GL Consolidation

Ledgers for Consolidation

Subsidiary Ledgers (Samples for POC) Reporting Currency Ledgers

247 Customer Philippines Inc (PHP) RC 247 PH(USD)

247 Customer India(INR) RC 247 IN(USD)
247 Customer Inc(USD) ----

Consolidation Ledger - POC 247 CONSOL LEDGER

GL Consolidation Setups
Creation of Ledger For Consolidation : Create a dummy Ledger POC 247
Consol Ledger For Consolidation. Assign all the BSVs of the subsidiary
ledgers to the dummy legal entity to this Consolidation Ledger
Enabling Reporting Currency(RC) : We have to enable Reporting Currency as
USD to all the Subsidiary Ledger excepting for the Ledger other than USD. We
have enabled RC for 247 Customer India. Similarly we will enabling RC for other
Subsidiary Ledger as well.
Since Consolidation has to happen at the transaction level, the Currency
Conversion Level is set to Journal for Reporting Currency Ledger : RC 247
IN(USD).
are posted in the Subsidiary Ledger the translation will happen at the month end
rate which will be posted to the RC Ledger as well. In order to prevent this from
happening we need to set the Convert Journals to this Reporting
Currency to No for Revaluation Journals. Revaluation needs to be carried
out separately in the RC ledger as well as in the Subsidiary Ledger to ensure it
happens at the Revaluation Exch. Rate. You can also perform this using a ledger
set having access to both the subsidiary ledger as well as the RC Ledgers. We
will be enabling this option to other Subsidiary Ledgers as well.
We can observe that Reporting Currency has been enabled for 247 Customer India.
Reporting Currency Ledger name RC 247 IN(USD)
Creation of Ledger Set : The purpose of Ledger set is to Open and Close
Periods both in the Subsidiary Ledger & RC Ledger and perform activities like
Revaluation. Ledger Set name : -IN 247 Ledger Set. We will enabling this for
other Ledgers as well.
Responsibilities that we have created for Consolidation Ledger needs to be
assigned to the respective User
Profile Option: We need to set the Profile option GL Access Set and attach
the Ledger Set POC 247 Ledger Set to the POC 247 CONSOL LEDGER
Journal Reversal Criteria : Once we perform Revaluation using a Ledger Set, Journal entries
created for Revaluation needs to be reversed in the subsequent period in order to avoid double
counting. We need to set up Journal Reversal criteria for Revaluation. The revaluation entries
can either be reversed manually or scheduled to run automatically at the end of the period.
Concurrent Program Auto Reverse Program
Set the Profile Option : GL Launch Auto Reversal after Open Period : Yes for
the respective GL Controller responsibilities.
We need to attach the Journal Reversal Criteria in the respective Subsidiary
Ledgers in the Accounting Setup Manager.
We have to create one Ledger Set as POC 247 Common Ledger Set which will
have Consolidated Ledger + Subsidiary Ledger + RC Ledger(for Reporting).
Creation of Responsibility for Consolidated Ledger : Since all the RC
Ledgers transaction will be consolidate to one Consolidated Ledger (Dummy
Ledger), to perform consolidation and for generating FSG Report we need to
create a Separate Responsibility. POC 247 CONSOL LEDGER. Using this
responsibility we will be performing Consolidation.
To access POC 247 CONSOL LEDGER, we need to assign this Responsibility to
the User who will be performing Consolidation.
Assign the Profile Option to the responsibility : GL Access Set to the
responsibility POC 247 CONSOL LEDGER.
Open Period : We need to Open the Periods for the Sub Ledgers AP, AR for the
Subsidiary Ledgers along with their GL periods
Period Open GL :- 247 Customer Inc
We also need to Open the Period for the Consolidated Ledger and the RC
Ledgers so that when the transactions are posted in the Subsidiary Ledger they
are automatically posted to the RC Ledger as well. POC 247 Consol Ledger /
RC 247 PH(USD) / RC 247 IN(USD)
Define Currency Conversion Rates : As a requirement, the foreign currency
transaction entered in the Subsidiary Ledger will be translated at the Month End
Rate . The Revaluation will be performed at the Revaluation Exchange Rate.
We need to enter Transaction in Sub Ledgers and do the create accounting with
Transfer to GL as YES and Post to GL NO. These transaction will be queried
in the GL and Posted. Once these transaction are Posted, automatically
transactions are Posted in the RC Ledger as well.
Revaluation : Since there would be fluctuation in the Exch. Rate during month
end we need to perform Revaluation. Revaluation would be done for specific set
of accounts using Ledger set which will Revalue the balances both for the
Subsidiary Ledger and the RC Ledger.
Chart Of Account Mapping : Once the Revaluation is done we need to
perform Consolidation. For Consolidation to happen we need to map the Source
Ledger (RC Ledger) to the Parent Ledger(Consolidated Ledger) by means of
Mapping. We need to create a COA Mapping between the Source Ledger to the
Parent Ledger. Since the COA is same for both the Source and the Parent, we will
create 247 Common Mapping for all the Ledgers.
Once the COA Mapping is done we need to create Consolidation Definition for
the respective RC Ledgers by choosing the method as Transaction since the
consolidation has to happen at the Transaction Level.
Consolidation Definition: would be created for the individual Ledgers IN 247 Consol Def
Consolidation Definition US 247 Consol Def
Consolidation Definitions created would be grouped together to form a
Consolidation Set, which will show the Consolidation Definition and its
associated Subsidiaries.
Elimination Set : Once the Consolidation Journals are Posted we need to
Eliminate Intercompany Transactions. Define Elimination Set. The automatic
eliminations program in Oracle General Ledger eliminates intercompany
transactions based on the elimination set definition. We need to create separate
BSV for Elimination = 998
The elimination journal entries are created automatically by the eliminations
program based on the source and target accounts set in the Elimination
Accounts window.
GL Consolidation Process
Before we do Consolidation we need to perform Revaluation. This can be either
performed manually by querying the revaluation that we have defined (or)
automated/scheduled using a concurrent Program Program Revalue
Balances. While Performing Revaluation we will be choosing the Ledger Set,
the Period the effective date and the Rate date as Parameter.
Once the Revaluation is done this would generate Revaluation Journals both in
the Subsidiary Ledger as well as RC Ledger and the same needs to be Posted.
Posted Revaluation entries for 247 Customer India
Revaluation needs to be performed for other Subsidiary Ledgers as well.
Consolidation Work Bench : To Perform Consolidation we need to go to the
Consolidation Workbench and Choose the Parent Ledger and , the Period for
which we are going to perform consolidation, and Click on Find
Transfer : We can see the Subsidiary Ledger, Consolidation definition, and
Status of Consolidation as per the below screen. In this screen we have the
option of transferring Ledger wise or transfer at one go.
Transfer Set For Transfer Automation : Go to the Transfer set to transfer
all the subsidiary data in one go to the Consolidation Ledger. Choose the
Consolidation Set & Period for the Subsidiary Ledger & the Parent Ledger to
Consolidate and Click on Query Consolidation, which will show consolidation,
subsidiary & subsidiary period. Select Transfer by Selecting all for a consolidated
transfer.
We can also perform the transfer individual Ledger wise. For the transfer to
happen Ledger wise we need to place the cursor on the particular Ledger so
that the buttons are visible as shown below. Similarly we can perform the
transfer for other ledgers as well.
For US Ledger, we can observe that the Status as Transferring
We can Observe that the data for US Ledger has also got Imported into the Consolidation Ledger
Similarly for Other Ledgers also click on transfer and enter the Subsidiary Period
and the Parent Period and click on transfer, will launch a concurrent request.
Once the data is transferred to the consolidated ledger the status will change to
Imported. All the status of the Subsidiary Ledger has changed to Imported
which means the data has transferred to Consolidated Ledger successfully.
Click on Review Journal for the Individual Ledgers to see the Journal
Consolidation Journals need to be Posted. Query the Journal with the Category as
Consolidation and the Period as SEP-2013-14 and click on Find
We Can observe that Consolidation Journal being created for all the 3 Ledgers
and we have to Post them. This will submit a concurrent request for posting.
Generate Elimination : Select the Ledger set and Enter the Period as SEP-
2013-14 for Elimination and click on Generate will Launch a Concurrent for
Elimination Entries.
Query the Intercompany Elimination Journals and Post them
Intercompany Journal :- Eliminations
Entering Transaction after Consolidation Process. Enter a Transaction for 247
Customer Inc(US) on 30-sep-2013 and post. Query the Consolidation Workbench
you will observe the Status as Obsolete
Any Transaction entered in the Subsidiary Ledger after the consolidation process
need to be transferred to the Consolidated Ledger. Choose the Subsidiary Period
and the Parent Period and click Transfer. Will launch a concurrent request. Will
show Selected for Transferring in the consolidation workbench
We can see that the status of the new Entry in the Consolidation Workbench as Imported
Click on Review Journal
Query the Journal with Category as Consolidation and Status as Unposted and
finally Post it.
Generate Trial Balance. We can Observe that Intercompany A/c balances have
become Zero
Thank You