Table of Contents 1. Purpose of the document 2

2. Assumptions and Prerequisites 2

3. Feature Specific Setup 3

Implementation 3

Assign Balancing Segment Values to Legal Entities (Optional) 4

4. Common Parameters 7

5. Other Parameters 8

6. Accounted Transactions in Subledgers 11

7. Submitting the Reports 12

Third Party Account Balance Report 12

Third Party Balances Summary Report 14

Third Party Detail and Balances Report 16

8. Report Headings 18

ERP CLOUD

Subledger Accounting Reporting Third Party Reports

Fusion Financials for EMEA

1. Purpose of the document

Companies require reports showing control account and third-party period balances as well as audit trail

details to the original third-party transactions impacting the account during a particular period. The

balances include period beginning balances, period activity and the resulting ending balances. This

allows users to reconcile subledger balances with General Ledger balances and monitor the accounting

process.

During the accounting process, you can run these reports to make sure that subledger and General

Ledger balances reconcile, and to identify possible reasons for any discrepancies (if any).

Detail reporting by Third Parties is also useful for auditors, and especially external auditors, as it allows

users to easily reconcile transactions accounted by the audited company with transactions accounted by

the Third Parties.

This document explains the implementation and usage guidelines for the following reports:

Third Party Detail And Balances Report

Third Party Balances Summary Report

Third Party Account Balance Report

2. Assumptions and Prerequisites

In this document, we will assume that the following entities have already been set up :

Data Security

Enterprise Structure

Accounting Configuration

Suppliers

Customers

Document sequences

Accounting and Reporting Sequences

Payables System Options

Procurement Business Function

Common Options for Payables and Receivables

Receivables System Options

Oracle recommends that the ‘Implementation Project’ is complete for your organization before

commencing the ‘Feature Specific Setup’ outlined below.

3. Feature Specific Setup

Implementation

For this document, we consider the implementation of a company with one ledger and two legal entities

associated to this ledger.

You can alternatively use any existing company structure as long as the prerequisite setup, which is

indicated in ‘Assumptions and Prerequisites’ section exists for these entities.

The examples in this document are based on a sample implementation that consists of a single primary

ledger and two legal entities:

Ledger: ES Vision SEQ3 ES

LE1: ES Vision SEQ LE1 - Spain

LE2: ES Vision SEQ LE2 – Spain

Assign Balancing Segment Values to Legal Entities (Optional)

To report based on legal entity, you run reports by the ‘Legal Entity’ parameter. Use of the legal entity

parameter requires you to associate balancing segment values to your legal entities.

Task name: Assign Balancing Segment Values to Legal Entities

Navigation : Navigator –> Setup and Maintenance -> Assign Balancing Segment Values to Legal Entities

Third-Party Control Accounts

Task name: Manage Value Sets

Navigation : Navigator –> Setup and Maintenance -> Manage Value Sets

You must complete this setup for the system to recognize the related subledger journals as third-party

accounting activity.

You should set accounts that capture liability for the suppliers as ‘Supplier Control Account’ and

accounts that hold receivables from the customers as ‘Customer Control Account’.

Following screenshots show two examples, for accounts payable and accounts receivable.

Supplier Control Account:

Customer Control Account:

Any new accounting combinations that use the accounts set up as above inherit the attributes.

However, if you have already created your account combinations with these account values before the

above setup, you must run ‘Inherit Segment Value Attributes’ process.

Navigation: Navigator –> Tools -> Scheduled Processes

4. Common Parameters Parameter Name Required Description

Application Name No Choose a subledger application, like ‘Payables’ or

leave blank to include all applications

Ledger Yes Select a ledger to view third-party accounting

activity. Ledger is a required parameter and

you can run the report for one ledger at a time.

Legal Entity No If you have associated your legal entities to the

balancing segments in your chart of accounts,

you can filter the accounting activity by legal

entity. If not entered, accounting activity will be

listed for all legal entities.

From Period Yes From Accounting Period

To Period Yes To Accounting Period

Journal Entry Source Yes You can run these reports for a single journal

entry source at a time. To report on supplier

activity, run the report using Payables and to

report on customer activity, run the report using

Receivables.

Third Party Type Yes Select supplier for payables and customer for

receivables.

Following screenshot shows the common submission parameters:

5. Other Parameters Parameter

Name

Required Default Description Third

Party

Account

Balance

Report

Third

Party

Balances

Summary

Report

Third

Party

Detail

and

Balances

Report

Third Party

Name

No N/A Specify a third party to

restrict the report to

that party only.

X √ √

From Third

Party Number

No N/A Specify from and to

third-party numbers to

restrict the report to a

third-party number

range.

X √ √

To Third Party

Number

No N/A

Include Draft

Activity

No ‘No’ Enter ‘Yes’ to print the

accounting in draft

status as well.

X √ √

Include Legal

Entity

Information

No Legal

entity

Due to your legal

reporting needs, you

can print different

report headings. Please

also refer to the section

titled ‘Report Headings’

in this document.

√ √ X

First Flexfield

Segment

Used

No N/A Use segment qualifiers

to show the account

combination as the

concatenation of 1 to 3

accounting flexfield

segments instead of the

full combination, which

is default. Leave these

parameters as blank to

see full account

combination in the

report.

√ √ √

Second

Flexfield

Segment

Used

No N/A

Third Flexfield

Segment

Used

No N/A

Parameter

Name

Required Default Description Third

Party

Account

Balance

Report

Third

Party

Balances

Summary

Report

Third

Party

Detail

and

Balances

Report

First Report

Sort

Yes Accounting

Date

Report data will first be

sorted using the First

Report Sort value and

then Second Report Sort

value will be used to

sort further and then

the Third Report Sort

will be used. Default

order is: (1) Accounting

Date, (2) Document

Sequence Name, (3)

Document Sequence

Number.

√ X √

Second

Report Sort

Yes Document

Sequence

Name

√ X √

Third Report

Sort

Yes Document

Sequence

Number

√ X X

First Page

Number

No 1 Enter an integer

number. if you leave

parameter value blank,

the page numbering will

start with page 1.

√ X X

Group by

Period

Yes Yes Enter ‘No’ to avoid

grouping by accounting

period.

√ √ X

Report

Heading

Yes Legal

Entity

Due to your legal

reporting needs, you

can print different

report headings. Please

also refer to the section

titled ‘Report Headings’

in this document.

Please also see Report

Headings section.

√ √ √

Third Party Account Balance Report

Third Party Balances Summary Report

Third Party Detail And Balances Report

6. Accounted Transactions in Subledgers

Enter transactions in Payables and Receivables. Account all transactions on which you need to report. If

online accounting is used , you need to make sure ‘Update Subledger Accounting Balances’ process is

submitted explicitly before running Third-Party reports.

A sample submission is shown below:

Navigation: Navigator –> Tools -> Scheduled Processes

This process updates subledger account balances which are used by third-party reporting of subledger

accounting. If you have accounted your transactions through submitting ‘Create Accounting’ program,

this process is automatically submitted after the accounting process. However, if you have accounted

your transactions online from Payables and Receivables transaction pages, you need to run the process

manually.

7. Submitting the Reports

Third Party Account Balance Report This report shows third-party balances and audit trail details to the original transactions for the

accounting periods in a selected range. The report helps you review the accounting process details by

third party, third-party site and third-party control accounts. Detail reporting by third parties is also

useful for external auditors as it allows you to easily reconcile transactions accounted by the audited

company with transactions accounted by the third parties.

Submission parameters are shown below:

Sample Output (Page1, Page 5):

Description for Balances:

Beginning Balance: Balance as at the beginning of the accounting period

Ending Balance: Balance as at the end of the accounting period (Beginning Balance + Period Activity)

Brought Forward: Totals from the previous page

Carry Forward: Totals that will carried forward to the next page

Third Party Balances Summary Report The report can be use as a tool to audit third-party accounts. Audit processes require users to know

third-party names and amounts, for validating such points as existence of the third party, consistency

with amounts accounted in general ledger and Third Party's books, etc. The following information is

commonly displayed for each account, Third Party and Third-Party site: Balances for all of the above :

Beginning, Period Activity and Ending.

Submission parameters are shown below:

Sample Output (Page 1):

Third Party Detail and Balances Report This report helps you review the accounting process details by third party, and audit third-party

accounts in detail. During the accounting process, you can run the report to make sure that subledger

and General Ledger balances reconcile, and to identify possible reasons for any discrepancies (if any).

Detail reporting by third parties is also useful for external auditors as it allows you to easily reconcile

transactions accounted by the audited company with transactions accounted by the third parties.

Submission parameters are shown below:

Sample Output (Page 5):

8. Report Headings

Use ‘Report Header’ parameter to display legal entity name or ledger name on each page heading of all

report pages. You can also use the parameter ‘Include Legal Entity Information’ for additional flexibility;

default is legal entity, if you change the value as legal establishment (Legal Reporting Unit) then the

page headings will show the legal reporting unit name instead of the legal entity name.

Some countries' auditors require you to include additional information on all report pages, so use if

required by your authority. (*)

(*) Currently, ‘Statutory Header for Italy’ is also available in the list of values of ‘Report Header’

parameter. If you select this value the report heading will print the following information at the page

heading:

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