Oracle EBS R12 General Ledger Setup - Part 2

4 Cs are the pillar of General Ledger Setup therefore each pillar should be designed and configured properly and your business financial structure based on each pillars, following are the details and steps, how we can defined in Oracle EBS R12. 

1st "C"

Chart of Accounts (COA)

First C in E Biz setup which was covered in Part 1 i.e. Chart of Accounts

Setup > Financials > Flexfield > Key 

2nd "C" 

Currency

Currency in General Ledger is one of the 4C’s.

In Oracle e-business suits R12, an addition feature provided by oracle is to have a separate reporting currency and user don’t need to define new ledger if he want to view financial reports other than functional currency and for this user need to define a reporting currency in Accounting Setup Manager

Two Types of Currency provided by Oracle in R12 are

Functional Currency: Functional Currency is business local currency and this attached with primary ledger. Like Functional currency for USA is USD. Any business that operate in USA will have a Functional currency USD but it doesn’t mean business can not chose functional currency other than USD. A USA firm can assign functional currency as Japnese “Yen”

Entered Currency: Other than Functional Currency used in Ledger for entering in transactions called entered Currency or foreign Currency. Like if multinational organization is operated in Pakistan and its functional currency is PKR but it used other than PKR like USD or Yen than that currency will be entered Currency. It always converted to functional currency when it will be posted into final accounts. 

Setup> Currencies > Define

3rd "C" 

Calendar

Calendar defined to enter the monetary business transaction over specified period of time. There are two type of calendar in E-Biz R12.

Calendar in General Ledger is one of the 4C’s which is compulsory to design and defined as per standards

Fiscal: fiscal used in business/enterprise which can start business in any month of the year and this calendar designed and defined on specific month like you have Orange Fruit Processing Business and your business start it from November. Then you can define your calendar from November and your first period will be “November-XX” and ends on “March –XX” whereas “XX” represents year.

In Ebs R12, we have to define type first which shows which type of calendar you want to use for your business and how many periods you want to define

Setup > Financials > Calendar > Type

Setup > Financials > Calendar > Accounting

4th "C" 

Accounting Convention

In Ebiz it mentioned while defining Ledger therefore we will see this in detail in Part 3 of GL Setup

Setup > Financials > Accounting Setup Manager