Defining Accounting Setups

Defining Accounting Setups

Accounting Setups consists

1.)    Legal Entities

2.)    Primary Ledger: It includes Currency, Calendar, Chart of Accounts & SLA

3.)    Accounting Options: It includes Legal Entities, Primary Ledger & Secondary Ledger

Navigate to Setup > Financials > Accounting Setup Manager > Accounting Setups

Search for Ledger & click on Update Accounting Options

In Primary Ledger, First Setup step is Ledger Option. Click on Update & click on Next to go to Step 2. Give Retained Earning Account details as shown below

Once done, click on Next (twice) & finish

Now click on Add Legal Entity. Again click on Add Legal Entity in the subsequent form which opens

Click on Apply

Similarly add another Legal Entity

As Balancing Segment value is not updated. Click on Update Balancing Segment Values & in the subsequent form which opens. Click on Add Balancing Segment Value.

Note: For VS Motors LE we’ll add Balancing Segment as VS Motors, but for VS Infotech LE we’ll add both VS Infotech as well as VS Finance.

Give details as shown below

& click on Apply

With this we are done with Legal Entities & Primary Ledger Setups.

Only when a Legal Entity is associated to a Ledger, we can see Operating Unit appearing under Primary Ledger Setup Step

Operating Unit: The Major Components of an operating units are

1.)    Primary Ledger: It is assigned to Operating Unit to share accounting information like currency, calendar, chart of accounts & Sub Ledger Accounting.

2.)    Legal Entity: It is assigned to Operating unit to share income tax & internal bank accounts information

3.)    Business Group: It is assigned to Operating Unit for security purpose or Multi Org Access Control (MOAC)

Click on Update button against operating unit. Click on Add Operating Unit & give details as shown below

Click on Apply

With this the operating unit is defined. Alternatively, it can also be defined from HRMS Responsibility