Customer Submitted Case Studies
Case Study on Sequencing in R12 Ledgers
Author: Jaya Kiran Pidatala – Chartered Accountant (Equivalent to CPA of USA) Contributors: Satyam Computer Services Ltd Skill Level Rating for this Case Study: Intermediate
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Case Study Abstract The case study briefly discusses about how I configured Accounting and Reporting sequences, the new functionality in Release 12 Ledgers. It also discusses how to setup Document Sequencing to differentiate between the accounting sequence and document sequence. The document gives a basic idea of the setup required for enabling the sequential numbering. The document is for readers with Intermediate knowledge and hence assumes that the readers are aware of the basic setups like Ledger, Legal Entity and Accounting Setup options in Release 12.
Case History In Release 12, Oracle has given us additional sequence numbering methodologies apart from the document sequencing available in 11i. So, in R12 Ledger Journals, we can have 3 types of sequential numbering. I had a requirement to demonstrate this new R12 functionality to one of our clients in one of the presales demo hence had to do the
required setup. I wanted to share my experiences in doing the setup to the readers with screenshots wherever relevant. In this case study, I have discussed in detail about how to setup Accounting sequence on the event of posting of a Journal Entry in Ledger. There are also few other events which I have discussed but the detailed setups of those is not covered in this document. I have also discussed how to setup Document Sequencing in R12 GL, the functionality of which existed in 11i. The setups demonstrated in this document totally reflect my understanding of Oracle setups.
Pre-Analysis Work I had taken up the below assumed requirements to demonstrate the sequence numbering. •
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Requirement 1: Client needs all the journals in the Ledger to have an automated sequence on posting. Purpose is to have a complete track on the journals posted Requirement 2: Client also needs separate tracking of all saved journals with category Addition. The sequencing should happen on saving the journal irrespective of their status.
Analysis Summary I have used the standard functionality of Accounting Sequencing introduced in Release 12 General Ledger to meet the first requirement and I have used the standard document sequencing functionality to meet the second requirement. I have discussed in detail the setup steps needed to enable Accounting sequencing for the event “Posting of Journals”. Oracle also gives other events on which we can enable sequencing, the setups and demonstration of which have not been discussed in this document. Detailed Analysis Requirement 1: I have done the demonstration on Vision Instance and have also copied the screenshots wherever relevant. •
Used the standard seeded ledger Visions Services (USA) and standard seeded responsibility General Ledger, Vision Services (USA)
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Step 1: Creation of Sequence I have defined an Accounting Sequence. The navigation in General Ledger is SetupFinancials-Sequences-Accounting-Define In the Sequence screen, I gave a unique sequence name, Initial number (should be integer greater than zero), and Effective dates. I found that Effective date from is mandatory but Effective date to is optional. Sequence Name: Vision Services GL Post Initial Number: 1001 Start Date: 08/01/2006 End Date: Null
Step 2: Selection of Sequencing Event – Entity I had queried the ledger in the Accounting setup Manager and opened up the Update Accounting Options Tab. I had clicked on the Update option in the “Sequencing” section Once I opened the Sequencing section of the Accounting options, I had done the below steps to complete the setup. At the first step, I had to select the sequence event and entity. Oracle has given 4 standard options which are 1. 2. 3. 4.
GL Period Close – GL Journal Entry GL Period Close – Subledger Journal Entry Posting – GL Journal Entry Accounting – Subledger Journal Entry
I briefly discussed about the options available below
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1. GL Period Close – GL Journal Entry: Oracle shall generate an automated sequence on the event Period Close. The numbering shall be only for GL Journals 2. GL Period Close – Subledger Journal Entry: Oracle shall generate an automated sequence on the event Period Close. The number shall be for all subledger journals. The same can be viewed through SLA 3. Posting – GL Journal Entry: Oracle shall generate an automated sequence on the event Posting. The numbering shall be only for GL Journals 4. Accounting – Subledger Journal Entry: Oracle shall generate an automated sequence on the event Accounting. The number shall be for all subledger journals. The same can be viewed through SLA. For the purpose of this case study, I selected “Posting – GL Journal Entry at the options and proceeded further.
Step 3: Creation of Sequencing Context Sequencing Context enables us to assign the sequences to the journal entries created by Subledger and General Ledger. For the option Validate Sequence by, I have selected Journal Effective Date. The sorting option Assign Sequence By is optional. The checkbox Require Assignment if checked denotes that the sequencing context needs to have a valid sequence assigned. Then, I clicked on Assign Sequences
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Step 4: Assign Sequences to sequencing context In this step, I had assigned the sequence that I defined to the context.
As shown in the above screenshot, I had assigned the sequence “Vision Services GL Post” to the context. The start date I had given as 08/01/2006 and end date as 08/31/2006. While the start date is mandatory, End date is optional. Also optionally, the balance type, Journal Source and Category can be chosen. Once it is done, I clicked on Apply and completed the setup. Demonstration: I have created a manual journal and posted it to demonstrate the sequencing functionality. I have copied the screenshots below.
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The Sequencing number got generated. It can be viewed on the tab Other Information on the journal.
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Requirement 2: I have done the demonstration on Vision Instance and have also copied the screenshots wherever relevant. •
Used the standard ledger Visions Services (USA) and standard responsibility General Ledger, Vision Services (USA)
Step 1: Creation of Sequence I have defined a document sequence. The navigation in General Ledger is SetupFinancials-Sequences-Document-Define In the Sequence screen, I gave a unique sequence name, Initial number (should be integer greater than zero), and Effective dates. I found that Effective date from is mandatory but Effective date to is optional. Sequence Name: Journal Initial Number: 1 Start Date: 09/01/2006 End Date: Null
Step 2: Assignment of the Sequence I have assigned the sequence defined to the Ledger and also assigned it to the category addition.
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As it can be seen in the above screenshots, I have attached the sequence JOURNAL to the application General Ledger and category Addition. The start date is 09/01/2006 and end date given is null. Step 3: Assignment of the profile option to the responsibility As the last step of the setup, I attached the profile option “Sequential Numbering” to the responsibility as “Always Used”. The other options available in LOV are Partially Used and Not Used.
Demonstration: I have created a manual journal and saved it to demonstrate the sequencing functionality. I have copied the screenshots below.
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There is a new field which is visible after document sequencing is enabled, once the journal is saved as shown in the screenshot above. The number gets generated in that field.
Results, Conclusion and Learnings This way, I had demonstrated the requirements using R12’s new functionality of Accounting & Reporting Sequences. Similarly, it can be observed that 11i’s document sequencing functionality still continues to exist and can be implemented over and above the new sequences given by R12. Some of the noteworthy metalink notes on R12’s sequencing are Metalink Note ID: 549621.1 and Bug No: 6878502
References Oracle Financials Implementation Guide Oracle General Ledger User Guide
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