Fusion Application-Steps to create successful Ledger Mapping

In this Fusion Financials training document, user will understand how to create mappings between different Ledgers in
Fusion General Ledger. There can be number of reasons of not able to create mapping and most common cause is that
set ups steps not completed systematically. This does not allow user to proceed further if one or more steps are not
completed before jumping to creating Ledger mapping.
In Oracle Fusion General Ledger, users may come across different errors while creating mapping between Primary to
Secondary Ledger. This is attributed to not properly defined steps before you finally create mapping.

For more information, please see the portlets error log for an entry beginning with ADF_FACES-60096 Server Exception
during PPR #5
Prerequisite to start creating Ledger mapping is -

Define Ledgers, Specify Ledger Options and complete the Accounting setups for both Primary Ledger and Secondary
Ledger. Both Chart of Account should be defined in well planned manner with rightly selected value sets attached to
different segments.
Properly defined values for different value sets and specify Financial Category and Account Type specially for Account
Value Set as shown below-

Enter required information for primary Ledger and attach already defined Chart of Account as shown below and save
your work. Similarly define Secondary Ledger.

Once you are done with defining Different Ledgers, Review and Submit Accounting Configuration for Ledgers.

Next step is to create Chart of Account Mapping before you start creating Ledger Mapping as shown in below screen
shot-

Finally navigate to Map Primary to Secondary Ledger screen and choose Chart of Account Mapping created above and
save your work.

Features of Chart of Accounts Mapping

Supports the ability to create relationship between a source chart of accounts to a target chart of accounts to allow for
creating journals to book general ledger entries using an alternative chart of accounts.
This is accomplished by either using segment rules, account rules, or a combination of both.
Where is Chart of Accounts Mapping used?
It is used by the posting program in propagating general ledger entries from the primary ledger to the chart of accounts
used by the secondary ledger, providing the means to map the primary ledger chart of accounts to that of the secondary ledger.

Used by both balance transfer programs for balance level secondary ledgers as well as cross ledger transfers, whereby balances
from one ledger are copied to another ledger.
What are segment rules?
Segment rules serve to map each segment of the target chart of accounts to an account value or segment in the source account.

Action 1 Three different mapping actions are available:

Action 2 Assign a constant value for a segment in the target chart of accounts.
Action 3 Copy the value from the source segment to the corresponding target segment. Use hierarchical roll up rules when a
specific parent source value and all of its child segment values are mapped to a given detail target segment value. This
provides the ability to process groups of source segment values in one single roll up rule.
What if hierarchical mappings of chart of account values change over period of time?
Define parent source values in roll up rules with date effective versions of a hierarchy. Then use the accounting date from the
journal entries to reference the chart of accounts mapping that falls within the date effectivity of the hierarchy. This gives the
additional benefit of self maintaining mappings since the hierarchies referenced change with time and the applicable child values
are processed automatically.

You can also define account rules as part of a chart of accounts mapping. Account rules map a complete target account combination
against one or more source account code combinations.

Objective:
In this fusion financials training article we will understand the need of Primary and Secondary Ledger Mapping and what
is the purpose of doing this in Fusion Accounting Hub. Let us have a look on what are different types of ledger are there
in Oracle Fusion Applications-

Primary Ledger:

This is a main record keeping ledger and a required component in our configuration. Every accounting configuration is
uniquely identified by its primary ledger. The primary ledger is closely associated with the subledger transactions and
provides context and accounting for them.
Primary Ledger is a main record keeping ledger and

Records transactional balances by using a chart of accounts along with calendar, currency, and accounting rules
implemented in an accounting method.
Used to book journals in order to record the impact of subledger transactions.

Secondary Ledger:
Secondary Ledger is optional ledger linked to a primary ledger for the purpose of tracking alternative accounting or to
represents the primary ledgers accounting data in another accounting representation. A secondary ledger can differs
from the primary ledger in one or more of the following ways

Chart of accounts

Accounting calendar/Period type combination

Currency

Subledger accounting method

Ledger processing options

Secondary ledger is always associated with primary ledger and there can be multiple of such ledgers attached to main
primary ledger in an organization.
If a company has separate subsidiaries in multiple countries, we may need to enable reporting for each country's legal
authorities by creating multiple primary ledgers representing each country with the local currency, chart of accounts,
calendar, and accounting method. In such cases Local and corporate compliance can be achieved through an optional
secondary ledger, providing an alternate accounting method, or in some cases, a different chart of accounts.

Reporting Currency:
It is an Optional, additional currency representation of a primary or secondary ledger. A reporting currency can differ
from its source ledger in its currency and some processing options, but shares the same chart of accounts, accounting
calendar, and accounting method with its related ledger.

Why do we need ledger Mapping:

If the primary and secondary ledgers use different charts of accounts, the chart of accounts mapping is required to
instruct the system how to propagate journals from the main transactional chart of accounts to the target chart of
accounts.

If the primary and secondary ledgers use different accounting calendars, the accounting date is used to determine the
corresponding non adjusting period in the secondary ledger. The date mapping table also provides the correlation
between dates and non-adjusting periods for each accounting calendar.

Chart of Account mapping option helps to correlate source chart of account to target chart of account for creating
journal entries. One can also define account rules as a part of chart of account mapping which further helps to map
complete account combinations in multiple chart of accounts.

If the primary ledger and secondary ledger use different ledger currencies, currency conversion rules are required to
instruct the system on how to convert the transactions, journals, or balances from the source representation to the
secondary ledger.

There are four types of Secondary Ledgers.

Balance Level Secondary Ledgers:

In this scenario, GL Consolidation is used to transfer the balances from the primary to the secondary Ledger. The balance
level secondary ledger maintains primary ledger account balances in another accounting representation. This type of
secondary ledger requires the use of GL Consolidation to transfer primary ledger balances to this secondary ledger.
Balance level secondary ledgers are useful if no adjustments are to be done in primary ledger.
There is no drill-down to journal entries or subledgers with this type of secondary ledger, therefore, there is no
transparency in underlying transactions. Moreover balances exist at reporting period dates only, which means that this
ledger is not continuously updated, but updated on a continual basis only when the balances are populated using GL
Consolidation. Balance level produces relatively small volume of balance data. This method provides an inexpensive
solution to an organization.
Journal Level Secondary Ledgers:

This type is maintained using the General Ledger Posting Program only. Every time we post a journal in the primary
ledger, the same journal is automatically replicated and maintained in the secondary ledger, depending on the journal
conversion rules specified for the secondary ledger. The journal level secondary ledger maintains journal entries and
balances in an additional accounting representation. This type of secondary ledger is generated using the General Ledger
Posting program. Every time we post a journal in the primary ledger, the same journal can be automatically replicated
and maintained in the secondary ledger for those journal sources and categories that are set up for this behavior.
Unlike balance only secondary ledgers, journal level secondary ledgers allow adjustments. In fact, we can have this
secondary ledger duplicate adjustments made to the primary ledger (except on a different accounting basis), providing
limited transparency and drill-down.

Journal level secondary ledgers are a powerful tool when a different accounting basis is needed but with journal entry (JE)
drill-down. It produces large volumes of journal entry and balances data. This arrangement requires additional
performance and memory cost.
Subledger Level Secondary Ledgers:

These secondary ledgers are maintained using both Subledger Accounting and the General Ledger Posting program. The
final full accounting representation is the subledger level secondary ledger the most transparent of the secondary
ledgers. The subledger level secondary ledger uses both subledger accounting and the General Ledger Posting program
to create the necessary journals in both the primary, secondary, and subsidiary ledgers simultaneously. Subledger
accounting creates the journal entries from subledger transactions that integrate with it. General Ledger Posting creates
the journal entries for all other transactions that dont integrate with subledger accounting, including manual journal
entries.
The subledger level secondary ledger includes the functionality of the balance level and the JE level secondary ledgers,
but then adds the subledger level. The subledger level is one of the most powerful secondary ledgers, allowing every
entry made to the respective primary ledger subledger to be duplicated in a different accounting representation in a
secondary ledger subledger. It is virtually a full drill-down and allows a company to live in two different accounting
bases. This method also produces large volumes of journal entry and balances data. This arrangement requires
additional performance and memory cost.
Adjustments Only Secondary Ledger:

In this type adjustments can be manually entered into the secondary ledger, or automated using Subledger Accounting.
Balance, journal and subledger level secondary ledgers are complete accounting representations with increasing levels of
drill-down. Alternatively, the adjustments only secondary ledger is a very special type of secondary ledger that is an
incomplete accounting representation and instead only reflects adjustments. The adjustments can be manual
adjustments or automated adjustments from subledger accounting. This type of ledger must share the same chart of
accounts, accounting calendar/period type combination and currency as the associated primary ledger. To obtain a
complete secondary accounting representation that includes both the transactional data and the adjustments, use
ledger sets to combine the adjustments-only secondary ledger with the primary ledger when running reports.
Adjustments only secondary ledgers are a very useful type of secondary ledger that allows entries to be made discretely
and to be provided to management and/or auditors as a separate ledger, giving way to a very high level of transparency.
It can act, in essence, as a new control level by which entries can be made by staff-level accountants, approved by linelevel accounting supervisors, but then accumulated in the adjustments only secondary ledger for final high-level
management approval in aggregate. To obtain a full secondary accounting representation, use ledger sets to combine
the adjustments only ledger with the primary ledger for report generation.
The adjustment only secondary ledger is particularly relevant when discussing audit and period-end adjustments. It
produces the smallest amount of data and therefore least costly amongst all.
Inference:

Recent changes in financial reporting requirements have transformed the way companies account for key accounting
transaction and balance types through reporting regulations. With the help of secondary ledgers in Oracle Fusion
Applications, companies are able to meet their different reporting needs along with minimum spreadsheet maintenance.
If there is a single global chart of accounts and a single global calendar and a single Fusion instance, companies can
leverage a single source of truth that includes transparency into all transactions from the primary ledger to the

secondary ledgers as well as full drill-down capability to the subledgers. The result is consistency of reported information
across business units and reduced effort for management reporting, maintenance and reconciliation.