SL and MAR - Secondary Ledgers and Multiple Accounting Representations
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Ever since introduction of REL 12, most of them know that Set of Books got replaced by Ledgers. But in REL 12 we have something called Primary Ledger and Secondary Ledger, however we dont have a primary or Secondary Set of Books in earlier release, it is only one set of books.
How to get a knowledge upgrade for people who know only set of books and doesn't have any idea on ledgers.
For them Primary Ledger in REL 12 is equal to the Set of Books in R 11, as simple as that, however Secondary Ledger in Rel 12 is something new, which was not thier in previous release. Even though some may link Reporting Set of Books in REL 11 as Secondary ledgers in REL 12, which is not correct, since we still have the same functionality of Reporting Set of Books as Reporting Ledgers in REL 12.
So what does these Secondary Ledger do in REL 12 is a big question ??
Secondary Ledgers are mainly used for creating Multiple Accounting Representations.
What do you mean by Multiple Accounting Representations?
As we know oracle offers by default 5 sub ledger accounting methods, apart from which a user can create on his own as many sub ledger accounting methods as he wants. One may want to know how the financial position of the company under all five methods of Accounting, in which case you can create Secondary Ledgers and attach different Accounting method to it.
How transactions are created with Multiple Accounting Representations?
By selecting a Data Conversion level while creating a Secondary Ledger. One can select any data conversion level among Balance, Journal, Subledger and Adjustments only. What happens is that, once a Journal entry or a transaction is recorded in Primary Ledger, the same transactions gets transferred to Secondary Ledger, even though the Accounting method of Primary and Secondary ledgers may be different..
This functionality can be useful when the Statutory requirement is to maintain books of accounts in certain accounting method and company policy is to maintain books of accounts in different accounting method, and also many other reasons one can think off..
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11 comments:
Good article. Very helpful
Hi Karthiken,
Really nice Clarification.
Manpreet
Hi,
Let's say we have a primary ledger with accounting method 'Accrual' and a secondary ledger with accounting method 'Cash'. How do you access the transactions posted in the secondary cash ledger?
Do you have to create another responsibility and how do you link the responsibility to the secondary cash ledger?
YES, you have the answer already ..... For secondary ledger you need to create a new responsibility .... Linking between Ledgers and Responsibility happens via profile options ... in our case it if GL:Ledger Name i guess ...... Set your secondary ledger in that profile option ...
Hi Karthiken,
Can you tell me the difference between the Reporting Currency and the secondary Ledger.
Arun
Hi Karthik,
Also Can you tell me how many secondary ledger maximum we can create to a Primary ledger?
Arun
Was just going through your articles...as you correctly said we can include SL in GL Ledger Name profile Option for accessing it through single responsibility. I want to add that if we need to access PL and SL from same responsibility then we can use Ledger Set and Data Access Set functionality.
My cousin recommended this blog and she was totally right keep up the fantastic work!
Data Conversion Company in Chennai
Thanks for the information.
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