Ledger Configuration in Oracle R12 Part 2

Accounting Setup Steps:

There are mainly three steps for creation of accounting Setups. Each accounting setup is a grouping of accounting-related setup components as mentioned below.

1.       Create an accounting setup structure.

a.      Create and Assign legal entities

b.      Specify the ledger attributes for the primary ledger.

c.      If Secondary Ledger setup is required, Specify the ledger attributes for secondary ledgers

d.      Assign reporting currencies.

2.       Update accounting options.

a.      Complete ledger options as per the requirement.

b.      Assign balancing segment values to legal entities and Ledger

c.      Define Subledger accounting options.

d.      Define and assign operating units to the primary ledger.

e.      Define relevant intercompany setups including Accounts and Intercompany balancing Rules.

f.       Define sequencing options.

3.       Complete the accounting setup

Review and Complete accounting setups. The status of the accounting setup should be completed before it can be used for the transactions.

Ledger Setup Prerequisites:

In Order to create a Ledger in Oracle Applications in R12, It is required to complete certain Prerequisite setups before creating Ledger.

• ·        Chart of Accounts Setup.
• ·        Calendar and Periods related Setup.
• ·        Legal Entity Setup.
• ·        Currency and Conversion Rate type Setups.
• ·        Subledger Accounting Method Setup.
• Define Account Code Combinations and Values that needs to be setup for Ledger Options.