Accounting Options

Accounting Options

In order to define accounting options. Navigate to GL Responsibility > Setup > Financials > Accounting Setup Manager > Accounting Setups à Search for the Primary Ledger & click on Update Accounting Options

Click on Update button against Ledger options

Give details as shown below (It will be auto-populated)

Click on Next & Give Retained Earning Account information 

Here we have given Retained Earnings Account only for ‘PD Motors’ company. The system will automatically generate the Retained Earning Account for other companies based on what we have given here.

As we have given Retained Earnings Account as 01.00.00.00.3310, system will generate other Retained Earning Accounts as 02.00.00.00.3310 &

 03.00.00.00.3310 etc. but instead, if we give Retained Earning Account anything except what is shown here (like 01.01.00.00.3310) the system will also try to generate Retained Earning Accounts accordingly (like 02.01.00.00.3310, 03.01.00.00.3310, etc.) but as per our Chart of Accounts Setup it is an invalid combination, so at later point of time (mainly while performing the closing process we’ll get an error saying that the system can’t generate Retained Earning Accounts) we’ll get an error regarding Retained Earning Accounts. So it is always advisable to give Retained Earning Accounts in the manner as what I have given.                   

Click on Next à Next à Finish

Next is to add Legal Entity to this Ledger. Click on Add Legal Entity twice & search for your Legal Entities & click on Apply

Now we have to tell the system which LE is for which company. We can do this by assign Balancing Segments to the LE. Click on ‘Update Balancing Segment Value’ & click on ‘Add  Balancing Segment Value’ & add the balancing segments as shown below

Save the record & give other details also as shown below

Note the following points

1.)    For PD Finance LE we have assigned 2 Balancing Segments (or Companies).

2.)    We have an option to make any changes (or even remove) Balancing Segments & LE before saving the records. Once saved, we can’t make any changes.

3.)    As we have assigned LE to our Primary Ledger We can see that in Primary Ledger Setups a new option was added. It is ‘Operating Units’

So we can conclude that we can only define Operating Units (& subsequently other sub-ledgers like OM, PO, AP, AR etc) only when we have assigned LE  to our Primary Ledger

1.)    As soon as we assign Balancing Segments to LE, we can see that ‘Intercompany Accounts’ option also came 

Click on Complete, you’ll get a warning message saying 

Press Yes. It will submit a the concurrent program ‘General Ledger Accounting Setup Program’

With this accounting setups are completed.