GENERAL LEDGER SETUP

Creation of General Ledger Setup comprises of 9 broad steps they are:

1. Business Group
2. Flexfield Structure
3. Value Set
A. Company
B. Line of Business
C. Account
D. Cost Center
E. Location
F. Inter Company
G. Future
4. Defining Currency
5. Defining Calendar
6. Creating Legal Entity
7. Operating Unit
8. Responsibility
9. Profile Options.

The above steps are explained below.

Step 1:Creation of Business Group- EXAMPLE: P&G GROUP

1. Go to-> Global HRMS Manager->Work Structures->Location

Save your work.

2. Go to-> Global HRMS Manager->Organization->Description

In this step Click”New(A)” and create your organization.
3.Give a name “P&G BG”, Type: Business Group , Date and Location and Address and
give “Save”.

4.In the above Dialog Box Give Name “Business Group” and click “Enabled” and Click
“Others”.

5.Select “*Business Group Info” click “ok” and Small Dialog box will open click in the
white box give the following details and click “ok”.
-Currency here mentioned in INR. Please give your own currency.

6.Business Group has been created.

Step 2:Creation Flexfield Structure- EXAMPLE: P&G GROUP

1. Switch Responsibility and Go to

General Ledger->Setup->Financials->Flexfields->Key->Segments
Press F11 and give Ctrl+F11 and create the Flexfield Structure.

2. Click Segments Tab and give the details for “Name and Column”and “Window
prompt” will take the same name in the “Name” tab. Select each field and define its
“Value Set” and “Flexfield Qualifiers”.

3. The next window will open with the “Number,Name and Column” details since it
has been given in the “Segments” itself.
4. Flexfield Qualifiers can be understood as “Oracle Human Resources uses flexfield
qualifiers to control who has access to confidential information in flexfield
segments.” It is like “assigning or tagging to particular “Accounting Flexfield” like
Company-Balancing Segment,Account-Natural Account Segment,Cost Center-Cost
Center Segment”,Intercompany-Intercompany Segment”. There are no flexfield
qualifiers for “Line of Business , Location and Future”.

5. Do not define the “Default Type and Default Value in the below screen before
defining the Value set and Flexfield. Because it will not be compiled finally.
6. Set the no. of values for each segment and it helps in giving value set for each
segment in below step. You can view the “Display Size” box mentioned as “3” digits.

Step 3:Value Set- EXAMPLE: P&G GROUP

1.A value set is a group of valid values that you assign to a flex-field segment ( to
control the values that are stored for business object attributes.
Value set created in the above step can be queried and user can find the flexfield
created. In this dialog box “Type” mentioned in creation of flexfield should be
“Independent”.

2.What is the difference between Independent and Dependent value Set.Importance

of Giving “Independent” in creating Value set can be explained below:
Independent Value Set Dependent Value Set

Value Description Value Description

01 Cash Account 01 Axis Bank

02 HDFC Bank

03 Cash in Hand

02 Fixed Assets 01 Building account

02 Plant and Machinery

 03 Furniture and Fixtures

In the above table the dependent values are dependent on main accounts without
which it cannot be accessed.
3. Go to ->Setup->Financials->Flexfields->Key->Values to define the values for each
“Segment” the values for the “COMPANY”.

4. For “LINE OF BUSINESS”

5. For “ACCOUNT” give all the ledger names required for the business transactions of
your company. Following accounts are necessary in multiple modules and required
to create now itself other than Assets, liabilities, capital , revenue and expenses
account.
A. AP/AR Clearing account
B. Accrual Account
C. Creditors Clearing Account
D. Deposit Offset Account
E. Payment Netting Account
F. Unearned Revenue Account
G. Prepayment Account
H. Asset/Expenses Accrual Account
I. Retained Earnings Account
J. Earned Discounts Account
K. Unearned Discounts Account
L. Discounts Taken Account
M. Rounding Off Account
N. Realised Gain Account
O. Realised Loss Account
P. Exchange Rate Variance Account
6. Give Allow Budgeting and Posting as “NO” for all the “PARENT” Values and define
the child values for the Parent Values.
For Example:

PARENT VALUE CHILD VALUES IN NOS. CHILD VALUE VALUE

NUMBER

NON-CURRENT ASSET 10000-19999 LAND & 10000

BUILDINGS
ACCOUNT
7. For “Location” give the location for your organisation

8. For “Intercompany” give the inter companies for your organisation

9. For “Future” give the future segment for your organisation.

Step 4:Defining Currency- EXAMPLE: P&G GROUP

1. Go to ->Setup->Currencies and press F11 and give % and press Ctrl+F11 to see the
existing currencies added.(Since INR is already included in the list I have created
INR2 and set the Name of the currency as “INR P&G” for identification purposes.)
Step 5:Defining Calendar- EXAMPLE: P&G GROUP

1. Go to ->Setup->Financials->Calendar->Type
In “Type” you have “Fiscal” and “Calendar”.Choose “Calendar” to use the year in
which an accounting period begins for the system name(Eg.period shall be (1.4.2017-
31.3.2018) and for April month1.4.2017 then Name will be “APR 17”).Choose “Fiscal”
to use the year in which your fiscal year ends for the system name.(Eg.period shall be
(1.4.2017-31.3.2018) and for April month1.4.2017 then Name will be “APR 18”)

2. Give the period as “13” and it represents adjustment period along with 12
months in a financial year in general.
3. Do not enable the “Adjusting” check box for months other than Adjusting period.

Step 6:Creation of Legal Entity- EXAMPLE: P&G GROUP

1. Go to ->Setup->Financials->Flexfields->Accounting Setup Manager->Accounting

Setup
2. Click “Create Accounting Setup” and click “Create Legal Entity”
3. Give the Territory, Legal Entity Name,Organisation Name and Legal Entity
Identifier of the company.
4. For Legal Address “Select Existing Address” to be given. Because it has been
created in the Step:1 itself.

5. Once the details are given it must be able to go next step, if there is no option
for next step and there is only “Finish” button and system is throwing error to give
“Retained Earnings” account see whether the “flexfield created in step:1” is
Compiled or not. If not compiled, click the compile button and now come to the
accounting Setup screen and you will find “Next” button to give the details for
“Retained earnings” account.

6. Click “Create Legal Entity” in legal entity Tab and give “

click this icon and give legal entity name , country and Legal Entity Identifier and go
to next step “Define Accounting Representations” and give further details of
Name,Chart of Accounts,Accounting Calendar,Currency and Click Next button.
7. Save accounting Structure by clicking “Finish” button and click “Define Accounting
Options”
8. Proceed with the help of General Ivas document and complete all the options in
“Primary Ledger” and give “Balancing Segment” at the top.
Step 7:Creation of Operating Unit- EXAMPLE: P&G GROUP
1. Creating Operating Unit is different from Other steps. Go to ->Global HRMS
Manager->Work Structures->Organisation->Description
2. Click “New (A)” to create Operating Unit.

3. There are 3 organisation classifications to be given they are Business group which
have been created in the Step:1 itself. Next to create “Operating Unit”(Do not mind
the sequential order given in the classification table above).
4. Important to note that once the process in accounting setups have been fulfilled
and completed we can proceed with creating “Operating Unit” step i.e.
5. The status should be “Complete” we can create “Operating Unit” by clicking the
“Operating Unit” and “ok” for “Operating Unit Information” and click in the white
area in the dialog box. The system will automatically take the name of “Primary
Ledger” and “Default Legal Context” and give Operating unit short code and click
“ok”.
6. Give Details of Inventory Organisation also which will be usefull in “Payables
Setup”. Give Inventory Organistion and enable the check box and select “Inventory
Information”.

7. Now go to “Accounting setup” step and “Add: Operating Unit” and give the
“Name” and select the “Business Group” and “Default Legal Context” from the LOV
and click “Apply”.

Step 8:Creation of Responsibity- EXAMPLE: P&G GROUP

1. Go to->System Administrator->Responsibility->Define. Define the following:

A. General Ledger P&G
B. Payables P&G
C. Receivables P&G
 D. Fixed Asset P&G
E. Cash Management P&G
F. Inventory Management P&G

2. Data Group,Requests Group and the Menu in creating the above responsibilities
can be created with the help of Vision Operations(USA).

3. Next Go to->System Administrator->User->Define

4. Create a new user and password for the same and tag the responsibilities which
have been created in the above step and also include “System Administrator,Global
HRMS Manager,etc.,” for your own reference in your login ID.
5.Log in with your user Id & password and find all the modules which have been
defined in the earlier step.

6.Your log in ID with all the modules defined earlier can be operated.
Step 9:Profile Options- EXAMPLE: P&G GROUP
1. Go to->System Administrator->Profile-System
2. Your system profile values is to be created like below:
3. Click “Find” and you will find General Ledger and its profile values.

4. Update the details for “Payables,Receivables,Cash Management and Fixed

Asset”modules and assign the business group and operating unit. This is important
to define the business group and operating unit to each module and it is the way it
connected as “Business Organisation Structure” and it represents the business flow
of your organisation and helps to understand the basics of business better.

THANK YOU