Objective:

In this training article we will discuss about the need of a Ledger Set and how to configure it in Oracle Fusion Applications.

What is a Ledger Set ? 

Ledger Set is nothing but grouping of ledgers. When we use multiple ledgers, we can group all types of ledgers in a ledger set, such as primary ledger, secondary ledgers, and reporting currencies (journal and subledger levels), as long as they share the same chart of accounts and calendar/period type combination. Ledger sets are used to manage ledgers, including opening and closing of periods and running reports. Ledger sets support adjustments and allocations and specifically support adjusting ledgers. This separation of ledger data and ledger management is designed to support the creation of ledger shared service centers and centrally managed ledger processing. Oracle Fusion Financial Reporting facilitates the production of reports. The resulting reports are published in many formats and can be securely distributed electronically in several different ways. Together, this facilitates the creation of reporting shared service centers. Not only is this low cost solution to reporting, but it can help to assure that management everywhere is reading from the same page. Ledger sets allow you to run processes and reports for multiple ledgers simultaneously. For example, you can open/close periods for multiple ledgers at once, run recurring journals that update balances for multiple ledgers, or run consolidated financial reports that summarize balances across multiple ledgers in a ledger set.

Why to use Ledger Set ? 

Let us discuss this with few examples-

* We may use ledger set for various regulatory requirements. For instance we have 15 registered companies in Belgium. Belgium regulations require that each company maintains a distinct book of accounts. All companies share the same chart of accounts and calendar. In that case we will set up a ledger for each company and group them into a ledger set. Our finance staff can treat the collection as if they were one for all accounting activities, while the data remains distinct for reporting purpose for each company.

* Again let’s say we have a parent company in one country. The operations have spread to 5 other countries. Each country has its own Business Unit and must report to both the parent company and the local government. All business units use the same chart of accounts and calendar. Currency is different and Reporting Currency ledgers have been setup. We can group all of the primary and reporting currencies ledgers into one Ledger Set. Our corporate finance staff can treat them as one worldwide ledger for all accounting activities.

Configuration of Ledger Set:

Navigate to Manage Ledger set under Define General ledger options from Setup and Maintenance area as shown below-

Click on Manage Ledger Set

Click on Create icon

Select Chart of Account and Accounting Calendar and then click on Add icon. We should remember that the Ledger Set can be created only with ledgers sharing the same COA and accounting calendar.

We can create ledger set which includes primary and secondary ledgers. Select the ledgers and click on Save and Close

Anjan Mukerji

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