Sequencing by Legal Entity or

Ledger
ERP CLOUD

Fusion Financials for EMEA

Table of Contents
1. Purpose of the document 3
2. Implementation 5
Default Setting and Country Overrides 5
Rapid Implementation Process 7
3. Common Setup 11
Review and Optionally Modify Ledger Options 11
Review Legal Entities and Business Units 11
Legal Entities 12

Business Units 12

4. Review Document Sequences 14

5. Review Accounting and Reporting Sequences 21
6. Advanced Setup 27
Set up Legal Entity Tax Profiles 27
Set up Legal Reporting Unit Tax Profiles 28
Set up Business Unit Tax Profiles 28
Accounts for the Ledger 30
Third Party Control Accounts 31
Complete Payables Setup 33
Complete Receivables Setup 34
Enter Supplier Sites and Third-Party Site Tax Profiles 36
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 Enter Customer Account Sites and Third-Party Site Tax Profiles 37
7. Users and Security 40
8. Open Accounting Periods 40
9. Create Payables Invoices 42
10. Create Receivables Transactions 46
11. Enforce Chronological Order on Document Date 49
12. Changing Subledger Sequencing Options 51
13. New Transaction Types 53
14. Sequences and Reporting 56
Financial Reports 56
Stage 1: Accounting Period is open 56

Transaction Tax Reports 59

15. R9 Upgrade Considerations 60

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1. Purpose of the document

This document explains the implementation and usage guidelines for the enhanced sequencing features
in Fusion.

Sequencing is the process of assigning unique and consecutive numbers to documents and journal
entries. Sequencing is a legal requirement in several countries in Europe, Asia and Latin America; it
enables the fiscal authorities to verify the completeness of a company’s accounting record.

Document Sequences:
Document Sequence is a unique number that is assigned to documents like invoice and
payment at creation or completion time depending on reporting needs.
A sequence can be ‘Automatic’, ‘Gapless’ or ‘Manual’. Automatic numbering assigns a unique
number to each document as it is generated. Automatic numbering is the most efficient method
of numbering documents but does not guarantee that the numbering is gapless.
Gapless numbering also automatically generates a unique number for each document, but
ensures that the document was successfully generated before assigning the number. With
Gapless numbering, no sequence numbers are lost due to incomplete or failed document
creation.
Manual numbering requires a user to assign a unique number to each document before it is
generated. With manual numbering, numerical ordering and completeness is not enforced.
Users can skip or omit numbers when entering the sequence value.

Document Sequence Category is the name of the transaction type to which a sequence is
assigned and all transactions of this type get a unique number assigned when they are created.
Document Sequence Name is the name of the sequence used to generate unique number for
the transaction document when it is created.
Enforce Document Sequencing is a ledger option to enforce document sequencing for Payables
and Receivables transactions.
Enforce Document Sequence Date Correlation option is available if document sequencing is
enabled at Legal Entity level. Selecting this option ensures chronological as well as gapless
sequencing. When this option is selected a document sequence cannot be generated if the
transaction accounting date is earlier than existing transactions with the latest existing
accounting date, causing the transaction completion to fail.

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Accounting and Reporting Sequences:

Accounting Sequencing refers to numbering of general ledger journals when they are posted in
General Ledger. It also refers to sequencing of subledger journals when they are created or
completed in Subledger Accounting.

Reporting Sequencing refers to assigning a gapless sequence to both general ledger and
subledger accounting journals when the accounting period is closed.

You can assign both accounting and reporting sequences to a journal simultaneously.
Release 9 Enhancements:

Release 9 introduces sequencing by legal entity: you can assign different document, accounting and
reporting sequences to each legal entity within a ledger and / or business unit. Sequencing by legal
entity is enabled at the ledger level in the Ledger Options page. Please also refer to R9 Upgrade
Considerations section.

This document will focus on sequences maintained at the Legal Entity level since it is new functionality
in Release 9.

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2. Implementation

You can use Rapid Implementation (RI) spreadsheet and process to create sequencing setup. You can
create one ledger and multiple legal entities that are associated to this ledger using the RI process.

You can complete all setups including definition and assignment of sequences manually but Rapid
Implementation will be very useful to complete enterprise creation with sequencing efficiently.

After initial enterprise creation (RI or manual) a number of setup steps, security setup and basic
transactional processing should be completed to be able to see how sequencing applies to transactions,
subledger journals and general ledger journals.

This document refers to a reference enterprise configuration.

Default Setting and Country Overrides

Use Rapid Implementation to configure sequencing. Rapid Implementation defaults sequencing to the
ledger level for most countries. For Italy, Spain, France, Germany and Netherlands, Rapid
Implementation defaults sequencing to the legal entity level.

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Examples in this document are based on the configuration shown above: single ledger, multiple legal
entity and business units:
Ledger: FR Vision SEQ3
Legal Entity: FR Vision SEQ LE1-France and Business Unit: FR Bision SEQ BU1
Legal Entity: FR Vision SEQ LE2-France and Business Unit: FR Bision SEQ BU2

Basic steps will be explained using France country defaults.

Following table shows sequencing defaults by country:

Ledger Options

Mapping
Attributes Rule Italy Spain France Germany UK Netherlands US Canada
NS (No
Sequencing)
Sequencing , Ledger or Legal Legal Legal Legal
By Legal Entity Entity Entity Entity Entity NS Legal Entity NS NS
Enforce Payables Checked Checked
Document
Sequence Receivables Checked Checked Checked Checked Checked
Enforce
Document
Sequence Yes Yes
Date Defaulted as
Correlation 'No'

‘Sequencing By’ defaults apply to Accounting and Reporting sequences as well as document sequencing.

NS: No Sequencing

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Rapid Implementation Process
Step Step Description
1 Specify Ledger, Business Units,
Legal Entities. Make sure you
accurately specify the country
information so that the
application creates the correct
default sequencing. You can
also change when a sequence
should restart and what should
be the initial value. Follow the
Instructions to create the zip
files(1) and (2).
2 Login as Implementing
Consultant
(APPLICATION_IMPLEMENTATI
ON_CONSULTANT)
3 Upload Chart of Accounts; Use
zip file (1)
4 Deploy Chart of Accounts
Entities and Comments Processes
After completing the entries
in the RI spreadsheet, use
‘Step1 : Validate’,’Step 2:
Generate Chart of Accounts
File’ and ‘Step 3: Generate
Ledger, LE, and BU File’ on
‘COA, Calendar, and Ledger’
worksheet.
Step1 and Step 2 create the
zip files:
(1) ChartOfAccounts
(2)FinancialsCommonEntities
Save the zip files.
Ensure 3 processes complete
successfully
7
 5 Upload Ledger, Legal Entities Ensure 8 processes complete
and Business Units. Use zip file successfully
(2).

Rapid Implementation process creates your ledger, business units and legal entities using the default
settings for the countries.

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Address and Tax Information in Rapid Implementation spreadsheet

Country information entered in the spreadsheet will instruct the system which country defaults will be
used.

Examples showing the related section of the worksheet are given below:

France:

Legal Entity

Address *Reporting
Unit
*Address Postal *Registration Registration
Name *Identifier *Country Line City State County Province Code Number Number

FR
Vision
SEQ
LE1 - Paris
France NVSFR12 France Office Paris Paris 75008 FR7H123433335 FR7H123433335
FR
Vision
SEQ
LE2 - Distr.
France NVSFR22 France Center Paris Paris 75008 FR8N345833227 FR8N345833227

Spain:

Legal Entity

Address
*Reporting
Unit
*Address Postal *Registration Registration
Name *Identifier *Country Line City State County Province Code Number Number

Spain
Corp
LE1 SPAES0003 Spain St 333 Madrid 28001 ESB78361482 ESB78361482

Spain
Corp
LE2 SPAES0004 Spain St 335 Barcelona 08120 ESB78361483 ESB78361483

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Sequencing defaults from the RI spreadsheet

Sequences
Transactions *Restart *Initial Value
Payables Invoices Annually 1
Payments Annually 1
Receivables Invoices Annually 1
Receivables Credit Memos Annually 1
Receivables Adjustment
Activities Annually 1
Subledger Journals Annually 1
General Ledger Journals Annually 1

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3. Common Setup
Review and Optionally Modify Ledger Options

You can control the main sequencing options for your ledger which you have created manually or
through Rapid Implementation. The sequencing options defined at the Ledger level will apply to all the
Legal Entities within that Ledger.

Rapid Implementation creates the ledger with the sequencing defaults for the country.

In the sample setup below, sequencing level is set up as legal entity. Sequencing will be enforced for
Payables application only. This means that the sequence is always used for Payables transactions. If the
checkbox is unchecked and sequencing is by Ledger or LE then the sequencing within Payables will be
partially used. Please also see R9 Upgrade Considerations section.

Task name: Specify Ledger Options

Navigation : Navigator –> Setup and Maintenance -> Specify Ledger Options

You can optionally change the ‘Sequencing By’ option, which is ‘Legal Entity’ as ‘Ledger’ or ‘No
sequencing’. This setting controls sequencing of subledger transactions as well as accounting and
reporting sequencing of subledger and General Ledger Journals. ‘No sequencing’ setting can be used to
disable sequencing.

Please note that the profile option setup for enabling sequencing is no longer relevant for document
sequencing.

Perform other modifications on ledger options if necessary.

Review Legal Entities and Business Units

Legal Entities and Business Units are created by the rapid implementation process. Sequencing setup is
completed automatically for your legal entities. You can manually create these entities and manually
complete your sequencing setup.

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Legal Entities
Task name: Assign Legal Entities

Navigation : Navigator –> Setup and Maintenance -> Assign Legal Entities

Business Units
Complete Business Unit setup before entering your subledger transactions.

Task name: Manage Business Unit

Navigation : Navigator –> Setup and Maintenance -> Manage Business Unit

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Please refer to section 6 Advanced Setup for setup steps that you need to complete before entering
your Payables and Receivables transactions.

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4. Review Document Sequences

Below, you can see the values entered in a sample RI spreadsheet (Financial Sequences). These
categories apply to all countries.

Sequences
Transactions *Restart *Initial Value
Payables Invoices Annually 1
Payments Annually 1
Receivables Invoices Annually 1
Receivables Credit Memos Annually 1
Receivables Adjustment
Activities Annually 1
Subledger Journals Annually 100 (*)
General Ledger Journals Annually 1

(*) While the initial value is typically ‘1’, ‘100’ is used here to illustrate the flexibility and to easily verify
that subledger journals and general ledger journals are numbered from their respective sequences.

The application automatically assigns the document sequence names.

Each sequence has versions for 2 financial years starting from the first financial year defined in the RI
spreadsheet.

Format of the document sequence names is as follows:

Periodyear-periodnum-hexadecimal(seqno).

Period year is the year of Calendar and period num is the number of that particular period. For example,
for Calendar 'Accounting12', we have monthly periods from Jan to Dec. If the starting period of the
sequence is Jan, then period num is 1.
Seq no comes from the internal profile option ‘DOC_SEQUENCE_HELPER_CODE’ which is not exposed to
users. For every sequence created by the Rapid Implementation process, the value is incremented by 1.
For the very first run of Rapid Implementation on a particular environment, this profile gets created with
an initial value of 1. This value is converted to hexadecimal and used in the sequence string.

For example, if year is 2010, starting period is Jan-2010 and the profile option value (seq no) is 250 then
the document sequence name would be 2010-01-hex(250). Here hexadecimal of 250 would be 00FA so
document sequence name will be : 2010-01-00FA.

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 1. Payables:

The following table shows the mapping of the items under ‘Transactions’ heading of Financial
Sequences worksheet to document sequence categories.

Default Document Sequence Categories

Transaction Code Name

CRM INV Credit Memo Invoices
DBM INV Debit Memo Invoices
INT INV Interest Invoices
Payables Invoice
PAY REQ INV Payment Request
PREPAY INV Prepayment Invoices
STD INV Standard Invoices
CHECK PAY Check Payments
CLEAR PAY Clearing Payments
Payments
EFT PAY Electronic Payments
WIRE PAY Wire Payments

Rapid Implementation process creates one sequence per Invoices and one sequence per payments for
each of two financial years starting from the ‘Fiscal Year Start Date’ value provided in the spreadsheet.

Four document sequences having auto-generated names in the format ’ 2010-XX-XXXX‘ and ‘2011-XX-
XXXX’ are created with category assignments as follows:

Sequence (1) 2010 , Sequence (2) 2011 (Payables Invoices)

Assigned To:

CRM INV

DBM INV

INT INV

PAY REQ INV

PREPAY INV

STD INV

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Sequence (3) 2010, Sequence(4) 2011 (Payments)

Assigned To:

CHECK PAY

CLEAR PAY

EFT PAY

WIRE PAY

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Images below show the document sequences created for Payables and assigned to Payables document
categories and Legal Entities.

Task name: Manage Document Sequences

Navigation : Navigator –> Setup and Maintenance -> Manage Document Sequences

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 2. Receivables:

The following table shows the mapping of the items under ‘Transactions’ heading of Financial
Sequences worksheet to document sequence categories.

Default Document Sequence Categories

Transaction Code Name

Invoice Invoice
PA Invoice PA Invoice
Receivables Invoices
PA Internal Invoice PA Internal Invoice
Intercompany Intercompany
Credit Memo Credit Memo
Receivables Credit Memos
PA Credit Memo PA Credit Memo
Adjustment Reversal Adjustment Reversal
Receivables Adjustment Activities Chargeback Reversal Chargeback Reversal
Chargeback Adjustment Chargeback Adjustment
(*) Additional categories may be added to the ones that are listed in the above table.

Document sequences having auto-generated names in the format ’ 2010-XX-XXXX‘ and ‘2011-XX-XXXX’
are created with category assignments as follows:

2 Sequences (2010, 2011) : Adjustment Reversal

2 Sequences (2010, 2011) : Billing Adjustment (*)

2 Sequences (2010, 2011) : Chargeback Adjustment

2 Sequences (2010, 2011) : Chargeback Reversal

2 Sequences (2010, 2011) : Credit Memo

2 Sequences (2010, 2011) : Intercompany

2 Sequences (2010, 2011) : Invoice

2 Sequences (2010, 2011) : Non-Accounting Adjustment (*)

2 Sequences (2010, 2011) : PA Credit Memo

2 Sequences (2010, 2011) : PA Internal Invoice

2 Sequences (2010, 2011) : PA Invoice

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There are 22 Receivables sequences for 11 categories and 2 legal entities for the sample implementation
referenced in this document.

Setup screen images of two sequences are provided below, the first sequence assigned to LE1 and the
second assigned to LE2.

Task name: Manage Document Sequences

Navigation : Navigator –> Setup and Maintenance -> Manage Document Sequences

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20
5. Review Accounting and Reporting Sequences

RI process creates accounting and reporting sequences using default settings for countries. Please refer
to Implementation section for country specific information.

The naming of the sequences use the following format: LE Name / Ledger Name + Accounting Sequence
(for non-period close event) or Reporting Sequence (for period close) + SLA (for subledger journals) or
GL (General Ledger journals). Non-period close event is Posting for General Ledger and Accounting of
the subledger transaction for Subledger Accounting.

In this example you can see that accounting and reporting sequences are created for both Subledger
Accounting and General Ledger journals exclusively for two legal entities.

FR Vision SEQ LE1 - France Accounting Sequence-SLA

FR Vision SEQ LE1 - France Accounting Sequence-GL

FR Vision SEQ LE1 - France Reporting Sequence-SLA

FR Vision SEQ LE1 - France Reporting Sequence-GL

FR Vision SEQ LE2 - France Accounting Sequence-SLA

FR Vision SEQ LE2 - France Accounting Sequence-GL

FR Vision SEQ LE2 - France Reporting Sequence-SLA

FR Vision SEQ LE2 - France Reporting Sequence-GL

Each sequence has versions for 2 financial years starting from the first financial year defined in the RI
spreadsheet:

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Rapid Implementation Sequencing Setup is completed with the following defaults (general and country-
specific):

Subledger Journals - Accounting

Journal Entry Type Subledger

Sequencing Event Subledger Accounting
Sequence Validation Date Accounting Date
Journal Sorting Date Accounting Date
Require assignment for all journals Yes

Start Date Start Date of first version period.

End Date Null
Journal Source All
Journal Category All
Accounting Event Type All
Accounting Entry Type Standard
Document Category All

General Ledger Journals - Accounting

Journal Entry Type General Ledger

Sequencing Event Posting
Sequence Validation Date Accounting Date
Journal Sorting Date Accounting Date
Require assignment for all journals Yes

Start Date Start Date of first version period.

End Date Null
Journal Source All
Journal Category All
Accounting Event Type All
Accounting Entry Type Standard
Document Category All

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Period Close - Subledger

Journal Entry Type Subledger

Sequencing Event Period Close

Sequence Validation Date

Reference Date
Journal Sorting Date
Reference Date
Require assignment for all journals Yes

Fiscal Balancing Segment Values All Checked

Start Date Start Date of first version period.

End Date Null

Journal Source All

Journal Category All

Period Close – General Ledger

Journal Entry Type General Ledger

Sequencing Event Period Close

Sequence Validation Date

Reference Date
Journal Sorting Date
Reference Date
Require assignment for all journals Yes

Fiscal Balancing Segment Values All Checked

Start Date Start Date of first version period.

End Date Null

Journal Source All

Journal Category All

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Following images show sequences and assignments for LE1.

Task name: Manage Accounting and Reporting Sequences

Navigation : Navigator –> Setup and Maintenance -> Manage Accounting and Reporting Sequences

FR Vision SEQ LE1 - France Accounting Sequence-GL

Journal Entry Type: General Ledger, Sequencing Event: Posting

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FR Vision SEQ LE1 - France Accounting Sequence-SLA

Journal Entry Type: Subledger, Sequencing Event: Subledger Accounting

25
FR Vision SEQ LE1 - France Reporting Sequence-SLA

Journal Entry Type: Subledger, Sequencing Event: Period Close

FR Vision SEQ LE1 - France Reporting Sequence-GL

Journal Entry Type: General Ledger, Sequencing Event: Period Close

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6. Advanced Setup

This section provides details for setup required before you can enter transactions in Payables and
Receivables. Some of these steps are not strictly required or may not be directly related to sequencing.
You may not need to review all the details in this section. For example, you can bypass the details
related to setting up of tax entities and start from Third Party Control Accounts sub section if you will
create transactions without tax. In general, please review only those sub sections that are relevant to
your business case.

Set up Legal Entity Tax Profiles

Register Legal Entities with tax regimes of the country.

Task name: Manage Legal Entity Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Legal Entity Tax Profiles

27
Set up Legal Reporting Unit Tax Profiles
Register Legal Reporting Units with tax regimes of the country.

Task name: Manage Legal Reporting Unit Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Legal Reporting Unit Tax Profiles

Set up Business Unit Tax Profiles

You need to complete this setup to give the high level instruction to the tax engine that the tax
calculation will be legal entity based.

Task name: Manage Party Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles

28
Use Legal Entity tax subscription must be checked.

29
Accounts for the Ledger
Create tax accounts for the new ledger.

Task name: Manage Tax Rates and Tax Recovery Rates

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates

(Tax Accounts tab)

30
Third Party Control Accounts
Specify your third-party control accounts and ensure that required setup is completed if you use the
Financial Third-Party Reports.

Task name: Manage Value Sets

Navigation : Navigator –> Setup and Maintenance -> Manage Value Sets

To update existing account combinations which contain these account segment values, submit ‘Inherit
Segment Value Attributes’ process.

Navigation: Navigator –> Tools -> Scheduled Processes

31
32
Complete Payables Setup
Complete the following setups before entering transactions in Payables. Some setup items are directly
related to how the sequencing will function in your implementation. Details are provided for these
items.

Complete the following setup for your Business Entities:

 Payables System Options

Task name: Manage Invoice Options

Navigation : Navigator –> Setup and Maintenance -> Manage Invoice Options

Specify ‘Allow document category override’ option to allow or restrict users to change the document
category of the individual invoice.

 Common Options for Payables and Purchasing

 Procurement Business Function

 Procurement Agent

 Manage Bank Accounts (Payment Documents)

Task name: Manage Bank Accounts

Navigation : Navigator –> Setup and Maintenance -> Manage Bank Accounts

33
 (1) Payment Documents section

Payment Document Category is defaulted. It is possible to change or remove the payment

document category from this page.

(2) Business Unit Access tab

Complete Receivables Setup

Complete the following setups before entering transactions in Receivables. Some setup items are
directly related to how the sequencing will function in your implementation. Details are provided for
these items.

Complete the following setup for your business entities:

 Create Receivables Activities

 Create Receivables System Options

Task name: Manage Receivables System Options

Navigation : Navigator –> Setup and Maintenance -> Manage Receivables System Options

34
 Document number generation is set up as ‘When completed’. Other available option are ‘When
saved’ or ‘None’. This means the receivables transaction will be assigned a sequence number at
completion. For the sample ledger, sequencing is not enforced for receivables; due to this above
setup will not be effective on the transactions of this ledger.

 Manage Transaction Source

Task name: Manage Transaction Source

Navigation : Navigator –> Setup and Maintenance -> Manage Transaction Source

You can check this option to use document sequence number as transaction number.

 Create Receivables Autoaccounting Rules

 Create Bank Account

 Create Receipt Method

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Enter Supplier Sites and Third-Party Site Tax Profiles
 Create new Supplier Sites for the Business Units

 Create Supplier Site Tax Profiles for the new sites

Task name: Manage Suppliers

Navigation : Navigator –> Suppliers -> Manage Suppliers

36
Enter Customer Account Sites and Third-Party Site Tax Profiles

Reference Set Assignments (Review, Modify if necessary)

You may need to review and modify set assignments for your business units.

Task name: Manage Business Unit Set Assignment

Navigation : Navigator –> Setup and Maintenance -> Manage Business Unit Set Assignment

RI process uses the default set ‘COMMON’ for all reference data.

A sample customer site setup is shown below:

Task name: Manage Customers

Navigation : Navigator –> Setup and Maintenance -> Manage Customers

37
38
39
7. Users and Security

Assign roles to new or existing users.

Before opening accounting periods and entering your transactions, associate corresponding roles that
were created automatically during the RI process to new or existing users.

Use following table as reference:

AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB_FR Vision SEQ

Payables users AP_SUPV_FR_SEQ_BU1 BU1 - France
AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB_FR Vision SEQ
AP_SUPV_FR_SEQ_BU2 BU2 - France
AP_ACCOUNTS_PAYABLE_MANAGER_JOB_FR Vision SEQ BU1
AP_MGR_FR_SEQ_BU1 - France
AP_ACCOUNTS_PAYABLE_MANAGER_JOB_FR Vision SEQ BU2
AP_MGR_FR_SEQ_BU2 - France
Receivables AR_ACCOUNTS_RECEIVABLE_MANAGER_JOB_FR Vision SEQ
users BILLING_MGR_FR_SEQ_BU1 BU1 - France
AR_ACCOUNTS_RECEIVABLE_MANAGER_JOB_FR Vision SEQ
BILLING_MGR_FR_SEQ_BU2 BU2 - France
General Ledger GL_GENERAL_ACCOUNTING_MANAGER_JOB_FR Vision SEQ3
user GENERAL_ACCTG_MGR_FR_SEQ FR

8. Open Accounting Periods

Open first accounting period in General Ledger, Payables and Receivables. You can also open other
accounting periods depending on the accounting date ranges of your transactions.

1 Login as General Ledger Accounting Manager User

Open First Period for the ledger
Ensure process is submitted and completed successfully.
2 Login as Payables Manager User
Open First Payables Period for the ledger
Ensure process is submitted and completed successfully.
3 Login as Receivables Manager User
Open First Receivables Period for the ledger
Ensure process is submitted and completed successfully.

40
Open/Close Payables Accounting Periods from the ‘Manage Accounting Periods’ screen. (Payables
Manager)

Open/Close Receivables Accounting Periods from the ‘Manage Accounting Periods’ screen. (Receivables
Manager)

Open/Close General Ledger Accounting Periods from the ‘Period Close’ screen. (General Accounting
Manager)

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9. Create Payables Invoices

Create, account and post Payables Invoices for the two Business Units:

Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

(1) BU1/LE1:

Document Sequence assigned.

Accounting Sequence assigned to Subledger Accounting entry.

42
GL Accounting Sequence assigned to General Ledger Journal.

43
 (2) BU2/LE2:

Document Sequence assigned.

Accounting Sequence assigned to Subledger Accounting entry.

44
GL Accounting Sequence assigned to General Ledger Journal.

45
10. Create Receivables Transactions

Task name: Create Transaction

Navigation : Navigator –> Receivables Billing -> Create Transaction

(1) BU1/LE1

Document Sequence is not assigned. This is the case since ‘Enforce Document Sequencing’ is not
checked for Receivables. Please refer to Review and Optionally Modify Ledger Options.

Accounting Sequence is assigned to Subledger Accounting entry.

46
47
GL Accounting Sequence is assigned to General Ledger Journal.

48
11. Enforce Chronological Order on Document Date

Use chronological and gapless ordering on sequencing to ensure transactions are entered into the
system in chronological order of their accounting dates.

Regulatory authorities in some countries expect the accounting date corresponds to the date that
transactions are recognized by the company. For Payables invoices, this means when they are received
from the supplier. For Receivables, it is when they are printed and sent to customers. The validation
ensures that General Ledger dates and sequence numbers are consistent with the requirement.

Set ‘Enforce Chronological Order on Document Date’ to ‘Yes’ to set up sequencing when chronological
ordering is legally required or functionally desired for the given ledger or legal entity.

If required, ledger option must be set as follows:

Enforce Chronological Order on Document Date = Yes

Task name: Specify Ledger Options

Navigation : Navigator –> Setup and Maintenance -> Specify Ledger Options

This functionality is based on the accounting dates of the subledger transactions.

49
The option of enforce correlation can be enabled only when sequencing is set by LE (this option cannot
be enabled if sequencing by is set as Ledger). Please also note that this feature is available just for
document sequencing and not accounting/reporting sequences.

Following example will show how the option works:

Existing Invoice with an accounting date of 05-FEB-2010, Sequence Number: 2

Task name: Manage Invoices

Navigation : Navigator –> Payables Invoices -> Manage Invoices

Try to enter an invoice with an accounting date of 02-FEB-2010:

Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

Since the second invoice (above) has an accounting date that is earlier than the latest accounting date
for the legal entity (first invoice), it is not possible to assign a document sequence to the invoice and it
cannot be saved.
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Please also note that it is not possible to delete an already sequenced transaction/receipt. If you no
longer require a transaction, either cancel the transaction or reverse the transaction through a credit
memo.

12. Changing Subledger Sequencing Options

When there are any changes to legal or audit reporting requirements involving sequencing, modify the
subledger sequencing options to comply with the changes. The changes become effective immediately
when the change is saved. A transaction entry following the setup change will use the new setup
independent of the transaction or the accounting date.

For example, your audit reporting may require sequencing of Receivables transactions as well as
Payables in the new financial year. Additionally, you may need to enforce chronological order to meet
the changing requirements. You have to change the setup before you enter the first transaction in the
new financial year. Changes to setup are shown below:

Task name: Specify Ledger Options

Navigation : Navigator –> Setup and Maintenance -> Specify Ledger Options

51
Enter a Transaction for LE2/BU2 after the above modification; you can see that the sequence is now
assigned.

52
13. New Transaction Types

Set up transaction types in Receivables for new types of documents. Using the sequencing options you
have set up for your ledger, the application creates and assigns one sequence to each transaction type
you create.

An example is shown below:

Task name: Manage Transaction Types

Navigation : Navigator –> Setup and Maintenance -> Manage Transaction Types

Task name: Manage Document Sequence Categories

Navigation : Navigator –> Setup and Maintenance -> Manage Document Sequence Categories

53
Task name: Manage Document Sequences

Navigation : Navigator –> Setup and Maintenance -> Manage Document Sequences

54
You can see that the following new transaction was sequenced from the new sequence associated to
the transaction type.

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14. Sequences and Reporting

In this section you will see how document, accounting and reporting sequences are assigned to
documents and journals through sections of Financial and tax reports.

Financial Reports

Stage 1: Accounting Period is open

Accounting Period, JAN-10 is open.

Daily Journals Report

Source: Payables

56
Daily Journals Report

Receivables

57
Stage 2: General Ledger Accounting Period is closed
Accounting Period, JAN-10 is closed.

58
Transaction Tax Reports
Input VAT Journal Report for Spain

This report shows the document sequence names and numbers that are assigned to the Payables
invoices.

Sequence number in the first column is generated at report submission and is not related to the
document sequence number that is assigned to the transaction. In the above example user runs the
report with an initial value of ‘1001’.

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15. R9 Upgrade Considerations

If pre-R9 sequencing profile setting was Always, the sequencing settings are preserved. Otherwise, pre-
R9 sequencing profile setting of Partial/Not Enabled translates to No Sequencing in R9.

You can use the following table for information but please refer to the upgrade document for the
detailed flow. Please also refer to ERP Cloud Release 9 Upgrade document.

Document Sequencing Profile setting Settings in Specify Ledger Options UI after upgrade
Site Product Sequencing By Enforce Document Sequencing

Partial Payables – Not Enabled OR Partial No Sequencing None

Receivables – Not Enabled OR No Sequencing None

Partial
Partial Payables - Always Ledger Payables – Yes
Receivables – Always Ledger Receivables – Yes
Partial Payables - Yes, Always Ledger Payables - Yes (Receivables is not
[No product level setting for checked)
Receivables]
Always Payables - Always Ledger Payables – Yes
Receivables – Partial Ledger Receivables - No
Always Payables – Not Enabled OR Partial No Sequencing None

Receivables – Not Enabled OR No Sequencing None

Partial

Please also review the Release 9 Readiness Content for Financials.

At post upgrade, you must review the settings in the Sequencing region of the Specify Ledger Options
page before recording new Financials transactions and journals to ensure they are same as your pre-
Release 9 settings and/or reflect what you need starting in Release 9.

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