Reporting basis setup

You must create a reporting basis and assign entities and ledgers which create period status records. The valid relationships between ledgers and entities must be created before transactions can be created. Reporting basis is also required to generate financial statements.

A reporting basis consists of the accounting elements required to produce financial reports that adhere to specific accounting standards. For example, GAAP, IFRS, or local standards. A reporting basis can also be used to generate internal financial reports that are used to make budgetary, management, and operational assessments.

A reporting basis includes these elements:

• One or more ledgers. The ledgers included in the reporting basis:
  • The core ledger. Generated when you create the finance enterprise group.
  • The close ledger for the reporting basis. Generated automatically when you create the reporting basis.
  • The currency ledger for the reporting basis. Generated automatically if any of the accounting entities use a currency ledger
  • Other ledgers specifically defined for the reporting basis, such as elimination entries ledgers and adjusting entry ledgers.
• One or more accounting entities
• A calendar and a year
• A chart

All transactions that are posted for ledgers and accounting entities within the reporting year are used to create financial reports for the reporting basis.

The financial reports that are generated for a reporting basis include only transactions that share all of these elements:

• The posting account for the transaction must be associated with the chart used by the reporting basis.
• The transaction must be associated with one of the ledgers for the reporting basis.
• The transaction must be associated with one of the accounting entities for the reporting basis.
• The date of the transaction must be within the calendar dates on the reporting basis.