Subledger to General ledger Journal entry summarization options
Setup for Transferring journals from subledger.
Subledger to general ledger entry summarization options in details
The subledger to general ledger journal entry summarization option is used to determine how subledger journal ledger journal entries are summarized when they are posted/transferred from any of the subledger module.
In Oracle Cloud, when summarizing subledger entries for posting to the general ledger, there are several options available. This implies that we can have separate selection for each of the subledgers for GL summarization.
1. Payable can have GL summarization as ‘No Summarization’.
Transaction and journal examples for each of the above five methods of GL journal entry summarization given below
Let us consider the following three Invoices in payables, accounting for which will be shown in three methods.
Invoice No. | Invoice Date | Amount | Debit Account (Item Expense Account) | Credit Account (Liability Account) |
1 | 15-Jan-2012 | 2000.00 | 220011 | 221444 |
2 | 15-Jan-2012 | 1000.00 | 220055 | 221444 |
3 | 15-Jan-2012 | 3000.00 | 220011 | 221444 |
we can see that the account for item expense for the Invoices 1 and 3 are same, while In the invoice 2 has a different account for item expense.
Liability account for all three invoices are same.
Subledger to General ledger journal entry summarization options
GL Journal Entry Summarization as “No Summarization”
Case 1 : No Summarization option is selected, here each Invoice will be treated as a separate journal in GL when create accounting program is run.
The journal created for the three invoices are as follows
Invoice No | Journal Name | Journal Date | Account | Debit Account | Credit Account | Journal Line Description |
1 | Journal 1 | 15-Jan-2012 | 220011 | 2000.00 | Voucher1 | |
221444 | 2000.00 | Voucher1 | ||||
2 | Journal 2 | 15-Jan-2012 | 220055 | 1000.00 | Voucher2 | |
221444 | 1000.00 | Voucher2 | ||||
3 | Journal 3 | 15-Jan-2012 | 220011 | 3000.00 | Voucher3 | |
221444 | 3000.00 | Voucher3 |
Each of the journal lines description will have the AP Invoice Voucher number. Every journal will have a separate/unique journal document sequence number.
GL Journal Entry Summarization as “Summarize by GL date”
lets assume the option summarization by GL date is selected, this time system will create one journal based on the GL date and journal category for all the three invoices, as all the three Invoices have same GL date and same journal category.
The journal lines the journal will be grouped based on the account in the journal.
Journals will be created for the three invoices as shown below
Invoice No | Journal Name | Journal Date | Account | Debit Account | Credit Account | Journal Line Description |
1 | Journal 1 | 15-Jan-2012 | 220011 | 5000.00 | ||
220055 | 1000.00 | |||||
221444 | 6000.00 |
The journal will not have AP invoice voucher number on the journal lines as that might be the sum of many Invoice lines.
This option will have lowest number of rows in journal lines with respect to No Summarization or Group by GL date.
GL Journal Entry Summarization as “Group by GL date”
Lets suppose the option Group by GL date is selected, the system will create one journal based on GL date of the invoices and journal category for all the three invoices ,as all the three Invoices will have same GL date and same journal category. However, the journal lines will not be grouped based on the account in the journal.
Every Invoice will be shown separately/differently in the same journal.
Journals will be created for the three invoices as shown below
Invoice No | Journal Name | Journal Date | Account | Debit Account | Credit Account | Journal Line Description |
1 | Journal 1 | 15-Jan-2012 | 220011 | 2000.00 | Voucher1 | |
220055 | 1000.00 | Voucher2 | ||||
220011 | 3000.00 | Voucher3 | ||||
221444 | 2000.00 | Voucher1 | ||||
221444 | 1000.00 | Voucher2 | ||||
221444 | 3000.00 | Voucher3 |
The AP Invoice Voucher numbers will be displayed in the journal lines as shown above.
Under this method, the number of records in journal header will match to the journal headers rows under summarized by GL date. The number of records in journal lines will match the journal lines records under No Summarization option.
Period-end Accounting and Journals
let us consider the following Invoices for period-end accounting. All the Invoices are created on different dates, but they fall in the same period.
Invoice No | Invoice Date | Amount | Debit Account (Item Expense Account) | Credit Account (Liability Account) |
1 | 15-Jan-2012 | 2000.00 | 220011 | 221444 |
2 | 18-Jan-2012 | 1000.00 | 220055 | 221444 |
3 | 28-Jan-2012 | 3000.00 | 220011 | 221444 |
GL Journal Entry Summarization as “Summarization by GL period”
If the option summarization by GL period is selected, the system will create only one journal based on GL period and journal category for all the three invoices since the invoices have same GL period and journal category. If create accounting program is run multiple times throughout the period, all journals created will have the same date. The journal lines will also be grouped based on the account in the journal.
The journal entry created for the three invoices of the above example is provided below
Invoice No | Journal Name | Journal Date | Account | Debit Account | Credit Account | Journal Line Description |
1 | Journal 1 | 31-Jan-12 | 220011 | 5000.00 | ||
220055 | 1000.00 | |||||
221444 | 6000.00 |
The GL date derived will be the last date of the period. If create accounting and transfer to GL program runs multiple times throughout the period, all journals created will have the same date.
GL Journal Entry Summarization as “Group by GL period”
If Group by GL period is selected, the system will create only one journal based on GL period and journal category for all the three invoices as all the Invoices have same GL period in the example and journal category. However, the journal entry lines will not be grouped based on the accounts in the journal. Each Invoice will be shown separately in the same journal.
The journal entry created for the sample three invoices of the above example is provided below
Invoice No | Journal Name | Journal Date | Account | Debit Account | Credit Account | Journal Line Description |
1 | Journal 1 | 31-Jan-12 | 220011 | 2000.00 | Voucher1 | |
220055 | 1000.00 | Voucher2 | ||||
220011 | 3000.00 | Voucher3 | ||||
221444 | 2000.00 | Voucher1 | ||||
221444 | 1000.00 | Voucher2 | ||||
221444 | 3000.00 | Voucher3 |
The AP Invoice Voucher numbers will be displayed in the journal lines.
Only one journal document sequence number will be generated for all three invoices.
In this method, the number of records in journal header will match to the journal headers rows under summarized by GL period. The number of records in journal lines will be more than journal lines records under summarize by GL period option.
This setup for GL transfer options is available under GL super user responsibility
Navigation : Go to Setup: >Financials:>Accounting Setup
Managerà Accounting Setupsà Subledger accounting options
Click on the desired subledger, here in this example, Payables is selected, after that choose Update Accounting Options.
Fig 1
Shows the selection of option ‘Update Accounting Options.’
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Fig2
the field->GL Journal Entry Summarization have five options to select from.
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