How General Ledger application affects tax
The General Ledger application contains all of the accounts that are used to process Tax transactions. These concepts explain aspects of General Ledger setup that affect the Tax application.
Chart of Accounts
A chart of accounts is a list of accounts you use to organize accounting records. It is made up of balance sheet accounts (assets, liabilities, and equity) and income statement accounts (income and expenses). The balance sheet and income statement accounts are made up of summary and detail accounts.
Using Chart of Accounts
The chart of accounts is used for journal entries and to summarize general ledger information for reports and inquiries. The account numbers and descriptions you define are reflected in your balance sheets, income statements, and other reports and inquiries. Detail accounts roll up into summary accounts to provide totals.
General Ledger Company
A company is the highest organizational element in the General Ledger application. It can represent any business or legal entity of an organization, such as a corporation, holding company, division, or region.
You assign a chart of accounts, base operating currency, fiscal calendar, and optional security safeguards to a company.
You structure your company to match your business needs. Your first decision is whether you will need multiple companies or a single company. You can define up to 9,999 separate companies in General Ledger that you can consolidate for reporting and inquiry.
Accounting Unit
An accounting unit represents a location or business center in a general ledger company, such as a division, department, region, or store. Each accounting unit must have a unique name, up to 15 characters long.
You cannot change an accounting unit name after you define it.
Your company can include up to five levels of accounting units. A level represents a layer in a company structure's hierarchy. For example, a company structure might include three levels: region, division, and department. Each level is part of or reports to the level above it.
System Control
System control lets you control the way an application interfaces with the General Ledger application. For example, you can require Tax periods to close before closing General Ledger. System control is set up at the company level in the General Ledger application.
Planning your General Ledger Setup for Tax
The General Ledger application is the source for all your organization's financial and reporting information, and is a required product for all Tax users.
This checklist provides an overview for setting up General Ledger. For more information, see the General Ledger User Guide.
