Oracle Chart of Accounts Setup

Hi friends, we are going to discuss about the Oracle Chart of Accounts Setup. We will share the detail steps to implement the chart of accounts in oracle. We will share the complete configuration details for oracle chart of accounts. We do create the chart of accounts for accounting flexfield. Chart of accounts in oracle is the combination of multiple segments. Chart of accounts/Accounting flex field helps to record the accounting entries for the system transactions in oracle apps.

Chart of Account is the Accounting Terminology. In Oracle Fusion, 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.

Step by Step for Oracle Chart of Accounts Setup

Step 1:- Here below is the Oracle Chart of Accounts setup steps. We need to goto the General Ledger responsibility. 

Navigation : Setup è Financials è Flexfields è Key è Segments

Oracle Chart of Accounts Setup

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.

Oracle Chart of Accounts Setup

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. 

Oracle Chart of Accounts Setup

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

Oracle Chart of Accounts Setup

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.

Value set creation for Oracle Chart of Accounts segments

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.

Oracle Chart of Accounts Setup

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