognized party with rights and responsibilities given by legislation, which has the

right to own property and the responsibility to account for itself.

• Business Units: Performs one or many business functions that can be rolled up in a management hierarchy. A

business unit can process transactions on behalf of many legal entities. Usually a business unit has a manager,

strategic objectives, a level of autonomy, and responsibility for its profit and loss. When created through the

spreadsheet, all available business functions are automatically enabled for the business unit.

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• Ledger: Maintains records and is a required component in your configuration. The rapid implementation

process:

◦

Creates primary ledgers by combining the chart of accounts, calendar, and currency as well as other

required options defined in the rapid implementation workbook.

◦

Assigns the standard accrual subledger accounting method to the primary ledger. The subledger

accounting method is used to group subledger journal entry rule sets together to define a consistent

accounting treatment.

◦

Creates a General Ledger balances cube for each ledger with a unique chart of accounts and calendar

combination. Each segment is created as a dimension in the balances cube along with the standard cube

dimensions.

• Subledger: Captures detailed transactional information, such as supplier invoices, customer payments, and

asset acquisitions. Uses subledger accounting to transfer transactional balances to the ledger where they're

posted.

• Chart of Accounts: Configures accounts that consist of components called segments. Accounts are used to

record balances and organize financial information and reporting.

• Segment: Identifies one of the components of a chart of accounts, which when combined with other segments,

creates an account combination for recording transactions and journal entries. A segment is associated with a

value set, which provides the set of values for that segment, along with the formatting and validation for those

values.

• Segment Label: Identifies certain segments in a chart of accounts and assigns special functionality to those

segments.

◦

Balancing Segment: Ensures that all journals balance for each balancing segment value or combination

of multiple balancing segment values for financial processes and reports. The three balancing segment

labels are: Primary Balancing Segment, Second Balancing Segment, and Third Balancing Segment.

◦

Natural Account: Determines the account type (asset, liability, expense, revenue, or equity) and specific

categorization of the financial activity. Facilitates General Ledger processes, such as closing of the

income statement accounts to retained earnings at the beginning of a new fiscal year.

◦

Cost Center: Facilitates grouping of natural accounts by functional cost types, accommodating tracking

of specific business expenses across natural accounts.

With the rapid implementation workbook you can also:

• Create more than one hierarchy for any of your chart of accounts segments during initial setup. You can also

create additional hierarchies and hierarchy versions, as well as update existing hierarchy versions, after the

initial setup is done by uploading the rapid implementation spreadsheet data.

• Create sequences for each legal entity or ledger based on the predefined country defaults. Document

sequences are created for: Payables invoices, Payments, Receivables invoices, Receivables credit memos,

Receivables adjustment activities. Reporting and accounting journal sequences are created for subledger

journals and General Ledger journals.

Related Topics

•

How Charts of Accounts, Ledgers, Legal Entities, and Business Units Are Created Using Spreadsheets

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How Charts of Accounts, Ledgers, Legal Entities, and Business

Units Are Created Using Spreadsheets

The rapid implementation process for setting up an enterprise structure includes several steps.

1. Downloading the Rapid Implementation for General Ledger workbook.

2. Entering data into the sheets.

3. Verifying the entered data and resolving any errors.

4. Uploading the chart of accounts file.

5. After successful upload of the chart of accounts file, uploading the general ledger, legal entity, and business

unit file with the rest of the configuration.

The rapid implementation enterprise structure configuration is meant to be used as a one-time initialization. To

the extent that you want to make certain allowed modifications to the configuration, you generally have to make

those changes directly in the applications. After initial upload of the ledger, legal entity, and business unit file, the

fundamental accounting configuration framework is only created once and is permanently set. This framework includes

the ledger and its assigned chart of accounts, calendar and currency assignment, and the associated definitions of

those components.

Workbook Overview

You can download the workbook in one of two ways:

1. In the Setup and Maintenance work area, go to the Manage Chart of Accounts Configurations task in the

Financial Reporting Structures functional area and click the Download Setup Template button.

2. In the Setup and Maintenance work area, create an implementation project that includes the Define Financials

Configuration for Rapid Implementation task list. Download the workbook using the Create Chart of

Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet task.

The workbook includes the following sheets:

• Instructions

• Chart of Accounts, Calendar, and Ledger

• Business Units

• Companies and Legal Entities

• Natural Accounts

• Financial Sequences

New sheets for entering segment values and hierarchies for additional segments of your chart of accounts can be

created automatically. After you enter the segments on the Chart of Accounts, Calendar, and Ledger sheet, click Add

Segment Sheets or Generate Additional Hierarchy.

Note: The rapid implementation process creates a standard ledger. You can convert a standard ledger to an average

daily balance ledger before the first period is opened by selecting the Enable average balances check box on the

Specify Ledger Options page.

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Instructions

Review the Instructions sheet for important information about how to use the workbook and submit the accounting

configuration. The sheet includes:

• Data preparation requirements

• Setup object concepts

• Best practices and recommendations

• Instructions on how to create additional hierarchies or hierarchy versions

• A completed workbook with sample data, which you can use to familiarize yourself with how to enter data,

preview the sample report, and generate required upload files

Chart of Accounts, Calendar, and Ledger

Enter the data to create your chart of accounts, calendar, and ledger.

CAUTION: Once you begin using your chart of accounts, calendar, and ledger, making changes to their fundamental

attributes is neither recommended nor supported. This includes your chart of account segments, including the

segment labels as well as other characteristics of those segments, and your calendar structure or pattern.

The following figure shows an example of the Chart of Accounts, Calendar and Ledger sheet with sample values.

An explanation of each field on the sheet follows.

• Name: Enter the name of your primary ledger.

A primary ledger is created for each unique country that's entered in the Companies and Legal Entities sheet.

A country code is appended to the name that you specify. For example, one legal entity is based in the United

States and another in Canada. If you enter the ledger name of InFusion Ledger, two primary ledgers are

automatically created, InFusion Ledger US and InFusion Ledger CA.

All of the primary ledgers that are created use the same chart of accounts, account hierarchies, and accounting

calendar. Legal entities and their primary balancing segment values are assigned to the primary ledger of their

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respective countries. If the addresses provided for the legal entities on the Companies and Legal Entities sheet

are all in the same country, then only one primary ledger is created.

• Currency: If you're not entering legal entities and only a single ledger should be created by the rapid

implementation configuration, enter the ledger currency in which you want to maintain accounting for in that

ledger. If you're entering legal entities, leave this field blank. The currency is automatically supplied based on

the country.

• Period Frequency: Select from among the list of available frequencies for the ledger calendar.

CAUTION: For the accounting calendar created using the Rapid Implementation Enterprise Structure

solution, the choices of patterns are limited to the period frequency and adjusting period options that are

available for selection in the spreadsheet. It isn't possible to make alterations to the pattern or specified

fiscal year start date once the calendar has already been created. The accounting periods of the calendar are

automatically named using a preset format. If you want to change these period names, you have a limited

window of time to make those changes. Use the Manage Accounting Calendars page in the application to

make the changes before the accounting calendar is being used actively, such as when one of its accounting

periods has been set to a status of Open.

• Adjusting Periods: Select the number of periods used to segregate closing, auditing, or other adjustments in

General Ledger. The entries are tracked in the adjusting period and not in your monthly activity.

• Fiscal Year Start Date: Enter the start date of the accounting calendar. The date can't be changed after the

submission of the configuration.

CAUTION: If you plan to run translations, enter a fiscal year start date for the entire accounting year that's

before the first period for which you intend to run translations. You can't run translation in the first defined

period of an accounting calendar. For example, if your fiscal year starts on January 1, and you want to start

translations for the period of Mar-17, then you should select a fiscal year start date of January 1, 2016. Also

when determining the fiscal year start date, you might want to consider whether you plan to load history.

• Segment: Enter the names for your segments. The value sets are created from the segments.

• Segment Label: Select segment labels to assign special functionality to segments.

Segment labels specifying the segment's purpose, such as balancing, cost center and natural account, can only

be assigned once to a chart of accounts segment. The Primary Balancing Segment and Natural Account

Segment labels must be assigned, while the other segment labels are optional. Segments that are assigned

these two particular labels cannot be assigned any other label. However, segments that are assigned the other

remaining labels can also be assigned additional labels, provided they're not Primary Balancing Segment or

Natural Account Segment.

The Intercompany Segment label assignment is optional. If assigned, an Intercompany sheet is automatically

added to the workbook when you select the Add Segment Sheets button. Use the sheet to enter your

intercompany values and hierarchies. When you upload the chart of accounts file, the application creates

a new value set for the Intercompany segment with the values that you entered. If you want to assign the

Intercompany segment the same values as the Primary Balancing segment, copy all the parent and child values

from the Companies and Legal Entities sheet to the Intercompany sheet.

If you enable segment value security on the primary balancing value set, the security enforcement won't

conflict with the Intercompany segment because the value sets for the two segments will be different. The same

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holds true if you enable segment value security on the intercompany value set. Security enforcement won't

conflict with the Primary Balancing segment.

If you plan to use related value sets and create a relationship between the segments that involves your primary

balancing segment or intercompany segments, there won't be a conflict of values because the value sets are

different.

Note: If you want to assign the Intercompany segment the same value set as the Primary Balancing segment,

you can change the value set assignment from the Manage Chart of Accounts Configurations page after you

upload the chart of accounts configuration and before you upload the financial structures for the chart of

accounts. If you decide to go with the same value set for both segments, you won't be able to change the

value set association later on, once the ledger is assigned to the chart of accounts.

Note: For the posting process to apply intercompany balancing, you must select the Enable intercompany

accounting option on the Specify Ledger Options page.

• Short Prompt: Enter a short name for the segment, which is used on applications pages.

• Display Width: Enter the segment size. Select the size carefully and leave room for growth. For example, if you

have 89 cost centers, enter 3 for the display length to allow for more than 100 cost centers in the future.

• Add Segment Sheets: Select this button to create sheets for additional segments. Sheets are provided only for

the Company and Natural Accounts segments.

From the new segment sheet, you can click the Generate Additional Hierarchy button to create more than

one hierarchy for any chart of account segment. A worksheet is then automatically created and populated with

the data already entered for that segment. Change this data as required for the new hierarchy. You can create

additional hierarchies during initial setup, or after the initial setup is done.

CAUTION: You can't change the chart of accounts, accounting calendar, or currency for your ledgers after the setup

is created.

Business Units

Enter the name of your business units and related default legal entities.

The following figure shows an example of the Business Units sheet with sample values for the Name and Default Legal

Entity Name fields.

Business units are created with the names that you enter. You can enter more than one business unit per ledger. Based

on the default legal entity specified for the business unit in the Business Units sheet, the business unit is assigned the

primary ledger to which its default legal entity is assigned.

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Companies and Legal Entities

Enter parent and child values for your Company segment, which is the segment that's assigned the Primary Balancing

Segment label on the Chart of Accounts, Calendar, and Ledger sheet. You can create up to nine levels of parent values

to roll up your companies to meet corporate and local reporting requirements.

Enter your legal entities for the child values with the address, registration number, and reporting unit registration

number. The registration number identifies legal entities registered for your company and recognized by law for

which you want to record and perform transactions. The reporting unit registration number identifies the lowest level

component of a legal structure that requires registrations.

The following figure shows part of the Companies and Legal Entities sheet with sample values. The sheet includes

columns for different levels of parent values, the child value, and company description. The Legal Entity columns

include name, identifier, country, address information, and registration numbers.

To create additional hierarchies for the company segment for reporting or other purposes, click the Generate

Additional Hierarchy button. A worksheet is automatically created and populated with the data already entered for that

segment. Change this data as required for the new hierarchy. You can create additional hierarchies during initial setup,

or after the initial setup is done.

When a new hierarchy sheet is created, the name for that sheet is derived by adding a counter to the sheet name. For

example, when you click Generate Additional Hierarchy on the Companies and Legal Entities sheet, the new sheet

is named Companies and Legal Entities 1. When you click Generate Additional Hierarchy again, another sheet is

generated with the name Companies and Legal Entities 2.

Note: Adding legal entity information isn't supported on a new hierarchy sheet for the Company segment.

Natural Accounts

Enter account hierarchies, account values, and specify account types.

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The following figure shows part of the Natural Accounts sheet with sample parent and child values, descriptions, and

account type.

• Parent: Enter parent account values to define hierarchies. Hierarchies are used for chart of accounts mappings,

revaluations, data access sets, cross-validation rules, and segment value security rules. The balances cube and

account hierarchies are also used for financial reporting, Smart View queries, and allocations.

• Child: Enter child account values to define the postable accounts.

• Description: Enter descriptions for the segment values.

• Account Type: You must assign an account type to each account value. Account types are used in year-end

close processes and to correctly categorize account balances for reporting. Select from among general account

types and expanded account types. The general account types are: Asset, Liability, Owner's Equity, Revenue,

Expense. Expanded account types provide specialized functionality and are used to:

◦

Identify the intended usage of your natural account values to facilitate automation and enable

completion of other required setup objects. For example, assign the Asset - Intercompany Receivable

and Liability - Intercompany Payable expanded account types. The Rapid Implementation process then

automatically creates a chart of accounts level intercompany balancing rule, which is a required setup for

the application to perform intercompany balancing.

◦

Automatically generate fully defined initial Financial Reporting reports and Account Groups based on

your enterprise structure.

Examples of expanded account types include:

◦

Asset - Accounts Receivable: For Receivables receipt methods

◦

Liability - Accounts Payable: For Payables common options

◦

Owner's Equity - Retained Earnings: For General Ledger ledger options

◦

Revenue - Top Revenues Parent Account: For sample reports and account groups

◦

Expense - Top Operating Expenses Parent Account: For sample reports and account groups

You must assign the Revenue - Top Revenues Parent Account and Expense - Top Operating Expenses

Account account types to the parent accounts that are your highest level and comprehensive revenue and

operating expenses accounts. You can optionally assign the account type of Expense - Top Cost of Sales

Parent Account, if it's applicable for your scenario.

The Generate Financial Reports and Account Groups process, which is automatically submitted when the

accounting configuration is created in the application, generates a set of Financial Reporting reports and

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account groups according to the accounting configuration defined in the workbook. The top parent accounts

are used as the basis for deriving the accounts referenced in the reports and in the Account Groups.

The immediate descendants of the top parent accounts are used to define the rows on the reports. Depending

on whether both the top operating expense and top cost of sales accounts are tagged, different variations

of the income statements are generated. If the optional top cost of sales account is provided, the Financial

Reporting reports that are income statements also include a gross margin section.

CAUTION: Assign account types carefully. If you assign an incorrect account type to a natural account

segment value, accounting entries are recorded incorrectly and financial statements are inaccurate.

Misclassified accounts are also potentially handled incorrectly at year end, with actual balances either getting

zeroed out to retained earnings, or accumulating into the next year.

• Financial Category: Select a value to identify groups of accounts for reporting with Oracle Transactional

Business Intelligence. You can add financial categories to parent values. Accounts that are tagged with

expanded account types are automatically assigned a financial category. You can override the default category

or leave it out.

Note: The list of accepted values is defined in the FINANCIAL_CATEGORY lookup_type.

• Generate Additional Hierarchy: To create additional hierarchies for the natural account segment for reporting

or for other purposes, click the Generate Additional Hierarchy button. A worksheet is automatically created

and populated with the data already entered for that segment. Change this data as required for the new

hierarchy. You can create additional hierarchies during initial setup or after the initial setup is done.

Financial Sequences

Enable document or journal sequences to assign unique numbers to transactions to meet legal requirements.

The following figure shows the Financial Sequences sheet with sample values for the Restart and Initial Value columns.

Document sequences are created for these transactions: Payables invoices, Payments, Receivables invoices, Receivables

credit memos, Receivables adjustment activities. Reporting and accounting journal sequences are created for Subledger

journals and General Ledger journals.

For each transaction, you can provide values for the following fields:

• Restart: Set when to restart the numbering: Annually, Monthly, Never.

• Initial Value: Specify the beginning number in the sequence.

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How Worksheets Are Processed

After you complete the worksheets, proceed with validation, sample report preview, and file upload.

1. On the Chart of Accounts, Calendar, and Ledger sheet, click the Step 1: Validate button.

The validation checks the worksheets for missing or inappropriate setups. Errors are marked as actionable

items in a validation report sheet that's dynamically generated. You can review the anomalies and make

the corrections as indicated. The Field column on the validation report notes the issue. Click the text link

to navigate to the appropriate field in the sheet that must be updated. When the validation is successful, a

message appears with the option of previewing a sample of the reports that are automatically generated as

part of the enterprise configuration.

The following figure shows the message that appears after a successful validation.

If you select to preview the sample report, a new sheet is automatically created called Preview Report. The

preview incorporates elements of the setup that you provided. The rows on the report are derived based on the

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top parent revenue and expense account values that you tagged on the Natural Accounts sheet. The preview

also reflects the reporting hierarchy for your natural accounts.

The following figure shows an example of the sample Financial Reporting report.

You can use the preview to validate whether the hierarchy setup aligns to your reporting needs. If the natural

account hierarchy requires adjustments, this is your chance to make those corrections before actually creating

the account hierarchies in the application. You can modify your enterprise structure setup, validate the

spreadsheet, and preview the revised sample reports for as many times as you need. The account hierarchies

are created when you finally submit the accounting configuration in the rapid implementation spreadsheet.

2. Click Step 2: Generate Chart of Accounts File. The process generates a data file called ChartOfAccounts.xml

with the entered chart of accounts and hierarchies setup data. Save the file to a network or local drive.

3. Click Step 3: Generate Ledger, LE, and BU File. The process generates a data file called

FinancialsCommonEntities.xml with the entered ledger, legal entities, and business unit setup data. Save the

file to a network or local drive.

4. From your implementation project, go to the Upload Chart of Accounts task. The Upload Enterprise Structures

and Hierarchies process is launched.

5. Accept the default selection of the Upload Enterprise Structure option.

6. Click Browse and select the first file that you saved called ChartOfAccounts.xml.

7. Click Submit.

8. Verify that the process completed without errors or warnings.

9. From your implementation project, go to the Upload Ledger, Legal Entities, and Business Units task. The

Upload Enterprise Structures and Hierarchies process is launched.

10. Accept the default selection of the Upload Enterprise Structure option.

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11. Click Browse and select the second file that you saved called FinancialsCommonEntities.xml.

12. Click Submit.

13. Verify that the process completed without errors or warnings.

An individual set of the following Financial Reporting reports is generated for each ledger that's defined within the rapid

implementation accounting configuration. If multiple primary ledgers are created as part of your configuration, a set of

Financial Reporting reports is generated for each ledger.

• Income Statement

• Consolidated Income Statement

• Rolling Quarterly Income Statement

• Rolling Monthly Income Statement

• Trial Balances by Ledger Currency

• Trial Balances by Entered Currency

The process also generates three account groups. These include two for the infolets, Revenues and Expenses, and

one for the Close Monitor called Close Monitor Summary Income Statement. A set of these three account groups is

generated for the balances cube, to be shared among all the ledgers that are part of that balances cube.

Additional Hierarchies After Initial Setup

To create additional hierarchies and hierarchy versions, or to update existing hierarchy versions after the initial setup:

1. Click the Generate Additional Hierarchy button on the applicable segment sheet. A new worksheet is

automatically created and populated with the data already entered for that segment. Change the data as

required.

2. Click the Generate File for This Hierarchy Only button. This generates a .zip file for the particular hierarchy.

3. From your implementation project, go to the Upload Chart of Accounts task. The Upload Enterprise

Structures and Hierarchies process is launched.

4. Select the Upload Hierarchy option.

5. Select from among the following options and provide values for the required parameters:

a. Create hierarchy: Select to create another account hierarchy. Specify the value set, tree code, and start

date.

b. Create version: Select to render a new version of an existing account hierarchy. Specify a value set, tree

code, tree version, and start date.

c. Update existing version: Select to edit an existing version of an account hierarchy. Specify a value set,

tree code, and tree version.

6. Click Choose File and select the .zip file that you saved earlier.

7. Click Submit.

Related Topics

•

Overview of Trees

•

How Financial Reporting Reports and Account Groups Are Generated

•

Manage Setup Using Implementation Projects

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Centralized Management of Chart of Accounts Configurations

A chart of accounts configuration has several elements, including the chart of accounts itself, and other setups framed

by the chart of accounts. Define and maintain these configurations using a guided process to ensure your setup meets

required standards.

The Manage Chart of Accounts Configurations task centralizes these elements and also provides efficient tools for

loading account values and hierarchies.

Here's a summary of what you can do from the centralized user interface:

• Create and deploy charts of accounts

• Edit charts of accounts

• Manage shorthand aliases

• Manage cross-validation rules

• Manage account combinations

• Manage value set values and hierarchies

• Manage segment value security rules

Note: It's recommended you use the centralized interface to manage your configurations instead of the individual

setup tasks in the Setup and Maintenance work area.

Here's how to get to the configurations task from the Setup and Maintenance work area.

• Offering: Financials

• Functional Area: Financial Reporting Structures

• Task: Manage Chart of Accounts Configurations

Chart of Accounts

Select the task to open the Manage Chart of Accounts Configuration page. From here you can view your chart of

accounts instances, descriptions, segment separators (delimiters), and whether the chart of accounts is enabled.

If you're creating a chart of accounts, download the Rapid Implementation for General Ledger setup template and

then upload the setup files. You can also deploy all of your charts of accounts and view information about the latest

deployment.

Manage chart of account details on the Edit Chart of Accounts Configurations page. Details include the chart of

accounts name and description as well as these options:

Option Description

Enable dynamic account combination

creation

Indicates whether combinations of accounting flexfield segment values can be created automatically.

Enable shorthand aliases

Indicates whether you can create names to represent partial or complete account combinations.

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Option Description

Allow account combinations with same

primary balancing and intercompany

values

Appears when a chart of accounts has an Intercompany segment. Indicates whether an account

combination can have the same segment value for both the Primary Balancing and Intercompany

segments.

You can also manage segment names, labels, and specify default hierarchies. Create and maintain segment values and

account hierarchies using spreadsheets and then upload them to import the values and hierarchies.

Note: To manage segment labels, select the chart of accounts on the Manage Chart of Accounts Configurations page.

In the Segments section on the Edit Chart of Accounts Configuration page, select Manage Segment Labels from the

Actions menu.

Other Related Setup

You can use the centralized interface to manage other setups related to a chart of accounts.

Related Setup Description How You Get to It

Shorthand Aliases

Define names to represent partial or complete

account combinations to help speed up entry of

account segment values.

From the Actions menu on the Manage Chart

of Accounts Configurations page.

Cross-Validation Rules

Create, update, and review restrictions that

prevent specific account combinations from

being created.

From the Actions menu on the Manage Chart

of Accounts Configurations page.

Account Combinations

Create, update, and review combinations of

accounting flexfield segment values.

From the Actions menu on the Manage Chart

of Accounts Configurations page.

Segment Value Security Rules

Use a desktop-integrated spreadsheet to define

rules that control access to chart of accounts

segment values for a value set.

Select the chart of accounts on the Manage

Chart of Accounts Configurations page. In the

Edit Chart of Accounts Configuration page:

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Related Setup Description How You Get to It

CAUTION:

Here are some cautions for using this

spreadsheet:

• You can only use the spreadsheet if

you're enabling security on a value

set for the very first time and haven't

created any segment value security rules

for it yet.

• Once you use this spreadsheet, you

must continue to use it to manage rules

for the value set. Don't use the Edit

Data Security page in the application

to update setups that were made

using this spreadsheet. Also, don't use

either the Edit Data Security page or

the Create Segment Value Security

Rules spreadsheet, accessed through

Create Segment Value Security Rules in

Spreadsheet task, to create additional

segment value security rules for the

value set.

• You can't use this spreadsheet to edit

segment value security rules that were

created using either the Edit Data

Security page or the Create Segment

Value Security Rules spreadsheet.

• Rules you define using this spreadsheet

are stored differently from rules you

define using the other methods. To

maintain rule integrity, use the same

method from the first time you enable

security on the value set.

1. Select the value set in the Segments

section.

2. In the Value Set tab, select the Enable

security check box.

3. Enter a data security resource name.

4. Save your changes.

5. Click Manage Data Security.

How to Manage Value Set Values and Hierarchies

You can upload and review account values and hierarchies using a file-based data import (FBDI) spreadsheet.

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To manage value set values:

1. In the Setup and Maintenance work area, go to the Manage Chart of Accounts Configurations task.

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

2. The Manage Chart of Accounts Configurations page displays a list of existing charts of accounts. Click the chart

of accounts name link to add or modify the values for a selected value set.

3. On the Edit Chart of Accounts Configuration page, select the applicable segment row that contains the value set

for which you need to manage values.

4. On the Value Set tab, click Download Values.

Here's an image of the Value Set tab.

5. In the Download Values dialog box, optionally provide values in the From Value, To Value, and Description

fields to filter the returned values.

Here's an image of the Download Values dialog box.

6. Click Prepare in Spreadsheet to process the values for export.

7. After the process completes, click Download.

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8. Save the .zip file to a folder.

9. Click Close.

10. Extract all of the files into the same folder.

11. Open the FBDI ChartofAccountsSegmentValuesandHierarchiesImportTemplate.xlsm template with the

downloaded values. The template contains an instructions sheet with sections on preparing and verifying the

data.

Note: If you don't see the values for the selected value set, check that macros are enabled for the

spreadsheet.

12. In the GL_SEGMENT_VALUES_INTERFACE sheet, modify the values as needed.

13. In the Instructions and CSV Generation sheet, click the Generate CSV button to create the

GlSegmentValuesInterface.csv file in a .zip file format.

14. On the Value Set tab, click Upload Values.

15. In the Upload dialog box, select your .zip file and click Submit.

16. Click OK.

17. Confirm the new or modified data is available in the application.

To manage account hierarchies:

1. In the Setup and Maintenance work area, go to the Manage Chart of Accounts Configurations task.

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

2. The Manage Chart of Accounts Configurations page displays a list of existing charts of accounts. Click the chart

of accounts name link to edit the chart of accounts hierarchy for a selected value set.

3. On the Edit Chart of Accounts Configuration page, select the applicable segment row that contains the

hierarchy with the values you need to manage.

4. Click the Hierarchies tab.

5. Select a hierarchy.

Here's a partial image of the Hierarchies tab.

6. Click Download Hierarchy.

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7. In the Download Hierarchy dialog box, optionally provide a parent value to download a partial branch of the

hierarchy. Leave the Parent Value field blank to download the entire hierarchy.

Here's an image of the Download Hierarchy dialog box.

8. Click Prepare in Spreadsheet to process the values for export.

9. After the process completes, click Download.

10. Save the .zip file to a folder.

11. Click Close.

12. Extract all of the files into the same folder.

13. Open the FBDI ChartofAccountsSegmentValuesandHierarchiesImportTemplate.xlsm template with the

downloaded hierarchy. The template contains an instructions sheet with sections on preparing and verifying

the data.

Note: If you don't see the values for the selected hierarchy, check that macros are enabled for the

spreadsheet.

14. In the GL_SEGMENT_HIER_INTERFACE sheet, add or modify the values as needed.

15. In the Instructions and CSV Generation sheet, click the Generate CSV button to create the

GlSegmentHierInterface.csv file in a .zip file format.

16. On the Hierarchies tab, click Upload Hierarchy.

17. In the Upload dialog box, select your .zip file and click Submit.

18. Click OK.

19. Confirm the new or modified data is available in the application.

Chart of Accounts

Overview of Key Flexfields

Key flexfields provide a means to capture a key such as a part number, a job code, or an account code. A key flexfield

consists of one or more segments, where each segment can have a meaning.

For example, a part number 10-PEN-BLA-450 might correspond to a black pen from supplier #450 sold by division #10

(office supplies). Behind the scenes, the application uses a unique number, 13452, for this part, but the user always sees

the 10-PEN-BLA-450 part number.

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The following aspects are important to understanding key flexfields:

• Architecture

• Segments and segment labels

• How to Identify Segments

• How the Override, Visible, and Rendered Properties Work

• Structures and segment instances

• Combinations

• Dynamic combination creation

• Security

Key flexfields aren't optional. You must configure key flexfields to ensure that your applications operate correctly. You

configure and maintain key flexfield definitions with the Manage Key Flexfields task. To get a list of predefined key

flexfields, use the Manage Key Flexfields task in the Setup and Maintenance work area. For information about specific

key flexfields, see the help for the product where the associated business component is implemented.

Architecture

Flexfield metadata is stored in the flexfield metadata tables. When you configure a key flexfield, you define metadata

about the key flexfield covering aspects such as:

• Segments are in a structure

• Structures in the flexfield

• Value sets in each segment

Based on the flexfield metadata, actual part numbers are captured as a combination of segment values and stored in

a combinations table. A combinations table contains all the segment columns for a flexfield, a unique ID column, and a

structure instance number column. The structure instance number column differentiates multiple arrangements of the

segment columns. For example, a part number containing multiple segments can be represented by a key flexfield. A

part number key flexfield has a corresponding combinations table. In that table, the flexfield stores a list of the complete

codes, with each segment of the code in a column, with the corresponding unique ID and structure instance number for

the code. When users define a new part number or maintain existing part numbers in the parts catalog, they directly

maintain rows in the combinations table.

The foreign key table contains a different business entity than the combinations table. For example, the business entity

in the foreign key table is order lines or invoice lines that contain foreign key references to parts for ordering. Any

number of foreign key tables can reference a particular entity represented by a key flexfield.

Segments and Segment Labels

A key flexfield contains segments. Each segment contains these details:

• A prompt

• A short prompt

• Display width

• The sequential position of the segment within the key flexfield structure

• The range type

• Column name of the attribute being stored by the segment

• A default value set

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• A label for the segment

How to Identify Segments

You can identify and control a segment within a key flexfield using a segment label. Segment labels act as tags for the

segments, and these labels are defined by application developers. For example, say in the accounting flexfield, you

want to identify which segment contains balancing information and which one contains natural account information.

A segment label identifies the segment that contains natural account information. When you define your accounting

flexfield, you must specify the segment labels for each segment. Some segment labels must be unique, and can't be

applied to more than one segment in each structure. Other labels are required and must be applied to at least one

segment in each structure.

You can also use a segment label to search for segments, such as the Cost Center label for all segments across key

flexfields that store a value for the cost center. To identify and control a segment in key flexfield, you can set several

segment properties in the flexfield XML with a literal value or an EL expression. These properties are attributes of the

<flexfieldLabeledSegmentHint> element of the flexfield. These property settings apply to all segments that have the

specified segment label assigned to them.

Property Description

SegmentLabel

Indicates the segment label for the segment being configured.

Rendered

Indicates whether the segment is available on the page. You can set the value to True, False, or EL

expression

Required

Indicates whether users must enter some data for the component before they save. You can set the

value to True, False, or EL expression.

Read-only

Indicates whether the users can modify the segment. You can set the value to True, False, or EL

expression.

Visible

Indicates whether the segment is visible on the page. You can set the value to True, False, or EL

expression.

Label

Indicates the display text for the segment.

ShortDesc

Indicates the text that appears when users hover over the component.

Columns

Indicates the width of the text control in terms of the number of characters shown. The number of

columns is calculated based on the default font size of the browser. You can set this property with a

literal value or EL expression.

Override

Indicates whether a certain child component inside a parent component is visible. You can set the

value to True, False, or EL expression. When you use this property along with the visible property, it

overrides the visible property of the parent component.

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How the Override, Visible, and Rendered Properties Work

Let's look at a few scenarios:

• Here's a snippet of code without the override property:

<fnd:keyFlexfieldPartial value="#{bindings.Kff1PaInstanceIterator}" id="kfp1" visible="false">

<fnd:flexfieldLabeledSegmentHint

segmentLabel="SEGMENT_LABEL_R1" visible="true"/>

</fnd:keyFlexfieldPartial>

In this case, the visible property of the child component is set to true and the visible property of the parent

component is set to false. So, segments with SEGMENT_LABEL_R1 aren't visible because the visible property of

the child component is used in conjunction with the visible property of the parent component.

• Here's a snippet of code with the override property:

<fnd:keyFlexfieldPartial value="#{bindings.Kff1PaInstanceIterator}" id="kfp1" visible="false">

<fnd:flexfieldLabeledSegmentHint

segmentLabel="SEGMENT_LABEL_R1" visible="true" override="true"/>

</fnd:keyFlexfieldPartial>

Here also, the visible property of the child component is set to true and the visible property of the parent

component is set to false. But you're also setting the override property of the child component to true. So,

segments with SEGMENT_LABEL_R1 are visible because the visible property of the child component overrides the

visible property of the parent component.

Remember, you must not use the rendered property along with the override property, because when you set the

rendered property to false at the flexfield level, the Oracle ADF module ignores the rendered property at the segment

level. For example, consider this snippet of code:

<fnd:keyFlexfieldPartial value="#{bindings.Kff1PaInstanceIterator}" id="kfp1" rendered="false">

<fnd:flexfieldLabeledSegmentHint

segmentLabel="SEGMENT_LABEL_R1" rendered="true" override="true"/>

</fnd:keyFlexfieldPartial>

Though you set the rendered property to true at the segment level, this property is ignored. That's because the rendered

property is set to false at the flexfield level. So, make sure that you use the visible property instead of the rendered

property along with the override property.

Structures and Segment Instances

A key flexfield structure definition includes the number of segments and their order.

In some applications, different users like to see different segment structures for the same flexfield. A key flexfield can

have multiple structures if registered to support more than one structure.

The flexfield can display different fields for different users based on a data condition in your application data, such

as the value of another field entered by the user or the user's role. For example, the correctly formatted local postal

address for customer service inquiries differs based on locale. A postal address key flexfield could display different

segments and prompts for different users based on a location condition in your application data, such as the user's role

or a value entered by the user.

Each structure can have one or more segments. Thus a segment is a child of a structure. To store a particular segment,

such as Cost Center, in two different structures, you must define the segment separately in each structure. Each

structure may have one or more structure instances. Each instance of a structure shares the same number and order of

segments, but differs in the values or value sets used in validating the segments.

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You can define multiple configurations of a key flexfield structure. These structure instances have the same segment

structure, in the same sequence order. They differ primarily in how each segment is validated. You define a structure

instance for each key flexfield and each key flexfield structure instance.

The segments in a key flexfield structure instance are segment instances. A segment instance is a segment with a

specific value set assigned to it. If a key flexfield is registered with a tree structure, you can specify a tree code for a

segment instance.

Combinations

A combination is a complete code, or combination of segment values that makes up the code, that uniquely identifies

an object.

For example, each part number is a single combination, such as PAD-YEL-11x14 or 01-COM-876-7BG-LTN. In these

combinations, the hyphen is the segment separator. If you have ten parts, define ten combinations. A valid combination

is an existing or new combination that can be used because it's currently active and doesn't violate cross-validation

or security rules. A combination has different segments depending on the flexfield structure being used for that

combination. Any combination is associated with only one particular flexfield structure.

Many applications refer to a key flexfield combination by using the name of the entity or the key flexfield itself. For

example, Assets uses the asset key flexfield and refers to one of its combinations as an asset key or asset key flexfield.

In another example, Oracle General Ledger refers to combinations of the accounting flexfield as account or GL account.

Each key flexfield has one corresponding table, known as the combinations table, where the flexfield stores a list of the

complete codes, with one column for each segment of the code, together with the corresponding unique ID number

(an account combination ID) for that code. Then, other tables in the application have a column that stores just the

unique ID for the code. For example, you may have a part number code, such as PAD-YEL-11x14. The Parts combinations

table stores that code along with its ID, 57494. If your application lets you take orders for parts, you might then have

an Orders table that stores orders for parts. That Orders table would contain a single column that contains the part ID,

57494, instead of several columns for the complete code PAD-YEL-11x14. Typically, one combinations page maintains

the key flexfield, where the key flexfield is the representation of an entity in your application. Maintain individual

combinations, such as part numbers in the combinations page.

Dynamic Combination Creation

Dynamic combination creation is the insertion of a new valid combination into a combinations table from a page other

than the combinations page. The following table lists the levels at which dynamic combination creation may be enabled.

Level Of Dynamic Combination Creation Controlled By

Flexfield

Application development

Each usage or reference to the key flexfield

Application development

Structure instance

Administrators and implementation consultants

Other

Administrators and implementation consultants

If your key flexfield or certain usages or references of the key flexfield don't permit dynamic combination creation,

you may control whether dynamic combination creation is enabled for each structure instance. If enabled, a user can

enter a new combination of segment values using the flexfield window from a foreign key page. For example, when

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entering a transaction, a GL user can enter a new expense account combination for an account that doesn't yet exist.

Your application creates the new account by inserting the new combination into the combinations table behind the

scenes. Assuming that the new combination satisfies any existing cross-validation rules, the flexfield inserts the new

combination into the combinations table, even though the combinations table isn't the underlying table for the foreign

key page.

Related Topics

•

Overview of Flexfield Deployment

•

Considerations for Managing Flexfields

•

Key Flexfield Structures

•

How can I access predefined flexfields?

•

How do I update existing setup data?

Considerations for Planning Key Flexfields

Your first step in planning your key flexfields is to determine which key flexfields your application requires.

Your plan should include these tasks:

• Determine the purpose of the key flexfield.

• Identify the number and length of its available segment columns.

• Identify if your key flexfield permits more than one structure.

• Identify if more than one structure must be defined.

• Identify the number, order and length of your segments for each structure.

Before You Begin

Once you have identified a flexfield, plan its configuration in advance. Compile a list of the UI pages and other artifacts

in your deployment that are affected by the configuration. Verify that you're provisioned with the roles required to view

and configure the flexfield. Use the Highlight Flexfields command in the Administration menu to view the run time page

where the flexfield appears. Plan how you deploy the flexfield for test and production users and review the tools and

tasks available for managing flexfields.

If you plan to use value sets, create them before configuring the key flexfield. You can't create value sets for key

flexfields at the time that you add and configure key flexfield segments.

Access to Flexfield-Related Tasks

To configure flexfields and value sets, you must have access to the tasks for managing flexfields. Contact your security

administrator for details. For information about product-specific flexfield tasks, such as Manage Fixed Assets Key

Flexfields, refer to the product-specific documentation.

Restrictions

If you plan to use value sets, create them before configuring the flexfield. Plan your key flexfield configuration to scale

to your enterprise needs. For example, if you expect to disable old cost centers and enable new ones frequently, plan

a larger maximum size for your cost center value set so that you can have more available values. A 3-character value

set with one thousand available values provides more room for changes than a 2-character value set with 100 available

values.

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Note the code name of the flexfield you intend to configure so that you find it easily in the tasks for managing key

flexfields. In some cases you can configure how the flexfield appears on the page. See product-specific documentation

to determine any restrictions on using product-specific key flexfields.

Note: Table-validated value sets with ID columns and translated independent or dependent value sets aren’t

supported in key flexfields.

Reporting

To report on your data by certain criteria or sub-entities, such as account number or project or region, consider making

that sub-entity a distinct segment, rather than combining it with another sub-entity. You can categorize and report on

smaller discrete units of information.

Related Topics

•

Considerations for Planning Value Sets

Essbase Character and Word Limitations

The following is a comprehensive list of character and word limitations that apply to Oracle Essbase. All of the

limitations apply to all of the Oracle General Ledger configurations summarized in the table.

The following table shows how the General Ledger configuration maps to Essbase.

General Ledger Configuration Maps to Essbase

Chart of Account Name

Cube Name

Chart of Account Segment Name

Dimension Name

Chart of Accounts Segment Value

Dimension Member Name

Chart of Accounts Segment Value

Description

Alias for Member

Tree and Tree Version Name

Dimension Member Name

Primary Ledger Name

Dimension Member Name in Ledger Dimension

Secondary Ledger Name

Dimension Member Name in Ledger Dimension

Reporting Currency

Dimension Member Name in Ledger Dimension

Ledger Set Name

Dimension Member Name in Ledger Dimension

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General Ledger Configuration Maps to Essbase

Accounting Calendar Period Names

Dimension Member Name in Accounting Period Name

Scenario Name Defined in Predefined

Value Set Called Accounting Scenario

Dimension Member Name in Scenario Dimension

Even if case sensitivity is enabled in an aggregate storage outline for which duplicate member names is enabled, don't

use matching dimension names with only case differences. For example, don't:

• Name two dimensions Product and product.

• Use quotation marks or brackets.

• Use tabs in dimension, member, or alias names.

• Use accent characters.

• Use the characters for dimension or member names.

Restricted Characters

The following table lists the characters that are restricted and can’t be used at the beginning of cube, dimension,

member, or alias names.

Character Meaning

- dash, hyphen, or minus sign

_ underscore

The following table lists the characters that are restricted and can’t be used in cube, dimension, member, or alias names.

Character Meaning

ampersand

Note: Aliases can include ampersands as long as the ampersand isn’t the beginning character.

at sign

backslash

Note: Aliases can include backslashes as long as the backslash isn’t the beginning character.

{}

brace

comma

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Character Meaning

Note: Aliases can include commas as long as the comma isn’t the beginning character.

double quotation mark

equal sign

less than sign

()

parentheses

Note: Member names and aliases can include parentheses as long as a parenthesis isn’t the

beginning character.

period

Note: Aliases can include periods as long as the period isn’t the beginning character.

plus sign

single quotation mark

slash

Note: Aliases can include slashes as long as the slash isn’t the beginning character.

vertical bar

Other Restrictions

• Don't place spaces at the beginning or end of names. Essbase ignores such spaces.

• Don't use the following types of words as dimension or member names:

◦

Calculation script commands, operators, and keywords.

◦

Report writer commands.

◦

Function names and function arguments.

◦

Names of other dimensions and members (unless the member is shared).

◦

Generation names, level names, and aliases in the database.

The following table lists additional words that can’t be used as the entire value for a cube, dimension, member, or alias.

For example, you can’t use ALL or All for an alias. However, you can use All expenses as an alias.

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List 1 List 2 List 3

ALL

AND

ASSIGN

AVERAGE

CALC

CALCMBR

COPYFORWARD

CROSSDIM

CURMBRNAME

DIM

DIMNAME

DIV

DYNAMIC

EMPTYPARM

EQOP

EXCEPT

EXP

EXPERROR

FLOAT

FUNCTION

GEN

GENRANGE

GROUP

IDERROR

INTEGER

LEVELRANGE

LOOPBLOCK

LOOPPARMS

MBR

MBRNAME

MBRONLY

MINUS

MISSING, #MISSING

MUL

MULOP

NON

NONINPUT

NOT

PAREN

PARENPARM

PERCENT

PLUS

RELOP

SET

SKIPBOTH

SKIPMISSING

SKIPNONE

SKIPZERO

TOLOCALRATE

TRAILMISSING

TRAILSUM

UMINUS

UPPER

VARORXMBR

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List 1 List 2 List 3

XMRONLY

$$$UNIVERSE$$$

#MI

The following table lists General Ledger Essbase keywords that are also restricted and can’t be used as the entire value

for a cube, dimension, member, or alias. For example, you can’t use ACTUAL or Actual for an alias. However, you can

use Actual expenses as an alias.

First Letter of Keyword Keywords

A ACTUAL, ADP, AED, AFA, AFN, ALLOCATED, AMD, ANG, AOA, AOK, AON, ARA, ARS, ATS, AUD, AWG,

AZM, AZN

B BAM, BASE, BBD, BDT, BEF, BEGINNINGBALANCECR, BEGINNINGBALANCEDR, BGL, BGN, BHD, BIF,

BMD, BND, BOB, BOV, BRC, BRL, BSD, BTN, BUK, BWP, BYB, BYN, BYR, BZD

C CAD, CD, CDF, CHE, CHF, CHW, CLF, CLP, CNY, CONVERTED, COP, COU, CRC, CSD, CSK, CUP, CVE, CYP,

CZK

D DAILY ACTIVITY, DAY, DEM, DJF, DKK, DOP, DZD

E ECS, ECV, EEK, EGP, ENDINGBALANCECR, ENDINGBALANCEDR, ENTERED, EOD, ERN, ESB, ESP, ETB,

EUR

F FIM, FJD, FKP, FRF

G GBP, GEK, GEL, GHC, GHS, GIP, GMD, GNF, GRD, GTQ, GWP, GYD

H HISTORY, HKD, HNL, HRD, HRK, HTG, HUF

I IDR, IEP, ILS, INR, IQD, IRR, ISK, ITL

J JMD, JOD, JPY

K KES, KGS, KHR, KMF, KPW, KRW, KWD, KYD, KZT

L LAK, LBP, LKR, LRD, LSL, LTL, LUC, LUF, LUL, LVL, LVR, LYD

M MAD, MDL, MGA, MGF, MKD, MMK, MNT, MONTH, MOP, MRO, MRU, MS25, MS26, MTL, MUR, MVR,

MWK, MXN, MXP, MXV, MYR, MZM, MZN

N N/A, NAD, NGN, NIC, NIO, NLG, NOK, NPR, NZD

O OMR

P PAB, PATD, PEI, PEN, PERIOD, PERIODACTIVITYCR, PERIODACTIVITYDR, PGK, PHP, PKR, PLN, PLZ,

PTA, PTD, PTE, PYG

Q QAR, QATD, QTD, QUARTER

R RMB, ROL, RON, RSD, RUB, RUR, RWF

S SAR, SBD, SCR, SDD, SDG, SDP, SEASON, SEK, SGD, SHP, SIT, SKK, SLL, SOS, SRD, SRG, SSP, STAT, STD,

STN, SUR, SVC, SYP, SZL

T THB, TJR, TJS, TMM, TMT, TND, TOP, TOTAL, TOTALFORALLOCATIONS, TPE, TRL, TRY, TTD, TWD,

TZS

U UAH, UAK, UF, UGS, UGX, UKS, USD, USN, USS, UYI, UYP, UYU, UYW, UZS

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First Letter of Keyword Keywords

V VEB, VEF, VES, VND, VUV

W WEEK, WST

X XAF, XAG, XAU, XB5, XBA, XBB, XBC, XBD XCD, XDR, XEU, XFO, XFU, XGL1, XOF, XPD, XPF, XPO, XPT,

XTS, XXX

Y YATD, YDD, YEAR, YER, YTD, YUD, YUM, YUN

Z ZAL, ZAR, ZBIQA_C1, ZBIQA_C2, ZBIQA_C3 ZBIQA_C4, ZMK, ZMW, ZRN, ZRZ, ZWD, ZWL, ZWR

Chart of Accounts

The chart of accounts is the underlying structure for organizing financial information and reporting.

An entity records transactions with a set of codes representing balances by type, expenses by function, and other

divisional or organizational codes that are important to its business.

A well-designed chart of accounts provides the following benefits:

• Effectively manages an organization's financial business.

• Supports the audit and control of financial transactions.

• Provides flexibility for management reporting and analysis.

• Anticipates growth and maintenance needs as organizational changes occur.

• Facilitates an efficient data processing flow.

• Enables delegation of responsibility for cost control, profit attainment, and asset utilization.

• Measures performance against corporate objectives by your managers.

CAUTION: Once you begin using your chart of accounts, making changes to its fundamental attributes is neither

recommended nor supported. This includes your chart of account segments, including the segment labels as well as

other characteristics of those segments.

The chart of accounts facilitates aggregating data from different operations, from within an operation, and from

different business flows, thus enabling the organization to report using consistent definitions to their stakeholders in

compliance with legislative and corporate reporting standards and aiding in management decisions.

Best practices include starting the design from external and management reporting requirements and making decisions

about data storage in the general ledger, including thick versus thin general ledger concepts.

Thick Versus Thin General Ledger

Thick versus thin general ledger is standard terminology used to describe the amount of data populated and analysis

performed in your general ledger. Thick and thin are the poles; most implementations are somewhere in between.

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Here are some variations to consider:

• A general ledger used in conjunction with an enterprise profitability management product, which has data

standardized from each operation, is a thin general ledger. Use this variation if your solution is project-based,

and Oracle Fusion Project Management is implemented. More detailed reporting can be obtained from

the Projects system. In the thin general ledger, business units, divisions, and individual departments aren't

represented in the chart of accounts.

• A thick general ledger:

◦

Has segments representing all aspects.

◦

Captures every detail of your business.

◦

Runs frequent posting.

◦

Defines many values in each segment.

A thick general ledger is designed to serve as a repository of management data for a certain level of

management. For example, a general ledger designed to provide management data to supervise operations,

such as daily sales, without invoice details.

• A primary and secondary ledger, with one thick general ledger and the other a thin general ledger, provides

dual representation to meet reporting requirements.

Thin General Ledger

With a thin general ledger, you use the general ledger for internal control, statutory reporting, and tracking of asset

ownership. You minimize the data stored in your general ledger. A thin general ledger has many of the following

characteristics:

• Minimal chart of accounts

◦

Short list of cost centers

◦

Short list of natural accounts

- Short list of cost accounts

- Summary level asset and liability accounts

◦

Low number of optional segments

• Infrequent posting schedule

A thin general ledger:

• Has natural accounts at a statutory reporting level, for example, payroll expense, rent, property taxes, and

utilities.

• Has cost centers at the functional expense level, such as Research and Development or Selling, General, and

Administrative, rather than at department or analytic levels.

• Omits business unit, division, and product detail.

One example of an industry that frequently uses a thin general ledger is retail. In a retail organization, the general ledger

tracks overall sales numbers by region. A retail point of sales product tracks sales and inventory by store, product,

supplier, markup, and other retail sales measures.

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Thick General Ledger

With a thick general ledger, you use the general ledger as a detailed, analytic tool, performing analytic functions directly

in the general ledger. Data is broken down by many reporting labels, and populated frequently from the subledgers.

You maximize the data stored in the general ledger. A thick general ledger has many of the following characteristics:

• Maximum use of the chart of accounts

◦

Long list of natural accounts

◦

Long list of cost centers

- Long list of costing accounts

- Detailed asset and liability accounts

• Frequent posting schedule

A thick general ledger had details for cost of goods sold and inventory balances and track property plant and equipment

at a granular level. Cost centers represent functional expenses, but also roll up to departmental or other expense

analysis levels. Using product and location codes in optional segments can provide reporting by line of business.

Posting daily, at the individual transaction level, can maximize the data stored in the general ledger.

One example of an industry that frequently uses a thick general ledger is electronic manufacturers. Detail on the

revenue line is tagged by sales channel. Product is structured differently to provide detail on the cost of goods sold

line, including your bill of materials costs. The general ledger is used to compare and contrast both revenue and cost of

goods sold for margin analysis.

Other Considerations

Consider implementing a thick ledger if there are business requirements to do any of the following:

• Track entered currency balances at the level of an operational dimension or segment of your chart of accounts,

such as by department or cost center

• Generate financial allocations at the level of an operational dimension or segment

• Report using multiple layered and versions of hierarchies of the operational dimension or segment from your

general ledger

Consider implementing a thin ledger in addition to a thick ledger, if there are additional requirements for:

• Minimal disclosure to the authorities in addition to the requirements previously listed. For example, in some

European countries, fiscal authorities examine ledgers at the detailed account level.

• Fiscal only adjustments, allocations, and revaluations, which don't impact the thick general ledger.

The important consideration in determining if a thick ledger is the primary or secondary ledger is your reporting needs.

Other considerations include how the values for an operational dimension or segment are derived and the amount of

resources used in reconciling your different ledgers. If values for an operational dimension or segment are entered by

the user, then a thick primary ledger is the better choice.

However, if values for the operational segment are automatically derived from attributes on transactions in your

subledger accounting rules, then use a thick secondary ledger. This decision affects the amount of:

• Storage and maintenance needed for both the general ledger and subledger accounting entries

• System resources required to perform additional posting

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• In summary, you have:

◦

Minimum demand on storage, maintenance, and system resources with the use of a thin ledger

◦

Greater demand on storage, maintenance, and system resources with the use of a thick ledger

◦

Greatest demand on storage, maintenance and system resources with the use of both thick and thin

ledgers

Note: Generally speaking, there is a trade-off between the volume of journals and balances created and

maintained versus system resource demands. Actual performance depends on a wide range of factors

including hardware and network considerations, transaction volume, and data retention policies.

Summary

The factors you should consider in your decision to use a thick or thin general ledger for your organization, are your:

• Downstream EPM system and its capabilities

• Business intelligence system and its capabilities

• Subledger systems and their capabilities and characteristics, including heterogeneity

• General ledger reporting systems and their capabilities

• Maintenance required for the thick or thin distributions and record keeping

• Maintenance required to update value sets for the chart of accounts segments

• Preferences of the product that serves as a source of truth

• Level at which to report profitability including gross margin analysis

• Industry and business complexity

Chart of Accounts Components

The important elements in a basic chart of accounts in Oracle Fusion Cloud Applications included a structure that

defines the account values, segments and their labels, and rules (security and validation).

Account combinations link the values in the segments together and provide the accounting mechanism to capture

financial transactions.

This figure illustrates the main components in the chart of account structure and the way they fit together. The chart

of accounts consists of segments which have value sets attached to them to determine the values from each used in

creating account combinations. Segments also have segment labels attached to them to point to the correct segment

to use in general ledger processing, such as intercompany balancing or retained earning summarization. Segments are

secured by security rules and accounts are secured by cross validation rules.

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Chart of Accounts

The chart of accounts defines the number and attributes of various segments, including:

• Order of segments

• Width of segments

• Prompts

• Segment labels, such as balancing, natural account, and cost center.

The chart of accounts further defines:

• Combination of value sets associated with each segment

• Type of segment

• Default values for the segments

• Additional conditions designating the source of the values using database tables

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• Required and displayed properties for the segments

Segments

A chart of accounts segment is a component of the account combination. Each segment has a value set attached to it to

provide formatting and validation of the set of values used with that segment. The combination of segments creates the

account combination used for recording and reporting financial transactions. Examples of segments that may be found

in a chart of accounts are company, cost center, department, division, region, account, product, program, and location.

Value Sets and Values

The value sets define the attributes and values associated with a segment of the chart of accounts. You can think of

a value set as a container for your values. You can set up your flexfield so that it automatically validates the segment

values that you enter against a table of valid values. If you enter an invalid segment value, a list of valid values appears

automatically so that you can select a valid value. You can assign a single value set to more than one segment, and you

can share value sets across different flexfields.

CAUTION: You must use Independent validation only for the Accounting Key Flexfield value sets. Other validations

prevent you from using the full chart of accounts functionality, such as data security, reporting, and account hierarchy

integration. Dependent values sets aren't supported.

Segment Labels

Segment labels identify certain segments in your chart of accounts and assign special functionality to those segments.

Segment labels were referred to as flexfield qualifiers in Oracle E-Business Suite. Here are the segment labels that are

available to use with the chart of accounts.

• Balancing: Ensures that all journals balance for each balancing segment value or combination of multiple

balancing segment values to use in trial balance reporting. The three balancing segment labels are: primary,

second, and third balancing. The primary balancing segment label is required.

• Cost Center: Facilitates grouping of natural accounts by functional cost types, accommodating tracking of

specific business expenses across natural accounts. As cost centers combine expenses and headcount data

into costs, they're useful for detailed analysis and reporting. Cost centers are optional, but required if you're

accounting for depreciation, additions, and other transactions in Oracle Assets, and for storing expense

approval limits in Oracle Expenses. If you're implementing Oracle Fusion Cloud Procurement, you can use cost

centers for business intelligence reporting and to route transactions for approval.

• Natural Account: Determines the account type (asset, liability, expense, revenue, or equity) and other

information specific to the segment value. The natural account segment label is required.

• Intercompany: Optionally, assigns the segment to be used in intercompany balancing functionality.

Note: All segments have a segment qualifier that enables posting for each value. The predefined setting is Yes to

post.

Account Combinations

An account combination is a completed code of segment values that uniquely identifies an account in the chart of

accounts, for example 01-2900-500-123, might represent InFusion America (company)-Monitor Sales (division)-

Revenue (account)-Air Filters (product).

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Rules

The chart of accounts uses two different types of rules to control functionality.

• Security rules: Prohibit certain users from accessing specific segment values. For example, you can create a

security rule that grants a user access only to his or her department.

• Cross-validation rules: Control the account combinations that can be created during data entry. For example,

you may decide that sales cost centers 600 to 699 should enter amounts only to product sales accounts 4000

to 4999.

Segment Rules and Account Rules for Chart of Accounts Mapping

The chart of accounts mapping feature supports the ability to correlate a source chart of accounts to a target chart of

accounts to allow for the processing of balances or amounts.

Use either segment rules, account rules, or a combination of both. A chart of accounts mapping is used by the posting

process in propagating transactions from the primary ledger to its secondary ledger. The mapping feature is used by

both balance transfer processes for balance level secondary ledgers as well as cross ledger transfers. The balances are

copied from one ledger to another ledger in both processes.

You can define chart of accounts mappings using the Manage Chart of Accounts Mapping task. If you’re defining

mappings that include only segment rules, you can also use the Chart of Accounts Mapping Rules Import file-based

data import (FBDI).

Segment Rules

Use segment rules to map each segment of the target chart of accounts to an account value, or to one or two segments

in the source chart of accounts. You can select from among three different mapping methods:

• Assign a constant value for a segment in the target chart of accounts.

• Copy the value from the source segment to the corresponding target segment.

Note: To use this method, the value sets for the paired target and source segments must share identical

values.

• Use rollup rules to aggregate one or two source segments to a corresponding target segment.

◦

Create a single value mapping when a specific detail source segment value is given a detail target

segment value.

◦

Use hierarchical rollup rules when a specific parent source value and all of its child segment values are

mapped to a given detail target segment value. This provides the ability to process groups of source

segment values in one single rollup rule.

◦

Define parent source values in rollup rules when date effective versions of the hierarchy are used with the

accounting date of the transactions by the processes that reference the chart of accounts mapping. The

additional benefit of self-maintaining mappings is that if the hierarchies referenced change with time, the

applicable child values are updated automatically.

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Account Rules

Account rules map a complete target account combination against one or more source account combinations. The

source account combinations can be defined segment by segment using:

• Single detail account values

• Detail account value ranges

• Parent values for primary balancing and natural account segments

Note: When using parent values, its child values for the date effective version of the hierarchy are processed

when the mapping is called.

Overview of the Chart of Accounts Mapping Page

You can define chart of accounts mappings on the Manage Chart of Accounts Mapping page. The page has three tabs

where you can define segment rules, account rules, and multiple source segment rules.

In addition, the page centralizes all the related elements of managing mappings with segment rules and provides

efficient tools for creating and editing a large volume of rollup rules. Here’s the list of actions you can take using the

Actions menu.

Action What You Use It For

Download Unprocessed Rules Reviewing chart of accounts mappings and segment mapping rollup rules that were loaded from the

FBDI template into the interface tables, but not imported into the application.

Upload Rules Uploading chart of accounts mappings and segment mapping rollup rules from the Chart of Accounts

Mapping Rules Import file-based data import (FBDI) template into the interface tables.

Import Rules Importing chart of accounts mappings and segment mapping rollup rules from the interface tables into

the application.

Create a Mapping with Multiple Source Segments

If a target segment requires a rollup rules mapping based on two source segments, you can define the segment rule

using a file-based data import (FBDI) template or the application.

Use the Chart of Accounts Mapping Rules Import file-based data import (FBDI) template or the Create or Edit Chart of

Accounts Mapping page.

Here’s how you define the segment rule on the page:

1. Select the Multiple Source Segment Rules tab.

2. Select the target segment name. The mapping method defaults to Use rollup rules.

3. Select the source segment names from the First and Second Source Segment fields.

4. In the Rollup Rules section, enter the target segment value. The operator is set to Equal to, which is the only

operator currently supported for rollup rules defined between a target segment and its two source segments.

5. Select the child values for the first and second source segments.

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Note: You can map a target segment to a single source segment and to two source segments at the same time.

Define the rollup rule for the two source segments in the Multiple Source Segment Rules tab and define the rollup rule

for the single source segment in the Segment Rules tab. You can use only the Use rollup rules mapping method for

the single source segment when you're mapping a target to two source segments.

How Chart of Accounts Mapping Segment Rules Import Data Is

Processed

Use the Chart of Accounts Mapping Rules Import file-based data import (FBDI) to create, update, and import chart of

accounts mapping segment rules.

You can download a spreadsheet template to use to prepare your chart of account mapping rules data. The template

contains an instruction sheet to help guide you through the process of entering your information. Download the

template from the File-Based Data Import (FBDI) for Financials guide.

To access the template:

1. In the Oracle Help Center (https://docs.oracle.com), open the File-Based Data Import (FBDI) for Financials

guide.

2. In the General Ledger chapter, click Chart of Accounts Mapping Rules Import.

3. In the File Links section, click the link to the Excel template.

Follow these guidelines when preparing your data in the worksheet:

• Enter the required information for each column. Refer to the tool tips on each column header for detailed

instructions.

• Don't change the order of the columns in the template.

• You can hide or skip the columns you don't use, but don't delete them.

You can always add, update, or delete the chart of account mapping segment rules for a chart of accounts mapping.

The Chart of Accounts Mapping Rules import template contains an instructions tab plus a tab that represents the table

where the data is loaded:

Spreadsheet Tab Description

Instructions and CSV Generation Contains an overview of the template.

GL_COA_MAP_SEGMENT_RULES_INT Information about the chart of accounts mapping and segment rules definition that you’re adding

or updating. Includes the chart of accounts mapping name, source and target chart of accounts for

which the mapping is defined, and the segment rules for all the target segments in the target chart of

accounts.

GL_COA_MAP_ROLLUP_RULES_INT Information about the segment rollup rule values for the target segments that are mapped to source

segments using the Use rollup rules mapping method.

After you prepare the data in the spreadsheet, click Validate to verify that the template doesn't have errors.

Note: The Chart of Accounts Mapping Rules Import currently doesn’t support import of account rules.

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To load the data into the interface table:

1. Click the Generate CSV File button on the Instructions and CSV Generation tab to create these two CSV files in

a .zip file format: GlCoaMapSegmentRulesInterface.csv, GlCoaMapSegRollupRulesInterface.csv.

2. You can save the GlCoaMapSegmentRollupRules.zip file to a local folder.

3. In the Setup and Maintenance area, go to the Manage Chart of Accounts Mappings task:

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Mappings

4. On the Actions menu, select Upload Rules.

5. In the Upload dialog box, select the file you saved in step 2 and click Submit to launch the Load Interface File

for Import process.

Here's an example of the Upload dialog box.

6. If the process ends in error or warning:

a. Review the log and output files for details about the rows that caused the failure.

b. Correct the errors in the spreadsheet.

c. Repeat steps 1 through 5 until the errors are resolved.

Note: You can also load the data into the interface table from the Scheduled Processes work area. Submit the

Load Interface File for Import process for the Import Chart of Accounts Mapping Segment Rules import

process.

To review the unprocessed rows in the interface tables before submitting the import process:

1. In the Setup and Maintenance area, go to the Manage Chart of Accounts Mappings task:

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Mappings

2. On the Manage Chart of Accounts Mappings page Actions menu, select Download Unprocessed Rules. This

will download the interface tables data into the FBDI template format file.

To load the data from the interface tables into the application:

1. In the Setup and Maintenance Area, go to the Manage Chart of Accounts Mappings task:

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Mappings

2. On the Actions menu, select Import Rules.

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3. In the Chart of Accounts Mapping field, select the applicable chart of accounts mapping. The list of values

displays the names of all chart of accounts mappings in the interface table. If your import file contains data for

more than one chart of accounts mappings, then you can select All.

4. Select the applicable mode:

◦

Select Increment when you’re uploading changes to existing chart of accounts mapping rules.

◦

Select Replace mode only when you’re completely replacing all of the existing chart of accounts mapping

segment rules with all new chart of accounts mapping segment rules. This mode supports integrations

that send a complete replacement file.

CAUTION: Use Replace mode carefully. If the file you’re loading contains a subset of chart of accounts

mapping segment rules, all of the other existing chart of accounts mapping segment rules in the

application will be deleted. The Replace mode:

- Inserts the new chart of accounts mapping segment rules from the file.

- Updates the existing chart of accounts mapping segment rules with the changes

from the file.

- Deletes all other existing chart of accounts mapping segment rules from the

application that aren’t included in the file.

Here's an example of the Import Rules dialog box.

5. Click Submit. A process is launched for each chart of accounts mapping name. For example, if you selected All

for the Chart of Accounts mapping parameter and the interface table contains chart of accounts mapping rules

for both the Vision Foods to Vision Operations and Vision Foods to Vision UK charts of accounts mappings, two

processes will launch.

The import process follows an all-or-nothing approach while importing the mapping rules for a chart of

accounts mapping. If there are any validation errors for one or more mapping rules, then none of the mapping

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rules for the chart of accounts mapping will be imported. If there are no validation errors, then the process will

import all the mapping rules for the chart of accounts mapping.

Note: The interface records for the selected charts of accounts mapping are automatically deleted at the end

of the process.

6. If the process ends in error or warning:

a. Review the report output file for the errors. The output file is in a .csv format with all of the columns from

the original .csv file plus an extra Error column at the end with the error details.

b. Correct the records in the original spreadsheet. Reload the file into the interface table to process all of

the chart of accounts mapping rules in the file, and then resubmit the process to load the data into the

application.

Related Topics

•

Overview of External Data Integration Services for Importing Data

•

External Data Integration Services for Importing Data

FAQs for Chart of Accounts

How can I use future accounting segments?

To plan for future growth in the business organization that requires additional segments in the chart of accounts. Extra

segments can be added to the chart of accounts structure during your original implementation.

All segments of the chart of accounts are required and have to be enabled. The unused segments can be assigned value

sets that have a single value in the chart of accounts structure instance. The value is set as a default for that segment so

that the extra segments are automatically populated when an account account combination is used.

What's the difference between mapping with segment rules and mapping with

account rules?

Segment rules map target chart of accounts segments to an account value or segment of the source account of a

secondary chart of accounts. A segment is only one part of the account combination.

Account rules map a complete target account combination against one or more source account combinations.

Note: Segment and account rules can be used alone or both types of mapping rules can be used in the same

mapping set.

When do account rules override segment rules in a chart of accounts mapping?

You can create a chart of accounts mapping using only segment rules, only account rules, or a combination of both

segment and account rules. If an overlap exists between the two types of rule, the account rule supersedes.

Segment rules are used to broadly define the relationship between two charts of accounts on a segment by segment

basis. Account rules can be used to more precisely map specific source account combinations to their target accounts.

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Value Sets

Value Sets for Charts of Accounts

A value set is a collection of account values that are associated with a segment of a chart of accounts structure instance.

When creating values sets, consider the following critical choices:

• Module Designation

• Validation Type

• Format Assignments

• Security Rules

• Value Definition

Module Designation

The module designation is used to tag value sets and sets the value sets apart during upgrades and other processes.

When creating value sets for a chart of accounts, the module can be specified as General Ledger to distinctly identify

its intended use in an accounting flexfield, basically a chart of accounts.

Validation Type

Assign one of the following validation types to chart of accounts value sets:

• Independent: The values are independently selected when filling out the segments in an account combination.

• Table: The values are stored in an external table to facilitate maintenance and sharing of reference data.

CAUTION: You must use Independent validation only for the Accounting Key Flexfield value sets. Other validations

prevent you from using the full chart of accounts functionality, such as data security, reporting, and account hierarchy

integration. Dependent values sets aren't supported.

Format Assignments

Value sets for chart of accounts must use the Value Data Type of Character. The Value Subtype is set to Text. These

two settings support values that are both numbers and characters, which are typical in natural account segment values.

Set the maximum length of the value set to correspond to the length of the chart of accounts segment to which it's

assigned. Best practices recommend restricting values to Upper Case Only or Numeric values that are zero filled by

default.

Security Rules

If flexfield data security rules are to be applied to the chart of accounts segment associated with the value set, the

Enable Security option for the assigned value set must be selected. In addition, assign a data security resource name to

enable creation of a data security object automatically for the value set. The data security object is used in the definition

of flexfield data security rules.

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Value Definition

Once these basic characteristics are defined for the value set, values can be added to the set on the Manage Values

page.

1. Enter the value and description. Set the value to conform to the value set length and type.

2. Indicate whether the value is enabled and specify the start and end dates.

3. Assign the following attributes: Summary, Allow Posting.

Note: The Allow Budgeting attribute is reserved for future use.

4. If the value set is used with a natural account segment, you must set the Account Type attribute. Select one of

the following options: Asset, Liability, Owner's Equity, Revenue, or Expense.

CAUTION: Assign account types carefully. If you assign an incorrect account type to a natural account

segment value, accounting entries are recorded incorrectly and financial statements are inaccurate.

Misclassified accounts are also potentially handled incorrectly at year end, with actual balances either getting

zeroed out to retained earnings, or accumulating into the next year.

5. Other attributes that you can set are Third Party Control Account, Reconcile, and Financial Category, which

is used with Oracle Transactional Business Intelligence reporting.

The Third Party Control Account attribute enables you to maintain detailed balances by third party for an

account combination. Valid third-party information must be associated with the journal line if the account is a

third party control account. General Ledger prevents manual journal entries from posting to third party control

accounts. This ensures that journal lines that post to control accounts such as the supplier liability account

and the customer receivables account, are associated with valid third-party information in the respective

subledgers.

You can select one of the following options:

◦

Customer Control Account: Customer information is required when such accounts are used in subledger

transactions or subledger journals.

◦

Supplier Control Account: Supplier information is required when such accounts are used in subledger

transactions or subledger journals.

◦

Third Party Control Account: Third-party information is required when such accounts are used in

subledger transactions or subledger journals.

◦

Restrict GL Manual Journals: Third-party information isn't required when such accounts are used in

subledger transactions or subledger journals.

◦

No: Not a control account.

CAUTION: Don't enable the third party control account type for exchange gain or loss accounts because

third-party information is required when a control account is used and this information isn't available for

exchange gain or loss journal lines.

General Ledger prevents manual journal entries to all of the accounts whose Third Party Control Account

attribute is set to a value other than No.

Note: If you change the Third Party Control Account attribute setting for a segment value, then run the

Inherit Segment Value Attributes process to replicate the changes to the account combinations that contain

that segment value.

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Tip: Best practice is to define value set values after the value set has been assigned to a chart of accounts structure

instance. Otherwise you can't define the required value attributes, such as the summary indicator, the posting allowed

indicator, and the account type for natural account segments. The attributes must be added after the value set is

assigned to a chart of accounts structure instance.

Tip: Run the Publish Chart of Account Dimension Members and Hierarchies to Balances Cubes process with

the Publish Detail Values Only parameter set to Yes before you post journals to accounts with newly created value

set values. The process creates and updates chart of accounts dimension members and hierarchies for GL balances

cubes.

Related Topics

•

What happens when I run the Inherit Segment Value Attributes process?

Create a Value Set for Your Chart of Accounts

Create your value sets before creating your chart of accounts. A value set can be shared by different charts of accounts

or across different segments of the same chart of accounts.

Scenario

You are creating a company value set to be used in your chart of accounts for your enterprise, Vision Corporation.

Follow these steps:

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

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Value Sets

2. Click the Create icon in the Search Results section.

3. On the Create Value Set page, enter a unique value set code, Vision Corporation, and an optional description,

Company values for Vision Corporation

4. Select General Ledger from the list in the Module field.

5. Select Independent as the validation type.

Note: You must use Independent validation only for Accounting Key Flexfield value sets. Other validations

prevent you from using the full chart of accounts functionality, such as data security, reporting, and account

hierarchy integration. Dependent values sets aren't supported.

6. Select Character for the validation data type.

7. Click Save and Close.

Related Topics

•

How do I update existing setup data?

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Considerations for Enabling Key Flexfield Segments for Business

Intelligence

A key flexfield registered in the database as enabled for Oracle Transactional Business Intelligence (OTBI) includes a BI

Enabled setting for each of its segment instances. When a segment instance is BI-enabled, it's available for use in Oracle

Transactional Business Intelligence.

The following aspects are important in understanding BI-enabled key flexfield segments.

• Flattening business components to use BI-enabled segments in Oracle BI

• Equalizing segments to prevent duplication and complexity in the flattened component

• Mapping attributes of flattened business components to logical objects in Oracle BI

• Managing the labels that map segments to logical objects in Oracle BI

After you deploy a business intelligence-enabled flexfield, use the Import Oracle Data Extensions for Transactional

Business Intelligence process to import the flexfield changes into the Oracle Business Intelligence repository. Users can

make use of the newly-generated attributes in business intelligence applications. For information about logical objects

and import, see the Creating and Administering Analytics and Reports guide for your products.

Flattening

When you deploy a business intelligence-enabled key flexfield, the deployment process generates an additional set of

flattened business components for use in business intelligence. The flattened business components include attributes

for business intelligence-enabled segment instances only.

If you assigned a label to a segment, the flattened components include a single attribute representing all segment

instances with that label. If you didn't assign a label, the flattened components include a discrete attribute for each BI-

enabled segment instance in each structure.

Mapping to Logical Objects in Business Intelligence

You can simplify reporting by representing similar segments as a single logical object in Business Intelligence. If you

assign a label to segments that serve the same purpose in different structures, you can consolidate the segments into a

single attribute. This prevents duplication and the extra workload and complexity that result from the flattening process.

For example, an organization may have more than one definition of its key accounting flexfield to support different

requirements for accounting reporting. A US Accounting Flexfield structure may have a segment called Subaccount to

track project expenditures. The same type of information may be tracked in a UK accounting flexfield structure with a

segment called Project. Equalize these two segments to create a single list of values for reporting.

Non-labeled segments aren't equalized across context values, so the flattened components include a separate

attribute for each segment for each structure. It may not be possible to equalize similarly labeled segments if they have

incompatible data types or value set types.

Assign a label to a segment to map the corresponding attribute in the flattened components to a logical object in Oracle

Business Intelligence. Using labels to map segments to BI logical objects minimizes the steps for importing the flexfield

into Oracle Business Intelligence. Assigning a label to a segment serves to equalize the attribute across structures, as

well as map the equalized attribute to business intelligence.

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Managing Labels

You may assign a predefined label (if available) to segments or create labels for assignment, as needed. Specify a code,

name, and description to identify each label. In the BI Object Name field, enter the name of the logical object in Oracle

Business Intelligence to which the segment label should map during import. Specifying the BI logical object minimizes

the steps for importing the flexfield into Oracle Business Intelligence and helps to equalize context-sensitive segments

across structures.

If no labels are assigned to a BI-enabled segment, or the BI Object Name on the assigned label doesn't exist in business

intelligence, you must manually map the segment to the required logical object when importing into Oracle Business

Intelligence. In addition, segments without labels can't be equalized across structures. The flattened components

include a separate attribute for each non-labeled segment in each structure.

Importing to Oracle Business Intelligence Repository

After you deploy a business intelligence-enabled flexfield, import the flexfield changes into the Oracle Business

Intelligence repository to make use of the newly flattened business components in business intelligence. Then

propagate the flexfield object changes. When you import the metadata into the Oracle Business Intelligence repository,

you must do so as the FUSION_APPS_BI_APPID user.

To import flexfield changes into the Oracle Transactional Business Intelligence repository in Oracle Cloud

implementations, run the Import Oracle Data Extensions for Transactional Business Intelligence process. For

information about logical objects and import, see the Creating and Administering Analytics and Reports guide for your

products.

Note: When you import a flexfield into the Oracle Business Intelligence repository, you see both <name>_ and <name>_c

attributes for each segment, along with some other optional attributes. The <name>_ attribute contains the value. The

<name>_c attribute contains the code of the value set that the value comes from, and is used for linking to the value

dimension. You must import both attributes.

Related Topics

•

Considerations for Enabling Descriptive Flexfield Segments for Business Intelligence

•

Overview of Key Flexfields

•

Enable Key Flexfields for Business Intelligence Reporting

•

Overview of Flexfield Change Import

Configure Chart of Account Segments for Business Intelligence

To map the Oracle General Ledger accounting flexfield in the Oracle Transactional Business Intelligence Repository (RPD

file) for Oracle Financials, populate values in the Manage Key Flexfields user interface.

These values enable the chart of accounts segments for Oracle Transactional Business Intelligence. The values also

provide the mapping with Business Intelligence object names that are used as dimensions for each of the chart of

accounts segments.

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Follow these steps to select the BI enabled option for all chart of account segments that you intend to map in the RPD

file.

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

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Structures

2. Enter GL# in the Key Flexfield Code field.

3. Click Search.

4. Click Manage Structure Instances.

5. Click Search.

6. Click the specific chart of accounts and click the Edit icon.

7. Click the specific segment and click the Edit icon.

8. Select the BI enabled option.

9. Click Save. This should be done for all segments in every chart of accounts structure instance that you intend

to be mapped in the RPD.

10. Click Save and Close.

11. Click Done.

Follow these steps to specify a BI object name for each segment label. This name is the logical table name in the RPD

that's used as the dimension for the corresponding segment.

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

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Structures

2. Enter GL# in the Key Flexfield Code field.

3. Click Search.

4. Select the Actions menu and click Manage Segment Labels.

5. Populate the BI Object Name field for all of the segment labels that must be mapped in the RPD file. Complete

the fields, as shown in this table.

Segment Label Code BI Object Name

FA_COST_CTR

Dim - Cost Center

GL_BALANCING

Dim - Balancing Segment

GL_ACCOUNT

Dim - Natural Account Segment

6. Click Save.

Note: For all the nonqualified segment labels, populate the BI Object Name with one of the following values:

• Dim - GL Segment1

• Dim - GL Segment2

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• Dim - GL Segment3

• Dim - GL Segment4

• Dim - GL Segment5

• Dim - GL Segment6

• Dim - GL Segment7

• Dim - GL Segment8

• Dim - GL Segment9

• Dim - GL Segment10

Deploy the flexfield using the Deploy Flexfield button on the Manage Key Flexfields page.

Related Topics

•

How do I update existing setup data?

FAQs for Value Sets

What happens if you use average balances and create a segment value?

The new segment value is added to both the standard balances cube and the average daily balances cube.

Chart of Accounts Structures and Instances

Example of One Chart of Accounts Structure with Many Instances

In Oracle General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure, for

which one or more chart of accounts structure instances can be created.

Scenario

Your company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the

United Kingdom (UK). InFusion has purchased an Oracle Cloud ERP solution including General Ledger and all of the

Oracle Fusion Cloud subledgers. You are chairing a committee to discuss creation of a model for your global financial

reporting structure including your charts of accounts for both your US and UK operations.

InFusion Corporation

InFusion Corporation has 400 plus employees and revenue of 120 million US dollars. Your product line includes all the

components to build and maintain air quality monitoring systems for homes and businesses.

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Chart of Accounts Model

The chart of accounts structure provides the general outline of the chart of accounts and determines the number of

segments, the type, the length, and the label (qualifier) of each segment. This forms the foundation of the chart of

accounts definition object.

For each chart of accounts structure, it is possible to associate one or more chart of accounts structure instances. Chart

of accounts structure instances for the same structure share a common configuration with the same segments, in the

same order, and the same characteristics. Using one chart of accounts structure with multiple instances simplifies your

accounting and reporting.

At the chart of accounts structure instance level, each segment is associated with a value set that conforms to the

characteristic of that segment. For example, you assign a value set with the same segment type and length to each

segment. You are using hierarchies with your chart of accounts segments. Each structure instance segment is assigned

a tree code to indicate the source of the hierarchy information for the associated value set. The same value set can be

used multiple times within the same or across different chart of accounts instances within the same structure or in

different structures. This functionality reduces your segment value creation and maintenance across your charts of

accounts.

The collective assignment of value sets to each of the segments forms one chart of accounts instance. At the chart of

accounts structure instance level, you can select to enable dynamic insertion. Dynamic insertion allows the creation of

account combinations automatically the first time your users enter that new account combination. The alternative is

to create them manually. By deciding to enable dynamic insertion, you save data entry time and prevent delays caused

by the manual creation of new account combinations. Well-defined cross-validation rules help prevent the creation of

inappropriate account combinations.

Perform deployment after a new chart of accounts structure and structure instances are defined or any of their

modifiable attributes are updated. Deployment validates and regenerates the necessary objects to enable your charts of

accounts and chart of accounts structure instances. By unifying and standardizing you organization's chart of accounts,

you are positioned to take full advantage of future functionality in General Ledger.

In summary, you are recommending to your company to unify the organization's chart of accounts in a single chart of

accounts structure based on chart of accounts commonalities across ledgers. You have also decided to use the chart

of accounts structure instance construct to serve different accounting and reporting requirements by using value sets

specific to each of your entities.

Create a Chart of Accounts Structure and Instance

In Oracle General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure, for

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. These attributes include the number

of segments, the segment sequences, the segment names, segment prompts, segment labels, for example natural

account and primary balancing, and default value sets.

The chart of accounts instance is exposed in user interfaces and processes. By default, a chart of accounts instance

inherits all of the attributes of the chart of accounts structure, meaning that all instances of the same structure share

a common shape and have the same segments in the same order. However, at the chart of accounts instance level,

you can override the default value set assignments for your segments and assign a unique account hierarchy that

determines the parent and child relationships between the value set values. At the chart of accounts instance level, you

can determine whether to generate new account combinations dynamically instead of creating them manually.

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Chart of Accounts Structure

You are creating a chart of accounts structure as you set up a chart of accounts for your enterprise, InFusion America,

Inc. Follow these steps:

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

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Structures

2. Select the General Ledger module and click Search.

3. Click Manage Structures.

4. On the Manage Key Flexfield Structures page, select the General Ledger row and click the Create icon.

5. On the Create Key Flexfield Structure page, enter the unique structure code INFUSION_AM_COA_STRUCTURE

and name InFusion America COA Structure. Provide an optional description of InFusion America Inc. chart

of accounts structure.

6. Select a delimiter to visually separate the segment values.

7. Click Save.

8. To create a segment, click the Create icon to open the Create Key Flexfield Segment page.

a. Complete the fields, as shown in this table.

Field Value

Segment Code

INFUSION_AM_CO

Name

InFusion America Company

Description

InFusion America Inc.

Sequence Number

Prompt

Company

Short Prompt

Display Width

Column Name

Segment1

Default Value Set Code

INFUSION_AM_COMPANY

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b. Select a segment label, Primary Balancing Segment, to indicate its purpose within your chart of

accounts.

Note: Two segment labels are required: primary balancing segment and natural account segment.

These labels aren't used with each other or with other labels in a specific segment.

c. Click Save and Close.

d. Click Done.

e. Define additional segments following the same steps.

Chart of Account Instance

You are creating a chart of accounts instance as you set up your chart of accounts for your enterprise, InFusion America,

Inc. Follow these steps:

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

◦

Offering: Financials

◦

Functional Area: Financial Reporting Structures

◦

Task: Manage Chart of Accounts Structure Instances

2. On the Manage Chart of Accounts Structure Instances page, select the General Ledger module and click

Search.

3. Select the General Ledger row and click Manage Structure Instances.

4. On the Manage Key Flexfield Structure Instances page, click the Create icon.

5. On the Create Key Flexfield Structure Instance page, enter the unique structure instance code

INFUSION_AM_COA_INSTANCE and name InFusion America COA Instance. Provide an optional description,

InFusion America Inc. chart of accounts structure instance.

6. Select the Dynamic combination creation allowed option to indicate that you want to dynamically generate

account combinations.

7. Associate your instance with the structure InFusion America Structure.

Note: By default, an instance inherits the key attributes of the associated structure. Some attributes, such as

the value set assigned to each the segment, can be modified.

8. Click Save.

9. To modify an instance segment, select the segment row and click Edit.

10. Select the Required, Displayed, and BI enabled options.

Note: Select the Required and Displayed options for all segments including those intended for future

use. The recommended best practice is to define one segment for future use and set a default value. This

ensures room for expansion in your chart of accounts and that the extra segment is populated in account

combinations. Select the BI enabled option to use key flexfield segments in Oracle Fusion Transactional

Business Intelligence. The business intelligence option is only valid when enabled on segments with segment

labels. The second step is to populate the BI Object Name field for each of the segment labels on the Manage

Segment Label page, which you open from the Manage Key Flexfields page.

11. Click OK.

12. Click Save and Close.

13. Define additional instances following the same process.

Note: Alternatively, proceed directly with creating your value set values by selecting the corresponding Value

Set Code in the Segment Instances table.

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14. Click Done.

15. Click Deploy Flexfield.

16. Click OK.

Related Topics

•

Considerations for Enabling Key Flexfield Segments for Business Intelligence

•

How do I update existing setup data?

Overview of Balancing Segments

Balancing segments ensure that all journals balance for each balancing segment value or combination of multiple

balancing segment values. You can secure access to your primary balancing segment values only with data access sets.

The Oracle General Ledger application automatically calculates and creates balancing lines as required in journal

entries.

The three balancing segment labels are:

• Primary

• Second

• Third

Note: The primary balancing segment label is required.

By enabling multiple balancing segments for your chart of accounts, you can produce financial statements for each

unique combination of segment values across one, two, or three qualified balancing segments. This ability provides

you greater insights into your operations as it affords you visibility along the critical fiscal dimensions you use to plan,

monitor, and measure your financial performance.

The following explains processes that use balancing segments.

• Intercompany balancing: Adds lines to unbalanced journals using intercompany rules.

• Opening first period of the accounting year: Calculates retained earnings amounts at the level of granularity

that totals revenue and expense account balances for multiple balancing segment value combinations. This

applies to standard and average balances.

• Importing journals: Adds lines using the suspense account on unbalanced journals.

• Posting journals: Adds additional lines to unbalanced journals for the following enabled account types:

◦

Suspense

◦

Rounding

◦

Net income

◦

Retained earnings

◦

Cumulative translation adjustments from replication of revaluation journals to reporting currencies and

for multiple reporting currency account type specific conversion

• Posting prior period journals: Calculates any income statement impact and posts to the appropriate retained

earnings account.

• Translating balances: Supports multiple balancing segments for the following accounts:

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◦

Retained earnings: Calculated translated retained earnings are post to the retained earnings accounts by

balancing segment. Retained earnings accounts represent the summing of the translated revenue and

expense accounts across multiple balancing segment values.

◦

Cumulative translation adjustment: Amounts posted by balancing segment to these accounts represents

currency fluctuation differences between ranges of accounts which use different rate types. For example,

period end rates are used for asset and liability accounts and historical rates for equity accounts.

• Revaluing Balances: Supports multiple balancing segments when calculating gain or loss accounts.

• Creating Opening Balances: Initializes reporting currency balances by converting from the total primary

currency. Any difference in the reporting currency amounts is offset by populating retained earnings accounts.

• Closing year end: Supports multiple balancing segments when calculating the income statement offset and

closing account in the closing journals.

Related Topics

•

Considerations for Multiple Balancing Segments

You can track financial results at a finer level of granularity than a single balancing segment.

In addition to the required primary balancing segment for the chart of accounts, which is typically associated with the

company dimension of a business organization, two additional segments of the chart of accounts can be optionally

qualified as the second and third balancing segments respectively. Possible chart of accounts segments that can be

tagged as these additional balancing segments include cost center or department, additional aspects of a business

commonly used in measuring financial results.

Several points must be consider when using multiple balancing segments:

• Journal entry processing

• Implementation timing

• Change options

• Migration adjustments

Journal Entry Processing

Multiple balancing segments ensure that account balances come from journal entries where the debits equal the

credits. The financial reports are properly generated for each unique instance of account value combinations across the

balancing segments. Consider this option carefully as it provides more granular reporting but requires more processing

resources.

Implementation Timing

When using optional second and third balancing segments, remember that these chart of accounts segment labels are

set from the beginning of time. Ensure that balances are immediately maintained in accordance with the necessary

balancing actions to produce consistent financial reporting for the wanted business dimensions. Multiple balancing

segment ledgers that aren't maintained from the beginning of time, require extensive manual balance adjustments to

catch up and realign the balances.

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Note: Don't set a segment already qualified as a natural account or intercompany segment as any of the three

balancing segments. Validations aren't performed when segment labels are assigned, so verify that all are assigned

correctly before using your chart of accounts.

Change Options

Once a segment has been enabled and designated as a balancing segment, you must not change the segment. Don't

disable the segment or remove the segment labels. These settings must be consistently maintained throughout the life

of the chart of accounts to control the accuracy and integrity of the financial data.

Migration Adjustments

For charts of accounts migrated from Oracle E-Business Suite to Oracle General Ledger that uses a second and third

balance segments, steps must be taken to ensure the proper transition. The required adjustments are extensive.

For ledgers associated with a migrated chart of accounts, the balances must be adjusted manually. The manual

adjustment is to ensure that the second and third balancing segments are consistent as though these segment labels

have been in place since the beginning of entries for these ledgers. Recomputing and updating of the following

processes is required to reflect the correct balancing for each account using the second and third balancing segments.

• Intercompany balancing

• Suspense posting

• Rounding imbalance adjustments on posting

• Entered currency balancing

• Revaluation gains or losses

• Retained earnings calculations at the opening of each new fiscal year

• Cumulative translation adjustments during translation

Note: All previously translated balances must also be purged. New translations must be run to properly account for

translated retained earnings and cumulative translation adjustments with the correct level of balancing.

Related Topics

•

Example of Using Multiple Balancing Segments

•

How can I change segments in an existing chart of accounts structure?

Example of Using Multiple Balancing Segments

This simple example illustrates balancing along two balancing segments for a simple chart of accounts with three

segments.

Scenario

Your company has a chart of accounts with two balancing segments and three segments, qualified as follows:

• Company: Primary balancing segment

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• Cost Center: Second balancing segment

• Account: Natural account segment

The following table shows a journal that was entered to transfer advertising and phone expense from company 1, cost

center A to company 2, cost center B.

Line Account Debit Credit

Company 1-Cost Center A-

Advertising Expense Account

600

Company 2-Cost Center B-

Advertising Expense Account

600

Company 1-Cost Center A-Phone

Expense Account

800

Company 2-Cost Center B-Phone

Expense Account

800

The posting process creates journal lines to balance the entry across the primary and second balancing segments,

company and cost center. The following table shows all of the journal lines, including balancing lines 5 through 8, which

were automatically created.

Line Account Debit Credit

Company 1-Cost Center A-

Advertising Expense Account

600

Company 2-Cost Center B-

Advertising Expense Account

600

Company 1-Cost Center A-Phone

Expense Account

800

Company 2-Cost Center B-Phone

Expense Account

800

Company 1-Cost Center A-

Balancing Account

600

Company 2-Cost Center B-

Balancing Account

600

Company 1-Cost Center A-

Balancing Account

800

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Line Account Debit Credit

Company 2-Cost Center B-

Balancing Account

800

Flexfield Deployment

Overview of Flexfield Deployment

Deployment generates or refreshes the Application Development Framework (ADF) business component objects that

render flexfields on the UI. Deployment adds user-defined attributes to the Web Services Description Language (WSDL)

schemas exposed by Oracle Fusion Cloud ADF services and used by SOA composites.

Flexfields are deployed for the first time when the application is provisioned. After you configure a flexfield, you must

deploy it to make the changes available to users.

If a descriptive flexfield is enabled for business intelligence, the deployment process redeploys the flexfield's business

intelligence artifacts.

You can deploy a flexfield to a sandbox for testing or to the mainline metadata for use in a test or production

environment. You can deploy extensible flexfields as a background process.

After deployment, the user-defined attributes are available for incorporating into the SOA infrastructure, such as

business process and business rule integration. For example, you can now write business rules that depend on the

user-defined attributes. You must sign out and sign back in to Oracle Fusion Cloud Applications to see the changes you

deployed in the production environment.

The following aspects are important in understanding flexfield deployment:

• Deployment Status

• Initial Deployment Status

• Metadata Validations

• Metadata Synchronization

• Deployment as a Background Process

• Export of Artifacts from Flexfield MDS

Deployment Status

Every flexfield has a deployment status. Check the deployment status of your flexfield after patching. The following

table lists the different deployment statuses a flexfield can have.

Deployment Status Meaning

Edited

The flexfield metadata definition hasn't been deployed yet. Updates of the metadata definition aren't

applied in the production environment yet.

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Deployment Status Meaning

Patched

The flexfield metadata definition has been modified through a patch or a data migration action, but

the flexfield hasn't yet been deployed. So, the updated definition isn't reflected in the production

environment.

Deployed to Sandbox

The current metadata for the flexfield is deployed in ADF artifacts and available as a flexfield-enabled

sandbox.

Deployed

The current metadata for the flexfield is deployed in ADF artifacts and available to users. No changes

have been made to the flexfield after being deployed to the mainline metadata.

Error

The deployment attempt in the mainline metadata failed.

Note: Whenever a value set definition changes, the deployment status of a flexfield that uses that value set changes

to edited. If the change results from a patch, the deployment status of the flexfield changes to patched.

Initial Deployment Status of Flexfields

The Oracle Fusion Cloud Applications implementation loads flexfield metadata into the database. This initial load sets

the flexfield status to Edited. During installation, the application provisioning process deploys the flexfields of the

provisioned applications, setting their status to Deployed if no errors occur.

In a provisioned application, deployed flexfields are ready to use. In some cases, flexfield availability at production

environment requires setup, such as defining key flexfields.

Metadata Validation

Use the Validate Metadata command to view possible metadata errors before attempting to deploy the flexfield.

Metadata validation is the initial phase of all flexfield deployment commands. By successfully validating metadata

before running the deployment commands, you can avoid failures in the metadata validation phase of a deployment

attempt. The deployment process ends if an error occurs during the metadata validation phase. Metadata validation

results don't affect the deployment status of a flexfield.

Metadata Synchronization

When an extensible or descriptive flexfield is deployed, the deployment process regenerates the XML schema definition

(XSD). As a result, the user-defined attributes are available to web services and the SOA infrastructure.

After deploying a flexfield configuration, you must synchronize the updated XML schema definition (XSD) files in the

MDS repositories for each SOA application.

Note: To synchronize the updated XSD files in the MDS repositories in Oracle Cloud implementations, log a service

request using My Oracle Support at https://support.com/

Deployment as a Background Process

You can deploy extensible flexfields offline as a background process and continue working in the session without having

to wait for the deployment to complete. You can queue up several extensible flexfields and deploy as a background

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process. The flexfields are deployed, one at a time, in the order that you deploy them to the queue. You must deploy

extensible flexfields with more than 30 categories as a background process.

You can remove an extensible flexfield from the deployment queue with the Cancel Background Deployment command.

When an extensible flexfield is deployed in a background process, its offline status indicates that the flexfield is in a

background deployment process. A flexfield's offline status is cleared and its deployment status updated when the

background deployment process has completed.

Export of Artifacts from Flexfield MDS

You can export business components from MDS for descriptive, extensible, or key flexfields, mainly for use in

troubleshooting issues with flexfields. Use Download Flexfield Archive on the Manage Flexfields page to export MDS

artifacts of the selected flexfield, and import them to an archive on your local computer. You can use these archived

business components of flexfields for troubleshooting purposes.

Alternatively, export the deployed artifacts using exportMetadata WLST.

Related Topics

•

How Flexfield Deployment Status is Calculated

•

Considerations for Deploying a Descriptive Flexfield to a Sandbox

•

How Flexfields Work with Oracle Application Cloud Architecture

•

Why did my flexfield changes not appear in the UI?

How Flexfield Deployment Status is Calculated

Flexfield deployment status indicates how the flexfield metadata definition in the Oracle Fusion Cloud Applications

database relates to the Application Development Framework (ADF) business components residing in an Oracle

Metadata Services (MDS) Repository.

The following aspects are important in understanding how flexfield deployment status is calculated:

• Settings that affect flexfield deployment status

• How deployment status is calculated

Settings That Affect Flexfield Deployment Status

If you have made a change to a flexfield and expect a changed deployment status, ensure that you have saved your

changes. No settings affect flexfield deployment status.

How Deployment Status Is Calculated

If the flexfield definition has been edited through the Define Flexfields activity task flows, the status is Edited. The latest

flexfield metadata definition diverges from the latest deployed flexfield definition. Any change, including if a value set

used in a flexfield changes, changes the deployment status to Edited. If a flexfield has never been deployed, its status is

Edited.

Note: When an application is provisioned, the provisioning framework attempts to deploy all flexfields in that

application.

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If you deploy the flexfield to a sandbox successfully, the status is Deployed to Sandbox. The latest flexfield metadata

definition in the application matches with the metadata definition that generated ADF business components in a

sandbox MDS Repository. Whether the sandbox is active or not doesn't affect the deployment status. If the flexfield was

deployed to a sandbox and hasn't been edited or redeployed to the mainline metadata since then, the status remains

Deployed to Sandbox independent of whether the sandbox is active, or who's viewing the status.

If you deploy the flexfield successfully to the mainline metadata, the status is Deployed. The latest flexfield metadata

definition in the application matches the metadata definition that generated ADF business components in a mainline

MDS Repository. Change notifications are sent when a flexfield is deployed successfully to the mainline metadata.

If either type of deployment fails and that the current flexfield definition isn't deployed, the status is Error. The

deployment error message gives details about the error. The latest flexfield metadata definition in the application likely

diverges from the latest successfully deployed flexfield definition.

If the flexfield definition has been modified by a patch, the status is Patched. The latest flexfield metadata definition in

the application diverges from the latest deployed flexfield definition. If the flexfield definition was Deployed before the

patch and then a patch was applied, the status changes to Patched. If the flexfield definition was Edited before the patch

and then a patch was applied, the status remains at Edited to reflect that there are still changes (outside of the patch)

that aren't yet in effect.

When a deployment attempt fails, you can access the Deployment Error Message for details.

Related Topics

•

How Flexfields Work with Oracle Application Cloud Architecture

•

Considerations for Managing Extensible Flexfields

How Deploying a Flexfield-Enabled Sandbox Works with Mainline

Metadata

When you deploy a flexfield to a sandbox, the flexfield definition corresponds to the flexfield metadata definition in

the Oracle Fusion Cloud Applications database. When the flexfield is ready for use, it must be deployed to the mainline

metadata.

A flexfield-enabled sandbox uses the following components.

• Flexfield metadata in the Fusion Applications database

• Flexfield business components in a sandbox Oracle Metadata Services (MDS) repository

• User interface modifications for the flexfield in the mainline MDS repository

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Sandbox Metadata Services Repository Data

Deploying the flexfield to a sandbox generates the Application Development Framework (ADF) business components of

a flexfield in a sandbox MDS Repository for testing in isolation.

CAUTION: Don't modify flexfield segment display properties using Page Composer in a flexfield sandbox as these

changes are lost when you deploy your flexfield to the mainline metadata.

Mainline Metadata Services Repository Data

The Oracle Fusion Cloud Applications database stores the single source of truth about a flexfield. When the flexfield is

deployed, the ADF business component objects that implement the flexfield in the run time user interface are generated

in the mainline MDS Repository from this source.

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Related Topics

•

How Flexfield Deployment Status is Calculated

Considerations for Deploying a Descriptive Flexfield to a Sandbox

You can deploy and test the behavior of a descriptive flexfield in the flexfield-enabled sandbox. Use the Manage

Descriptive Flexfields task to change the flexfield definition, if required.

When you deploy a descriptive flexfield to a sandbox, the process reads the metadata about the segments from

the database. It generates ADF Business Components artifacts for flexfields based on the definition, and stores the

generated artifacts in the sandbox.

You can't deploy your changes in value sets, key flexfields, and extensible flexfields to your sandbox. You must deploy

them directly to the mainline environment. However, if you're making changes to any descriptive flexfield, you must

deploy your flexfield to the sandbox and test your changes before publishing your sandbox. After you deploy a

descriptive flexfield to a sandbox, you must sign out and sign back in to the application to see your changes.

Note: You can deploy a descriptive flexfield to a sandbox using the Manage Descriptive Flexfields task only.

General Ledger Security

Overview of General Ledger Security

General ledger functions and data are secured through job roles, data access sets, and segment value security rules.

Functional Security

Functional security, which is what you can do, is managed using job roles. The following job roles are predefined for

Oracle General Ledger:

• General Accounting Manager

• General Accountant

• Financial Analyst

Each job role includes direct privilege grants, as well as duty role assignments, to provide access to application functions

that correspond to their responsibilities. For example, the General Accounting Manager role grants comprehensive

access to all General Ledger functions to the general accounting manager, controller, and chief financial officer in your

organization.

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Data Security

Data security, which controls what action can be taken against which data, is managed using:

• Data access sets

• Segment value security rules

Data access sets can be defined to grant access to a ledger, ledger set, or specific primary balancing segment values

associated with a ledger. You decide whether each data access set provides read-only access or read and write access

to the ledger, ledger set, or specific primary balancing segment values, which typically represent your legal entities that

belong to that ledger. Primary balancing segment values without a specific legal entity association can also be directly

assigned to the ledger.

Segment value security rules control access to data that's tagged with the value set values associated with any segment

in your chart of accounts.

Security Assignment

Use the Security Console to assign users roles (job roles, as well as roles created for segment value security rules or

others). Use the Manage Data Access Set Data Access for Users task to assign users data access sets as the security

context paired with their General Ledger job role assignments.

For more information about security assignments and managing data access for users, see the Oracle ERP Cloud

Securing ERP guide.

Related Topics

•

Data Access

Overview of Data Access Set Security

Data Access Sets secure access to ledgers, ledger sets, and portions of ledgers using primary balancing segment values.

If you have primary balancing segment values assigned to a legal entity, then you can use this feature to secure access

to specific legal entities.

You can combine ledger and ledger set assignments in single data access sets if the ledgers share a common chart of

accounts and calendar. If you have primary balancing segment values assigned to a legal entity within the ledger, then

you can use data access sets to secure access to specific legal entities. You can also secure access to primary balancing

segments assigned directly to the ledger.

When a ledger or ledger set is created, a data access set for that ledger or ledger set is automatically created, giving full

read and write access to those ledgers. You can also manually create data access sets to give read and write access, or

read-only access to entire ledgers or portions of the ledger represented as primary balancing segment values.

The following figure shows that a data access set consists of an access set type and an access level. The access set type

can be set to full ledger or primary balancing segment value. The access level can be read only or read and write.

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The Full Ledger access set type provides access to the entire ledger or ledger set. This could be for read-only access or

both read and write access to the entire ledger.

The Primary Balancing Segment Value access set type provides access to one or more primary balancing segment

values for that ledger. This access set type security can be specified by parent or detail primary balancing segment

values. The parent value must be selected from the tree that's associated with the primary balancing segment of your

chart of accounts. The specified parent value and all its descendants, including middle level parents and detail values

are secured. You can specify read only, read and write access, or combination of both, for different primary balancing

segment values for different ledgers and ledger sets.

For more information about security assignments and managing data access for users, see the Oracle ERP Cloud

Securing ERP guide.

Examples of Data Access Set Security

This example shows a data access set that secures access by using primary balancing segment values that correspond

to legal entities.

Scenario

The following figure shows a data access set for the US Financial Services Ledger. The access set type is Primary

Balancing Segment Value, with each primary balancing segment value representing different legal entities. Read-only

access has been assigned to primary balancing segment value 131, which represents the Insurance legal entity. Read

and write access has been assigned to primary balancing segment values 101 and 102, which represent the Banks and

Capital legal entities.

For this data access set, the user can:

• View the journals, balances, and reports for primary balancing segment value 131 for the Insurance legal entity.

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• Create journals and update balances, as well as view journals, balances and reports for primary balancing

segment value 101 and 102 for legal entities Banks and Capital.

Note: In financial reporting, the list of ledgers isn't secured by data access sets when viewing a report in Preview

mode. Users can view the names of ledgers they don't have privileges to view. However, the data from a secured

ledger doesn't appear on the report.

For more information about security assignments and managing data access for users, see the Oracle ERP Cloud

Securing ERP guide.

Segment Value Security

Set up segment value security rules on value sets to control access to parent or detail segment values for chart of

accounts segments, also called flexfield segments. Segment value security rules restrict data entry, online inquiry, and

reporting.

Secured Value Sets

When you enable security on a value set, access to all values for that value set is denied. To control access to value set

values, you enable security on the value set, create conditions, and then assign the conditions to roles. The roles should

be created solely for the purpose of segment value security. The roles are then assigned to users.

Note: To ensure segment value security applies properly throughout Oracle General Ledger, make sure that every

user who's working with that secured value set is assigned at least one of those roles.

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If a value set is secured, every usage of that value set in a chart of accounts structure instance is secured. The same

security applies if that value set is:

• Used for two or more segments in the same chart of accounts, such as the primary balancing and

intercompany segments

• Shared across different segments of different charts of accounts

If you want to secure only the primary balancing segment and not the intercompany segment, then these two segments

must use different value sets.

Secured Segment Values

Segment value security applies mainly when data is created or updated, and when account combinations are queried.

When you have access to secured account values, you can view and use those secured values across all modules of the

applications where there are references to accounting flexfields including:

• Transaction entry pages

• Balances and transactions inquiry pages

• Setup pages

• Reports

On setup pages, you can still view referenced account combinations with secured account values, even if you haven't

been granted access to those secured values. However, if you try to update such references, you can't use those secured

values. On reports, you can view balances for secured account values only if you have access to those secured values.

Note: You can enforce segment value security for inquiries and reporting based on any hierarchy, even hierarchies

that aren't published to the reporting cube.

Segment Value Security Implementation

You can implement segment value security using the Security Console and these pages: Manage Value Sets, Manage

Chart of Accounts Structures, Publish Account Hierarchies.

Note: If you're enabling security on a value set for the very first time and haven't created any segment value security

rules for it yet, you can also use the Manage Segment Value Security Rules spreadsheet to create, edit, and delete your

rules. Use the Manage Chart of Accounts Configurations task and Edit Chart of Accounts Configuration page to

open the spreadsheet. Once you use this spreadsheet, you must continue to use it to manage the rules for that value

set.

The following figure shows the steps for defining and implementing security rules for segment values using the Security

Console, Manage Value Sets, Manage Chart of Accounts Structures, and Publish Account Hierarchies pages.

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To define segment value security roles:

1. Create segment value security roles.

2. Enable security on the value set.

Note: You can enable security only on value sets with a type of Independent.

3. Create conditions for the rule.

4. Create policies to associate the conditions with the role.

5. Deploy the accounting flexfield.

6. Publish the account hierarchies.

7. Assign the role to users.

Whenever you assign segment value security roles to a user, the rules from the user's assigned roles can be applied

together. All of the segment value security roles assigned to a user pertaining to a given value set are simultaneously

applied when the user works with that value set. For example, one rule provides access to cost center 110 and another

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rule provides access to all cost centers. A user with both of these segment value security rules has access to all cost

centers when working in a context where that value set matters.

Note: To ensure segment value security applies properly throughout General Ledger, make sure that every user who's

working with that secured value set is assigned at least one of those roles.

Segment Value Security Conditions

When you create a condition, you specify an operator. This table describes the operators you can use.

Operator What It Does

All values

Provides access to all account values in the value set.

Note:

This operator is only applicable to the Manage Segment Value Security Rules spreadsheet. If you're

creating rules using the Manage Segment Value Security Rules task, you can use the Row Set

attribute on the Rule tab of the Create Policy dialog box to provide access to all values.

Between

Provides access to the account values included in the range of values specified in the From and To

Value columns. When the range of values includes a parent account, access applies to that parent

value only, in all trees and tree versions that include that parent. The rule doesn't provide access to any

of its descendants, unless they're part of the specified range.

Contains

Provides access to account values that contain the specified value. When the matching value is a

parent account, access applies to that parent value only, in all trees and tree versions that include that

parent. It doesn't provide access to any of its descendants unless those descendants also happen to

match the condition.

Ends with

Provides access to account values that end with the specified value. When the matching value is a

parent account, access applies to that parent value only, in all trees and tree versions that include that

parent. It doesn't provide access to any of its descendants unless those descendants also happen to

match the condition.

Equal to

Provides access to a specific account value. When the specified value is a parent account, access

applies to that parent value only, in all trees and tree versions that include that parent. The rule doesn't

provide access to any of its descendants.

Is descendant of

Provides access to the specified parent account value and all of its descendants. Descendants include

middle level parent accounts and nonparent accounts throughout all of that parent's hierarchical

branches, from the root to the leaf nodes.

Is last descendant of

Provides access to the specified parent account value and to the account values at the leaf nodes of

that parent.

Not equal to

Provides access to all non-parent account values, except for the specified account.

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Operator What It Does

CAUTION:

Here are some important points about this operator.

• Use this operator carefully and sparingly.

• Don't use it in multiple condition rows for the same policy or in different policies for the same

secured value set. The different conditions could end up canceling each other out, resulting

in unintended access being granted to account values you want to secure. For example, let's

say you have a policy with two condition rows. You define the first condition as Not Equal To

account value 100 and the second condition as Not Equal To account value 200. The list of

values for the segment is going to show both 100 and 200. That's because an account value can

meet any one of the conditions for the rule to apply. The value of 100 meets the Not Equal To

200 condition and the value of 200 meets the Not Equal To 100 condition.

Starts with

Provides access to account values that start with the specified value. When the matching value is a

parent account, access applies to that parent value only, in all trees and tree versions that include that

parent. It doesn't provide access to any of its descendants unless the descendants also happen to

match the condition.

Note: Best practice to improve rule efficiency is to use the tree operators (Is descendant of, Is last descendant of)

where possible and limit the number of conditions in a rule.

Note: For the Is descendant of and Is last descendant of operators, the security rule applies across all tree versions

of the specified hierarchy, as well as all hierarchies associated with the same value set of the specified hierarchy.

Manage Segment Value Security Rules Spreadsheet

You can control user access to chart of account segment values by defining segment value security rules. These rules

restrict data entry, online inquiry, and reporting. You can define segment value security rules in the application or

through desktop-integrated spreadsheets.

This topic describes the Manage Segment Value Security Rules spreadsheet, which you can use to create, edit, and

delete the segment value security rules for a value set. Once you use this spreadsheet, you must continue to use it to

manage the rules for that value set.

When to Use the Spreadsheet

You can only use the spreadsheet if you're enabling security on a value set for the very first time and haven't created

any segment value security rules for it yet.

CAUTION: The rules that you define using this spreadsheet are stored differently than the rules you define using the

application pages or the Create Segment Value Security Rules spreadsheet. To maintain rule integrity, use compatible

methods to add new rules or edit existing rules to a secured value set as described in the following table.

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This table shows how the method you use to create the original rules for a value set determines which methods you can

use to manage the rules for that value set going forward.

Methods for Managing Segment Value Security Rules

Method Used to Create Original Rules Which methods can be used to create

additional rules?

Which methods can be used to edit or delete

the rules?

Manage Segment Value Security Rules

spreadsheet

Manage Segment Value Security Rules

spreadsheet

Manage Segment Value Security Rules

spreadsheet

Edit Data Security page

• Edit Data Security page

• Create Segment Value Security Rules

spreadsheet

Edit Data Security page

Create Segment Value Security Rules

spreadsheet

• Edit Data Security page

• Create Segment Value Security Rules

spreadsheet

Edit Data Security page

How You Open the Spreadsheet

1. In the Setup and Maintenance work area, use the Manage Chart of Accounts Configurations task.

◦

Offering: Financials

◦

Functional Area: Financial Structures

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Task: Manage Chart of Accounts Configurations

2. On the Manage Chart of Accounts Configurations page, select the chart of accounts.

3. In the Segments section, select the value set.

4. In the Value Set tab, select the Enable security check box.

Note: Since you're enabling security at the value set level, all charts of accounts that use that value set are

affected.

5. Enter a data security resource name.

6. Save your changes.

7. Click Manage Data Security.

What to Do After You Enable Security on a Value Set

You must deploy the accounting flexfield and publish the account hierarchies tied to the secured value set. These steps

are independent of working with the spreadsheet. You can deploy the flexfield from the Manage Chart of Accounts

Configurations page. Just click Deploy All Charts of Accounts.

To publish the account hierarchies, use the Publish Account Hierarchies task.

• Offering: Financials

• Functional Area: Financial Structures

• Task: Publish Account Hierarchies

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Note: If you disable security on a value set, you must also deploy the accounting flexfield and publish the account

hierarchies.

What's in the Spreadsheet

The spreadsheet has rows for defining segment value security policies and assigning them to segment value security

roles. A policy can have one or more conditions, which consist of operators, values, and in some cases, tree codes

and tree versions. Some spreadsheet columns represent policy level attributes, and some represent condition level

attributes.

Here's a summary of the columns on the spreadsheet.

Column Is It Required? Can You Update It? Is It an Attribute of the Policy or

Condition?

Policy Name

Yes

Policy

Policy Description

Yes

Policy

Segment Value Security Role Name

Yes

Policy

Operator

Yes

Condition

From Value

Yes, for all operators other than All

Values

Yes

Condition

To Value

Yes, for the Between operator

Yes

Condition

Tree Code

Yes, for hierarchical operators

Yes

Condition

Tree Version

Yes, for hierarchical operators

Yes

Condition

Policy Start Date

Yes

Policy

Policy End Date

Yes

Policy

Mark for Deletion

Yes

Condition

Here's more information about the policy columns to help you prepare the spreadsheet.

Column What It Represents How to Use It

Policy Name

The name for a group of related condition rows.

When a policy has multiple conditions, you

must use the same policy name across all

related condition rows.

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Column What It Represents How to Use It

Policy Description

A brief summary of the scope and purpose for

the policy.

When a policy has multiple conditions, you

must use the same policy description across all

related condition rows.

Segment Value Security Role Name

The existing role that the policy is being

assigned to.

When a policy has multiple conditions, you

must use the same segment value security role

across all related condition rows.

Note:

To complete the segment value security rule

definition, the role must be assigned to the

users the policy applies to.

Policy Start Date

The effective start date of the policy.

You can specify a date in the future. When a

policy has multiple conditions, you must use

the same start date across all related condition

rows.

Policy End Date

The effective end date of the policy.

If you don't specify an end date, the policy is in

effect indefinitely. When a policy has multiple

conditions, you must use the same end date

across all related condition rows.

Note:

For audit purposes, you can't delete a policy.

Use the end date attribute to indicate when

the policy is no longer applicable.

Here's more information about the condition columns to help you prepare the spreadsheet.

Column What It Represents How To Use It

Operator

The method used to evaluate the values in the

condition.

When a policy has multiple conditions, you

can use different operators across all related

condition rows.

From Value

The value the operator evaluates in determining

what account values to provide access to.

You must enter a value for all operators, except

for the All Values operator. When a policy

has multiple conditions, you can use different

values across all related condition rows. The

account value must exist unless you're using

the Between operator. For that operator, the

value represents the starting value in the range.

To Value

The value the Between operator evaluates in

determining what account values to provide

access to.

You must enter a value when you're using the

Between operator and the value represents the

ending value in the range. The value doesn't

have to be an existing account.

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Column What It Represents How To Use It

Tree Code

The tree code for the parent account specified

in the From Value column. Used only with

hierarchical operators.

You must select a tree code when you use

hierarchy operators Is a descendant of and Is a

last descendant of. When a policy has multiple

hierarchical conditions, you can use different

tree codes across all related condition rows.

Tree Version

The tree version for the parent account

specified in the From Value column. Used only

with hierarchical operators.

You must select a tree version when you use

hierarchy operators Is a descendant of and Is a

last descendant of. When a policy has multiple

hierarchical conditions, you can use different

tree versions across all related condition rows.

Mark for Deletion

The indicator for whether to remove an

individual condition from the policy.

If a policy has only one condition and you mark

it for deletion, the policy is automatically end-

dated. It no longer appears in the spreadsheet

the next time you download the rules from the

application.

Operators are key attributes of a condition. They specify how the rule evaluates condition values in determining what

account values the role can access. When a policy has multiple conditions, an account value just has to meet any one of

the conditions for the rule to apply.

Here's the list of available operators. Use this information to help you prepare the spreadsheet.

Operator What It Does

All values

Provides access to all account values in the value set.

Between

Provides access to the account values included in the range of values specified in the From and To

Value columns. When the range of values includes a parent account, access applies to that parent

value only, in all trees and tree versions that include that parent. The rule doesn't provide access to any

of its descendants, unless they're part of the specified range.

Contains

Provides access to account values that contain the specified value. When the matching value is a

parent account, access applies to that parent value only, in all trees and tree versions that include that

parent. It doesn't provide access to any of its descendants unless those descendants also happen to

match the condition.

Ends with

Provides access to account values that end with the specified value. When the matching value is a

parent account, access applies to that parent value only, in all trees and tree versions that include that

parent.It doesn't provide access to any of its descendants unless those descendants also happen to

match the condition.

Equal to

Provides access to a specific account value. When the specified value is a parent account, access

applies to that parent value only, in all trees and tree versions that include that parent. The rule doesn't

provide access to any of its descendants.

Is descendant of

Provides access to the specified parent account value and all of its descendants. Descendants include

middle level parent accounts and nonparent accounts throughout all of that parent's hierarchical

branches, from the root to the leaf nodes.

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