GL Module USEFUL INFORMATION

/* HOW THE GL ACCOUNTS ARE SET UP STEP BY STEP :

Let us start from our basic accounting equation again i.e
Assets = Liabilities + Owners Equity + Revenues - Expenses.
As we said before , we define an accounting structure consisting of segments. And
then we define the values for each segment of this flexfield.
Define the Accounting Flexfield Segments Structure and Freeze it. At this time of
defining each segment,you will also set what is the balancing segment, cost
center/dept/BU segment, natural account segment,intercompany account segment
etc for each account segment. This structure is also called as the Chart of Accounts
Structure(COA) Define the values for each segment of the above flexfield structure.
Usually value sets are defined for each segment and attached to each segment. Any
new values that you define for a particular segment will also go into that value set.
At this point of time, also set the attribute values like Allow Posting, Allow budgeting
etc, for each specific account segment value. Define the security and cross-validation
rules. Define the account combinations. You have to do this manually (i.e you enter
these manually in the screen). While you do this, the system checks for the security
and cross validation rules. while you are doing this ,the system will automatically
qualify each account as the asset, liability etc based on the natural account setting.
The other option for this is to use the convenience of WebADI. Using which we can
define layout and then using that layout define the combinations in a spreadsheet
and then upload those combinations using the ADI. This is the most common way of
creating the combination.
Define the Currencies(rates etc)
Define the Calendar (after defining period types etc),i.e thru
setups => financials => calendars => accounting.
Define Now the Set of Books (using the above ,Chart Of Accounts, Currency and the
Calendar).While defining the SOB,set the proper values of the different tabs.
*/
select * from gl_sets_of_books
where set_of_books_id = fnd_profile.value('GL_SET_OF_BKS_ID')
Usually an accounting segment would have as structure like
Company | Dept | Account | Line1 | Line2.
/*Balancing Segment : When we set up the account, usually we mention what is the
balancing segment. What this means is that any account up to that level should have
a credit ,debit balances tallied. In this above example typically company is the
balancing segment. However for a specific dept ,it may not balance, because it
could be possible that we post credit entry in one dept and debit entry in another
dept account. However since both the depts will fall under the same company, at the
company level, it should balance.
*/
/*Typically what happens is that, we define all the leaf level account values and start
defining the parent values or rollup groups (You can create new rollup groups or edit
existing rollup groups using the Account Hierarchy Manager. Rollup groups are
groups of parent segment values you use to create summary accounts)
What I have noticed is that, only the leaf level account values are having the Allow
Posting set to Yes. Each account value is associated with some attributes,which you

can see when you click on the Qualifier field. These attributes are Allow Budgets,
Allow Posting, Control Account
etc. You can set these attributes both at the account segment values level or at the
combinations level. Typically if you change the attributes like enabled, begin date
etc,we can propagate by running the
"Segment Value Inheritance Program".
For ex, if we find that a particular account segment value is no longer required, then
we can disable it, or change the end date. After this if we run the above program,
then it will inactivate all the code combinations having that account segment value
(as long as the preserved flag is not
checked for that particular combination). In either case, going forward no
combination will be generated with the account segment having that particular value.
*/
/*Undefined Department :Many times you see that there is an undefined dept,
typically the value 000 ?
An undefined department will consist of a statistical value corresponding to all the
departments. for ex we can define a statistical journal which consists of the square
footage of all the departments.
*/
-- CONCEPT OF POPULATING ACCOUNTING COMBINATIONS :
/*The first thing we might feel is after defining the set of books, accounting
structures & segments, cross validation ,why can't the system just go ahead and
define all possible combinations of values for the accounting structure. That is for ex,
let us say we have a 10 segment accounting structure and you have defined few
cross validation rules for each segment which is part of the setup. Now if the system
goes ahead creates the accounting combinations ,by
following the rules, then it
would be a mind-boggling number of records that would be generated. Now in our
case, let us say if each segment has 200 values and with 10 segments it would be
200 * 200 * 200 * 200 * 200 * 200 * 200 * 200 * 200 * 200 And that would be billions
of records in this table.*/
select count(*) from gl_code_combinations
/*And for this reason of huge volume of records in this table, we use a combination
of two steps.
Firstly the functional experts will decide whatever is required in a spreadsheet and
use ADI/WebADI to upload those accounting combinations from the spreadsheet into
the system. And if you need anything else the "Dynamic Insert" option of flexfield
definition will allow them to add a new combination. So as long as you dont enter any
combination which violates a cross-validation rule, you can enter a new accounting
combination. Hence to summarize, the combination of these two steps, should work
for every one,
ADI/WebADI to upload the initial accounts.
Dynamic Insert Feature to create new accounts.
The above should make it clear the concept about GL code combinations.