A day in the life of an Oracle Applications Consultant

Sunday, November 29, 2020

Setting up Control Accounts and Restricting GL Manual Journal Posting

One of the options to consider when setting up the nominal segment within your Chart of Accounts is what your Third Party Control Account values should be. Before doing this its critical to understand what options are available and the impact of selecting these. Hence, I thought I’d put together a brief post explaining these.

The image below depicts where within the value set you would select the appropriate option and is followed by an explanation of the resultant impact.
Third Party Control Account Options

Third Party Control Account Options

General Ledger journals can be entered directly in that module or be received from a Subledger. Since control accounts should accurately reflect the movements in a related Subledger its ideal that we only allow postings to these that are sourced from the Subledger. Hence, minimising the number of manual postings to a control account is recommended and makes Subledger to General Ledger Control Account reconciliation a lot simpler.

Whichever option is chosen below will determine the allowed journal source for a GL nominal account and the level of restriction to be applied:

  1. Customer Control Account - only journal postings sourced from Accounts Receivable can be posted to this nominal.
  2. No - either this is not a control account or you want to allow any type of journal to be posted to this account.
  3. Restrict GL Manual Journals - journals with a source of Manual which are those entered directly into General Ledger will not be allowed. This provides more flexibility in that any Subledger can post to this account.
  4. Supplier Control Account - only allow journal postings sourced from Accounts Payable can be posted to this nominal.
  5. Third Party Control Account - only allow journal postings sourced from Accounts Receivable or Payables can be posted to this nominal.

Inherit Segment Values

Following any updates to a value set its important to point out that you should run the Inherit Segment Value Attributes program. This will propagate the attributes of a segment value to all account combinations that contain that segment value. Note that selecting the Create Execution Report option when running this program produces a report which lists each updated account for comparison including original and current attributes. Download an example of the Segment Value Inheritance Execution Report