Guided Demonstration - Create Accounting Setup

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Guided Demonstration - Create Accounting Setup

Logon: SSCNEWALL/Welcome

Responsibility: General Ledger, SSC Worldwide

This demonstration will show you how to use the Accounting Setup Manager to perform the accounting setup for a newly acquired company in France. You will the createentities, operating units, and the ledgers and reporting currencies needed to meet different reporting requirements.

Scenario

SSC US, a US-based company, currently has operations in both the US and Italy. Here is a graphical representation of how the legal entities and ledgers are currently defined for both the parent company and Italian subsidiary:

SSC US has just acquired a Company in France called <Your initials> SSC France, a non-profit organization. You must set up the accounting for this newly acquired company in France. The following depicts how the parent company would like their French subsidiary set up:

There is one legal entity and one operating unit.
The primary ledger represents the corporate representation that uses the same ledger attributes as the parent, except the currency is the local currency in Euros.
A subledger level reporting currency in US Dollars is assigned to the primary ledger for corporate reporting and consolidation needs.
To meet statutory reporting requirements for the local French authorities, a subledger level secondary ledger is assigned that uses a different chart of accounts and accounting method.

Create the French Legal Entity

(N) Setup > Financials > Accounting Setup Manager > Accounting Setups >
(T) Legal Entity (B) Create Legal Entity

Note: Only the required attributes are listed here to quickly create a legal entity.

Territory / France
Legal Entity Name / <Your Initials> SSC France
Organization Name / <Your Initials> SSC France
Legal Entity Identifier / <Your Initials> F123456
SIREN / <Your Initials> F123456
SIRET / <Your Initials> F123456
Transacting Entity / Yes
Address / 96, Avenue Francois Arago, 92000, Naterre, France

Create Accounting Setup Structure

(N) Setup > Financials> Accounting Setup Manager > Accounting Setups >
(B) Create Accounting Setup

1.Create an accounting setup that includes the following setup components:

Legal Entity: <Your Initials> SSC France
You should assign the legal entity you just created.
For the Primary Ledger, enter the following:

Name / Chart of Accounts / Accounting Calendar/ Period Type / Currency / Subledger Accounting Method
<Your Initials> SSC France PL (Corp) / Primary Ledger Flex / Accounting13/ Month / EUR / Standard Accrual

For the Secondary Ledger, enter the following to define a Subledger level Secondary Ledger:

Name / Chart of Accounts / Accounting Calendar/ Period Type / Currency / Subledger Accounting Method / Data Conversion Level
<Your Initials> France SL / SSC Secondary France Ledger / Accounting13/ Month / EUR / FR Accrual with Encumbrance Accounting / Subledger

Assign a subledger level reporting currency to the primary ledger in the currency, USD:

2.Verify that your structure looks something like this before saving the structure:

3.Once you finish creating your structure, you will receive a confirmation message informing you that you can define your accounting options now or later. Choose to define your accounting options now.

Assign Specific Balancing Segment Values (BSV) to your Legal Entity

Assign balancing segment value "101" to your legal entity to easily identify and secure transactions by legal entity and use Advanced Global Intercompany System.

Once you assign balancing segment values to your legal entity, you limit the balancing segment values that can be used for transaction processing and journal entry for this legal entity and its operating units and ledgers.

4.Update the balancing segment values and assign value 101 your legal entity.

Hint: Click Update Balancing Segment Values icon for the Legal Entity.

Complete Primary Ledger Definition

5.Use the following information to completely define your primary ledger. For options not listed, accept the defaults.

Name / <Your Initial> SSC France PL (Corp)
Short Name / <Your Initials> Whatever you want
First Opened Period / 13-04
Number of Future Enterable / 1
Entered Currency Balancing Account / 101.100.29900.0000.000.000.000
Retained Earnings / 101.100.33100.0000.000.000.000
Default Period End Rate Type / Period End875
Default Period Average Rate Type / Period Average875
Cumulative Translation Adjustment Account / 101.100.35000.0000.000.000.000

Notice the status is now complete for this step.

Complete Reporting Currency

6.Use the following to completely define your primary ledger's reporting currency. The name of the reporting currency is system-generated and named after the primary ledger with the currency of the reporting currency appended to the end of the name.

7.Change the name of the subledger level reporting currency to <Your Initials> France ALC (USD).

Name / <Your Initials> France ALC (USD)
Short Name / <Your Initials> SSC FR ALC (USD)
Rounding Difference Tracking Account / 101.100.78550.0000.730.000.000
Default Rate Type / Corporate
Retain Transaction Type / Yes

8.For the Journal Source and Category Conversion, leave the default to YES for the source and category "Other". This means you want to automatically convert all journals entered in GL to this reporting currency.

Note: By default, the subledger sources are set to No. This is because it is a subledger level reporting currency resulting in Subledger Accounting (SLA) handling the currency conversion to the reporting currency—NOT GL Posting.

9.When finished, select Apply and then Complete mark the step complete and return to Accounting Options page to continue with other steps.

Complete Secondary Ledger Definition

10.Use the following information to complete your secondary ledger:

Name / <Your Initials> SSC France SL (EUR)
Short Name / <Your Initials> Whatever you want
First Opened Period / 13-04
Number of Future Enterable / 1
Entered Currency Balancing Account / 101.100.471000.0000.000.000.000.000
Retained Earnings / 101.100. 120000.0000.000.000.000.000
Enable Budgetary Control / Yes
Reserve for Encumbrance Account / 101.100.800000.0000.000.000.000.000

Complete Primary to Secondary Ledger Mapping

Because the secondary ledger uses a different chart of accounts from the primary ledger, you need to provide instructions to the system on how to replicate journals entered in the primary ledger to the secondary ledger. Also, you can specify other options such as whether or not you want journals automatically posted in the secondary ledger

11.Use the following information to complete your secondary ledger:

COA Mapping: PrimAccFlex to SSC Secondary FR
Post Journals Automatically from Source Ledger: Yes
Retain Journal Creator from Primary Ledger: Yes

12.For the Journal Source and Category Conversion, leave the default. Journals with the source and category "Other" should be transferred to this Secondary Ledger by the Posting program.

13.When finished, click Complete. Notice the status for this step is complete now.

Create and Assign Operating Unit to Primary Ledger

14.Add an Operating Unit using the following information:

Name: called <Your initials> SSC France OU.
Short Code: <Your initials> France
Business Group: Vision France
Default Legal Context: <Your Initials> SSC France

15.When finished, click Apply and then Complete to return to Accounting Options page.

Complete Your Accounting Setup

16.Now that you have completed the required set up steps, you can complete the accounting setup by clicking the Complete button.

17.This will submit the General Ledger Accounting Setup Program that will generate all of the system-generated data access sets for you.

18.Ensure your request completes successfully.

Guided Demonstration - Create Accounting Setup1. CREATE ACCOUNTING SETUP DEMO.DOC

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