Oracle Fusion Accounting Hub Implementation Guide (2024)

This chapter contains the following:

Ledgers and Subledgers: Explained

Ledgers: Points to Consider

Financial Ledgers: How They Fit Together

Creating PrimaryLedgers: Example

SpecifyingLedger Options: Worked Example

Assigning LegalEntities and Balancing Segments: Examples

Manage Reporting Currencies

Manage Journal Approval Rules

Manage AutoPost Criteria Sets

Manage Journal Reversal Criteria Sets

Ledgers and Subledgers: Explained

Oracle Fusion Applications reflect the traditionalsegregation between the general ledger and associated subledgers.Detailed transactional information is captured in the subledgers andperiodically imported and posted in summary or detail to the ledger.

A ledger determines the currency, chart of accounts,accounting calendar, ledger processing options, and accounting methodfor its associated subledgers. Each accounting setup requires a primaryledger and optionally, one or more secondary ledgers and reportingcurrencies. Reporting currencies are associated with either a primaryof secondary ledger.

The number of ledgers and subledgers is unlimited anddetermined by your business structure and reporting requirements.

Single Ledger

If your subsidiaries all share the same ledgerwith the parent company or they share the same chart of accounts andcalendar, and all reside on the same applications instance, you canconsolidate financial results in Oracle Fusion General Ledger in asingle ledger. Use Oracle Fusion Financial Reporting functionalityto produce individual entity reports by balancing segments. GeneralLedger has three balancing segments that can be combined to providedetailed reporting for each legal entity and then rolled up to provideconsolidated financial statements.

Multiple Ledgers

Accounting operations using multiple ledgerscan include single or multiple applications instances. You need multipleledgers if one of the following is true:

• You have companies that require differentaccount structures to record information about transactions and balances.For example, one company may require a six-segment account, whileanother needs only a three-segment account structure.

• You have companies that use differentaccounting calendars. For example, although companies may share fiscalyear calendars, your retail operations require a weekly calendar,and a monthly calendar is required for your corporate headquarters.

• You have companies that require differentfunctional currencies. Consider the business activities and reportingrequirements of each company. If you must present financial statementsin another country and currency, consider the accounting principlesto which you must adhere.

Subledgers

Oracle Fusion Subledgers capture detailed transactionalinformation, such as supplier invoices, customer payments, and assetacquisitions. Oracle Fusion Subledger Accounting is an open and flexibleapplication that defines the accounting rules, generates detailedjournal entries for these subledger transactions, and posts theseentries to the general ledger with flexible summarizationoptions to provide a clear audit trail.

Ledgers: Points to Consider

Companies account for themselves in primaryledgers, and, if necessary, secondary ledgers and reporting currencies.Your transactions from your subledgers are posted to your primaryledgers and possibly, secondary ledgers or reporting currencies. Localand corporate compliance can be achieved through an optional secondaryledger, providing an alternate accounting method, or in some cases,a different chart of accounts. Your subsidiary's primary and secondaryledgers can both be maintained in your local currency, and you canconvert your local currency to your parent's ledger currency to reportyour consolidated financial results using reporting currencies ortranslation.

Primary Ledgers

A primary ledger is the main record-keepingledger. Like any other ledger, a primary ledger records transactionalbalances by using a chart of accounts with a consistent calendar andcurrency, and accounting rules implemented in an accounting method. The primaryledger is closely associated with the subledger transactions and providescontext and accounting for them.

To determine the number of primary ledgers, your enterprisestructure analysis must begin with your financial, legal, and managementreporting requirements. For example, if your company has separatesubsidiaries in several countries worldwide, enable reporting foreach country's legal authorities by creating multiple primary ledgersthat represent each country with the local currency, chart of accounts,calendar, and accounting method. Use reporting currencies linked toyour country specific primary ledgers to report to your parent companyfrom your foreign subsidiaries. Other considerations, such as corporateyear end, ownership percentages, and local government regulationsand taxation, also affect the number of primary ledgers required.

Secondary Ledgers

A secondary ledger is an optional ledger linkedto a primary ledger for the purpose of tracking alternative accounting.A secondary ledger can differ from its primary ledger by using a differentaccounting method, chart of accounts, accounting calendar, currency,or processing options. All or some of the journal entries processedin the primary ledger are transferred to the secondary ledger, basedon your configuration options. The transfers are completed based onthe conversion level selected. There are four conversion levels:

• Balance: Only Oracle Fusion GeneralLedger balances are transferred to the secondary ledger.

• Journal: General Ledger journal postingprocess transfers the journal entries to the secondary ledger.

• Subledger: Oracle Fusion SubledgerAccounting creates subledger journals to subledger level secondaryledgers as well as reporting currencies.

• Adjustments Only: Incomplete accountingrepresentation that only holds adjustments. The adjustments can bemanual or detailed adjustments from Subledger Accounting. This typeof ledger must share the same chart of accounts, accounting calendar,and period type combination, and currency as the associated primaryledger.

Secondary ledgers provide functional benefits, butproduce large volumes of additional journal entry and balance data,resulting in additional performance and memory costs. When addinga secondary ledger, consider your needs for secondary ledgers or reportingcurrencies, and select the least costly data conversion level thatmeets your requirements. For secondary ledgers, the least costly levelis the adjustment data conversion level because it produces the smallestamount of additional data. The balance data conversion level is alsorelatively inexpensive, depending upon how often the balances aretransferred from the primary to the secondary ledger. The journaland subledger data conversion levels are much more expensive, requiringduplication of most general ledger and subledger journal entries,as well as general ledger balances.

For example, you maintain a secondary ledger for yourInternational Financial Reporting Standards (IFRS) accounting requirements,while your primary ledger uses US Generally Accepted Accounting Principles(GAAP). You decided to select the subledger level for your IFRS secondaryledger. However, since most of the accounting is identical betweenUS GAAP and IFRS, a better solution is to use the adjustment onlylevel for your secondary ledger. The subledger level secondary ledgerrequires duplication of most subledger journal entries, general ledgerjournal entries, and general ledger balances. With the adjustmentonly level, your secondary ledger contains only the adjustment journalentries and balances necessary to convert your US GAAP accountingto the IFRS accounting, which uses a fraction of the resources thatare required by full subledger level secondary ledger.

Following are scenarios that may require differentcombinations of primary and secondary ledgers:

• The primary and secondary ledgersuse different charts of accounts to meet varying accounting standardsor methods. A chart of accounts mapping is required to instruct theapplication how to propagate balances from the source (primary) chartof accounts to the target (secondary) chart of accounts.

• The primary and secondary ledgersuse different accounting calendars to comply with separate industryand corporate standards.

Reporting Currencies

Reporting currencies maintain and report accountingtransactions in additional currencies. Each primary and secondaryledger is defined with a ledger currency that is used to record yourbusiness transactions and accounting data for that ledger. It is advisableto maintain the ledger in the currency in which the majority of itstransactions are denominated. For example, create, record, and closea transaction in the same currency to save processing and reconciliationtime. Compliance, such as paying local transaction taxes, is alsoeasier using a local currency. Many countries require that your accountingrecords be kept in their national currency.

If you need to maintain and report accounting recordsin different currencies, you do this by defining one or more reportingcurrencies for the ledger. There are three conversion levels for reportingcurrencies:

• Balance: Only General Ledger balancesare converted into the reporting currency using translation.

• Journal: General Ledger journal entriesare converted to the reporting currency during posting.

• Subledger: Subledger Accounting createssubledger reporting currency journals along with primary ledger journals.

Do not use journal or subledger level reporting currenciesif your organization has only an infrequent need to translate yourfinancial statements to your parent company's currency for consolidationpurposes. Standard translation functionality meets this need. Considerusing journal or subledger level reporting currencies when any ofthe following conditions exist.

• You operate in a country whose unstablecurrency makes it unsuitable for managing your business. As a consequence,you need to manage your business in a more stable currency while retainingthe ability to report in the unstable local currency.

• You operate in a country that ispart of the European Economic and Monetary Union (EMU), and you chooseto account and report in both the European Union currency and yourNational Currency Unit (NCU).

Financial Ledgers: How They Fit Together

Oracle Fusion Applications is an integratedsuite of business applications that connects and automates the entireflow of the business process across both front and back office operationsand addresses the needs of a global enterprise. The process of designingthe enterprise structure, including the accounting configuration,is the starting point for an implementation. This process often includesdetermining financial, legal, and management reporting requirements,setting up primary and secondary ledgers, making currency choices,and examining consolidation considerations.

This figure shows the enterprise structure componentsand their relationships to each other. Primary ledgers are connectedto reporting currencies and secondary ledgers to provide completereporting options. Legal entities are assigned to ledgers, both primaryand secondary, and balancing segments are assigned to legal entities.Business units must be connected to both a primary ledger and a defaultlegal entity. Business units can record transactions across legalentities.

Primary Ledgers

A primary ledger is the main record-keeping ledger.Create a primary ledger by combining a chart of accounts, accountingcalendar, ledger currency, and accounting method. To determine thenumber of primary ledgers, your enterprise structure analysis mustbegin with determining financial, legal, and management reportingrequirements. For example, if your company has separate subsidiariesin several countries worldwide, create multiple primary ledgers representingeach country with the local currency, chart of accounts, calendar,and accounting method to enable reporting to each country's legalauthorities.

If your company just has sales in different countries,with all results being managed by the corporate headquarters, createone primary ledger with multiple balancing segment values to representeach legal entity. Use secondary ledgers or reporting currencies to meetyour local reporting requirements, as needed. Limiting the numberof primary ledgers simplifies reporting because consolidation is notrequired. Other consideration such as corporate year end, ownershipconsiderations, and local government regulations, also affect thenumber of primary ledgers required.

Secondary Ledgers

A secondary ledger is an optional ledger linked toa primary ledger. A secondary ledger can differ from its related primaryledger in chart of accounts, accounting calendar, currency, accountingmethod, or ledger processing options. Reporting requirements, forexample, that require a different accounting representation to complywith international or country-specific regulations, create the needfor a secondary ledger.

Below are scenarios and required action for differentcomponents in primary and secondary ledgers:

• If the primary and secondary ledgersuse different charts of accounts, the chart of accounts mapping isrequired to instruct the system how to propagate journals from thesource chart of accounts to the target chart of accounts.

• If the primary and secondary ledgersuse different accounting calendars, the accounting date and the generalledger date mapping table will be used to determine the correspondingnon-adjusting period in the secondary ledger. The date mapping tablealso provides the correlation between dates and non-adjusting periodsfor each accounting calendar.

• If the primary ledger and secondaryledger use different ledger currencies, currency conversion rulesare required to instruct the system on how to convert the transactions,journals, or balances from the source representation to the secondaryledger.

Note: Journal conversion rules, based on the journalsource and category, are required to provide instructions on how topropagate journals and types of journals from the source ledger tothe secondary ledger.

Reporting Currencies

Reporting currencies are the currency you use for financial,legal, and management reporting. If your reporting currency is notthe same as your ledger currency, you can use the foreign currencytranslation process or reporting currencies functionality to convertyour ledger account balances in your reporting currency. Currencyconversion rules are required to instruct the system on how to convertthe transactions, journals, or balances from the source representationto the reporting currency.

Legal Entities

Legal entities are discrete business units characterizedby the legal environment in which they operate. The legal environmentdictates how the legal entity should perform its financial, legal,and management reporting. Legal entities generally have the rightto own property and the obligation to comply with labor laws for theircountry. They also have the responsibility to account for themselvesand present financial statements and reports to company regulators,taxation authorities, and other stakeholders according to rules specifiedin the relevant legislation and applicable accounting standards. Duringsetup, legal entities are assigned to the accounting configuration,which includes all ledgers, primary and secondary.

Balancing Segments

You assign primary balancing segment values to alllegal entities before assigning values to the ledger. Then, assignspecific primary balancing segment values to the primary and secondaryledgers to represent nonlegal entity related transactions such asadjustments. You can assign any primary balancing segment value thathas not already been assigned to a legal entity. Youare allowed to assign the same primary balancing segment values tomore than one ledger. The assignment of primary balancing segmentvalues to legal entities and ledgers is performed within the contextof a single accounting setup. The Balancing Segment Value Assignmentsreport is available to show all primary balancing segment values assignedto legal entities and ledgers across accounting setups to ensure thecompleteness and accuracy of their assignments. This report allowsyou to quickly identify these errors and view any unassigned values.

Business Units

A business unit is a unit of an enterprise that performsone or many business functions that can be rolled up in a managementhierarchy. When a business function produces financial transactions,a business unit must be assigned a primary ledger, and a default legalentity. Each business unit can post transactions to a single primaryledger, but it can process transactions for many legal entities. Normally,it will have a manager, strategic objectives, a level of autonomy,and responsibility for its profit and loss. You define business unitsas separate task generally done after the accounting setups steps.

The business unit model:

• Allows for flexible implementation

• Provides a consistent entity for controllingand reporting on transactions

• Enables sharing of sets of referencedata across applications

For example, if your company requires business unitmanagers to be responsible for managing all aspects of their partof the business, then consider using two balancing segments, companyand business unit to enable the production of business unit levelbalance sheets and income statements.

Transactions are exclusive to business units. In otherwords, you can use business unit as a securing mechanism for transactions.For example, if you have an export business that you run differentlyfrom your domestic business, use business units to secure membersof the export business from seeing the transactions of the domesticbusiness.

Creating PrimaryLedgers: Example

Create a primary ledger as your main record-keepingledger. Like any other ledger, a primary ledger records transactionalbalances by using a chart of accounts with a calendar, currency, andaccounting rules implemented in an accounting method. The primaryledger is closely associated with the subledger transactions and providescontext and accounting for them.

Scenario

Your company, InFusion Corporation is implementingOracle Fusion Applications. You have been assigned the task of creatinga primary ledger for your InFusion America entity.

1. Navigate to the Define Accounting Configurations task list and open ManagePrimary Ledgers from within your implementation project. Click the Go to Task.

2. Click the Create icon.

3. Enter the following values:

   
   

   Field	Value
   Name	InFusion America
   Description	InFusion America primary ledger for recordingtransactions.
   Chart of Accounts	InFusion America Chart of Accounts
   Accounting Calendar	Standard Monthly
   Currency	USD
   Accounting Method	Standard Accrual

4. Click Saveand Edit Task List to navigate back to the accountingconfiguration task list.

   Note

   You cannot change the chart of accounts, accountingcalendar, or currency for your ledger after you save your ledger.

SpecifyingLedger Options: Worked Example

This example demonstrates specifying the ledgeroptions for your primary ledger. Your company, InFusion Corporation,is a multinational conglomerate that operates in the United States(US) and the United Kingdom (UK). InFusion has purchased an OracleFusion enterprise resource planning (ERP) solution including OracleFusion General Ledger and all of the Oracle Fusion subledgers.

After completing your InFusion America Primary Ledger,select Specify Ledger Options underthe Define Accounting Configuration task list on the Functional SetupManager page.

Reviewing General Region Options

1. Accept the Name and Description defaults forthe ledger selected.
2. Review the Currency and Chart of Accounts for thespecified ledger, which are automatically populated.

Setting Accounting Calendar Region Options

1. Review the Accounting Calendar that defaults from your ledger.
2. Select Jan-2011 as the FirstOpen Period for your ledger.

   Important: Select a period after the first definedperiod in the ledger calendar to enable running translation. You cannotrun translation in the first defined period of a ledger calendar.In this example, your calendar began with Jan-2010.

3. Enter 3 for the Number ofFuture Enterable Periods.

   Any value between 0 and 999 periods can be specifiedto permit entering journals but not posting them in future periods.Minimize the number of open and future periods to prevent entry inthe wrong period.

Selecting the Subledger Accounting Region Options

1. Accept the default AccountingMethod from your ledger.
2. Select US American English as your Journal Language.

Completing the Period Close Region Options

1. Enter your Retained EarningsAccount: 101-00-31330000-0000-000-0000-0000.

   This account is required for the General Ledger toperform the movement of revenue and expense account balances to thisaccount at the end of the accounting year.

2. Enter your Cumulative TranslationAdjustment Account: 101-00-31350000-0000-000-0000-0000.

   Note: The Cumulative Translation Adjustment (CTA)account is required for ledgers running translation.

3. Do not enter a Default PeriodEnd Rate Type or Default PeriodAverage Rate Type.

   The values entered here are used as the default forbalance level reporting currency processing. InFusion America PrimaryLedger is using the subledger level reporting currency processing.

Specifying the Journal Processing Region Options

1. Specify the Balance options as outlined in the followingtable.

   Option	Setting
   Enable Suspense	General Ledger
   Default Expense Account	101-00-98199999-0000-000-0000-0000
   Rounding Account	101-10-98189999-0000-000-0000-0000
   Entered Currency Balancing Account	101-10-98179999-0000-000-0000-0000
   Balancing Threshold Percent	10

   
   
2. Click all the following Entry options listed inthe table.

   Option	Description
   Enable journal approval	Click to enable journal approval functionality. Approvalrules must be created in the Oracle Fusion Approvals Management (AMX).
   Notify when prior period journal	Notify the user when a prior period date is selectedon a journal entry.
   Allow mixed and statistical journals	Enter both monetary and statistical amounts on thesame line in a journal entry.
   Validate reference date	Requires a reference date in an open or future enterableperiod.

   
   
3. Click the Separate journalsby accounting date during journal import for the Importoption to create individual journal entries for each accounting date.
4. For the Reversal options, select InFusion AmericaAccrual Set from the list of values in the Journal Reversal Criteria Set field and click the Launch AutoReverse after open period to reverseaccrual journal entries automatically when a new period is opened.
5. Click the Enable intercompanyaccounting for the Intercompany option to enable automaticbalancing by the application for primary, second, and third balancingsegments (if implemented) on intercompany journal entries and transactions.

   Note: To complete the intercompany accounting functionality,you must define intercompany rules.

FAQs for Specify Ledger Options

What happens if I change the cumulative adjustment account?

To avoid data corruption, your cumulativeadjustment account (CTA) can only be changed if you first performthe following set of steps:

• Purge all translated balances

• Change the CTA account

• Rerun translation

What happens if I change the retained earnings account?

To avoid data corruption, your retained earningsaccount can only be changed if you first perform the following setof steps:

• Enter and post journals to bringthe ending balances for your income statement accounts to zero atthe end of each accounting year

• Purge actual translated balances

• Update the retained earnings account

• Reverse the journal entries use tobring the ending account balances to zero and rerun translation

Assigning LegalEntities and Balancing Segments: Examples

Optionally, assign legal entities and balancingsegments to your accounting configuration.

Assign Legal Entities

Assign one or more legal entities to your configurationby following these steps:

1. Navigate to the Assign Legal Entities task. Click the Go to Task.

2. Click the Select and Add icon.

3. Click Search. Select your legal entities.

4. Click Apply. Click Done.

5. Click Saveand Close.

Assign Balancing Segments to Legal Entities

Assign balancing segment values to your legal entitiesby following these steps:

1. Navigate to the Assign Balancing Segment Values to Legal Entities task.Click the Go to Task.

2. Click the Create icon.

3. Select the balancing segment value.Optionally, add a Start Date.

4. Click Saveand Close to close the create page.

5. Click Saveand Close.

Assign Balancing Segments to Ledgers

Assign balancing segment values directly to your ledgerby following these steps:

1. Navigate to the Assign Balancing Segment Value to Ledger task. Clickthe Go to Task.

2. Select the balancing segment value.

3. Optionally enter a start date.

4. Click Saveand Close.

Manage Reporting Currencies

Reporting CurrencyBalances: How They Are Calculated

Reporting currency balances, set at the journalor subledger level, are updated when journal entries that originatein Oracle Fusion General Ledger are posted and converted to your reportingcurrencies. This process includes General Ledger manual journals,periodic journals, and allocations, and at the subledger level, journalsfrom Oracle Fusion Subledger Accounting and imported from sourcesother than your Oracle Fusion subledgers. When you post a journalin a ledger that has one or more reporting currencies defined, theposting process creates new journals converted to each of your reportingcurrencies and includes them in the same batch as the original journalwith a status of Posted.

Settings That Affect

Reporting currencies share a majority of the ledgeroptions with their source ledger. For example, the reporting currencyuses the same suspense account and retained earnings accounts as itssource ledger. However, there are certain options that need to beset specifically for the reporting currencies. For example, reportingcurrencies are maintained at one of these three currency conversionlevels:

• Balance Level: Only balances aremaintained in the reporting currency using the General Ledger Translationprocess.

• Journal Level: Journal entries andbalances are converted to the reporting currency by the General LedgerPosting process.

• Subledger Level: Subledger Accountingcreates reporting currency journals for subledger transactions. GeneralLedger converts journals that originated in General Ledger or thatare imported from sources other than the Oracle Fusion subledgers.The full accounting representation of your primary ledger is maintainedin the subledger level reporting currency.

There are multiple dependencies between a reportingcurrency and its source ledger. Therefore, it is important that youcomplete your period opening tasks, daily journal or subledger levelreporting currencies accounting tasks, and period closing tasks inthe correct order. Some guidelines are presented in the table below.

How ReportingCurrencies Are Calculated

If you use reporting currencies at the journal orsubledger level, when you create accounting, post journal entries,or translate balances, journals are posted in your reporting currency.General Ledger and Subledger Accounting automaticallygenerate journals in your reporting currencies where the entered currencyamounts are converted to the reporting currency amounts. Other factorsused in the calculation of reporting currency balances are listed:

• Manual Journals: Enter a manual journalbatch in your reporting currency at the journal or subledger levelby using the Create Journals page. Select the journal or subledgerlevel reporting currency from the ledger's list of values and continuein the same manner as entering any other manual journal.

• Conversion Rounding: Use the reportingcurrency functionality to round converted and accounted amounts usingthe same rounding rules used throughout your Oracle Fusion Applications.The reporting currency functionality considers several factors thatare a part of the currencies predefined in your applications, including:

  • Currency Precision: Number of digitsto the right of the decimal point used in currency transactions.

  • Minimum Accountable Unit: Smallestdenomination used in the currency. This might not correspond to theprecision.

• Converted Journals: Generate andpost automatically, using the General Ledger Posting process, journalsin your reporting currencies when you post the original journals inthe source ledger for the following types of journals:

  • Manual journals

  • Periodic and allocation journals

  • Unposted journals from non-Oraclesubledger applications

  • Unposted journals from any OracleFusion subledger that does not support reporting currency transferand import

  • Optionally, revaluation journals

• Unconverted Journals: Rely on thesubledger accounting functionality to converted and transfer OracleFusion subledger journals for both the original journal and the reportingcurrency journal to the General Ledger for import and posting. Thereporting currency conversion for these journals is not performedby the General Ledger.

• Approving Journals: Use the journalapproval feature to process reporting currency journals through yourorganization's approval hierarchy. You can enable journal approvalfunctionality separately in your source ledger and reporting currencies.

• Document Numbers: Accept the defaultdocument numbers assigned by the General Ledger application to yourjournal when you enter a journal in your ledger. The converted journalin the reporting currency is assigned the same document number. However,if you enter a journal in the reporting currency, the document numberassigned to the journal is determined by the reporting currency.

• Sequential Numbering: Enable sequentialnumbering if you want to maintain the same numbering in your reportingcurrency and source ledger for journals, other than those journalsfor Oracle Fusion subledgers. Do not create separate sequences foryour reporting currencies. If you do, the sequence defined for thereporting currencies is used and can cause document numbers not tobe synchronized between the ledger and reporting currencies.

  Note

  If the Sequential Numbering profile option is setto Always Used or Partially Used and you define an automaticdocument numbering sequence, General Ledger enters a document numberautomatically when you save your journal. If you use manual numbering,you can enter a unique document number.

• Revaluation: Run periodically revaluationin your ledger and reporting currencies as necessary to satisfy theaccounting regulations of the country in which your organization operates.

• Account Inquiries: Perform inquiresin the reporting currency. Drill down to the journal detail that comprisesthe reporting currency balance. If the journal detail is a convertedjournal that was converted automatically when the original journalwas posted in the source ledger, you can drill down further to seethe source ledger currency journal amounts.

Manage Journal Approval Rules

Approving Journals: Points to Consider

Journal approval in Oracle Fusion applicationsuses Oracle Fusion Approvals Management (AMX) to merge the functionalityof Oracle Approvals Management (AME) and PeopleSoft Approvals (AWE).In addition, Oracle Business Process Execution Language (BPEL) hasreplaced Oracle Workflow.

Rule Definition Consideration

There is one predefined approval rule. If you enablethe ledger and the source for approval, then the journal entry issent for one level of approval by default. You must configure theapproval rules in the AMX Rules Setup user interface. For a simpleapproval scenario, start by defining one or all of the following rules.

• Journal approval based on the highestjournal line amount per ledger per batch.

• Journal approval based on the highestjournal amount per ledger per batch.

• Journal approval behavior based onwhere you are in the period close process. For example, are you inthe beginning, middle, or end of the month, or in pre-close, close,post close, or quarter close process?

For example, after your ledger is enabled for approval,enter the following approval rules to apply when your maximum journalline amount is:

• Less than 50,000 United States dollars(USD), then there is no approval required

• Between 50,000 to 100,000 USD, thenthe journal batch requires one level of approval

• Greater than 100,000 USD, then thejournal batch requires two levels of approval

Build your rules for every combination of ledger,entered amount, approval level, or other needed scenarios by usingthe pattern in the suggested rules. In addition, the Oracle Fusionfunctionality allows you to further define your own rules based onattributes from the different parts of your journal, including theledger, batch, header, or line level. For example, use category, source,account, or descriptive flexfield information as selection criteria forthe journals to be sent for approval.

The ledger is included in the rules because you typicallydefine approval rules per ledger. Set the options that enable journalapproval at the ledger level and by journal source. This allows theapproval process to determine which journals to send for approval.

AMX List Builder Considerations

Use the following AMX List Builder to build your approvallist.

Other Considerations

Other functionality to consider before defining approvalrules include:

• Approval is for the entire journalbatch regardless of the attributes used in the approval rules.

• For the job and position level approvals,the approval list continues up hierarchy until it finds the approverwith the correct approval authority.

• If the journal requires approval,submitting a journal for posting automatically routes the journalfor approval before posting.

• A journal can be escalated to a newapprover by the administrator.

• The WithdrawApproval button on the Journals page is used at anytimein the approval process to withdraw journals from the process. Clickingthis button allows you to edit to the journal. After your changesare made, submit the entry for approval again. When a journal is withdrawn,the completion status is set to Incomplete.

• Approval notifications display atable of key journal attributes for each journal and a list of past,current, and future approvers.

• The Journals region of the dashboarddisplays the journals requiring your approval (if you have the privilegeto approve journals) and journals with pending approval from others.

• The Journals page allows you toapprove or reject journals if you are the current approver.

• Allocation journals are not routedthrough the approval process.

Manage AutoPost Criteria Sets

Creating an AutoPostCriteria Set: Worked Example

This example shows how to create an AutoPostCriteria Set to post your general ledger journal entries thatwere created by the journal import process for your subledger transactions.Your enterprise, InFusion Corporation, implemented Oracle Fusion GeneralLedger and the following Oracle Fusion subledgers: Payables and Receivables.You use a non-Oracle subledger called Fast Assets for fixed assettracking and depreciation. You want to automate posting of your generalledger journal batches created by the journal import process to protectthe subledger sourced journal entries from edits or deletion thatmight inadvertently happen and cause an out-of-balance situation betweenyour subledgers and general ledger.

Consider the following points while creating your criteriaset:

• Use the All option for category and accounting period to reduce maintenance andensure that all journal imports are included in the posting process.

• Create a criteria set that includesall your subledger sources. Create multiple criteria sets by sourceonly if you need to schedule different posting times to balance closeactivities or reduce processing time.

Creating an AutoPost Criteria Set

Create your AutoPost Criteria Set to automatically postjournal entries from both Oracle and non-Oracle subledgers.

1. On the Manage AutoPost Criteria Sets page, click the Create icon to open the Create AutoPost CriteriaSet page.
2. Enter the set name: All Journal Imported Entries
3. Select the Enable check box.
4. Enter the description: Posting journals importedfrom the subledgers.
5. Click the Add Row icon to add each new line.
6. Complete the fields, as shown in the table below:

   Priority	Ledger or Ledger Set	Source	Category	Accounting Period
   1	InFusion Corporation Ledger	Payables	All	All
   2	InFusion Corporation Ledger	Receivables	All	All
   3	InFusion Corporation Ledger	Fast Assets	All	All

   
   
7. For all three sources, select Yes for the process all criteria option and enter 30 as the number of days before and after submissiondate.

   Setting the before and after days with a wide rangeof days enables the process to run less often.

8. Click the Save and Close button.
9. Schedule the process to run daily at 3:00 a.m.

   Schedule the process immediately after the journalimports to prevent changes to the journals. Run the process duringnonpeak times to save resources.

Manually Generatingthe AutoPost Process: Examples

Create an AutoPost criteria set and schedulethe AutoPost process to run on a regular basis following your scheduledjournal imports from your subledgers. When errors occur that preventposting of the journal imports, you must correct the errors and manuallyrun the AutoPost process. The following scenarios illustrate the kindsof errors that could occur and how you can resolve these errors.

Scenario

The following errors occurred and prevented the journalbatches from posting when the scheduled AutoPost process ran.

After you correct the errors, manually run the AutoPostprocess by selecting the Launch AutoPost option from the Tasks panel on the journal pages or by clickingthe Generate button on the AutoPostcriteria set pages. Verify that the process ran successfully by reviewingthe AutoPost Execution report.

FAQs for Manage AutoPost Criteria Sets

How can I run theAutoPost process?

After you define an automatic posting criteriaset, run the AutoPost process by clicking the Generate button on the Manage AutoPost Criteria Setspage or the Launch AutoPost linkfrom the Journals task pane. The AutoPost process posts the journal batches thatmeet the criteria defined. Optionally, schedule the AutoPost processfor specific automatic posting criteria sets through the EnterpriseScheduler to run at specific times and submission intervals.

How can I identifyerrors that occurred during my AutoPost process?

Review the AutoPost process results on the AutoPostExecution report. This report is automatically created when the processcompletes successfully. The report contains the batch name, accounting period, and balance type for each posted journal batch, andlists error statuses for batches that failed to post. The unpostedjournals with their error status are also displayed on the RequiringAttention tab of the Journals work area and the General AccountingDashboard.

Why didn't theAutoPost process post journal batches as expected?

Verify that the posting criteria set specifiesthe precise criteria needed to post the desired journals. If the criteriais correct, then verify the following:

• Journal imports completed successfully.

• Journal batches are error free andready to post.

• Desired accounting period is open.

Manage Journal Reversal Criteria Sets

Automatic JournalReversals: How They Are Processed

The ability to submit journal reversals automaticallyallows you to automate and streamline your journal reversal process.If you routinely generate and post a large number of journal reversalsas part of your month end closing and opening procedures, using theautomatic reversal functionality saves you time and reduces entryerrors.

Settings That Affect Journal Reversals

The journal must meet the following criteria to beautomatically reversed:

• Balance type is Actual.

• Category is enabled to be automaticallyreversed.

• Reversal period is open or futureenterable.

• Posted but not yet reversed.

• Not a reversal journal. Reversaljournals cannot be reversed in Oracle Fusion General Ledger.

• Not a posted journal for a reportingcurrency that was replicated from its source journal. Reporting currencyjournals that were replicated from a source journal will be reversedwhen the source journal is reversed.

• Not a posted journal that originatedfrom Oracle Fusion Subledger Accounting with a frozen source.

There is a new ledger option called Launch AutoReverse After Open Period thatyou can enable to have journal reversals automatically generated whenan accounting period is first opened for the ledger. This ledger optionreplaces the former profile option called GL: Launch AutoReverse AfterOpen Period. If you prefer to reverse your journals on the last dayof every month, disable the ledger option to automatically launchreversals when the period is opened. Then schedule the AutoReverseprocess to run on the last day of every month.

How AutomaticJournal Reversals Are Processed

Define Journal Reversal Criteria Sets to automaticallyreverse and optionally post journals using the following criteria:

After creating your journal reversal criteria sets,assign them to ledgers. Journal reversal criteria set can be sharedand assigned to multiple ledgers. Also secure journal reversal criteriaset definitions using definition access set security to prevent unauthorizedusers from using, viewing, or modifying the journal reversal criteria.

If the automatic reversal option is set to reverseand post automatically, the AutoPost process posts all the reversaljournals that were generated by the AutoReverse process. The processdoes not pick up other journals. You manually post reversal journalsthat were generated outside of the AutoReverse process.

General Ledger automatically creates the AutoReverseExecution report when the AutoReverse process completes successfully.The report prints the journal name and reversal period for each journalthat is successfully reversed and whether the reversal journal issubmitted for posting. The AutoPost Execution report is created automaticallywhen the AutoPost process finishes. These reports help you diagnoseany problems and verify that all journals were processed properly.

Previous Next

Copyright© 2011,Oracleand/oritsaffiliates.Allrightsreserved. Legal Notices

Contents Contact Us