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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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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