Summary Accounts

Oracle Applications Fusion Cloud - Manufacturing

Oracle Cloud/Fusion Manufacturing Cloud training will help you develop the fundamental skills required to set up and use the Manufacturing module. This training covers all the tasks, setups, forms and reports used in Manufacturing and related modules

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, MassAllocations, and recurring journal formulas.

Determining Your Summary Account Needs
The first step in defining your summary accounts is to determine your summary account needs. Summary accounts provide you with significant benefits when you produce summary reports and perform allocations.
1. Consider the summary information you need for reports.
Although you can easily define financial statements that sum a number of accounts together for a given row, you can use summary accounts for faster access to summarized balances.

2. Identify the summary balances you need for online inquiries.
For example, you may need ”flash” inquiries on the total of all cash balances for your domestic organizations to make daily decisions about investments or foreign currency hedging. You may also want to review the amount of working capital (current assets less current liabilities) for each division or department on a weekly basis.

3. Consider how you want to use summary accounts in formulas and allocations. You can use summary accounts as factors when defining journal formulas and allocations.

  • Use summary accounts to reference summary balances in a recurring journal formula. For example, to estimate a sales commission accrual based on the total of all product sales for each division, you can use a summary account that totals all product sales in each division.
  • Use summary accounts to reference summary budget balances in a budget formula. For example, to base the budget for employee benefits in each company on the total of all budgeted employee salaries, use summary accounts that total all employee salaries in each company.
  • Use summary accounts when entering budgets with budget rules. For example, you can base your budget for the current year’s Salary account on a percentage of the prior year’s total Overhead expense, a summary account.
  • Use summary accounts to indicate the total amount you want to allocate when defining your allocation formulas. Also, use summary accounts to help you calculate the allocation ratios to use in your allocation formulas.

Planning the Summary Account Structure
After determining your summary account needs, plan your summary account structure according to how you want to summarize your accounting information.

Choose ways to summarize your accounting information depending on the structure of your account and your informational needs. Generally, organizations structure their accounts such that each segment represents a particular dimension, or a way of looking at their organization.

Planning Parent Values and Rollup Groups
After determining your needs and organizing your summary account structure, define your parent values and your rollup groups.
Note: You can use the Account Hierarchy Manager or the Account Hierarchy Editor, if Applications Desktop Integrator is
installed, to create and edit your account hierarchies graphically. You can use the Account Hierarchy Manager or the Account Hierarchy Editor to define parent and child segment values, as well as rollup groups.

Planning Summary Account Templates
Set up templates to define and maintain summary accounts. You can enhance the speed of your summarizations by controlling the number of summary accounts created by your template. The number of summary accounts your template creates depends on the template segment values.

 
Defining Summary Accounts
General Ledger uses summary templates to create summary accounts, whose balances are the sums of multiple detail accounts. Use summary accounts to perform online summary inquiries, as well as to speed the processing of financial reports, MassAllocations, and recurring journal formulas.

You specify when you want General Ledger to begin maintaining your summary account balances. You can also assign budgetary control options to a summary template for which you want to perform summary level budgetary control.
When you delete a summary template, General Ledger deletes all summary accounts created from that template and their associated balances.

To define a new summary account template:
1. Navigate to the Summary Accounts window.
2. Enter a Name for the summary account template.
3. Enter the Template.
4. Enter the Earliest Period for which you want General Ledger to maintain your actual, encumbrance and budget summary account balances. General Ledger maintains summary account balances for this accounting period and for subsequent periods.
5. If you are using budgetary control for your set of books, set the budgetary control options for the summary template.
6. Save your work. General Ledger submits a concurrent request to add the summary accounts, and displays the Status of your summary template.
Current: The summary accounts are active.
Adding: The concurrent request to create summary accounts is pending or running.
Deleting: The concurrent request to delete summary accounts is pending or running.

To enter a summary account template:
From the Summary Accounts window, enter the summary account Template using one of the following values for each segment:
D: Your template creates and maintains a summary account for every detail segment value. This value creates the most summary accounts of any template value.
Note: General Ledger will not allow you to define a summary account template using only D template values.

T:
Your template creates and maintains a summary account that sums balances of all detail segment values. This value creates the fewest summary accounts of any template value.
If you enter T for a segment, all summary accounts created by the template will have the value T for the segment. Therefore, the value T must be defined and enabled for the segment. Also, the segment value must be a parent and detail posting and budgeting are not allowed.
Note: Do not define a summary account template using only T template values. A template using T values for every segment will have a zero balance if your general ledger is in balance.

[Rollup Group Name]: Your template creates and maintains a summary account for each parent segment value assigned to the rollup group you specify. The more parent segment values in a given rollup group, the more summary accounts your template creates.

Summary Account Example
Use the following formula to determine the number of summary accounts any given template will create:

 

 

Example 1 : First system finds out the segments for which detail value is required. Then system finds out the summation of each segements against each uniqe combination of the detail segemnts.

 For T-D-T-T-T only  second segment is unique so system 'll calculate 2 summary accounts T-521-T-T-T &
T-520-T-T-T

Sponsored Links