What is Chart of account structure instance in oracle cloud?

What is chart of account structure instance in oracle cloud?

In this blog we will see what is chat of structure instance in oracle cloud and what is the importance of chart of account structure instance in oracle. We will also see scenario when we create multiple chart of account structure instances.

What is chart of account (COA) Structure in oracle cloud?

Defining chart of account (COA) structure in oracle cloud is one of the very important steps for any organization. Chart of account (COA) is used to record the transaction in a ledger for a company. In chart of account you define different segments for the business , segments can be referred as different dimensions of the business.

The Chart of Accounts (COA) structure in oracle cloud is a framework used to organize and categorize financial transactions and accounts within an organization. The COA is a key element in the Oracle Financials system and is used to classify and report financial information, such as revenues, expenses, assets, and liabilities.

The chart of account COA structure in oracle cloud is typically based on a hierarchical model, with each account represented by a unique account code or number. The account codes are organized into segments, which correspond to different levels of the hierarchy. For example, a typical chart of account COA structure in Oracle might consist of segments for Company, Division, Department, Account, and Sub-Account.

What is chart of account structure instance (COA instance) in oracle cloud?

Previously there was no concept of chart of account structure instance in oracle E- business suite but with the development of oracle cloud we have this new functionality known as chart of account structure instance (COA).

With this new chart of structure instance in oracle cloud we can create multiple instances of a single char of account COA structure as per our requirement.

In Oracle, a Chart of Accounts (COA) instance is a specific implementation of the chart of accounts COA structure that is tailored to the needs of a particular organization. The chart of account structure instance defines the specific account codes, segments, and values that are used to classify and report financial transactions within the organization.

A chart of accounts structure COA instance in Oracle cloud is typically created as part of the implementation process for the Oracle Financials system. During this process, the COA structure is customized to meet the specific needs of the organization, and a chart of accounts structure COA instance is created that reflects this customization.

Let us understand Chart of account structure instance (COA instance with an example)

Let us assume we have a organization ATC limited which operates in UK and US

Both the UK and US entities follows the same chart of account structure (COA) the only difference is that UK has a completely different set of accounts for its accounting.

In the above scenario, there will be two ledger's 

ATC UK limited

ATC US limited

So as per the case we will define the chart of account structure only once as both entities follows same structure but as UK has different set of accounts wo we will define a chart of account structure instance which is copy of the parent chart of account structure and just will change the account segment value set. 

So the key point here is chart of account structure instance in oracle cloud keeps all the identities of parent structure simultaneously it allows you to change the value sets attached to the particular segments which makes if more flexible to adjust the requirement.

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 Supplier is not appearing in the supplier LOV on the AP invoice

Supplier doesn't appear on the invoice in supplier column even after the supplier and supplier site are created

After creating the supplier and supplier site when creating the AP invoice not able to see the supplier in the supplier LOV, supplier doesn't appear in the  supplier LOV

In this post we will see a common issue related to AP invoice where we are not able to see the supplier which is created in the system. The supplier and it's related sites are created in the system but still supplier is not appearing on the invoice. 

Let us see the cause for this issue

Supplier is created in the system also supplier sites are created correctly but supplier site assignment's are not done.

Supplier site assignment is a must to setup before you created any AP invoice in the system.

Now let's us see the solution for the issue

in order to resolve this issue , please follow the below steps 

Search for the supplier

Navigator>Procurement>Suppliers

select the task manage supplier and search for the supplier

Supplier is not appearing on the AP invoice

Supplier doesn't appear in the supplier LOV on the invoice

Now navigate to the supplier site under site tab and click on Edit pencil icon

Once the site is opened under the site assignment tab assign the business unit for which this site is applicable.

Supplier is not appearing on the invoice

One this is done save and close the page. Go to AP invoices supplier will appear on the invoice under supplier LOV

Supplier is not appearing on the invoice
Supplier doesn't appear on the AP invoice in supplier LOV

 

 Overview of Value sets in Oracle Cloud

In this post we will see the complete overview of value sets in oracle cloud and all of its properties

What is value sets in oracle could

First of all let us understand what is a value set. In easy words we can say a value set is a container which stores values based on some validations. You can use these value sets in your key flex filed segments ,  descriptive flex flied segments , for reports etc.

In Oracle Cloud, a value set is a predefined list of values that is used to define the allowable values for a particular attribute in an application. A value set is essentially a set of validation rules that ensures that the values entered for a particular attribute conform to a specific format or range.

Value sets can be used across multiple applications in Oracle Cloud, and they can be shared by different users and roles within the same application. Value sets are designed to help ensure data accuracy and consistency, which can help improve the quality of data and reduce errors in applications.

Setups to create value sets in oracle cloud

So far we have understood what is a value set in oracle cloud. In order to create a value set you need to go to oracle cloud application and choose ‘Manage Value Sets’ Task under ‘Setup and Maintenance’.

Navigator->Setup and Maintenance->Manage Value Sets

Click on the '+' icon below page will open up

What is Value sets in Oracle Cloud

Value Set Code :    Enter the name of the value set.

Description      :     Enter the description of the value set.

Module            :     Select the appropriate module for which this module is going to be used.

Validation Type:   This Parameter is important and decides what type of validation to be put on this value set. Following values are available in Validation type.

                             

Independent : An independent value set is a predefined list of values that is not dependent on any other value set or attribute. This type of value set is typically used for simple attributes with a limited number of allowable values.

Dependent   : A dependent value set is a predefined list of values that is dependent on another value set or attribute. This type of value set is typically used for more complex attributes that require a hierarchical or multi-level set of values. For example you created a value set City which depends on another value set State. So this this case based on the values of value set State values in the Value set City are available to choose.

Table           :  A table-validated value set is a predefined list of values that is based on a table in the Oracle Cloud database. This type of value set is typically used for attributes that require a large number of allowable values or for attributes that need to be updated frequently.

Subset        : Subset value set validation type is used when you want subset of values of an independent value set.

Format Only:  Format only value set is used when you want end user to enter the values for this value set.  

Value Data Type : This filed is used to define the validation on the values which will be stored in the  value set. Following are the List of values available for selection.

Character     : If you select character , then you need to define , Value sub type whether values are Text , Numeric or alphanumeric

Number       : If you select Number , you need to define the precision and scale for the numbers.

Date            : Select if you want to store date only without time.

Date and time: Select If you want to store date with time stamp

After providing all the information click save and close.

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 General ledger setups in sequence in oracle cloud

Oracle cloud general ledger setups in sequence

In this post we will see the oracle cloud general ledger setups task in sequence. All the necessary setups in order to run the general ledger module in oracle cloud. With the help of these sequential setups we can easily run the general ledger module of oracle cloud.

Below are the oracle cloud general ledger setups in sequence to be done to make the GL module functional

Note : Apart from these there are many other setups which can be done in GL module as per the client specific requirements, but I have just tried to highlight the basic setups to be done in order to make general ledger module functional.

General ledger setups in sequence in oracle cloud

Sequence Number                                              Setups to be done

1                                                                     Create Accounting Calendar

2                                                                     Create Currencies ( If required )

3                                                                     Create Accounting method (if required )

4                                                                     Create Value sets

5                                                                     Create Chart of Accounts (COA)

6                                                                     Create Chart of accounts structure 

7                                                                     Create COA segments and assign sequence                                                                              and value sets to segments

8                                                                      Create COA structure instance and Deploy                                                                              Accounting Flexfield

9                                                                     Create value set values

10                                                                     Create Legal Address

11                                                                     Create Legal Entity

12                                                                     Create Primary Ledger

13                                                                     Specify Ledger Options for primary ledgers

14                                                                     Assign Legal Entity to Primary Ledger

15                                                                     Assign Balancing Segment Values to Legal                                                                                Entity

16                                                                     Review and submit Accounting                                                                                                Configuration

17                                                                     Assign GL Roles to User

18                                                                     Assign Data Access Set to GL roles

19                                                                     Open General ledger Periods

20                                                                     Create Journal and Post

Additional setups which can also be done in GL as per requirements

21                                                                     Cross Validation Rules for security

22                                                                     Security Rules for restrictions

23                                                                     Create Ledger Set for security and reporting                                                                              purposes 

24                                                                     Creation of Reporting Ledger for reporting                                                                              currency  requirements

25                                                                     Creation of Secondary Ledger for statutory                                                                               requirements

26                                                                     Auto Posting for subledger journals                                                                                         autoposting

27                                                                     Auto Reversal ( if required )

28                                                                     Create Budget ( for control )

29                                                                     Journal Approval (for control )

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