Entity & Ledger

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AGENDA

 Legal Entity
● Legal Entity

 Ledger
● Ledgers
● Ledger set
● Ledger Options
● Period close components

 Business Units
● Business Units and Functions
● Reference data sets

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 Enterprise Structure
 InFusion requires an enterprise with multiple divisions, ledgers, legal employers, payroll statutory units, tax reporting
units, legislative data groups, departments, cost centers, and business units.

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Legal Entity
● A Legal Entity is a person or organization that can legally enter into a contract. Legal entities to represent all or part of
your enterprise's business and management framework

● Assign your legal entities one or more legal reporting units to support specific reporting requirements

Legal entities and legal reporting units and register them with legal authorities in the
jurisdictions where you operate

● In accounting terms the legal entity is the smallest organizational unit for which you need to be able to produce
balanced set finance statements. The Legal entity is the initiator and owner of a given transaction.

● A Legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity
information to this type of organization.

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Legal Entity

● A legal entity is a recognized party with rights and responsibilities given by legislation

● Legal entity for each registered company or other entity recognized in law for which you want to
● record assets, liabilities, and income
● pay transaction taxes
● perform intercompany trading

● A legal entity can optionally be designated as

● Legal employer – refers to a legal entity that employs workers
● Payroll statutory unit – refers to a legal entity registered to pay and report on payroll tax and social insurance on behalf of one or many
legal entities, depending on the structure of your enterprise

● Each Legal Entity is attached to a single Primary Ledger through a Balancing Segment Value.

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Legal Entity

● Each of your legal entities has one or more legal

reporting units to support local reporting requirements

● When a legal entity is created, a main legal reporting unit with

the same name gets automatically created

● You must register your legal entities and reporting units

with legal authorities in the jurisdictions where you
conduct business

● A legal authority is a government or legal body that is charged

with powers to make laws, collect fees and taxes, and remit
financial appropriations for a given jurisdiction

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 Ledger and Accounting Configurations

● Ledgers are record-keeping structures that you create to record your transactions and track your
financial results

Ledgers and Accounting configurations to record your transactions and monitor your financial
performance

● Accounting configuration consists of one or more ledgers grouped under the umbrella of specific legal,
business and transaction processing requirements

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Ledger
● Ledgers are record-keeping structures that you create to record your transactions and track your
financial results

● The accounting method defines the set of accounting rules (e.g. accrual basis, cash basis) used in
Fusion Subledger Accounting to record the financial impact of subledger transactions

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Ledger

There are 3 types of ledgers in

Fusion General Ledger

Primary ledger

Secondary ledger

Reporting currency

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Ledger

● There are 3 types of ledgers in Fusion General Ledger

● Primary ledger – the main record-keeping ledger and a required component in your setup. 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.

● Secondary ledger – an optional ledger linked to a primary ledger for the purpose of tracking
alternative accounting. A secondary ledger can differ from its primary ledger in its chart of
accounts, accounting calendar, currency, accounting method or processing options.

● Reporting currency – 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
it.

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Ledger and Accounting Configurations

● An accounting configuration is

● uniquely identified by its primary ledger, and consists of optional, multiple accounting and
currency representations to fit your enterprise needs

● optionally assigned one or more legal entities to meet specific legal and business
requirements

● optionally assigned one or more secondary ledgers and reporting currencies to meet
specific currency, reporting or transaction processing requirements

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Ledger and Accounting Configurations

● Secondary ledgers
● A secondary ledger is linked to a primary ledger, and can be maintained at one of four data conversion levels
● Balance level – only general ledger balances are maintained in this secondary ledger via the Transfer Balances
to Secondary Ledger process

● Journal level – the General Ledger Posting process transfers the journal entries to the secondary ledger
● Subledger level – the Subledger Accounting engine creates the subledger journals to both the primary and
secondary ledger; the Posting process transfers the remaining journal entries to the secondary ledger

● Adjustment only – incomplete accounting representation that only holds adjustments (manual, or automated
from Subledger Accounting); it must share the same chart of accounts, accounting calendar and currency as its
primary ledger

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Ledger and Accounting Configurations

● Secondary ledgers
● A secondary ledger is linked to a primary ledger, and can be maintained at one of four data conversion levels
● Balance level – only general ledger balances are maintained in this secondary ledger via the Transfer Balances
to Secondary Ledger process

● Journal level – the General Ledger Posting process transfers the journal entries to the secondary ledger
● Subledger level – the Subledger Accounting engine creates the subledger journals to both the primary and
secondary ledger; the Posting process transfers the remaining journal entries to the secondary ledger

● Adjustment only – incomplete accounting representation that only holds adjustments (manual, or automated
from Subledger Accounting); it must share the same chart of accounts, accounting calendar and currency as its
primary ledger

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Ledger and Accounting Configurations

● Reporting currencies
● A reporting currency is linked to a primary or secondary ledger, and can
be maintained at one of three data conversion levels

● Balance level – only general ledger balances are maintained in the

reporting currency via the Translation process

● Journal level – the General Ledger Posting process transfers the journal
entries to the reporting currency

● Subledger level – the Subledger Accounting engine creates the subledger

journals to the reporting currency; General Ledger converts the remaining
journal entries to the reporting currency during the Posting process.

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Ledger and Accounting Configurations

● Balancing segment value assignments

● Best practices recommend that you assign specific balancing segment values to each legal entity in your
accounting configuration

● Helps you identify legal entities during transaction processing and reporting, and eases your requirement to
account for your operations to regulatory agencies and tax authorities

● If you do not assign any balancing segment values to your legal entities, then all balancing segment values will be
available for transaction processing

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Ledger Set

● Chart of Accounts and Calendar options are the same for different ledgers, they can be grouped into
Ledger Sets.

● Once the Chart of Accounts and Calendar starts to vary, ledgers can no longer be grouped in Ledger
Sets.

● Runs reports or process across all the ledgers in the Ledger Sets.
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Ledger and Accounting Configurations
● Balances cubes
● Multidimensional structures that store your financial balances
and enable high-speed, interactive financial reporting and
analysis

● Balances cubes pre-aggregate your balances at every possible

point of summarization, thus ensuring immediate access to
financial data and obviating the need for an external data
warehouse for financial reporting

● A balances cube is uniquely identified by the combination of a

chart of accounts and an accounting calendar. Average balances
are tracked in a separate balances cube

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Ledger and Accounting Configurations

● Balances cubes (cont’d)

● Consist of a set of defining business entities called dimensions

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Recommendations and Best practices

I plan to run the translation process in Fusion General Ledger. How does this impact my first opened period?

Which data conversion level should I use for my secondary ledger and reporting currency?

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 Specify Ledger Options

● Specify Ledger Options

● General Information
● Accounting Calendar
● Subledger Acconting
● Period Close
● Journal Process
● Average Balance
● Sequencing

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 Business Units

● A business unit is an enterprise structure that processes and generates business transactions on behalf of one or more legal
entities

● A business unit performs one or more business functions that determine what activities it is used for
● Examples include billing and revenue management, customer payments, payables invoicing, procurement, requisitioning, etc.

● Business functions represent business processes or activities that describe how a business unit is used
● Partition transactions – business transactions generated in a particular business unit is stored separately from transactions
processed in other business units

● Secure transactions – assign data roles associated with your business units to your users to secure access to your business
transactions

● Share reference data – reference data objects can be shared across multiple business units, thus significantly reducing setup
efforts

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 Business Units

● You assign your business units one primary ledger and a default legal entity
● This assignment is mandatory for business units with business functions that produce financial transactions
● In some cases the legal entity is explicit in your transactions; however if the legal entity context needs to be derived
from your business unit, then the default legal entity is used if the derivation rules cannot find a better match

● A business unit can process transactions on behalf of one or more legal entities
● There is no direct relationship between a business unit and a legal entity
● The mapping is inferred from the primary ledger assigned to the business unit and its associated legal entities

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 Business Units
● Business units process your business transactions on behalf of one or more legal entities
● Assign your business unit a default set
● Assign your business unit business functions
● Assign your business unit a primary ledger and default legal entity
● The mapping between a business unit and legal entities is inferred from the primary ledger assigned to the business
unit and its associated legal entities

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 Reference data sets
● In Fusion Applications, your can share your reference data
objects across several business units, by grouping them
into reference data sets

● Reference data sharing can considerably reduce the cost of

setting up new business units

● Assign your business units a default set to assign it

automatically to all reference data objects

● You can override the default set individually for each

reference data object. For example, assign separate sets for
payment terms, transaction types, and sales methods to
your business units

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Recommendations and Best practices

Do I need to validate my set assignments before using a business unit

How do I secure my transactional data using business units

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Question & Answer

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Thank You

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