Case Study – Ledger Architecture

Introduction
This section is aimed to guide you through the creation and
update of the Ledger Architecture.
Note: Where you see reference to FINxx, replace this with your
assigned participant reference code.

Requirement

Login: R12FIN_XX
Responsibility: General Ledger, Vision Operations (USA)

Exercise 1: Create Accounting Setup

Scenario:
Vision Operations (USA), a US-based company, has just
acquired a Company in Germany called <FIN_xx> Germany
Outfitters, a retail apparel company. Companies who operate in
Germany must meet local reporting requirements using the
German COA, and local currency in euros. There are also strict
rules about using independent document sequencing and VAT
tax by legal entity.

The parent company, Vision Operations (USA), has multiple legal

entities that share the same primary ledger. The following are the
ledger attributes for their corporate ledger (primary ledger):
Ledger Attributes for Parent Company, Vision Operations (USA)
Name Vision Operations (USA)
Short Name Vision Operations
Chart of Accounts Operations Accounting Flex
AccountingCalendar Accounting/Month
Currency USD
Subledger Accounting Standard Accrual
Method
First Opened Period Jan-07

You will need to define a new accounting setup for the newly
acquired German Company that has one legal entity and
operating unit (that you will define), a primary ledger that
represents the corporate representation, a secondary ledger at
the subledger level to represent the statutory representation, and
a journal level reporting currency assigned to the primary ledger
for corporate reporting and consolidation needs.
 Here is the graphical representation of the accounting setup you
will define:

Task 1: Create Legal Entity

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

Using the Legal Entities tab in Accounting Setup Manager, create

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

Territory Germany
 Legal Entity Name <Your Initial> Germany Outfitters
Organization Name <Your Initial> Germany Outfitters
Legal Entity Identifier <FIN_xx>F123456
SIREN <FIN_xx>F123456
SIRET <FIN_xx>F123456
Transacting Entity Yes
Address 100 Hauptstrasse, 65023, Munich

Task 2: Create Accounting Setup Structure

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

1. Please define an accounting setup structure that includes the

following setup components:

• Legal Entity: <FIN_xx> Germany Outfitters

Hint: You should assign the legal entity you just created.
• The following ledgers and journal level reporting currency
assigned to the primary ledger

Type of Name Chart of Accounting Curren Subledger

Ledger Accounts Calendar/Period cy Accounting
Type Method
Primary <FIN_xx> Operations Accounting/Month EUR Standard Accrual
Ledger Germany PL Accounting
(Corp) (EUR) Flex
Secondar <FIN_xx> Germany Accounting/Month EUR Standard Accrual
y Ledger Germany SL Accounting
(Subledge (Stat) (EUR) Flex
r)
Note: The Data Conversion for the SL should be “Subledger”

Journal Level RC for PL

Currency Currency Description
Conversion
Level
USD Journal Journal Level RC for PL
Germany Corp

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

Task 3: Assign Specific Balancing Segment Value (BSV) to

your Legal Entity

Update the balancing segment values and assign value 83 to

your legal entity. Make sure that you select the balancing
segment value from the Operations Company list of values.

Task 4: Complete Primary Ledger Definition

You need to completely define your primary ledger before you
can complete any of the setup steps.
1. Use the following information to complete your primary

ledger:

Name <Your Initial> Germany PL (Corp) (EUR)

Short Name <FIN_xx> Whatever you want
First Opened Period Jan-07
Number of Future Enterable 1
Entered Currency Balancing Account 01-110-5280-0000-000
Retained Earnings 01-000-3310-0000-000
Default Period End Rate Type Corporate
Default Period Average Rate Type Corporate
Cumulative Translation Adjustment 01-000-3500-0000-000
Account
2. Notice the status is now Complete.
3. Click on the link of the primary ledger name to view a

summary page of your ledger options.

Task 5: Complete Reporting Currency

1. Use the following to completely define your primary ledger’s

reporting currency:

Note: The name of the reporting currency is system-generated

and named after the source ledger with the currency of the
reporting currency appended to the end of the name.
2. Change the name of the journal level reporting currency to

<FIN_xx> Germany RC (USD).

Name <FIN_xx> Germany RC

(USD)
Short Name Same as name
Default Rate Type Reporting
Retain Transaction Rate Yes
Type
3. For the Journal Source and Category Conversion, choose to
convert all journals with the source and category “Other” to
this reporting currency.
4. Add another source and category rule to NOT convert journal
source “Manual” and Category “No Replication to RC”. This
category was user-defined for you. What this means is any
journals entered using that source and category in the
Primary ledger will NOT be converted and replicated to this
Reporting Currency.
5. Confirm that your Journal Source and Category Conversion
looks like this:

6. Notice that the status is now complete.

 Task 6: Complete Secondary Ledger Definition
Use the following information to complete your secondary ledger:
Name <FIN_xx> Germany SL (Stat) (EUR)
Short Name <FIN_xx> Whatever you want
First Opened Period Jan-07
Number of Future Enterable 1
Entered Currency Balancing Account 01-0035-000-000
Retained Earnings 01-0870-000-000
1. Notice the status is now Complete.

Task 7: Complete Primary to Secondary Ledger Mapping

1. Use the following information to complete your secondary

ledger:

COA Mapping: DE Operations to DE COA

Post Journals Automatically from Source Ledger:

Yes

Retain Journal Creator from Primary Ledger: Yes

2. 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.
Notice that by default, many of the subledger sources are set to
No in the Transfer Journals to this Secondary Ledger column.
That’s because they integrate with SLA and SLA handles the
transfer to the SL for subledger sources.
3. Notice the status for this step is complete now.

Task 8: Create and Assign Operating Unit to Primary Ledger

1. Add an Operating Unit using the following information:

Name: called <FIN_xx> Germany OU.

Short Code: <FIN_xx> Germany

Business Group: Vision Germany

Default Legal Context: <FIN_xx> Germany

Outfitters

2. When finished complete this step

 Task 9: Complete Your Accounting Setup
1. Now that you have completed the required set up steps, you
can complete the accounting setup by clicking the Complete
button.

Note: You’ll notice that the Balancing Segment Value

Assignments step for the Primary and Secondary Ledgers shows
“Not Started”. This is a minor bug. Whenever you assign BSVs
to the LE, it automatically changes the Balancing Segment Value
Assignments step for the ledgers to In Process. You can do
nothing and complete the accounting setup or you can open that
step and click the Complete button without assigning any BSVs
to the ledger.
2. Complete your accounting setup to prepare your ledgers for
data entry. This will submit the General Ledger Accounting
Setup Program that will generate all of the system-generated
data access sets.
3. Ensure your request completes successfully and proceed to
the next exercise.

GL Exercise 2: View System Generated Data Access Sets

(N) Setup > Financials > Data Access Sets

View the three system generated data access sets that were
created for you. The access set type will be “full ledger” providing
full read and write access to the ledger and/or reporting currency.
The system generated data access sets cannot be updated; they
will be in read only mode.

The following details the three data access sets created for you
and named after the ledgers and reporting currencies you
defined:
1. Reporting Currency: You should have a data access set for
the Journal level Reporting Currency that only includes read
and write access to the Reporting Currency.
2. Primary Ledger (includes Reporting Currency): You
should have a data access set named after your Primary
Ledger that includes both the Primary Ledger and Reporting
Currency with full read/write access to both.
3. Secondary Ledger: You should have a data access set
named after your secondary ledger that provides full read
and write access to the secondary ledger.

GL Exercise 3: Create Ledger Set

(N) Setup > Financials > Ledger Sets
 Vision Operations wants to minimize the overhead of maintaining
separate ledgers and would like to take advantage of processing
efficiencies afforded by ledger sets, such as being able to open
and close periods for multiple ledgers simultaneously. Vision
Operations is also a shared service center and performs many
accounting functions for the German subsidiary and therefore
wants to access multiple ledgers from a single responsibility.

1. Create the following ledger set that will be used by the

Corporate Controller:

Ledger Set <FIN_xx> Corp Ledger Set

Ledger Set Short Name <FIN_xx>Corp Set
Description Corporate Ledger Set for US and Germany
Chart of Accounts Operations Accounting Flex
Accounting Calendar Accounting/Month
Default Ledger • The German Primary Ledger you defined called
<FIN_xx> Germany PL (Corp) (EUR)
Ledgers • Vision Operations (USA)
• The German Primary Ledger you defined called
<FIN_xx> Germany PL (Corp) (EUR)
• The German Reporting Currency you defined
called <FIN_xx> Germany RC (USD)
2. When you save your ledger set, the General ledger
Accounting Setup Program is submitted and a system-
generated data access set is created for you.
3. Open the Data Access Set page (Setup > Financials > Data
Access Sets) and query the system generated data access
set that will be the same name as your ledger set.
4. It should look something like this where the ledger set is
assigned to the data access set providing full read and write
access to the ledger set.
GL Exercise 4: Assign Ledger Set to Responsibility

In the previous exercise, you defined a ledger set. In order to use

the ledger set and access the ledgers in the ledger set, you must
assign the ledger set to the GL: Data Access Set profile option
for a General Ledger responsibility.

Task 1: Define Responsibility

1. Change to the System Administrator responsibility.

2. Open the Responsibilities form. (N) Security > Responsibility

> Define

3. Create two responsibilities for GL named as follows:

<FIN_xx> GL Ledger Set.

<FIN_xx> GL Germany SL (Statutory)

Here’s a screen shot to help you complete the fields when

defining both responsibilites:
 Task 2: Assign GL: Data Access Set profile option to
Responsibility
a. Open the Find System Profiles form. (N) Profile > System

b. Query by the following:

Responsibility: The name of the responsibility you just created.

Profile: GL: Data Access Set
c. Assign the following to data access sets to each

responsibility:

Responsibility Data Access Set Comments

<FIN_xx> GL Ledger <FIN_xx> Corp Ledger Set This is the Ledger Set you

Set created.

<FIN_xx> GL Germany <FIN_xx> Germany SL (Stat) (EUR) This is the system-generated

SL (Statutory) data access set for the German

SL that uses a different COA.

Task 3: Define User

Note: If you completed the Multi-Org exercise, then you already
defined a user. You need to add just the GL responsibilities to
your user.
1. Open the Users form. (N) Security > User> Define
 2. Create a user for yourself and assign the following five

responsibilities:

<FIN_xx> GL Ledger Set

<FIN_xx> GL Germany SL (Statutory).

System Administrator

Human Resources, Vision Enterprises

Payables, Vision Operations (USA)

Task 4: Log In as a New User

1. Log out and log back in as yourself.

2. Select the GL responsibility called <FIN_xx> GL Ledger Set

and proceed to the next exercise.

GL Exercise 5: Open Periods for a Ledger Set and Ledger

Open the periods for January 2007, the first ever opened period,
for all ledgers. Use the SRS program to submit the Open Period
program for the Ledger Set and the German Secondary Ledger.
From the GL responsibility called <FIN_xx> GL Ledger Set,
navigate to the SRS window. (N) Reports > Request > Standard
Submit the Open period program for the ledger set for Jan-07.
Switch responsibilities and do the same for secondary ledger
called <FIN_xx> Germany SL (Stat) (EUR).

GL Exercise 6: Create Data Access Sets with Read/Write Access

You want to enforce security and control the ledger data that
certain users can access. The General Ledger Accountant in the
shared service center should only have read access to BSV 01
for Vision Operations (USA) and read/write access to all
balancing segment values for the German Primary Ledger and its
reporting currency.
 Task 1: Define Data Access Set Using Balancing Segment
Value Access Set Type
1. Navigate to the Data Access Sets window. (N) Setup >
Financials > Data Access Sets
2. Create the following data access sets

Data Access Set <FIN_xx> GL Accountant Access

Name
Description Read access to Operations and write access to
Germany
Chart of Accounts Operations Accounting Flex
Accounting Accounting/Month
Calendar
Access Set Type Balancing Segment Value
Ledger Vision Operations
BSV: 01
Privilege: Read-Only
Ledger <FIN_xx> Germany PL (Corp) (EUR)
BSV: All Values
Privilege: Read/Write
Ledger <FIN_xx> Germany RC (USD)
BSV: All Values
Privilege: Read/Write

Here’s a screen shot:

Task 2: Define Responsibility and Assign Data Access Set

1. Change to the System Administrator responsibility.
2. Open the Responsibilities form. (N) Security > Responsibility

> Define

3. Create another responsibility for GL called <FIN_xx> GL

Accountant Access.
Here’s a screen shot to help you complete the fields:

d. Open the Find System Profiles form. (N) Profile > System

e. Query by the Responsibility above and Profile: GL: Data

Access Set.

f. Assign the data access set “<FIN_xx> GL Accountant

Access “ to the responsibility with the same name.
g. Open the Users form. (N) Security > User> Define and query

your user.

h. Assign this new responsibility to your user.