Chart of accounts in oracle apps R12

Chart of accounts in oracle apps R12

In this post , we will be discuss about Chart of accounts in oracle apps R12. Chart of Account is the Accounting Terminology. In Oracle r12, The Chart of Accounts (COA) is the account structure the organization uses to record transactions and maintain financial account balances. So, whatever, we do financial things in Oracle Fusion Application like Supplier Invoices, Customer Invoices it records with the Help of chart of Account and to maintain financial Balances. Once the Chart of Account Structure has been Implemented in application, it cannot be changed so we should be completely sure on this, what we are going to implement. Here below is the Detail Explanation and steps to create chart of Accounts in oracle r12.

What is chart of Accounts in oracle r12

Chart of Account is the Accounting Terminology. In Oracle r12, The Chart of Accounts (COA) is the account structure the organization uses to record transactions and maintain financial account balances. So, whatever, we do financial things in Oracle Fusion Application like Supplier Invoices, Customer Invoices it records with the Help of chart of Account and to maintain financial Balances.

 Once the Chart of Account Structure has been Implemented in application, it cannot be changed so we should be completely sure on this, what we are going to implement.

Implement chart of Accounts in oracle apps r12

1.       First thing, we need for the GL setup is ‘Chart Of Account’ .

Chart of Account helps to define Organization Accounting structure. Chart of Account is one of the Most important Part to decide and configure for any organization accounting structure.

2.       To Create Chart Of Account , We need to go .

Setup è Financials è Flexfields è Key è Segments

3.       Need to Search the Title ‘Accounting Flex-field’ to configure, Click on the ‘+’ icon to create the New chart of account for your Organization and click on the Segments button, to define the chart of Account Accounting Structure.

As below , I have created the New Key Flexfield Structure ‘XX_CHAROFACCTT_STRUCTURE’.

After that Click on Segments Buttons to create the chart of Account Segments.

4.       In Segments, we will define the chart of accounts segments. Based on our Organization structure, we will define the 4 level segments as below. For Each Segments need to click on the Flexfield Qualifiers to set the right accounting nature for each Chart of Account Segment. 

As below , As per our Business Structure , We have the given the First segment of chart of Account as a ‘ Balancing Segment’

As below, we have created these 4 segments for our chart of account structure.  As I said above , We need to set the Flexfield qualifiers for each segment to set the accounting nature.

Once, the chart of account structure has been created. We need to create the Value set for each segment. As below, we have created 4 Value sets.

1.       XXGL_BUISNESS_UNIT

2.       XXGL_LOCATION

3.       XXGL_DEPARTMENT

4.       XXGL_NATURAL_ACCOUNT.

Now need to attach these values set with chart of Account segments. For this we need to go back to

Setup è Financials è Flexfields è Key è Segments

And find the Chart of Account Structure and Click on Segments button and then attach these values set with chart of Account segments as below.

5. Now First part is completed as we have created the Chart of Account.

Chart of accounts in oracle apps R12