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