Create Oracle Chart of Accounts Setup
We will share the detail steps to implement the chart of accounts in oracle. We will share the complete configuration details for oracle chart of accounts. We do create the chart of accounts for accounting flexfield. Chart of accounts in oracle is the combination of multiple segments. Chart of accounts/Accounting flex field helps to record the accounting entries for the system transactions in oracle apps.
Chart of Account is the Accounting Terminology. In Oracle Fusion, The Chart of Accounts (COA) is the account structure the organization uses to record transactions and maintain financial account balances. So, whatever, we do financial things in Oracle Fusion Application like Supplier Invoices, Customer Invoices it records with the Help of chart of Account and to maintain financial Balances.
Once the Chart of Account Structure has been implemented in application, it cannot be changed so we should be completely sure on this, what we are going to implement.
Step by Step for Oracle Chart of Accounts Setup
Step 1:-
Here below are the Oracle Chart of Accounts setup steps. We need to go to the General Ledger responsibility.
Navigation: Setup –> Financials –> Flexfields –> Key –> Segments.
Step 2:-
Need to Search the Title ‘Accounting Flex-field’ to configure, Click on the ‘+’ icon to create the New chart of account for your Organization and click on the Segments button, to define the chart of Account Accounting Structure.
As below, I have created the New Key Flexfield Structure.
After that Click on Segments Buttons to create the chart of Account Segments.
Freeze Flexfield Definition.
Once you set up or modify your structures and segments, you must freeze your flexfield definition and save your changes. When you do, your flexfield compiles automatically to improve on-line performance.
Cross validation Segments
Cross-validation (also known as cross-segment validation) controls the combinations of values you can create when you enter values for key flexfields. A cross-validation rule defines whether a value of a particular segment can be combined with specific values of other segments.
Freeze Rollup group
Use this window to define rollup groups to which you can assign key flexfield values. You can use a rollup group to identify a group of parent values for reporting or other application purposes. You assign key flexfield segment values to rollup groups using the Segment Values window.
Allow Dynamic Inserts
Dynamic insertion allows the creation of account combinations automatically the first time your users enter that new account combination. The alternative is to create them manually. By deciding to enable dynamic insertion, you save data entry time and prevent delays caused by the manual creation of new account combinations. Well-defined cross-validation rules help prevents the creation of inappropriate account combinations.
Compile
Compile your account structure in the Manage Chart of Accounts Structure Instances page when you are ready to begin using your structure. You must recompile your chart of accounts structure instance every time you make changes to your structure and segments, including enabling or disabling shorthand entries.
Segments
A segment is a single sub-field within a flexfield. You define the appearance and meaning of individual segments when customizing a flexfield. A segment is represented in your database as a single table column. Example( Company, Department & Accounts)
Step 3:-
In Segments, we will define the chart of accounts segments. Based on our Organization structure, we will define the 4 level segments as below. For Each Segments need to click on the Flexfield Qualifiers to set the right accounting nature for each Chart of Account Segment.
Step 4:-
Value set creation for Oracle Chart of Accounts segments
Once, the chart of account structure has been created. We need to create the Value set for each segment.
As below, we have created 4 Value sets.
- XXGL_BUISNESS_UNIT
- XXGL_LOCATION
- XXGL_DEPARTMENT
- XXGL_NATURAL_ACCOUNT.
Now need to attach these values set with chart of Account segments. For this we need to go back to
Navigation: Setup–> Financials–> Flexfields –> Key –> Segments.
And find the Chart of Account Structure and Click on Segments button and then attach these values set with chart of Account segments as below.
Value Set
Value Set is a collection of values. It validates the values entered by the user for a flex-field, report parameters or a concurrent.
Navigation: System Administrator–> Application–>Validation–>Sets.
Step 5:-
Flexfield Qualifiers
A flexfield qualifier identifies a particular segment of a key flexfield. Usually an application needs some method of identifying a particular segment for some application purpose such as security or computations.
Now First part is completed as we have created the Chart of Account.
