General Ledger

General Ledger

General Ledger

Chart of Accounts and Segments
nAccount structure you use to record accounting transactions and maintain account balances
nIn Oracle General Ledger Chart of Accounts is a Key Flexfield – “Flex” field because, the data segments are defined by the user

nA Chart of account (alternatively called Accounting Flexfield) comprises of various segments that the user defines

nSegments for a certain chart of account could look like – Company – Department – Account

Segment Value
nEach segment of the chart of accounts should have valid values. Values for each segment combine to form an “Account”

An Account could look like “01-TRAVEL-150001”

nValid Values for a segment are defined using “Value Sets”, that stores all values that can be used for a segment

nIn the above example, 01 is a value defined under a value set that is attached to the company segment. The value set may be called “Company Value Set”

Use Of Currencies

nAccounting transactions should have a denominations, like USD, Rs. etc

nThe users should identify applicable currencies and define them before use

Use Of Accounting Calendar

nTransactions should relate to specific periods, like April-04,Dec-04 etc.

nA set of such periods form an Accounting calendar

 

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Periods are user defined, can be a month, quarter etc. depending on the business requirement

Understanding Accounting Ledger – the Set of Books 

nEvery accounting transaction would be created –

- Using a specific chart of account structure

- For a particular Accounting period and

- Using a particular currency

nA combination of the Accounting Flexfield, the Accounting Calendar and Functional Currency comprise the Set of Books