Ledger Setup
Legal Entity Setup
Intercompany Organization
Intercompany System Options
Intercomany Transaction Types
Intercompany Calendar.
Basic AP/AR Invoice Setup
Assign Customer and Supplier to LE
Manage Intercompany Receivables Assignment
Intercompany Balancing Rules
for each transaction type , you have to open the period
For each Intercompany transaction type, map AR Transaction type and Memo Lines
ledger reporting ledger
secondary ledger
primary ledger
consolidation in fccs and erp
consolidation in fccs and erp
busineaa unit and le relationship...1 to many ?...
what are ledger sets
when BU are created
Translating journals
Revluation of balances
payment process template ka process
withholding ta
reverse charge
mpa
encumbrance
receipt mehtod type, stages kia hn
revenue recognition and accounting and reversal accounting
can a receipt applied across BU across customer
bank statement , parse rule set kia hoty hn
asset ki accounying kahanse derive hoti hy
asset book kis level pe banti hy
asset book intr transdfer
advances template process
advance application
auditor role purpose
budget load kaisay karty hn
encumbrance accounting
COnsolidation Steps
Consolidation types:
Consolidation procedure
In Oracle Fusion, a reporting ledger is essentially a currency representation of either a primary or secondary ledger, used for
supplementary reporting purposes like consolidation or management reporting. It shares the same chart of accounts, accoun
calendar, and accounting method as its source ledger, but it can be defined in a different currency.
In Oracle Fusion Financials Cloud, a secondary ledger is an optional ledger linked to a primary ledger for tracking alternative
accounting representations. It can differ from the primary ledger in chart of accounts, accounting calendar, currency, or accou
method, allowing you to report on different accounting standards or in different currencies.
In Oracle Fusion Cloud, a primary ledger is the main record-keeping ledger for financial transactions. It's defined by a combin
of a chart of accounts, accounting calendar, currency, and accounting method. The primary ledger serves as the foundation fo
capturing and organizing transactional balances within the Oracle Fusion system.
In Oracle Fusion General Ledger, consolidation combines the financial results of multiple legal entities into a single, consolida
view, even if they have different currencies, accounting calendars, or charts of accounts. This process involves preparing subs
data, mapping charts of accounts, transferring data, eliminating balances, reporting, and analyzing the consolidated results.
In Oracle Fusion's Financial Consolidation and Close (FCCS), consolidation is typically done by transferring data from subsidia
ledgers to a parent ledger, applying consolidation rules, and generating consolidated financial statements. This process involv
mapping subsidiaries to a parent ledger, preparing consolidation data, transferring that data, posting it, creating eliminating
entries, and then generating consolidated reports.
In Oracle Fusion Applications, a ledger set is a group of ledgers that share the same chart of accounts and accounting
calendar/period type combination. It's used to manage and process multiple ledgers together, streamlining operations and
simplifying tasks like period opening and closing, running reports, and performing adjustments and allocations.
In Oracle Fusion Applications, business units are created for several key purposes: managing enterprise structure, processing
In Oracle Fusion Financials, translating journals refers to the process of converting journal entries from a functional currency
another currency, typically a reporting currency. This is crucial for consolidating financial data across different legal entities or
when reporting in a different currency.
In Oracle Fusion Financials, revaluation refers to the process of adjusting account balances denominated in foreign currencie
reflect changes in exchange rates between the original transaction date and the revaluation date. This ensures that balances
correctly valued in the reporting currency, particularly at period-end.
Define receipt classes to determine the required processing steps for receipts to which you assign receipt methods with this c
If you are defining a receipt class whose creation method is Bills Receivable, then Require Confirmation, Remittance Method,
eversal accounting
at ledger level.
1. Define Consolidation Definitions:
Establish Consolidation Maps: Define how subsidiary data maps to the parent's chart of accounts.
Specify Consolidation Attributes: Set the parent ledger, currency, and other relevant parameters.
Choose Consolidation Method: Select the appropriate consolidation method (e.g., balance transfer, real-time reporting).
2. Transfer Data:
Transfer Balances or Transactions:
Choose to transfer either individual transactions or aggregated balances from subsidiary ledgers.
Use Transfer Processes:
Utilize the "Transfer Balances Cross Ledgers" or "Balance Transfer" processes to move data between ledgers.
Specify Parameters:
Set the source and target ledgers, COA mapping, and other parameters for the transfer.
3. Create Eliminating Entries:
Eliminate Intercompany Balances: Create journal entries to eliminate intra-company transactions and balances.
Use Consolidation Journal Entries: Generate eliminating entries to ensure accurate consolidation.
Consider Non-Controlling Interests: Adjust for non-controlling interests in consolidated financial statements.
4. Generate Consolidated Financial Statements:
Report on Consolidated Balances:
Produce consolidated financial statements that reflect the combined results of all entities.
1. Reporting Only: If subsidiaries share same COA, Calendar, then reporting only consolidation.
2. Balance Transfers: Multiple ledgers have different COA, Calendar , then Balance transfer method.
3. Financial Management: when there are multiple erps, or general ledger instances, then consolidation via Hyperion financia
management
1. Reporting Only: Procedure: 1. Group all ledgers in a ledger sets as COA and CAL are same. 2. Translate balances for ledgers
in corporate ledger currency. 3. Create elimination entries. 4. Report using the ledger set and corporate currency as reproting
parameters to view the consolidated balances. there is no need to transfer balances in this case as coa and cal are same.
2. Balance Transfers: Procedure: 1. Translate Balances to corporate currency. 2. Review and submit accounting config. 3. COA
Mapping subsidiary to Corporate. 4. Transfer Balances subsidiaries to Corporate consolidation ledger. 5. Create elimination en
6. Generate a report on Consolidated balances.
3. Financial Management: when there are multiple erps, or general ledger instances, then consolidation via Hyperion financia
management
ssing transactions, implementing security, and facilitating consistent reporting
this class. These steps include confirmation, remittance, and reconciliation. You can specify any combination of these processing steps wi
thod, and Clearance Method are disabled. If you are defining a receipt class whose creation method is Automatic, then the Remittance Me
of these processing steps with one exception: if you confirm and reconcile, then you must also remit. If you enter No for all three of these
tic, then the Remittance Method cannot be No Remittance.
ter No for all three of these steps, Receivables automatically creates receipts assigned to this receipt class with a status of Cleared.
a status of Cleared.
🇦🇪 Reverse Charge VAT Setup for UAE in Oracle Fusion
🧾 Scenario:
Your company is in the UAE, and you're importing services from a foreign supplier (e.g., US-based company). Under UAE VAT
✅ Prerequisites
Oracle Fusion Tax is enabled.
Legal entity, business units, and ledgers are created for the UAE.
Your suppliers and tax authorities are correctly set up.
🔧 Step 1: Create or Configure UAE Tax Regime
Navigation:
Tax Configuration > Manage Tax Regimes
Create a New Tax Regime (if not already created):
Country: United Arab Emirates (AE)
Tax Regime Code: AE_VAT
Tax Regime Type: VAT
Effective Dates: Start from your VAT go-live date (e.g., 01-Jan-2018)
Allow Tax Recovery: Yes
Enable for Procurement and Payables
📜 Step 2: Create UAE VAT Tax
Navigation:
Manage Taxes
Create Tax:
Tax Name: AE_VAT_5%
Tax Regime Code: AE_VAT
Configuration Owner: Common
Tax Type: VAT
Tax Classification: Standard-rated
Recoverable: Yes
Self-Assessed: Yes ✅
📈 Step 3: Define Tax Rate
Tax Rate Name: AE_VAT_5%_RC
Tax Rate Code: RCV_5
Percentage: 5%
Tax Status: Standard Rated
Enable this tax rate for Self-Assessment
Make sure it applies to:
Transaction business category = Procurement
Tax applicability = Standard Rate
🧩 Step 4: Create Tax Classification Code (TCC)
Navigation:
Manage Tax Classification Codes
Create a new TCC:
Code: RCM_SERVICES
Description: Reverse Charge for Imported Services
Tax Regime: AE_VAT
Tax: AE_VAT_5%
Status: Standard Rated
Rate: 5%
🧠 Step 5: Set Tax Rules (Optional but Recommended)
Navigation:
Manage Tax Rules
Create Determining Factors:
Supplier Country ≠ AE (UAE)
Customer Country = AE
Tax Classification = RCM_SERVICES
Create Tax Applicability Rule:
Apply tax when importing services from abroad
Create Tax Rate Rule:
Apply 5% reverse charge rate
📝 Step 6: Configure Supplier for RCM
Navigation:
Suppliers > Manage Suppliers
For the foreign supplier:
Set Supplier Country = Non-UAE (e.g., USA)
Ensure tax registration number is blank or foreign
At the Site level, assign:
Tax Classification Code = RCM_SERVICES
💸 Step 7: Create a Non-PO Payables Invoice
Invoice Entry (Payables > Invoices):
Type: Standard
Supplier: Foreign Supplier
BU: UAE Business Unit
Line Amount: AED 10,000
Tax Classification Code = RCM_SERVICES
Expected Result:
Oracle automatically generates:
Output VAT (liability to tax authority): AED 500
Input VAT (claimable): AED 500
Net VAT effect = 0, but both appear on reports.
📊 Step 8: Reporting and GL Impact
Validate:
Output VAT posted to liability account
Input VAT posted to recoverable account
Ensure reverse charge entries show on:
VAT Return Report
Tax Reconciliation Report
Subledger Accounting
🔒 Step 9: Lock and Test the Setup
Test using real use cases with Payables and Procurement teams.
Lock Tax Configurations after testing in Production.
✅ Summary of Key Setup Elements
Component
Tax Regime
Tax Name
Tax Classification Code
Self-Assessment Enabled
Supplier Country
Business Unit Country
Output Tax %
Input Tax Recovery
The following table lists some examples of Parse Rule Sets
Description
Extract numeric rate data from a source field
Extract value date from a source field
Extract check number from a source field
Extract currency from a source field
Extract the counterparty of an unknown string length from the same source field
Extract the currency from the same source field using positional matching
Under UAE VAT law, the UAE buyer must apply Reverse Charge, meaning they must self-account for VAT (both output and input VAT).
Value
AE_VAT
AE_VAT_5%
RCM_SERVICES
Yes
Outside UAE
UAE
5%
100%
Source Data Rule
EST/TRX RTE 3.76 USD/LIBOR CPTY: PRU RTE
([Link])
Dt.01/01/2011?Receipt Dt.(1-10)?
Receipt
Account Number 1005 Account
Number.
(X~)
$^EUR:Dt $^(1-3):Dt.
EST/TRX RTE 3.76 USD/LIBOR CPTY:PRU CPTY: (X~)
PRU EST/TRX RTE 3.76 USD/LIBOR CPTY: PRU RTE(7-9)
th output and input VAT).
Target
Data
3.76
1/1/2011
1005
EUR
PRU
USD
Enterprise structure
setup go through