Reference https://docs.oracle.

com/en/cloud/saas/financials/r13-
update17d/faigl/ledgers.html#FAIGL2426120
Concepts https://docs.oracle.com/cd/E37583_01/doc.1116/e22899/toc.htm

1. Enterprise Structure

Legal Axis
 Legal Entity
Business Axis
 Division
 Business Unit
 Chart of account
Functional Axis
 Departments
 Inventory organization

2. Enterprise
An enterprise is a collection of legal entities under common control and management. Oracle Fusion Applications, an
organization classified as an enterprise is defined before defining any other organizations in the HCM Common
Organization Model. All other organizations are defined as belonging to an enterprise.

Functional Area Task Instructions

Enterprise Profile Manage Enterprise HCM - This is a one time definition of the top Enterprise. To be done
Information only in the beginning of enterprise structure configuration
- Includes default settings for your enterprise such as the
employment model, worker number generation

3. Location
 Functional Area Task Instructions
Workforce Structure Manage Locations - A location identifies physical addresses of a workforce structure,
such as a department or a job
- You can also create locations to enter the addresses of external
organizations that you want to maintain, such as employment
agencies, tax authorities, and insurance or benefits carriers.

4. Legal Entity
A legal entity is a recognized party with rights and responsibilities given by legislation. Define a legal entity for each
registered company or other entity recognized in law for which you want to record assets, liabilities, expenses and
income, pay transaction taxes, or perform intercompany trading.

You are required to register your legal entities with legal authorities in the jurisdictions where you conduct business

Legal Jurisdiction Legal Authorities

A physical territory such as a group A government or legal body that is Legal Address
of countries, country, state, county charged with powers to make laws, levy
where a particular piece of and collect taxes, and remit financial
legislation applies appropriations for a given jurisdiction.

* Name * Identifying * Name * Tax Authority Type

* Territory * Address
* Legislative Category * Legislative Category

Legal Entity Registration

Legal HCM Information Legal Entity
* Registered Name * Registered number
* Legal Employer * Name * Identifier * Jurisdiction * Legal Address
* Payroll Statutory Unit * Legal Function * Multiple Legal
Authority

Legal Entity Reporting Unit Registration

Legal Financial Information Legal Entity Reporting Unit
* Registered Name * Registered number
* NAICS *Name *Territory * Jurisdiction * Legal Address
* Type of Company * Legal Function * Multiple Legal
Authority

Functional Area Task Instructions

Legal Structure Manage Legal Address - Need to define to select it with legal entity and legal authorities
Legal Structure Manage Legal - Only can define one jurisdiction per territory and legislative
Jurisdictions category
- Only Jurisdiction can be Identifying per territory
Legal Structure Manage Legal Authorities - Provide match legislative category same as legal jurisdictions to
select it in Legal entity
Legal Structure Manage Legal Entity - Provide name, identifier and address for legal entity

Legal Structure Manage Legal Entity - Based on country of legal entity system find outs identifying
Registration Jurisdictions and creates registration
- User can add more registrations to different Jurisdiction for Legal
Entity
Legal Structure Manage Legal Reporting - On creation of Legal Entity system creates default Legal
Unit reporting unit
- User can add more Legal Reporting unit for Legal Entity
Legal Structure Manage Legal Reporting - On creation of Legal Entity system automatic creates legal
Unit Registrations reporting unit registrations as well.
- User can add more registrations for Legal reporting unit

5. Financial Structure
 a. Chart of Account
The chart of accounts is the underlying structure for organizing financial information and reporting. An entity
records transactions with a set of codes representing balances by type, expenses by function, and other
divisional or organizational codes that are important to its business.

Chart Of Accounts

GL Key Flexfield COA Structure Cross Validation Rule

COA Structure Instance

Segment1 Segment2 & 3 Segment4 Segment5 Segment6

Company Balancing Segment Natural Account Cost Center Intercompany

Value Set Value Set Value Set Value Set Value Set

Segment Validation Account Hierarchy

Security Rule Tree

Functional Area Task Instructions

Financial Reporting Manage Chart of - Use Module as GL
Structures Accounts Value Sets - Use Validation Type as Independent for COA Value sets
- Use Value data type as character and value data subtype as text
-
 - If the value set is used with a natural account segment, you must
assign the Natural Account Type, with one of the following
values: Asset, Liability, Owner's Equity, Revenue, or Expense.
- Third-Party Control Account, Reconciliation indicator,
and Financial Category, which is used with Oracle Transaction
Business Intelligence reporting.
Financial Reporting Manage Chart of - Select Module as GL
Structures Accounts Structures -

Financial Reporting Manage Chart of - After instance is created use Deploy Flexfield
Structures Accounts Structure -
Instances

b. Accounting Hierarchies
To maintain accounting hierarchy it is required to define Tree. The tree is based on
GL_ACCT_FLEX tree structure

It represents data A tree is an instance of the hierarchy as defined in the

hierarchy and for
accounting
hierarchies it is
predefined as below
tree structure and contains parent and child Value Set
details
Tree version contains actual Parent and child notes
and its relationship

Tree Structure Tree Tree Labels

* Accounting Flex filed Tree Definition Tree Structure Code
Hierarchy * Name Tree Labels Labels
* GL_ACCT_FLEX * Code
* Tree Structure Code

Parent Value Set

Tree Access
-COA Segment Value Set Code
Rules
-
Child Value Set
-COA Segment Value Set Code

Tree Version

Tree Version 1 Tree Version 2

Version Name Version Name
Version Code Version Code

Parent Node 1 Parent Node 1

Child Node 1 Child Node 1
Parent Node 2 Parent Node 2
Child Node 1 Child Node 1
Child Node 2 Child Node 2

Functional Area Task Instructions

Financial Reporting Manage Account - Provide Name, Code and Tree Structure
Structures Hierarchies > Actions > - Tree Structure must be Accounting Flexfield Hierarchy
Create Tree - For Data Source Parameter under blind value set code field
provide Value set for Natural account
- Save Data Source Parameters Area first and then click on next
- Labels are option click on Submit button
Financial Reporting Manage Account
Structures Hierarchies > Actions >
Create Tree Version
Financial Reporting Manage Account
Structures Hierarchies > Actions >
Set Status > Active
Financial Reporting Publish Account
Structures Hierarchies
- Give Version name and effective start date and click on next
- Provide Parent and child node details and submit
- Status will be Draft
- Submit Online Audit button
- Query Tree based on COA
- Select Tree Version and click on publish button

Usage of Accounting Hierarchies

Hierarchies for Cross Validations, Revaluations, and Link Tree Name with Value Set
Chart of Accounts Mapping Code
Financial Reporting and Allocations Hierarchies

c. Calendars

Name Period Frequency

Description Period Start Date

Period Name – Year – Period Number – Quarter Number – Start Date – End Date

Functional Area Task Instructions

Financial Reporting Manage Accounting -
Structures Calendars

d. Accounting Currencies

Currency

Currency Conversion Rate

Currency Code Types
Currency Name Name
Description

Daily Rates
From Currency Rate Type
To Currency Rate

Functional Area Task Instructions

Financial Reporting Manage Currencies - Standard currency codes already defined by oracle for each
Structures country
Financial Reporting Currency Rates Manager - Define your own rate type
Structures - Use Daily rates tab to define daily currency rate conversion from
one currency to another currency for specific rate type
6. Ledger

a. Ledger

Ledger Sub Ledger

A ledger determines the currency, chart of accounts,
accounting calendar, ledger processing options, and
accounting method for its associated subledgers
Detailed transactional information such as supplier
invoice, customer payments, and assets acquisitions
is captured in the subledgers and periodically
imported and posted in summary or detail to the
ledger.

Secondary Ledger Reporting Currency

Is a optional ledger linked with Primary ledger for Reporting currencies maintain and report accounting
purpose of tracking alternative accounting. Can have transactions in additional currencies
different COA, Calendar, Currency or processing
options

Primary Ledger Legal Balancing

* Name Entities Segments
* COA * Accounting Calendar
* Currency * Accounting Method

Ledger Options
Legal Balancing
* Sub ledger Accounting
Entities Segments
* Period Close
* Journal Processing
 Functional Area Task Instructions
General Ledger Manage Primary Ledger -
General Ledger Specify Ledger Options - Provide Retained Earning Account as owner’s equity account

General Ledger Assign Legal Entities -

General Ledger Assign Balancing - Link Balancing segment with Legal Entity
Segments Values to Legal - One balancing segment value can with only one Legal Entity
Entities
General Ledger Review and Submit - Review and then click on submit button
Accounting Configuration - Go back to ‘Manage Primary Ledger’ task and check status as
Confirmed

b. Ledger Sets

When you use multiple ledgers, you can group all types of ledgers in a ledger set. For example, group primary
ledger, secondary ledgers, and reporting currencies (journal and subledger levels) as long as they share the
same chart of accounts, calendar and period type.

Ledger sets are used to manage ledgers, including:

 Opening and closing of periods.

 Running reports and processes for multiple ledgers simultaneously.
 Supporting adjustments and allocations.

Functional Area Task Instructions

General Ledger Manage Ledger Set - Create Ledger Set
- Assign Ledgers to Ledger set

c. General Ledger Security

Functional Security Data Security

Functional security, which is what you can do, is managed using job roles. Data security, which controls what action
The following job roles are predefined for Oracle Fusion General Ledger: can be taken against which data, is
managed using:

 General Accounting Manager

 General Accountant  Data access sets
 Financial Analyst  Segment value security rules

Data Access Sets

Data Access Sets give secure access to

 Ledgers
 Ledger sets
 Portions of ledgers using primary balancing segment values.
 If primary balancing segment values assigned to a legal entity, then you can use this feature to
secure access to specific legal entities.
 Data Access Set Access Set Assignments

* Name * Ledger or Ledger Set

* Access Set Type (Full Ledger , Primary * Type (Ledger, Ledger Set)
Balancing Segment Value)
* All Values (Check Box)
* Chart Of Account
* Specific Value (Parent, Single)
* Accounting Calendar
* Tree Code
* Tree Version Name
* Segment Value
* User Name
* Privilege (Read Only, Read Write)
* Role
* Security Context
* Security Context Value (Data Access
Set)

Functional Area Task Instructions

General Ledger Manage Data Access Sets - Create a data access set
General Ledger Manage Data Access for - Assign Data access set to users
Users

Segment Value Security.

Set up segment value security rules on value sets to control access to parent or detail segment values for chart
of accounts segments. Segment value security rules restrict data entry, online inquiry, and reporting
 Conditions

* Name

* Display Name

* Colum Name * Operator * Value

Policy

* Name * Module

Role (Add)

* Name * Description

Policy

*Condition

Functional Area Task Instructions

Tools > Security Create Role - Create Role
Console
Financial Reporting Manage Chart of - Enable Security at value set level - You can enable security only
Structure Accounts Value Sets on value sets with a type of Independent
- Provide Data Security Resource Name and click on Edit Data
Security
- Create Conditions
- Create policies to associate conditions with role
Financial Reporting Manage Chart of - After instance is created use Deploy Flexfield
Structures Accounts Structure -
Instances
Financial Reporting Publish Account - Query Tree based on COA
Structures Hierarchies - Select Tree Version and click on publish button

Tools > Security Roles >> Edit Roles > - Search roles
Console Users - Select the role and click on edit role
- Go to Users section and add all users to the role

Cross Validation Rules

You can use cross-validation rules to determine the valid account combinations that can be dynamically created
as users enter transactions or journal entries. Once enabled, a cross-validation rule determines whether a
selected value for a particular segment of an account combination can be combined with specific values in other
segments to form a new account combination.
 Cross Validation Rule

* Chart Of Account

* Name * Description

Condition Filter Validation Filter

Error Message

Functional Area Task Instructions

Financial Reporting Manage Cross Validation - Select Chart of Account
Structures Rules - Select name and description
- Create Conditions
- Create Validation that trigger for condition

d. Secondary Ledger
It is an optional ledger linked to a primary ledger for the purpose of tracking alternative accounting. Can differ from its
primary ledger by using a different accounting method, chart of accounts, accounting calendar, currency, or
processing options.

Secondary Ledger

* Name * Description

* Chart of Accounts * Accounting Method

* Accounting Calendar

* Currency

* Data Conversion Level (Journal, Balance, Adjustment Only)

Chart of Accounts Mapping

Map Primary To Secondary Ledger
Name Description
Primary Ledger - Secondary Ledger
Target COA Source COA
Chart of Accounts Mapping
Segment Rules
Journal Conversion Rule
Account Rules

Functional Area Task Instructions

Financial Reporting Manage Chart of accounts - Define COA mapping between two COA and give it a unique
Structures Mapping name
- Define segment rule to map individual segments with target COA
- Define accounting rule to filter and restrict the accounts for
segment
General Ledger Manage Secondary -
Ledger
General Ledger Specify Ledger Options -
General Ledger Complete Primary to - Select Chart of account mapping
Secondary Ledger - Define journal conversion mapping
mapping
General Ledger Review and Submit -
Accounting Configuration

e. Reporting Currency
Reporting currencies are representations of a primary or secondary ledger in another currency. Reporting currencies
share the same chart of accounts, accounting calendar, and accounting method as their related ledger.

* Name *Reporting Currency

*Currency Conversion Level (Balance, Journal, Subledger)

*Period Average Rate Type *Period End Date Rate Type

*Revenue and Expense Translation Rule (PTD, YTD)

*Owner’s Equity Translation Rule (PTD, YTD)

Functional Area Task Instructions

Financial Reporting Manage Reporting -
Structures Currency -

7. Business Unit