Oracle Fusion Applications Financials Implementation Guide (2024)

This chapter contains the following:

AccountingConfiguration: Overview

Ledgers and Subledgers: Explained

Ledgers: Points to Consider

Financial Ledgers: How They Fit Together

SpecifyingLedger Options: Worked Example

FAQs for Define Ledgers

Manage Cross-Validation Rules

FAQs for Manage Chart of Accounts Mapping

Manage Journal Approval Rules

Manage AutoPost Criteria Sets

Manage Journal Reversal Criteria Sets

Manage Period Close

Manage Allocations and Periodic Entries

Manage Revaluations

AccountingConfiguration: Overview

The Setup and Maintenance work area in theOracle Fusion Applications is used to manage the configuration oflegal entities, ledgers, and reporting currencies that comprise youraccounting configuration. To create a new legal entity or ledger,your implementation consultant or system administrator must createan implementation project. This implementation project can be populated by either adding a financials related offering or one or more task lists.

There are two offerings predefined for financialimplementations.

• The Oracle Fusion Accounting Huboffering is used to add the Oracle Fusion General Ledger and OracleFusion Subledger Accounting application features to anexisting enterprise resource planning (ERP) system to enhance thecurrent reporting and analysis.

• The Oracle Fusion Financials offering,which includes the Oracle Fusion General Ledger and Oracle FusionSubledger Accounting application features, as well as at least oneof the subledger financial applications.

When adding an offering to an implementation project,implementation consultants can customize the tasks displayed by addingadditional tasks to the implementation project.

Ledgers and Subledgers: Explained

Oracle Fusion Applications reflect the traditionalsegregation between the general ledger and associated subledgers.Detailed transactional information is captured in the subledgers andperiodically imported and posted in summary or detail to the ledger.

A ledger determines the currency, chart of accounts,accounting calendar, ledger processing options, and accounting methodfor its associated subledgers. Each accounting setup requires a primaryledger and optionally, one or more secondary ledgers and reportingcurrencies. Reporting currencies are associated with either a primaryof secondary ledger.

The number of ledgers and subledgers is unlimited anddetermined by your business structure and reporting requirements.

Single Ledger

If your subsidiaries all share the same ledgerwith the parent company or they share the same chart of accounts andcalendar, and all reside on the same applications instance, you canconsolidate financial results in Oracle Fusion General Ledger in asingle ledger. Use Oracle Fusion Financial Reporting functionalityto produce individual entity reports by balancing segments. GeneralLedger has three balancing segments that can be combined to providedetailed reporting for each legal entity and then rolled up to provideconsolidated financial statements.

Multiple Ledgers

Accounting operations using multiple ledgerscan include single or multiple applications instances. You need multipleledgers if one of the following is true:

• You have companies that require differentaccount structures to record information about transactions and balances.For example, one company may require a six-segment account, whileanother needs only a three-segment account structure.

• You have companies that use differentaccounting calendars. For example, although companies may share fiscalyear calendars, your retail operations require a weekly calendar,and a monthly calendar is required for your corporate headquarters.

• You have companies that require differentfunctional currencies. Consider the business activities and reportingrequirements of each company. If you must present financial statementsin another country and currency, consider the accounting principlesto which you must adhere.

Subledgers

Oracle Fusion Subledgers capture detailed transactionalinformation, such as supplier invoices, customer payments, and assetacquisitions. Oracle Fusion Subledger Accounting is an open and flexibleapplication that defines the accounting rules, generates detailedjournal entries for these subledger transactions, and posts theseentries to the general ledger with flexible summarizationoptions to provide a clear audit trail.

Ledgers: Points to Consider

Companies account for themselves in primaryledgers, and, if necessary, secondary ledgers and reporting currencies.Your transactions from your subledgers are posted to your primaryledgers and possibly, secondary ledgers or reporting currencies. Localand corporate compliance can be achieved through an optional secondaryledger, providing an alternate accounting method, or in some cases,a different chart of accounts. Your subsidiary's primary and secondaryledgers can both be maintained in your local currency, and you canconvert your local currency to your parent's ledger currency to reportyour consolidated financial results using reporting currencies ortranslation.

Primary Ledgers

A primary ledger is the main record-keepingledger. Like any other ledger, a primary ledger records transactionalbalances by using a chart of accounts with a consistent calendar andcurrency, and accounting rules implemented in an accounting method. The primaryledger is closely associated with the subledger transactions and providescontext and accounting for them.

To determine the number of primary ledgers, your enterprisestructure analysis must begin with your financial, legal, and managementreporting requirements. For example, if your company has separatesubsidiaries in several countries worldwide, enable reporting foreach country's legal authorities by creating multiple primary ledgersthat represent each country with the local currency, chart of accounts,calendar, and accounting method. Use reporting currencies linked toyour country specific primary ledgers to report to your parent companyfrom your foreign subsidiaries. Other considerations, such as corporateyear end, ownership percentages, and local government regulationsand taxation, also affect the number of primary ledgers required.

Secondary Ledgers

A secondary ledger is an optional ledger linkedto a primary ledger for the purpose of tracking alternative accounting.A secondary ledger can differ from its primary ledger by using a differentaccounting method, chart of accounts, accounting calendar, currency,or processing options. All or some of the journal entries processedin the primary ledger are transferred to the secondary ledger, basedon your configuration options. The transfers are completed based onthe conversion level selected. There are four conversion levels:

• Balance: Only Oracle Fusion GeneralLedger balances are transferred to the secondary ledger.

• Journal: General Ledger journal postingprocess transfers the journal entries to the secondary ledger.

• Subledger: Oracle Fusion SubledgerAccounting creates subledger journals to subledger level secondaryledgers as well as reporting currencies.

• Adjustments Only: Incomplete accountingrepresentation that only holds adjustments. The adjustments can bemanual or detailed adjustments from Subledger Accounting. This typeof ledger must share the same chart of accounts, accounting calendar,and period type combination, and currency as the associated primaryledger.

Secondary ledgers provide functional benefits, butproduce large volumes of additional journal entry and balance data,resulting in additional performance and memory costs. When addinga secondary ledger, consider your needs for secondary ledgers or reportingcurrencies, and select the least costly data conversion level thatmeets your requirements. For secondary ledgers, the least costly levelis the adjustment data conversion level because it produces the smallestamount of additional data. The balance data conversion level is alsorelatively inexpensive, depending upon how often the balances aretransferred from the primary to the secondary ledger. The journaland subledger data conversion levels are much more expensive, requiringduplication of most general ledger and subledger journal entries,as well as general ledger balances.

For example, you maintain a secondary ledger for yourInternational Financial Reporting Standards (IFRS) accounting requirements,while your primary ledger uses US Generally Accepted Accounting Principles(GAAP). You decided to select the subledger level for your IFRS secondaryledger. However, since most of the accounting is identical betweenUS GAAP and IFRS, a better solution is to use the adjustment onlylevel for your secondary ledger. The subledger level secondary ledgerrequires duplication of most subledger journal entries, general ledgerjournal entries, and general ledger balances. With the adjustmentonly level, your secondary ledger contains only the adjustment journalentries and balances necessary to convert your US GAAP accountingto the IFRS accounting, which uses a fraction of the resources thatare required by full subledger level secondary ledger.

Combinations of Primary and Secondary Ledgers

Following are scenarios that may require differentcombinations of primary and secondary ledgers:

• The primary and secondary ledgersuse different charts of accounts to meet varying accounting standardsor methods. A chart of accounts mapping is required to instruct theapplication how to propagate balances from the source (primary) chartof accounts to the target (secondary) chart of accounts.

• The primary and secondary ledgersuse different accounting calendars to comply with separate industryand corporate standards.

Reporting Currencies

Reporting currencies maintain and report accountingtransactions in additional currencies. Each primary and secondaryledger is defined with a ledger currency that is used to record yourbusiness transactions and accounting data for that ledger. It is advisableto maintain the ledger in the currency in which the majority of itstransactions are denominated. For example, create, record, and closea transaction in the same currency to save processing and reconciliationtime. Compliance, such as paying local transaction taxes, is alsoeasier using a local currency. Many countries require that your accountingrecords be kept in their national currency.

If you need to maintain and report accounting recordsin different currencies, you do this by defining one or more reportingcurrencies for the ledger. There are three conversion levels for reportingcurrencies:

• Balance: Only General Ledger balancesare converted into the reporting currency using translation.

• Journal: General Ledger journal entriesare converted to the reporting currency during posting.

• Subledger: Subledger Accounting createssubledger reporting currency journals along with primary ledger journals.

Do not use journal or subledger level reporting currenciesif your organization has only an infrequent need to translate yourfinancial statements to your parent company's currency for consolidationpurposes. Standard translation functionality meets this need. Considerusing journal or subledger level reporting currencies when any ofthe following conditions exist.

• You operate in a country whose unstablecurrency makes it unsuitable for managing your business. As a consequence,you need to manage your business in a more stable currency while retainingthe ability to report in the unstable local currency.

• You operate in a country that ispart of the European Economic and Monetary Union (EMU), and you chooseto account and report in both the European Union currency and yourNational Currency Unit (NCU).

Financial Ledgers: How They Fit Together

Oracle Fusion Applications is an integratedsuite of business applications that connects and automates the entireflow of the business process across both front and back office operationsand addresses the needs of a global enterprise. The process of designingthe enterprise structure, including the accounting configuration,is the starting point for an implementation. This process often includesdetermining financial, legal, and management reporting requirements,setting up primary and secondary ledgers, making currency choices,and examining consolidation considerations.

This figure shows the enterprise structure componentsand their relationships to each other. Primary ledgers are connectedto reporting currencies and secondary ledgers to provide completereporting options. Legal entities are assigned to ledgers, both primaryand secondary, and balancing segments are assigned to legal entities.Business units must be connected to both a primary ledger and a defaultlegal entity. Business units can record transactions across legalentities.

Primary Ledgers

A primary ledger is the main record-keeping ledger.Create a primary ledger by combining a chart of accounts, accountingcalendar, ledger currency, and accounting method. To determine thenumber of primary ledgers, your enterprise structure analysis mustbegin with determining financial, legal, and management reportingrequirements. For example, if your company has separate subsidiariesin several countries worldwide, create multiple primary ledgers representingeach country with the local currency, chart of accounts, calendar,and accounting method to enable reporting to each country's legalauthorities.

If your company just has sales in different countries,with all results being managed by the corporate headquarters, createone primary ledger with multiple balancing segment values to representeach legal entity. Use secondary ledgers or reporting currencies to meetyour local reporting requirements, as needed. Limiting the numberof primary ledgers simplifies reporting because consolidation is notrequired. Other consideration such as corporate year end, ownershipconsiderations, and local government regulations, also affect thenumber of primary ledgers required.

Secondary Ledgers

A secondary ledger is an optional ledger linked toa primary ledger. A secondary ledger can differ from its related primaryledger in chart of accounts, accounting calendar, currency, accountingmethod, or ledger processing options. Reporting requirements, forexample, that require a different accounting representation to complywith international or country-specific regulations, create the needfor a secondary ledger.

Below are scenarios and required action for differentcomponents in primary and secondary ledgers:

• If the primary and secondary ledgersuse different charts of accounts, the chart of accounts mapping isrequired to instruct the system how to propagate journals from thesource chart of accounts to the target chart of accounts.

• If the primary and secondary ledgersuse different accounting calendars, the accounting date and the generalledger date mapping table will be used to determine the correspondingnon-adjusting period in the secondary ledger. The date mapping tablealso provides the correlation between dates and non-adjusting periodsfor each accounting calendar.

• If the primary ledger and secondaryledger use different ledger currencies, currency conversion rulesare required to instruct the system on how to convert the transactions,journals, or balances from the source representation to the secondaryledger.

  See Also

  Oracle Fusion Financials Interview QuestionsOracle Fusion Applications Security GuideFinancials CloudOracle Fusion Middleware

Note: Journal conversion rules, based on the journalsource and category, are required to provide instructions on how topropagate journals and types of journals from the source ledger tothe secondary ledger.

Reporting Currencies

Reporting currencies are the currency you use for financial,legal, and management reporting. If your reporting currency is notthe same as your ledger currency, you can use the foreign currencytranslation process or reporting currencies functionality to convertyour ledger account balances in your reporting currency. Currencyconversion rules are required to instruct the system on how to convertthe transactions, journals, or balances from the source representationto the reporting currency.

Legal Entities

Legal entities are discrete business units characterizedby the legal environment in which they operate. The legal environmentdictates how the legal entity should perform its financial, legal,and management reporting. Legal entities generally have the rightto own property and the obligation to comply with labor laws for theircountry. They also have the responsibility to account for themselvesand present financial statements and reports to company regulators,taxation authorities, and other stakeholders according to rules specifiedin the relevant legislation and applicable accounting standards. Duringsetup, legal entities are assigned to the accounting configuration,which includes all ledgers, primary and secondary.

Balancing Segments

You assign primary balancing segment values to alllegal entities before assigning values to the ledger. Then, assignspecific primary balancing segment values to the primary and secondaryledgers to represent nonlegal entity related transactions such asadjustments. You can assign any primary balancing segment value thathas not already been assigned to a legal entity. Youare allowed to assign the same primary balancing segment values tomore than one ledger. The assignment of primary balancing segmentvalues to legal entities and ledgers is performed within the contextof a single accounting setup. The Balancing Segment Value Assignmentsreport is available to show all primary balancing segment values assignedto legal entities and ledgers across accounting setups to ensure thecompleteness and accuracy of their assignments. This report allowsyou to quickly identify these errors and view any unassigned values.

Business Units

A business unit is a unit of an enterprise that performsone or many business functions that can be rolled up in a managementhierarchy. When a business function produces financial transactions,a business unit must be assigned a primary ledger, and a default legalentity. Each business unit can post transactions to a single primaryledger, but it can process transactions for many legal entities. Normally,it will have a manager, strategic objectives, a level of autonomy,and responsibility for its profit and loss. You define business unitsas separate task generally done after the accounting setups steps.

The business unit model:

• Allows for flexible implementation

• Provides a consistent entity for controllingand reporting on transactions

• Enables sharing of sets of referencedata across applications

For example, if your company requires business unitmanagers to be responsible for managing all aspects of their partof the business, then consider using two balancing segments, companyand business unit to enable the production of business unit levelbalance sheets and income statements.

Transactions are exclusive to business units. In otherwords, you can use business unit as a securing mechanism for transactions.For example, if you have an export business that you run differentlyfrom your domestic business, use business units to secure membersof the export business from seeing the transactions of the domesticbusiness.

SpecifyingLedger Options: Worked Example

This example demonstrates specifying the ledgeroptions for your primary ledger. Your company, InFusion Corporation,is a multinational conglomerate that operates in the United States(US) and the United Kingdom (UK). InFusion has purchased an OracleFusion enterprise resource planning (ERP) solution including OracleFusion General Ledger and all of the Oracle Fusion subledgers.

After completing your InFusion America Primary Ledger,select Specify Ledger Options underthe Define Accounting Configuration task list on the Functional SetupManager page.

Reviewing General Region Options

1. Accept the Name and Description defaults forthe ledger selected.
2. Review the Currency and Chart of Accounts for thespecified ledger, which are automatically populated.

Setting Accounting Calendar Region Options

1. Review the Accounting Calendar that defaults from your ledger.
2. Select Jan-2011 as the FirstOpen Period for your ledger.

   Important: Select a period after the first definedperiod in the ledger calendar to enable running translation. You cannotrun translation in the first defined period of a ledger calendar.In this example, your calendar began with Jan-2010.

3. Enter 3 for the Number ofFuture Enterable Periods.

   Any value between 0 and 999 periods can be specifiedto permit entering journals but not posting them in future periods.Minimize the number of open and future periods to prevent entry inthe wrong period.

Selecting the Subledger Accounting Region Options

1. Accept the default AccountingMethod from your ledger.
2. Select US American English as your Journal Language.

Completing the Period Close Region Options

1. Enter your Retained EarningsAccount: 101-00-31330000-0000-000-0000-0000.

   This account is required for the General Ledger toperform the movement of revenue and expense account balances to thisaccount at the end of the accounting year.

2. Enter your Cumulative TranslationAdjustment Account: 101-00-31350000-0000-000-0000-0000.

   Note: The Cumulative Translation Adjustment (CTA)account is required for ledgers running translation.

3. Do not enter a Default PeriodEnd Rate Type or Default PeriodAverage Rate Type.

   The values entered here are used as the default forbalance level reporting currency processing. InFusion America PrimaryLedger is using the subledger level reporting currency processing.

Specifying the Journal Processing Region Options

1. Specify the Balance options as outlined in the followingtable.

   Option	Setting
   Enable Suspense	General Ledger
   Default Expense Account	101-00-98199999-0000-000-0000-0000
   Rounding Account	101-10-98189999-0000-000-0000-0000
   Entered Currency Balancing Account	101-10-98179999-0000-000-0000-0000
   Balancing Threshold Percent	10

   
   
2. Click all the following Entry options listed inthe table.

   Option	Description
   Enable journal approval	Click to enable journal approval functionality. Approvalrules must be created in the Oracle Fusion Approvals Management (AMX).
   Notify when prior period journal	Notify the user when a prior period date is selectedon a journal entry.
   Allow mixed and statistical journals	Enter both monetary and statistical amounts on thesame line in a journal entry.
   Validate reference date	Requires a reference date in an open or future enterableperiod.

   
   
3. Click the Separate journalsby accounting date during journal import for the Importoption to create individual journal entries for each accounting date.
4. For the Reversal options, select InFusion AmericaAccrual Set from the list of values in the Journal Reversal Criteria Set field and click the Launch AutoReverse after open period to reverseaccrual journal entries automatically when a new period is opened.
5. Click the Enable intercompanyaccounting for the Intercompany option to enable automaticbalancing by the application for primary, second, and third balancingsegments (if implemented) on intercompany journal entries and transactions.

   Note: To complete the intercompany accounting functionality,you must define intercompany rules.

FAQs for Define Ledgers

What happens if I change the cumulative adjustment account?

To avoid data corruption, your cumulativeadjustment account (CTA) can only be changed if you first performthe following set of steps:

• Purge all translated balances

• Change the CTA account

• Rerun translation

What happens if I change the retained earnings account?

To avoid data corruption, your retained earningsaccount can only be changed if you first perform the following setof steps:

• Enter and post journals to bringthe ending balances for your income statement accounts to zero atthe end of each accounting year

• Purge actual translated balances

• Update the retained earnings account

• Reverse the journal entries use tobring the ending account balances to zero and rerun translation

Manage Cross-Validation Rules

Cross ValidationRules: Overview

In Oracle Fusion General Ledger, use crossvalidation rules to determine the account combinations that your userscan create dynamically as they enter transactions or journal entries.Once enabled, a cross validation rule determines whether a selectedvalue for a particular segment of the account combination can be combinedwith specific values in the other segments to form a new account combination.

If account combinations already exist andviolate the newly enabled cross validation rules, these account combinationscontinue to be valid. Before disabling any existing account combinationsthat violate your rules and you are no longer using, move the balancesin those accounts to the correct accounts. Then disable the accountcombinations manually to prevent further posting.

FAQs for Manage Chart of Accounts Mapping

What's the difference between mapping with segment rules and mapping with account rules?

The chart of accounts mapping feature supportsthe ability to correlate a source chart of accounts to a target chartof accounts to allow for the processing of balances or amounts. Thisis accomplished by either using segment rules, account rules, or acombination of both. A chart of accounts mapping is used by the postingprogram in propagating transactions from the primary ledger to itssecondary ledger, providing the means to map the primary ledger chartof accounts to that of the secondary ledger. The mapping feature isused by both balance transfer programs for balance level secondaryledgers as well as cross ledger transfers, whereby balances from oneledger are copied to another ledger.

Segment rules serve to map each segment of the targetchart of accounts to an account value or segment in the source account.Three different mapping actions are available:

• Assign a constant value for a segmentin the target chart of accounts

• Copy the value from the source segmentto the corresponding target segment

  Note

  To use this action, the paired target and source segmentsmust share identical values in their value sets.

• Use roll up rules to aggregate sourceaccounts to a corresponding target segment or account

  • Create a single value mapping whena specific detail source segment value is given a detail target segmentvalue.

  • Use hierarchical roll up rules whena specific parent source value and all of its child segment values,are mapped to a given detail target segment value. This provides theability to process groups of source segment values in one single rollup rule.

  • Define parent source values in rollup rules when date effective versions of the hierarchy are used withthe accounting date of the transactions produced by the programs thatreference the chart of accounts mapping. This gives the additionalbenefit of self maintaining mappings since the hierarchies referencedchange with time, and the applicable child values are processed automatically.

In addition to segment rules, define accountrules for the chart of accounts mapping. Account rules map a completetarget account code combination against one or more source accountcode combinations. The source account code combinations can be definedsegment by segment using:

• Single detail account values

• Detail account value ranges

• Parent values for each segment

  Note

  When using parent values, its child values for thedate effective version of the hierarchy, are processed when the mappingis called.

When do accountrules override segment rules in the chart of accounts mapping?

Segment rules and account rules can be exclusivelyused in a chart of accounts mapping, or you can use a combinationof both. If there is an overlap between the two types of rules, wherebya source account is mapped one way by the segment rules, and anotherby the account rules, the account rule supersedes. As such, segmentrules can be used to more broadly define how to map the relationshipbetween two charts of accounts on a segment by segment basis, andaccount rules can be used to more precisely delineate specific sourceaccount code combinations into their intended target accounts.

Manage Journal Approval Rules

Approving Journals: Points to Consider

Journal approval in Oracle Fusion applicationsuses Oracle Fusion Approvals Management (AMX) to merge the functionalityof Oracle Approvals Management (AME) and PeopleSoft Approvals (AWE).In addition, Oracle Business Process Execution Language (BPEL) hasreplaced Oracle Workflow.

Rule Definition Consideration

There is one predefined approval rule. If you enablethe ledger and the source for approval, then the journal entry issent for one level of approval by default. You must configure theapproval rules in the AMX Rules Setup user interface. For a simpleapproval scenario, start by defining one or all of the following rules.

• Journal approval based on the highestjournal line amount per ledger per batch.

• Journal approval based on the highestjournal amount per ledger per batch.

• Journal approval behavior based onwhere you are in the period close process. For example, are you inthe beginning, middle, or end of the month, or in pre-close, close,post close, or quarter close process?

For example, after your ledger is enabled for approval,enter the following approval rules to apply when your maximum journalline amount is:

• Less than 50,000 United States dollars(USD), then there is no approval required

• Between 50,000 to 100,000 USD, thenthe journal batch requires one level of approval

• Greater than 100,000 USD, then thejournal batch requires two levels of approval

Build your rules for every combination of ledger,entered amount, approval level, or other needed scenarios by usingthe pattern in the suggested rules. In addition, the Oracle Fusionfunctionality allows you to further define your own rules based onattributes from the different parts of your journal, including theledger, batch, header, or line level. For example, use category, source,account, or descriptive flexfield information as selection criteria forthe journals to be sent for approval.

The ledger is included in the rules because you typicallydefine approval rules per ledger. Set the options that enable journalapproval at the ledger level and by journal source. This allows theapproval process to determine which journals to send for approval.

AMX List Builder Considerations

Use the following AMX List Builder to build your approvallist.

Other Considerations

Other functionality to consider before defining approvalrules include:

• Approval is for the entire journalbatch regardless of the attributes used in the approval rules.

• For the job and position level approvals,the approval list continues up hierarchy until it finds the approverwith the correct approval authority.

• If the journal requires approval,submitting a journal for posting automatically routes the journalfor approval before posting.

• A journal can be escalated to a newapprover by the administrator.

• The WithdrawApproval button on the Journals page is used at anytimein the approval process to withdraw journals from the process. Clickingthis button allows you to edit to the journal. After your changesare made, submit the entry for approval again. When a journal is withdrawn,the completion status is set to Incomplete.

• Approval notifications display atable of key journal attributes for each journal and a list of past,current, and future approvers.

• The Journals region of the dashboarddisplays the journals requiring your approval (if you have the privilegeto approve journals) and journals with pending approval from others.

• The Journals page allows you toapprove or reject journals if you are the current approver.

• Allocation journals are not routedthrough the approval process.

Manage AutoPost Criteria Sets

Creating an AutoPostCriteria Set: Worked Example

This example shows how to create an AutoPostCriteria Set to post your general ledger journal entries thatwere created by the journal import process for your subledger transactions.Your enterprise, InFusion Corporation, implemented Oracle Fusion GeneralLedger and the following Oracle Fusion subledgers: Payables and Receivables.You use a non-Oracle subledger called Fast Assets for fixed assettracking and depreciation. You want to automate posting of your generalledger journal batches created by the journal import process to protectthe subledger sourced journal entries from edits or deletion thatmight inadvertently happen and cause an out-of-balance situation betweenyour subledgers and general ledger.

Consider the following points while creating your criteriaset:

• Use the All option for category and accounting period to reduce maintenance andensure that all journal imports are included in the posting process.

• Create a criteria set that includesall your subledger sources. Create multiple criteria sets by sourceonly if you need to schedule different posting times to balance closeactivities or reduce processing time.

Creating an AutoPost Criteria Set

Create your AutoPost Criteria Set to automatically postjournal entries from both Oracle and non-Oracle subledgers.

1. On the Manage AutoPost Criteria Sets page, click the Create icon to open the Create AutoPost CriteriaSet page.
2. Enter the set name: All Journal Imported Entries
3. Select the Enable check box.
4. Enter the description: Posting journals importedfrom the subledgers.
5. Click the Add Row icon to add each new line.
6. Complete the fields, as shown in the table below:

   Priority	Ledger or Ledger Set	Source	Category	Accounting Period
   1	InFusion Corporation Ledger	Payables	All	All
   2	InFusion Corporation Ledger	Receivables	All	All
   3	InFusion Corporation Ledger	Fast Assets	All	All

   
   
7. For all three sources, select Yes for the process all criteria option and enter 30 as the number of days before and after submissiondate.

   Setting the before and after days with a wide rangeof days enables the process to run less often.

8. Click the Save and Close button.
9. Schedule the program to run daily at 3:00 a.m.

   Schedule the process immediately after the journalimports to prevent changes to the journals. Run the processduring nonpeak times to save resources.

Manually Generatingthe AutoPost Program: Examples

Create an AutoPost criteria set and schedulethe AutoPost program to run on a regular basis following your scheduledjournal imports from your subledgers. When errors occur that preventposting of the journal imports, you must correct the errors and manuallyrun the AutoPost program. The following scenarios illustrate the kindsof errors that could occur and how you can resolve these errors.

Scenario

The following errors occurred and prevented the journalbatches from posting when the scheduled AutoPost program ran.

After you correct the errors, manually run the AutoPostprogram by selecting the Launch AutoPost option from the Tasks panel on the journal pages or by clickingthe Generate button on the AutoPostcriteria set pages. Verify that the process ran successfully by reviewingthe AutoPost Execution report.

FAQs for Manage AutoPost Criteria Sets

How can I run theAutoPost program?

After you define an automatic posting criteriaset, run the AutoPost program by clicking the Generate button on the Manage AutoPost Criteria Setspage or the Launch AutoPost linkfrom the Journals task pane. The AutoPost program posts the journal batches thatmeet the criteria defined. Optionally, schedule the AutoPost programfor specific automatic posting criteria sets through the EnterpriseScheduler to run at specific times and submission intervals.

How can I identifyerrors that occurred during my AutoPost process?

Review the AutoPost process results on the AutoPostExecution report. This report is automatically created when the programcompletes successfully. The report contains the batch name, accounting period, and balance type for each posted journal batch, andlists error statuses for batches that failed to post. The unpostedjournals with their error status are also displayed on the RequiringAttention tab of the Journals work area and the General AccountingDashboard.

Why didn't theAutoPost program post journal batches as expected?

Verify that the posting criteria set specifiesthe precise criteria needed to post the desired journals. If the criteriais correct, then verify the following:

• Journal imports completed successfully.

• Journal batches are error free andready to post.

• Desired accounting period is open.

Manage Journal Reversal Criteria Sets

Automatic JournalReversals: How They Are Processed

The ability to submit journal reversals automaticallyallows you to automate and streamline your journal reversal process.If you routinely generate and post a large number of journal reversalsas part of your month end closing and opening procedures, using theautomatic reversal functionality saves you time and reduces entryerrors.

Settings That Affect Journal Reversals

The journal must meet the following criteria to beautomatically reversed:

• Balance type is Actual.

• Category is enabled to be automaticallyreversed.

• Reversal period is open or futureenterable.

• Posted but not yet reversed.

• Not a reversal journal. Reversaljournals cannot be reversed in Oracle Fusion General Ledger.

• Not a posted journal for a reportingcurrency that was replicated from its source journal. Reporting currencyjournals that were replicated from a source journal will be reversedwhen the source journal is reversed.

• Not a posted journal that originatedfrom Oracle Fusion Subledger Accounting with a frozen source.

There is a new ledger option called Launch AutoReverse After Open Period thatyou can enable to have journal reversals automatically generated whenan accounting period is first opened for the ledger. This ledger optionreplaces the former profile option called GL: Launch AutoReverse AfterOpen Period. If you prefer to reverse your journals on the last dayof every month, disable the ledger option to automatically launchreversals when the period is opened. Then schedule the AutoReverseprogram to run on the last day of every month.

How AutomaticJournal Reversals Are Processed

Define Journal Reversal Criteria Sets to automaticallyreverse and optionally post journals using the following criteria:

After creating your journal reversal criteria sets,assign them to ledgers. Journal reversal criteria set can be sharedand assigned to multiple ledgers. Also secure journal reversal criteriaset definitions using definition access set security to prevent unauthorizedusers from using, viewing, or modifying the journal reversal criteria.

If the automatic reversal option is set to reverseand post automatically, the AutoPost program posts all the reversaljournals that were generated by the AutoReverse program. The programdoes not pick up other journals. You manually post reversal journalsthat were generated outside of the AutoReverse process.

General Ledger automatically creates the AutoReverseExecution report when the AutoReverse program completes successfully.The report prints the journal name and reversal period for each journalthat is successfully reversed and whether the reversal journal issubmitted for posting. The AutoPost Execution report is created automaticallywhen the AutoPost program finishes. These reports help you diagnoseany problems and verify that all journals were processed properly.

Manage Period Close

Period CloseComponents: Explained

While implementing your accounting configuration,optionally define and maintain the period close components to customizeyour accounting configurations setup.

Period close components include allocations, periodentries, revaluation, and historical rates.

If you use allocations, revaluation, or translation,configure the following tasks under the Define Period Close Componentsparent task in your implementation project:

• Manage Allocations and Period Entries

• Manage Revaluations

• Manage Historical Rates

Manage Allocations and Period Entries

Manage Allocations and Period Entries is a manualtask in the implementation project. Use the Allocation Manager tocreate allocations and other formulaic journal templates for generatingperiodic journal entries automatically. Base formulas on multiplecriteria.

You must perform an external procedure outside theSetup and Maintenance work area to complete this task. In order tosetup your allocations rules, navigate to the Journals work area andclick the Create Allocations Rules task from the Tasks pane. Thistask navigates you to Allocation Manager, a framework that enablesyou define your allocation rules and formulas using a graphical interfaceand intuitive step-by-step wizards.

Manage Revaluations

Defines currency revaluation options, such as therange of accounts to revalue and the gain or loss accounts. Revaluationis done to adjust foreign entered amounts due to currency fluctuations.Navigate to the Manage Revaluations page, and define and generateyour revaluation definitions.

Manage Historical Rates

Historical rates are the weighted average rate fortransactions that occur at different points in time. Used by the systemto calculate the conversion rate on equity account balances duringforeign currency translation of the balance sheet.

Navigate to the Currency Rates Manager page to defineand maintain your historical rates that are used in the translationprocess. In Oracle Fusion General Ledger, you can currentlydefine historical rates using an ADF Desktop Integrator spreadsheet.

To create new historical rates, specify the requiredLedger and the other optional fields, as needed. Click the Create in Spreadsheet button to open thespreadsheet for uploading.

To update the existing historical rates for your ledgers,click the Edit in Spreadsheet button, the spreadsheet is prepopulatedwith the existing historical rates.

Opening FirstPeriod: Overview

For all ledgers, primary, secondary, and journaland subledger level reporting currencies, open the first period ofthe ledger when you are ready to transact in that period.

To open the first period of your ledgers, navigateto the Open First Period task in the primary ledger task list andclick the Go to Task icon. Onthe submission page, select the ledger and the period to open. Clickthe Submit button to launch theopen period process.

There are other ways to open the first period or subsequentperiods without going into the Setup and Maintenance work area. Youcan maintain the ledgers' period statuses from the:

• Close Status region in the GeneralAccounting Dashboard. The Close Status region provides real time visibilityinto the period close process from your subledgers to your GeneralLedger across the entire enterprise.

• Manage Accounting Periods task inthe Period Close work area.

• Process Monitoring work area, whichprovides a framework for launching, monitoring and maintaining processesacross Oracle Fusion Financials.

Manage Allocations and Periodic Entries

Allocationand Periodic Entries: Overview

In Oracle Fusion General Ledger, use the AllocationManager to create allocations and other formulaic journal templatesfor generating periodic journal entries automatically. Base formulason multiple criteria. For example, use account balances or statisticalamounts to allocate shared revenue or costs across multiple organizationalunits and ledgers. Define complex computations based on variablesfrom different charts of accounts. Group journal formulas togetherand execute sequentially to update account balances in a step-by-stepprocess.

The Allocation Manager provides flexibility,automation, intelligence, and control in distributing costs and revenuesacross the enterprise. In addition, the Allocation Manager:

• Distributes revenues or costs withrecursive allocation rules

• Creates complex formula rules usingformula component

• Contains an Allocation Wizard todefine allocation and formula rules

• Uses real time check of rule definitionsto validate correctness of rules

• Minimizes setup and maintenance timewith reusable components

• Simplifies allocation generationmechanism by integration with enterprise scheduler

• Groups rules together in rule setsand cascading allocations for processing efficiencies

• Creates primary, statistical, orforeign currency allocation and formula rules

Access the Allocation Manager from the Tasks pane of the General Accounting dashboard or Journals work area by clicking on the:

• Define AllocationRules link to define or modify allocation definitions

• GenerateAllocations link to run the allocation process

GeneratingAllocations and Periodic Entries Manually: Worked Example

This example demonstrates how to generatean allocation or periodic entry manually from the Oracle Fusion GeneralLedger.

You are the General Accountant for InfusionAmerica Inc. You have created allocation and periodic journal entrydefinitions for several monthly entries. You now generate these entries.

Prior to generating the allocation and periodic entries,the following tasks must be completed:

• The period is set to Open or Future Enterable. You post in openperiods, but generation can take place in either an open or futureenterable period.

• The rules or rules sets have beendefined, validated, and deployed successfully from the AllocationManager.

• The journal balances, that are inputsfor the allocation or periodic rules, are entered and posted in theproper period.

Generating Allocations and Periodic Entries Manually

1. From the Navigator, click the Journals link to open the Journals work area.
2. In the task pane of the Journals page, click the Generate Allocations link to open the Submissionpage.
3. Optionally select one or all of the following options:

   • Print Output

   • E-mail me the output

   • Notify me when this process ends

4. Select a rule or rule set from the list of values.
5. Enter the submission parameters, including Ledger, Balancing Segment Value, and Period. The application automatically sets the last day of the submissionperiod as the Accounting Date and Calculation Effective Date.
6. Accept the selected check box for the Post Allocations option to enable the processto post the journal entries.

   If you deselect the check box for the Post Allocationsoption, you must post the entry manually or define an AutoPost CriteriaSet to automatically post the journal entries.

7. Click Submit.

   After the generation process is complete, the journalentries created by the process are available for inquiry on the Journalspage.

Manage Revaluations

RevaluationProcess: Explained

The revaluation process is used to adjustaccount balances denominated in a foreign currency. Revaluation adjustmentsrepresent the difference in the value of the balance due to changesin conversion rates between the date of the original journal entryand the revaluation date. These adjustments are posted through journalentries to the underlying account with the offset posted to an unrealizedgain or loss account. All debit adjustments are offset against theunrealized gain account and all credit adjustments are offset againstthe unrealized loss account. If the same account is specified in the Unrealized Gain Account and Unrealized Loss Account fields, the net ofthe adjustments is derived and posted.

For balance sheet accounts, the revaluation journalentries are reversed in the next period. AutoReverse can be used toautomate the reversals. For income statement accounts that use thePTD method of revaluation, the revaluation journal entries aren'treversed since each period's revaluation adjustment is just for thatperiod.

In Oracle Fusion General Ledger, the revaluation functionalityprovides the following advantages:

• Full multicurrency functionalityto eliminate currency barriers across a global business

• Predefined revaluation rules to ensureconsistency in generation of revaluation entries each period

• Usage of prevailing currency normalizationaccounting standards including:

  • US Financial Accounting StandardsBoard (FASB) Financial Accounting Statement No. 52 (FAS 52), ForeignCurrency Translation

  • International Financial ReportingStandards (IFRS) International Accounting Standard No. 21 (IAS 21),The Effects of Changes in Foreign Exchange Rates

• Support for multiple balancing segmentsto provide clarity in tracking the profitability and performance formore distinct segments of the your enterprise in any currency

Definition

When defining your revaluations, perform the following:

• Include accounts for tracking gainsand losses, currency conversion rates, and the number of transactioncurrencies to revalue.

• Define separate revaluation definitionsfor each class of accounts, using a different rate type for each class.

• Choose various conversion types andmethodologies for different account ranges, such as current ratesand year-to-date (YTD) method for balance sheet accounts, and averagerates and period-to-date (PTD) method for income statement accounts.

Hierarchies and flexible account selection criteria,such as usage of parent values from your account hierarchy, streamlinesmaintenance of revaluation definitions. Leveraging hierarchy versionsextends your revaluation definitions during organizational changes.Adjust account selection criteria monthly to retrieve the accountsthat need to be revalued for the current accounting period.

Share revaluation definitions across ledgers thathave the same chart of accounts to reduce maintenance.

Generation

Generating revaluations include:

• Using defined revaluation criteriaand automatically generating entries to shorten your close process.

• Selecting automatic posting as partof the generate revaluation criteria to help you to achieve processingefficiency.

• Scheduling revaluations to run duringoff peak hours to save your system resources.

• Utilizing date effective accounthierarchies to generate revaluations to keep results in line withyour current organization structures.

Always run revaluation to bring monetary balancesto current rates before performing currency translation or remeasurement.

Revaluation Execution Report

The Revalue Balances program automatically generatesthe Revaluation Execution report when you run revaluation. This reportshows the details of your account balance revaluation and the journalbatches created after running revaluation. The report includes thecurrencies and revaluation rates used to revalue your accounts, theunrealized gain or loss account in which you recorded net gains andlosses, and the range of accounts revalued. The report also printsthe names of your batch and journals that the revaluation programcreates for each foreign currency, as well as the total debits andcredits of the created entries.

If the Revaluation process cannot locate rates forone or more currencies, balances are not revalued for those currencies.In this case, the Revaluation process completes with a warning andthe execution report lists which currencies are missing rates.

Accountingfor Unrealized Gain or Loss on Revaluation: Explained

Revaluation launches a process that revaluesthe ledger currency equivalent balances for the accounts and currenciesyou select, using the appropriate current rate for each currency.Resulting unrealized gain or loss amounts are posted to the unrealizedgain or loss accounts or to the cumulative translation adjustment(CTA) account you specify, and are balanced by balancing segment values.This process creates a revaluation journal which can be posted automatically.

Oracle Fusion General Ledger creates journal entriesto adjust the ledger currency balances for conversion rate fluctuations,in accordance with Statement of Financial Accounting Standards (SFAS)No. 52, Foreign Currency Translation and International AccountingStandard (IAS) 21, The Effects of Changes in Foreign Exchange Rates.

The revaluation journal entries generated and postedin the primary ledger are automatically generated, converted, andposted to each of their reporting currencies. Define the CTA accountfor unrealized gains or losses in the reporting currency prior torunning revaluation.

Income StatementAccounts Revaluation Rule: Explained

Revaluation is the process which adjusts assetor liability accounts that may be materially understated or overstateddue to a fluctuation in the conversion rate between the time the transactionwas entered and the time revaluation takes place. You may want torevalue income statement accounts as well. The Income Statement AccountsRule indicates whether period-to-date (PTD) or year-to-date (YTD)method is to be used when revaluing income statement accounts.

Click the Income Statement radio buttons on the Create Revaluation page to specify whether you want to revalue income statement accountsusing PTD or YTD balances. There are two radio buttons, one for PTDand one for YTD.

If you select to revalue PTD balances for income statementaccounts, the program continues to appropriately revalue YTD balancesfor balance sheet accounts. In the revaluation definition if the rangeof accounts consists of both income statement and balance sheet accountsand you select PTD as an option for income statement account revaluationrule, a separate revaluation journal is created for the income statementaccounts. Revaluing the PTD balance of your income statement accountscreates weighted average YTD balances using period rates from eachcorresponding period against the PTD account balance in compliancewith the Statement of Financial Accounting Standards (SFAS) No. 52,Foreign Currency Translation.

To summarize, when you run revaluation on your incomestatement accounts, the program produces two separate journal entries;one that revalues your balance sheet accounts and another for yourincome statement accounts. You do not need to reverse the PTD revaluationjournal entry for your income statement accounts in the subsequentperiod since that revaluation only applies to last period's activity.

Revaluing Across Multiple Balancing Segments:Worked Example

This example demonstrates how to revalue foreigncurrency balances across multiple balancing segments. Your company,InFusion America, Inc. has three lines of business. You revalue yourforeign currency account balances for two of your divisions, Air Componentsand Repair Parts. Your Installation Services line of business doesnot have foreign currency transactions. Your company is your primarybalancing segment and your lines of business are represented in yoursecondary balancing segment.

The following are points to consider in running therevaluation process.

• Revaluation posts the resulting gainor loss amounts against the unrealized gain or loss accounts, substitutingthe balancing segment values appropriately for all balancing segments.

• Gain or loss accounts and revaluationaccount ranges are not validated against your data access set securitywhen the revaluation definition is created because the ledger contextis not known at the time of definition.

• Data access set security is enforcedwhen the Revalue Balances program is executed. Limited write accessto the gain or loss accounts due to inadequate access results in anerror.

• Segment value security rules areenforced when you enter the account ranges and the unrealized gainand loss accounts. Only segment values you have access to are availablein the list of values.

• Account ranges you have read andwrite access to are revalued. Account combinations that you do nothave access to are ignored.

• Revaluation expands all parent balancingsegments to the child values. Data access set security applies tothe child values only, not the parent value.

• Posting supports multiple balancingsegments for calculating the entry to the Cumulative Translation Adjustmentaccounts when replicating revaluation journals to reporting currencies.

Defining Revaluations

1. From the Manage Revaluations page, click the Create icon.
2. Enter the values in the following table in the correctfields.

   Field	Value
   Name	InFusion America Revaluation
   Description	Revaluation for all foreign currency balances.
   Chart of Accounts	InFusion America Chart of Accounts
   Currency	Leave blank Note If left blank, all currencies are revalued and aftersaving, the field automatically displays: All currencies.
   Conversion Rate Type	Daily
   Days to Roll Forward	5
   Unrealized Gain Account	011-00-96600000-0000-000-000
   Unrealized Loss Account	011-00-96700000-0000-000-000
   Income Statement Account Basis	PTD
   Post Automatically	Yes

   
   
3. In the Revaluation Accounts region, click the Add Row icon.
4. Click the Change filterconditions icon to enter the filter used to select theaccounts to revalue.
5. Click the Add Field drop down arrow and select your company, InFusion America Inc. fromthe list.

   Field	Value
   Equals	011

   
   
6. Click the Add Field drop down arrow and select your two Lines of Business: 30 for AirComponents and 40 for Repair Parts.

   Note: Your Installation Services line of business,50, is not included because it does not have foreign currency transactions.

   Field	Value
   Between	30
   	40

   
   
7. Click the Add Field drop down arrow and select Account from the list.

   Field	Value
   Between	10000000
   	29999999

   
   
8. Click OK to accept your filters.
9. Click the Save and Close button to save your revaluation.

   Optionally, select the Save and Generate buttons to runthe revaluation immediately.

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