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How To Define A Chart of Accounts in Oracle Apps R12: Month End Process

The document proposes adding additional descriptive flexfield (DFF) segments to the existing Set of Books flexfield in Oracle Apps to group sets of books by region, type, and whether they are the prime book of entry. This would simplify various reports and validations. The proposed new DFF segments are Region, Book Type, and Prime Entry Book, with suggested values for each. The summary outlines the configuration steps needed to define the new value sets, segments, and implement the changes.

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418 views

How To Define A Chart of Accounts in Oracle Apps R12: Month End Process

The document proposes adding additional descriptive flexfield (DFF) segments to the existing Set of Books flexfield in Oracle Apps to group sets of books by region, type, and whether they are the prime book of entry. This would simplify various reports and validations. The proposed new DFF segments are Region, Book Type, and Prime Entry Book, with suggested values for each. The summary outlines the configuration steps needed to define the new value sets, segments, and implement the changes.

Uploaded by

CG
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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- Business Group ( Owners, BoD specific ) Employee, Highest level of Financial

Reporting --- > HRMS (Employee setup, HR Organization)


--Legal Entity (Country-specific ) Private/Public, Tax, FDI, Stock Exch,
Labor law --- > HRMS(Payroll setup), SoB (COA, Curr, Cal)
---OU ( specific to Person whos responsible for P&L, BS ) VPProduct, VP-Service
---- > AR, OM, AP, PO, CM, GL
--- > OU is always Profit center because of Rev in AR.
---Inv Org (People and M/c involved in generating the revenue)
Plant, Office, Sales office, sw dev center, warehouse (COGS)
---- > INV (RCV, Shipping) MFG (WIP, QA, WMS, SCP)
---- > Inv Org is always the Cost center because of COGS after
shipping

How to define a Chart of Accounts in


Oracle Apps R12
Chart of accounts is the accounting structure used to record financial and
accounting transactions of an organization to help maintain accounting
balances. Chart of Accounts is a key flexfield having one or more data
segments as defined by the user.
An Oracle Chart of Accounts can have upto 30 segments in a flexfield. Of
these, 2 of the segments are mandatory viz. Balancing segments and natural
account. This means that there must be at the minimum 2 segments defined
which can go upto 30.
To define the chart of accounts, the following setups have to be completed:
1.

Define Value Sets

2.

Define Accounting Flexfield Structure

3.

Define Flexfield Qualifiers for the segments

Monthendprocess
in which basically users will close all the periods and import all the journals in GL
from other modules (Payable, Receivable, Fixed Assets etc.).
Then run all the month end GL reports like Trial Balance, Account Analysis
etc.

The suggested module wise sequence to be followed for Period-End process is as follows.
1. Projects
2. Payables
3. Purchasing
4. Assets
5. Receivables
6. Inventory
7. General Ledger

P2P:
What are the journals entries in Procure to Pay Cycle.
Ans)
Description
A) Po creation
Entry

DR
No Entry

CR
No

B) While Receiving the goods


Accurval

Material Receiving

Ap

C) While Inspection
Entry

No Entry

No

D) While Trans ford the good to Inventory


Material Receiving

Inv Org Material


Purchase price Varience

F) While Po Is Matching to Invoices


Liability

Ap Accurval

G) While Making the Payment


Clearing

Liability

H) Ofter Reconciliation

Cash Clearing

Cash

Cash

I) Final Entry

Inv Org Material

Cash

Set of Books Additional DFF Information

Summary Proposal

The purpose of this configuration is to provide a method for grouping all the
existing sets of books and any future ones by region, type and usage.

This requirement originated from a personalization on the AP banks screen to


validate BIC codes, and the increasing complexity of the validation gave rise to
the need to group sets of books by region. This would allow the personalization
to be defined at a site level but to provide validation for a specific region.
This would also save the time as risk of adding specific responsibilities to the
personalization is removed.

This then led to other possible uses for the DFF that would reduce report and
custom development complexity if we also added a DFF to indicate the book type
and if that book was the prime book of entry for a given country.

For example

Check if postings are being made to prime books beyond period end close.

Or checking what types of journals are being entered to non prime books.

Only allow 'TP' entries to be posted in management type books.

Blocking manual journal entries in consolidation type books

The proposed DFFs to be added to the set of books screen are as follows along
with the values for each are as follows :

REGION

AS = Asia

LA = Latin America

EU = Europe

NA = North America

BOOK TYPE

L = Local/Statutory


G = GAAP

M = MGMT

C = Consolidation Book

PRIME ?
Y or N to indicate of this book is used as the prime book of entry for that country.

If approved, these DFFs would be a mandatory field on the GL sets of books,


and as such all the existing book records would need updating with this DFF
information in attribute fields 1,2 & 3.

This could either be entered manually, or via a small script.

Configuration Steps

The configuration steps required to implement these proposed changes are as


follows.

Define New Value Set


NAV : System Administrator > Flexfield >Validation>Sets

Define a new value set for the book types has shown below. This is needed
because the existing book type value set is used by the legacy system interface
and cannot be altered.


NAV : System Administrator > Flexfield >Validation>Sets


Then add the values to this new value set as follows.

Define New DFF

NAV : System Administrator > Flexfield >Descriptive > Segments

The search for the title Set of Books


Untick the Freeze Flexfield Definition box. Then untick the required & displayed
fields if they are ticked.

Press the Segments button


And define the segments shown below.

Once the segments are defined, open each one in turn and update the fields as
shown on the following page.

REGION
Tick the required box and update the display sizes to match those below.

BOOK TYPE
Tick the required box and update the display sizes to match those below.


PRIME ENTRY BOOK?
Tick the required box and update the display sizes to match those below.


Once the above configuration has been completed, you can then re-freeze the
flexfield definitions and test.

SET OF BOOKS DFF TESTING

Once the configuration has been completed the resulting DFF should look like
this.


A pick list is available for all fields and the user is required to complete them all
before saving changes to a set of books.

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