As we know EBS R12 have one balancing segment assigned to company segment. Oracle Fusion General Ledger offers use of 3 balancing segments and these are- Primary Balancing segment is required whereas second and third balancing segments are optional and can be assigned to division or to cost center segment.
What is balancing segment in Oracle Fusion general ledger?
In Oracle Fusion General Ledger, we can use 3 segments as balancing segments. First one is called Primary Balancing segment and is a required segment (this normally represent Company or Legal entities). Values in this segment is assigned to legal entity when we configure accounting in General Ledger.
What is a balancing segment?
When you define an account, you must make one of the segments a balancing segment. The system ensures that journal entries are balanced--debits equal credits--for each value of the balancing segment. You should make the company segment the balancing segment, so that journal entries always balance by company.
How many balancing segments can be defined in a chart of accounts?
Only one balancing segment can be defined in a chart of accounts. It is best practice for the balancing segment to equate to company so that the debits and credits in the General Ledger balance by company.
Why we can only assign one segment as a balancing segment qualifier?
Because in Oracle E Business Suite we can only assign one segment as a balancing segment qualifier. Usually that is company segment or legal entity segment .At company segment level we need to balance our journal and accounting entries.
What is balancing segment in Oracle r12?
When you define an account, you must make one of the segments a balancing segment. The system ensures that journal entries are balanced--debits equal credits--for each value of the balancing segment. You should make the company segment the balancing segment, so that journal entries always balance by company.
What is meant by balancing segment?
Balancing Segment an Oracle General Ledger term that defines the segment that automatically balances all journal entries for each value of this segment.
How many balancing segments are required for a chart of accounts?
There are three balancing segment labels: primary, second, and third balancing. The primary balancing segment label is required. Cost Center: Facilitates grouping of natural accounts by functional cost types, accommodating tracking of specific business expenses across natural accounts.
What is segment in Oracle Apps r12?
A segment qualifier identifies a particular type of value in a single segment of a key flexfield. In the Oracle Applications, only the Accounting Flexfield uses segment qualifiers. You can think of a segment qualifier as an "identification tag" for a value.
How many segments can you have in your chart of accounts?
General rules for the Chart of Accounts mask and segments Only the following characters may be used in the mask. The account mask may contain up to 20 segments, and each segment may have an unlimited number of codes. All characters in a segment must be the same.
What is natural account in Oracle r12?
A natural account segment contains values representing account types, such as cash, accounts receivable, product revenue and salary expense. Enter Yes or No to indicate whether the segment you are defining is your natural account segment. You define only one natural account segment in your account.
How many segments can the intercompany balancing feature balance?
three segmentsThe chart of accounts for this example has three segments: balancing, natural account, and Intercompany. Legal entity 1 uses the corporate ledger and the corporate chart of accounts....Intercompany Balancing.Trading Partner Legal EntityAccountTypeLE 120-4000-10Intercompany Receivables
How many types of ledgers can be configured?
There are 2 types of ledgers – leading ledger which is integrated with all subsidiary ledgers and controlling. Then you have parallel ledgers which are called non-leading ledgers. These parallel ledgers are always managed as complete ledgers.
What are segments in Oracle Apps?
A segment is a single sub–field within a flexfield. You define the appearance and meaning of individual segments when customizing a flexfield. A segment is represented in your database as a single table column. user must scroll through the segment to see its entire contents.
What is KFF and DFF in Oracle Apps?
A key flexfield is a field you can customize to enter multi-segment values such as part numbers, account numbers, and so on. A descriptive flexfield is a field you customize to enter additional information for which your Oracle Applications product has not already provided a field.
What are 4 C's in Oracle r12?
Note: The 4 C's is defined as Chart of Accounts, Calendar, Currency, and accounting Convention. If the ledger requires unique ledger processing options.
What are the types of Flexfield qualifier?
SubbaSubba. Answered On : Oct 27th, 2015.Flex field qualifiers describes the purpose of the segments. There 6 types of qualifiers are there. Cost center segment values. Natural Account segment values. Balancing segment values. Inter-company. Management. Secondary tracking.
What is balancing and types of balancing?
There are three types of unbalance: Static unbalance – is where the mass axis is displaced only parallel to the shaft axis. The unbalance is corrected only in one axial plane. Couple unbalance – is where the mass axis intersects the running axis. For example: a disk that has swash run-out with no static unbalance.
What is balancing in vibration?
This results in force on the bearings and/or vibration of the bearings. Balancing is a procedure in which the mass distribution of a rotor is assessed and if necessary, adjusted via addition or subtraction of weight to ensure that the vibration of the journals and/or forces on the bearings are within specified limits.
What is the need of balancing?
Balancing plays a very important part in machines. Balancing in machines helps to rotating bodies to avoid vibrations; vibration in machines can lead to failure. Common failure occurs in generators and heavy machinery, so undertaking in balancing can help to avoid machines from breaking down.
How many types of balancing are there?
The four types are: Symmetrical balance. Asymmetrical balance. Radial balance.
What is balancing segment?
A balancing segment is used in the General Ledger to ensure that all journal entries balance for each value of the balancing segment and to ensure that entries that impact more than one balancing segment use the appropriate intercompany or interfund accounting.
How many balancing segments are there in a chart of accounts?
Only one balancing segment can be defined in a chart of accounts. It is best practice for the balancing segment to equate to company so that the debits and credits in the General Ledger balance by company. When you define an account, you must make one of the segments a balancing segment.
What is Oracle HRMS?
Oracle HRMS is a specific module, among others in a suite of modules called Oracle e-Business Suite.
What is middleware in Oracle?
I often describe Middleware (in the context of Oracle) as "horizontal" technologies. By horizontal, I mean a technologies that span other enterprise business applications (CRM, ERP, Billing, Order Management, Product Lifecycle Management, SCM, etc.). Integration solutions have traditionally been called "middleware" technology as they sit in the middle of two or more systems/applications/people. But Oracle also considers BI to be part of OFM, and it certainly can help bring together data from multiple systems into one place...and it can be the reporting engine of choice for multiple applications as well.
What is Oracle Fusion?
In order to build the next world class application and address customer concerns, it launched Oracle Fusion - a combination of best in classs application from features from Oracle EBS, JDE, Peoplesoft, Siebel and such … At that time Cloud w
What is Flexfield in Oracle?
When setting up the chart of accounts in Oracle E-Business Suite, the accounting flexfield is the collection of segmented values which define the various characteristics of a particular combination of values such as company/legal entity, (natural) account, cost center, distribution channel, etc. You can have up to 30 segments in you accounting flexfield, but you must have at least two: natural account and balancing segment.
What is a natural account segment?
A natural account segment contains values representing account types, such as cash, accounts receivable, product revenue and salary expense. Only one natural account segment can be defined in a chart of accounts.
Symptoms
When attempting to remove a Balancing Segment Value from a Ledger, an error is received: The Balancing Segment Value Assignments can only be confirmed after all legal entities have been assigned at least one value. ### Steps to Reproduce ### General Ledger super user Navigate to Accounting Setup Manager Query existing Ledger Select Update icon for Balancing Segment Value Assignments Select Remove icon for a Balancing Segment Value.
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Why does General Ledger use balancing segment?
General Ledger uses your balancing segment to ensure that all journals balance for each value of your balancing segment. General Ledger also use your balancing segment to ensure that entries that impact more than one balancing segment use the appropriate intercompany or interfund accounting.
What is cost center in Oracle?
Cost centers indicate functional areas of your organization, such as Accounting, Facilities, Shipping, and so on. Enter Yes or No to indicate whether the segment you are defining is a Cost Center segment. Oracle Assets and Oracle Projects require you to qualify a segment as cost center in your account. 8.
How many segments can you define in a flexfield?
3. Define your Accounting Flexfield segments. You can define up to 30 segments for your account structure. You must define at least two segments for your account structure, one for the balancing segment and one for the natural account segment (the two required flexfield qualifiers).
What type of value sets are required for accounting flexfield?
Value sets for the Accounting Flexfield must be independent, table, or dependent-type value sets. Do not use value sets with a validation type of None, Pair, or Special for the Accounting Flexfield.
What is a natural account segment?
A natural account segment contains values representing account types, such as cash, accounts receivable, product revenue and salary expense. Enter Yes or No to indicate whether the segment you are defining is your natural account segment. You define only one natural account segment in your account. 6.
Does Oracle use indexes?
Only Oracle General Ledger applications use the Indexed field for the Optimization feature. Enter Yes if you want the database column in the combinations table used to store this key segment to have a single-column index. You should create indexes on segments you expect to have many distinct values (instead of just a few distinct values).
Is a balancing segment an independent segment?
The segment you use as a balancing segment mustbe an independent segment (it cannot use a dependent value set).
Symptoms
Posting a journal with multiple balancing segment values fails although the needed Intercompany Accounts are defined.
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What are the first two segments in a global chart of accounts?
They have defined a global Chart of Accounts which contains a number of segments. The first two segments are Legal Entity (LE) and Management Entity (ME). These 2 segments are relevant for this case study. The Legal Entity segment represents the Legal Identifier for Tax or Statutory purposes.
What is a ME segment?
For most of the businesses, the ME segment represents a division within a business/sub-business. Some of the businesses are using the ME to differentiate between Product lines or other important business specific measurements.
Can you assign a balancing segment qualifier in Oracle EBS?
Usually that is company segment or legal entity segment .At company segment level we need to balance our journal and accounting entries. We can not assign the balancing segment qualifier in Oracle EBS .
Is balancing segment qualifier good?
Assigning a balancing segment qualifier is good enough to handle your accounting for a organization. But there are some big companies who want to report their accounting at multiple segment level.
Is it mandatory to use multiple segment qualifiers?
It is not mandatory to use multiple segment qualifier. But if your business needs , you can leverage this functionality to get financial reporting in more detailed and authentic way.
Can Oracle fusion report multiple balancing segment level?
They can do it In Oracle fusion by using multiple balancing segment level. In Oracle EBS it was not possible in seeded functionality. If you need to report at multiple balancing segment level you have to do customization.
As we know EBS R12 have one balancing segment assigned to company segment. Oracle Fusion General Ledger offers use of 3 balancing segments and these are-
Primary Balancing segment is required whereas second and third balancing segments are optional and can be assigned to division or to cost center segment. With the help of these balancing segments, Fusion GL offers tracking of Financial transactions and results at a finer level of granularity compared to single balancing segment in EBS R12.
Let us first understand why balancing segment is required and what is the use
A balancing segment is a segment in chart of account structure. Whenever we define structure , we must choose one of the segment as balancing segment. Primary Balancing Segment is a Segment qualifier attached to company segment and helps to generate Balancing entries in receivables and Payables.
Advantage of Using Balancing segment-
By using Multiple Balancing Segments (MBS), it is possible to generate Financial Statements for each unique combinations of Segments.
What if i am migrating from EBS to Oracle Fusion General Ledger-
In such cases where Chart of Account needs migration from EBS to Oracle Fusion General Ledger, we must ensures proper transition to the Second or Third Balancing segment. This would results in extensive adjustment and testing to get best financial data.
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Why does the journal not balance for the balancing segment?
As you can see above, the journal does not balance for the balancing segment because the total debit does not equal to the total credit for either GECOMMON or GEAVIATION. Therefore the system will generate another two lines in this example do
How many balancing segments are there in Fusion?
This is so, in Fusion Applications, every journal must be balanced by the max 3 balancing segments. But the first balancing segment almost always is the Legal Entity.
What is intercompany segment?
The Intercompany segment allows you to track the internal business activity between different legal entities within the same group company or enterprise.
When is balancing performed?
The balancing is performed during Fusion General Ledger posting of journals or when Subledger Accounting creates the journals to be transferred to GL.
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Apps2Fusion are passionate about Fusion Cloud E-Learning and classroom trainings. Training is our core business and we have been doing this for many many years. We work hard to advise trainees with right career paths. We have published various five star rated Oracle Press Books each was best sellers in its category. We have helped many and could help you as well.
What level of balancing rule is used?
If you want to use a rule against all legal entities and all ledgers, then define the balancing rule at Rule Level 4.
How to enable segment in OTBI?
Click on manage structure instances, so that we can define the segment as Required, with Display enabled and enabled for OTBI reporting by checking BI Flag.
