In this post we will see how to setup a new Set of books in Oracle. We will set of a new set of books for a company called IPL for it's India operations.
Pre-requisite for setting up Set of Books in Oracle is,
1. Chart of Accounts (COA) setup
Check out the earlier video on COA setup video. I have considered a 5 segment chart of accounts as part of our DEMO setups for a company called IPL.
This is the well known 3C (chart of accounts, calender, currency) for SOB setup in Oracle. Once the above pre-requisites are setup, set of book can be defined.
Some other key elements for setting up of SOB apart from the above are,
a. Retained earnings account: This is the share holders / equity account. Oracle GL make necessary updates to this account whenever you do transactions in expense / income account through journals / subledgers etc. The account type for this account should be "Ownership/Stockholder's Equity"
b. Translation Adjustment account: This is the account used by Oracle GL for any difference happen (like difference due to rounding) while you translate your account level transactions from functional Currency to any other currency to make your journal balanced at account level in your translated currency. Again the account type for hti saccount is "Ownership/Stockholder's Equity"
Check out the following video for setting up Calender, currency and set of books,