Hierarchy Financial Setup Implementation Process

1. Define Value Sets

 Value sets determine the attributes of your account segments such as the
segment length, whether to require a segment value, value alignment, and
value security.

 Prior to the setup of attribute account segments it must be finalized and

approved by the Project Owner.

2. Create Key Flexfield Segment Structures

 Indicate how many separate segments your account will have, and for each
segment, enter a name, sequence number, and an associated value set.

 Key flexfield segment structures must be discussed and approved by the

project owner. This must be clearly discussed during COA Workshop

 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. You must
recompile your flexfield every time you make changes using this form,
including enabling or disabling cross-validation rules.

 You can see your flexfield changes immediately after you freeze and
recompile your flexfield. However, your changes affect other users only after
they change responsibilities or exit your application and sign back on.
3. Apply Flexfield qualifiers to your key flexfield segments

 For each qualifier, indicate whether it is enabled for your key flexfield
segment

 Designate one of your segments as the natural account segment and

another as the balancing segment. You can optionally designate a cost
center segment and/or intercompany segment. If you are using Oracle
Assets, Oracle Projects, or want to run revaluations by cost center, it is highly
recommended that you specify a cost center segment.

4. Loading of Segments Values (COA)

 Chart of Accounts for loading must be approved by the Project Owner.

5. Define Value Hierarchy Structures

 For ease of maintenance, value hierarchy structures must be carefully
plan before defining values, so that the structures will follow a logical
pattern that can expand later as need more values.

 Hierarchy Structures must be based on the final Chart of Accounts.

6. Define Security Rules

 Define Security Rules to restrict user access to certain account segment

values.

 Account segments for restrictions must be provided and approved by the

project owner

7. Define Cross Validation rules

 Define cross–validation rules to control the account combinations that can

be created during data entry.

 Cross validation rules must be based on the cross-validation defined in the

final COA by the Project Owner.
8. Define Calendar and Period

 Prerequisite in defining set of books

9. Define Set of Books

 A set of books determines the functional currency, account structure, and

accounting calendar for each company or group of companies.

10. Attach Legal Entity and Operating Unit

 Location and its address must be defined first using HRMS Responsibility
before we can attach Legal Entity and Operating Unit to the Organization

11. Define Master Inventory Organization

 Required setup in setting up Financial Options in Oracle Payables (Supplier

– Purchasing tab region.)

12. Define New Responsibilities

 Create new responsibility based on the approved BR120 (Security Matrix).

13. Define System Profile Values per Responsibility

 Attach the defined Operating Unit and GL Set of Books Name per
responsibility.

14. Run Replicate Seed Data Program per Operating Unit

 The purpose of the Replicate Seed Data Concurrent Program is to populate

the Installed modules to be populated with Seeded values

 Whenever new Organizations are created it is a pre-required step to be

completed before you can start work upon using that newly created
Organization

 The Replicate Seed Data Concurrent Program can always be run for a
particular Operating Unit or for all Operating Units (as it is not mandatory
parameter]
 Setup Process Steps
1. Define Value Set

 The value sets you define using these windows appear in lists of values you see
when you define flexfield segments using the Key Flexfield Segments window or
the Descriptive Flexfield Segments window.

 To Define Value Set:

1. Enter a unique name for this value set
2. Specify the list type for your value set
List type for your value set:
 Poplist: fewer that 10 values expected
 List of Values: between 10 and 200 values expected
 Long List of Values: more than 200 values expected
3. Specify the Security Type
Possible Security types:
 No Security: all security is disabled for the value set
 Hierarchy Security: Hierarchical Security is enabled. With hierarchical
security, the features of value security and value hierarchies are
combined. With this feature any security rule that applied to a parent
value also applies to its child values.
 Non-Hierarchical Security: security is enabled, but the rules of
hierarchical security do not apply. That is, a security rule that applies to a
parent value does not “cascade down” to its child values.
4. Enter the Format Type you want to use for your segment values
Valid format type:
 Char
 Date
 Date time
 Number
 Standard Date
 Standard Date Time
 Time
[ ]Numbers Only (0-9)
[X ]Uppercase Only (A-Z)
[ ] Right-Justify and Zero-fill Numbers (0001)
5. Enter the Maximum Size of the value set
6. Select your validation type
 Dependent
 Independent
 None
 Pair
 Special
 Table
 Translatable Independent
 Translatable Dependent

Attention: The Accounting Flexfield only supports Independent,

Dependent, and Table validation (table validation cannot have any
additional WHERE clauses).

7. Save
Sample Value Set Setup:

Note: In Segments Window please don’t forget to check the REQUIRED and SECURITY
ENABLED check box. For the value set to be required and security rules to be
functional.
 Responsibility: Oracle General Ledger Superuser

Navigate: SetupFinancialsFlexfields  Validation  Sets

2. Review the Completeness of the Setup

If Complete, goto task #3. Otherwise, goto task #2.

3. Review for possible Setup Error(s)

If With Error(s), goto task #3. Otherwise, goto task #4.

4. Create Key Flexfield Segment Structures

 Prerequisite Setup: Value Sets

 Select the application name and title of the key flexfield you want to define
 Application name: Oracle General Ledger
 Flexfield Title: Accounting flexfield
 Structure Code: Enter the structure code (sample: ATS_ACCOUNTING_FLEXFIELD)

 Structure Title: Enter the structure title

 Freeze Flexfield Definition: [YES]
 Cross-Validation Segments: [YES]
 Enabled: [YES]
 Freeze Rollup Groups: [NO]
 Segment Separator: [Dash (-)]
 Allow dynamic insert: [YES]
  Segment Summary Window (sample)
Number Name Window Prompt Column Value Set Displayed Enabled
1 SMI Company Company SEGMENT1 SMI_COMPANY * *
2 SMI Account Account SEGMENT2 SMI_ACCOUNT * *
3 SMI Revenue Center Revenue Center SEGMENT3 SMI_REVENUE_CENTER * *
SMI Cost Responsibility
4 Center CRC SEGMENT4 SMI_CRC * *
5 SMI Intercompany Interco SEGMENT5 SMI_INTERCO * *
6 SMI Location Location SEGMENT6 SMI_LOCATION * *

Responsibility: Oracle General Ledger Superuser

Navigate: SetupFinancials FlexfieldKey Segments

5. Review the completeness of the setup

If Complete, goto task #6. Otherwise, goto task #5.

6. Check for Possible Setup Error(s)

If With Error(s), goto task #5. Otherwise, goto task #7.

7. Apply Flexfield qualifiers to your key flexfield segments

 Apply flexfield qualifiers to your key flexfield segments

 Cost Center Segment: This attribute is used to identify the cost center
segment.
 Natural Account Segment: This attribute is used to identify the natural
account segment.
 Balancing Segment: This attribute is used to identify the balancing segment.
This is typically the company segment.
 Intercompany Segment: This attribute is used to identify the intercompany
segment
 Secondary Tracking Segment: This attribute is used to identify the secondary
tracking segment to process income statement closing, translation and
revaluation
  Common Flexfield qualifiers
1. Company is the Balancing Segment
2. Account is the Natural Account Segment
3. Cost Center Segment is the Cost Center Segment
4. Interc ompany is the Intercompany Segment

Responsibility: Oracle General Ledger Superuser

1. Query Key Flexfield Structure Name

2. Click Segments

3. Click Flexfield Qualifiers

Navigate: SetupFinancialsFlexfieldKeySegments

8. Review the completeness of the setup

If Complete, goto task #9. Otherwise, goto task #8.

9. Check for Possible Setup Error(s)

If With Error(s), goto task #8. Otherwise, goto task #10.

10. Loading of Segment Values (COA)

 Load the approved Segment Values thru Data Loader
 After Loading, double check the account level and qualifiers

Responsibility: Oracle General Ledger Superuser

Find Value by Key Flexfield, Segment2 - Account

Navigate: Setup FinancialsFlexfieldsKeyValues

11. Review the completeness and correctness of loaded Chart of Accounts

If Complete, goto task #12. Otherwise, goto task #11.

12. Check for possible setup Error(s)

If With Error, goto task #11. Otherwise, goto task #13.

13. Define Value Hierarchy Structure

 Export values in account segment then sort per account level (convert to excel
file)
 Create a dummy account as Level 0

Responsibility: Oracle General Ledger Superuser

Find Value by Key Flexfield, Segment2 – Account

In Segment Values Window, click Define Child Ranges

Navigate: SetupFinancialsFlexfieldKeyValues

14. Review the correctness of the setup

If Correct, goto task #15. Otherwise, goto task #14.

15. Check for possible setup error(s)

If With Error(s), goto task #14. Otherwise, goto task #16.

16. Define Security Rules

 To Define Security Rules

1. In the Segment Values block, identify the value set to which your values
belong. You can identify your value set or by the flexfield segment or concurrent
program parameter that uses the value set.

2. In the Security Rule region, enter a name and description for your security
rule.

3. Enter a message for this security rule. This message appears automatically
whenever a user enters a segment value that violates your security rule.

4. Define the security rule elements that make up your rule.

5. Save
 Responsibility: Oracle General Ledger Superuser

Find values by Key Flexfield

Navigate: SetupFinancialsFlexfieldsKeySecurityDefine

17. Review the correctness of the setup

If Correct, goto task #18. Otherwise, goto task #17.

18. Check for possible setup error(s)

If With Error(s), goto task #17. Otherwise, goto task #19.

19. Define Cross-Validation Rules

 To Define Cross-Validation Rules

1. Select the name and structure of your key flexfield for which you wish to
define cross-validation rules. Your list only contains structures with the field Cross-
Validate Multiple Segments set to Yes on the Key Flexfield Segments window.

2. Enter a unique name and a description for your cross-validation rule.

3. Enter your error message text for this cross-validation rule.

Your flexfield automatically displays this error message on the message line
whenever a new combination of segment values violates your cross-validation rule.
You should make your error messages as specific as possible so that your users can
correct any errors easily.

4. Enter the name of the segment most likely to have caused this cross-validation
rule to fail. Your flexfield leaves the cursor in this segment whenever a new
segment combination violates this cross-validation rule to indicate where your user
can probably correct the error. If you do not specify an error segment name, your
 flexfield leaves the cursor in the first segment of the flexfield window following a
violation of this rule.

5. If you want to have the rule effective for a limited time, you can enter a start
date and/or an end date for the rule. The rule is valid for the time including the
From and To dates.

6. Define the cross-validation rule elements that make up your rule.

7. Save

Responsibility: Oracle General Ledger Superuser

Navigate: SetupFinancialsKeyRules

20. Review the completeness and Correctness of your setup

If Correct, goto task #21. Otherwise, goto task #20.

21. Check for possible Setup Error(s)

If With Error(s), goto task #20. Otherwise, goto task #22.

22. Define Calendar and Period

 To define new calendar

1. Navigate to the Accounting Calendar window.

2. Enter a Name and Description for the calendar.

3. Add the periods that make up the calendar year.

4. Save
  When you exit the Accounting Calendar window, full calendar validation is
launched. You can choose to validate all calendars or the current calendar.
Navigate to Help > View > My Requests to view or print the Calendar Validation
Report. This report helps you identify any errors in your calendar that might
interfere with the proper operation of General Ledger.

Responsibility: Oracle General Ledger Superuser

Navigate: SetupFinancialsCalendarsAccounting

23. Review the correctness and completeness of your setup

If Correct, goto task #24. Otherwise, goto task #23.

24. Check for possible setup error(s)

If With Error(s), goto task #24. Otherwise, goto task #25.

25. Define Set of Books

 To Define a Set of Books

1. Enter Set of Books Name

2. Enter the Description Name

3. Enter the Short Name

4. Attach Key Flexfield Structure

5. Enter Functional Currency

6. Calendar: Attach Calendar

7. Choose Period Type

8. In Closing Tab Region, Enter Retained Earnings complete combination

9. Save
 Responsibility: Oracle General Ledger Superuser

Navigate: SetupFinancialsBooksDefine

26. Review the correctness and completeness of your setup

If Correct, goto task #27. Otherwise, goto task #26.

27. Check for possible Setup Error(s)

If With Error(s), goto task #26. Otherwise, goto task #28.

28. Define Organization Names

 To attached Legal Entity and Operating Unit

1. Query the Organization Name defined

2. In Organization Classification, choose GRE / Legal Entity and Operating Unit

3. Click Others

4. Fill-up the required information

 For GRE / Legal Entity Others

1. Choose Legal Entity Accounting  OK

2. Enter Set of Books, Short Name

3. Enter VAT Registration Number

4. Click Ok

5. Save
  For Operating Unit  Others

1. Choose Operating Unit Information  OK

2. Choose the defined Legal Entity

3. Choose Set of Books, Short name

4. Click Ok

5. Save

Responsibility: Oracle Inventory Superuser

Navigate: SetupOrganizationsOrganizations

29. Check for the Correctness of your setup

If Correct, goto task #30. Otherwise, goto task #29.

30. Check for possible Setup Error(s)

If With Erorr(s), goto task #29. Otherwise, goto task #31.

31. Define Master Inventory Organization

 To define Master Inventory Organization

1. Enter Organization Name

2. Choose Inventory Organization as type

3. Choose the Location for list of values

4. Choose the Address form list of values

5. In Organization Classification, choose Inventory Organization

6. Click Others
 7. Choose Accounting information  OK
 Choose Set of Books, short name
 Choose Legal Entity
 Choose Operating Unit
 Click OK

8. Choose Inventory Organization  OK

 Fill-up Inventory Parameters Tab Information
 Fill-up Costing Information Tab Information
 Fill-up Revision, lot, Serial Tab Information
 Fill-up Inter-Org Information Tab Information
 Fill-up Other Accounts Tab Information

9. Choose Receiving Information  OK

 Fill-up the Receiving Option information

Responsibility: Oracle Inventory (Super User Access)

Navigate: SetupOrganizationsOrganizations

32. Review the completeness and correctness of your setup

If Correct, goto task #32. Otherwise, goto task #33.

33. Check for possible setup error(s)

If With Error(s), goto task #32. Otherwise, goto task #34.

34. Define New Responsibilities

 To Define Responsibility

1. Enter unique Responsibility Name

2. Choose Application

3. Enter Responsibility Key

4. Enter Description
  For Available From
 Choose Oracle Applications

 For Data Group

 Name: Choose Standard
 Application: <choose from LOV>

 Choose Menu from list of Values

 A menu is a hierarchical arrangement of functions and menus of functions.
Each responsibility has a menu assigned to it.

 For Request Group

 Choose Request group name
 Choose Application name
A request security group is the collection of requests, request sets, and
concurrent programs that a user, operating under a given responsibility, can select
from the Submit Requests window.

Responsibility: System Administrator Responsibility

Navigate: SecurityResponsibilityDefine

35. Define System Profile Values per Responsibility

 Attach Operating Unit and GL Set of Books Name profile per Responsibility

Responsibility: System Administrator Responsibility

Navigate: ProfileSystem
36. Run Replicate Seed Data Program per Operating Unit

Responsibility: System Administrator Responsibility

Report Name: Replicate Seed Data

Parameters: Operating Unit

Navigate: RequestsRun

End of activity.

NOTE: Some setup may depend on the business requirements.