copyright © 2007, oracle. all rights reserved. summary accounts r12 general ledger management...

Copyright © 2007, Oracle. All rights reserved.

Summary Accounts

R12 General Ledger Management Fundamentals


Objectives

After completing this lesson you should be able to do the following:

• Discuss summary accounts and how they are used in General Ledger

• Define rollup groups for summary account creation

• Assign parent values to rollup groups

• Determine the number of summary accounts created by a template using a specific formula

• Enter summary account templates to create summary accounts

• Maintain summary accounts

• Discuss key implementation considerations in planning summary accounts


Overview

What are Summary Accounts?

• A summary account is an account whose balance is the sum of balances from multiple detail accounts

• Use summary accounts to perform online summary inquiries, as well as speed the processing of financial reports and Mass Allocations, and Recurring journal formulas

• You do not enter or post transactions directly to summary accounts


Overview

Summary accounts store the sum of the balances of groups of detail accounts

Summary Revenue Account……….15,000

Detailed Revenue Account A…..10,000

Detailed Revenue Account B…….3,000

Detailed Revenue Account C…….2,000

}


Defining Summary Accounts

• Summary accounts enable quick online inquiries of account groupings

• The following are common segments you can use to summarize information:

Company

Cost Center

Account

Product

District


Summary Account Examples

Here are some common dimensions and examples of ways you can summarize information within each dimension:

• Company

• Cost Center

• Account

• Product

• District


Detail Versus Summary Accounts

Summary Accounts

Provide many efficiencies for

business processing

Detail Accounts

Provide accurate and direct posting for transactions

and journals


Summary Accounts Versus Parent Values

Summary Accounts Parent Values

Store summary balances. Do not store account balances.

View balances online. Cannot be viewed online because they do not maintain balances.

Use in recurring journals or budget formulas.

Cannot be used in recurring journals or budget formulas because they do not maintain balances.

Use the constant segment type in Mass Allocations.

Use the looping segment typein Mass Allocations.

Get quicker FSG reportingbecause no summations are required.

Result in slower FSG reporting because summations are required.

Require posting to additional accounts because balancesmust be updated each time journals are posted to one of the corresponding detail accounts.

Expedite the posting process because parent values maintain no balances and therefore do not have to be updated each time journals are posted.


Parent Values and Rollup Groups

Assign related parent values to rollup groups before creating summary accounts

Nevada299

Oregon399

East CA101

West CA102

East NV201

West NV202

East OR301

West OR302

California199

Western area rollupRollup Group

State Parents

Detail Segments


Rollup Groups

Rollup Groups


Summary Account Templates

General Ledger uses summary templates to:

- Create summary accounts

- Perform online summary inquiries

- Speed processing of reports


Template Values

D

T

Your template creates and maintains a summary account for every detail segment. This value

creates the most summary accounts of any template value.

Your template creates and maintains a summary account that

sums balances of all detail segments.

Your template creates and maintains a summary account for

each parent segment value assigned to the rollup group you

specify.

Rollup Group


Defining Summary Accounts

Determine the number of summary accounts created by a template using this formula

Number of Summary Accounts Created

==Number of Detail Segment Values for

Each Segment with a "D" Value

Number of Parent Segment Values for Each Segment with a Rollup Group Name

1For Each Segment with a "T" Value

XX

XX


Summary Account Creation Example

Suppose a company has the following account segments and values:

Company Department Account- -

01 - US02 - CAD

101- East102- West

4001- Revenue Prod A4002- Revenue Prod B

4000- Parent ValueRollup Group = Revenue

To create summary accounts to reflect total revenue for each company, all departments, the following summary template would be defined:

D - T - Revenue

This template would create the following summary accounts:

01 - T - 400002 - T - 4000


Maintain Summary Accounts Overview

The following changes to your parent values cause changes in the summary account reporting structure:

Adding child ranges

Removing child ranges

Assigning a new value to a Rollup Group

Removing a rollup group assignment

Changing a rollup group assignment


Maintaining Summary Templates

Posting automatically updates summary templates if you have added new detail accounts since your last posting for your ledger

D - T- Revenue

Summary Template

To improve the performance of your posting program, run the Maintain Summary Templates program to update your summary templates


Setting Budgetary Control

Setting Summary AccountBudgetary Control Options

• Enter budgetary control options for summary account template

• Choose Incremental Add/Delete Summary Templates from the Submit Request window


Incremental Add/Delete Summary Templates Program

D - T- Revenue

Summary Template

Changes to your Flexfield Hierarchy?

YesRun the Incremental Add/Delete Summary Templates program

To Update

Run the Maintain Summary Template program

No


Incremental Add/Delete Summary Templates Program

Oracle General Ledger

Summary Accounts


Planning Summary Accounts

Various elements exist when planning your summary accounts

Summary Account

Summary Account Structure Parent Segment

Values/Rollup Groups

Summary Account Templates


Determine Summary Account Needs

To determine your summary account needs:

Consider

Summary information you need for reports

Summary balances you need for online

inquiries

How you want to use summary accounts in

formulas and allocations


Plan Summary Account Structure

• Select ways to summarize accounting information based on the structure of your accounting flexfield segments and your informational needs

• Some common dimensions include:

Company

Cost Center

Account

Product

District



Think about how you want to combine your summary views across different organizational dimensions

ProductsStoresDepartmentsCompaniesDetail Segments

Industries

Industry

Groups

Cost Centers

Divisions

Districts

States

Regions

Product

Groups

Product

Categories

Rollup Group:

Level 1

Rollup Group:

Level 2

Rollup Group:

Level 3

Summary of Organizational Levels



To clarify your plans, sketch out your summarization levels

Eastern Washington

112

Eastern Oregon

122

Central California

132

Southern California

133

Western Washington

111

Western Oregon

121

Northern California

131

Washington State

110

Oregon State

120

California State

130

Western Region 100

Detail Segments:

Districts

Rollup Group:

States

Rollup Group:

Regions



Use Reporting Hierarchies

when:

• You want to easily reorganizeyour summary views in thefuture

• The primary use for summarization is reporting

Use Summary Accounts

when:

• Your summary relationships are more permanent

• You want to use summary accounts in formulas and allocations

• You want online inquiry of these summary amounts

• You want faster financial reporting of these summary amounts


Plan Values and Groups

To determine the parent values and rollup groups you need to:

Plan your parent segment values

Define the parent segment values and enter meaningful segment value descriptions

Select a naming or numbering method for rollup groups that is similar for all segments


Plan Summary Account Templates

Set up templates to define and maintain summary accounts. The number of summary accounts your template creates depends on the template segment values.

Number of Summary Accounts Created

==Number of Detail Segment Values for

Each Segment with a "D" Value

Number of Parent Segment Values for Each Segment with a Rollup Group Name

1For Each Segment with a "T" Value

XX

XX


Summary

In this lesson you should have learned how to:

• Explain what summary accounts are and how they are used in Oracle eBusiness applications

• Define rollup groups for summary account creation

• Assign parent values to rollup groups

• Determine the number of summary accounts created by a template using a specific formula

• Enter summary account templates to create summary accounts

• Maintain summary accounts

• Explain key implementation considerations in planning for summary accounts

copyright © 2007, oracle. all rights reserved. summary accounts r12 general ledger management...

Documents

overview summary accounts

summary accounts nevada

planning summary accounts

number of summary accounts

summary account examples

summary account templates

additional accounts

account balances