Creating accounting unit hierarchies

Your must create a hierarchy for each accounting unit structure. Your accounting unit hierarchy can contain an unlimited number of levels. You can use zone balancing for any level.

  1. Select Financials > Global Ledger > Setup > Finance Enterprise Group > Maintenance.
  2. Open the finance enterprise group and click the Accounting Entity tab. The label of this tab is the label that is assigned to the Accounting Entity on the finance enterprise group.
  3. Open an accounting entity.
  4. Click the Accounting Unit Structures tab.
  5. Open an accounting unit structure and click the Hierarchy tab.
  6. Click Create.
  7. Specify this information:
    Type
    Select the accounting unit type. If you select Posting, then you cannot create a child accounting unit for this accounting unit.
    Accounting Unit
    Specify the accounting unit name and description. You cannot change the name after you save the accounting unit, although you can change the description.
    Note: When you create a summary accounting unit, the structure number and an underscore are added to the beginning so that it can be used in multiple structures. For example, if the summary accounting unit is Facilities, it is saved as 1_Facilities in the first structure.

    The number of characters available for the summary name is shortened. If a summary is too large for the field size, the characters at the end are removed when the structure number is prepended.

    System Accounting Unit
    Select this check box if this is the system accounting unit for system-generated transactions. For example, year-end close or currency processing and balancing. An accounting entity can have only one system accounting unit and it must be a posting accounting unit. It can be the same accounting unit as the accounting entity zone accounting unit.
    Inter Accounting Entity Accounting Unit
    Select this check box if the inter entity transactions use specific accounting units.
    Include in Budget Edit
    If you use budget edit, select this check box on posting accounting units to define the accounting unit to use in budget edit templates.
    Budget Identifier
    If you use budget edit, budget identifiers can be assigned to summary accounting units. The identifiers are used in budget edit templates.
    Address Code
    Specify the address that is associated with the accounting entity accounting unit.
  8. If the accounting entity uses zone balancing, specify this information:
    Is A Zone
    This field is available if the accounting entity uses zone balancing. Select this check box if this accounting unit is a zone. For each accounting unit branch, you define the top level at which you want to balance as the zone.
    Zone Accounting Unit
    This field is available if the accounting entity uses zone balancing. If you select Is A Zone, then select the zone accounting unit to balance with. It must be a posting accounting unit.
    Entity Zone Accounting Unit
    This field is available if the accounting entity uses zone balancing. Select this check box if this is the accounting entity zone accounting unit. The accounting entity zone accounting unit must be a stand-alone accounting unit. It cannot be a child accounting unit and it cannot be a parent accounting unit. In addition, it cannot be a zone. It can be the same accounting unit as the system accounting unit. This accounting unit is used to post balancing entries for transactions between zoned and not-zoned accounting units.
    Default Zone Accounting Unit
    This field is available if zone balancing is used in the accounting entity. Select this check box to assign the accounting unit as the default zone. An accounting entity can only contain one default zone accounting unit. The default zone is used to balance all transactions when transactions cross zones. The default zone is the default value on transactions, but it can be overridden.
  9. Click Save.