Oracle R12 GL : Enhanced Third Party Control Account Validations ( Restrict Manual Journals )


The Third Party Control Account feature in the Oracle E-Business Suite enables organizations to maintain detailed balances by third party for an account code combination. Subledger Accounting checks that valid third party information is associated with the journal line if the account code combination is a Third Party Control Account. If it is not, then Subledger Accounting rejects the journal line.
For example, when the unidentified receipts account code in the Oracle Receivables is defined as a Third Party Control Account, accounting for the unidentified receipts will fail because no third party information is available for such receipts. Similar issues are observed with the rounding account and intercompany accounts.

General Ledger prevents manual journal entries from posting to the Third Party Control Accounts. This ensures that journal lines that post to the control account codes such as Supplier Liability Account, Customer Receivables Account are associated with the valid third party information in the respective subledger modules.

The users might sometimes define an account code as a Third Party Control Account to prevent the GL manual journal entries from posting to these accounts. When such accounts are used in the subledger transaction without the third party information, Subledger Accounting prevents the accounting for such transaction with an error that the third party information is missing.

The described solution helps overcome these issues.
A new Third Party Control Account validation is provided that allows accounting to complete successfully without the third party information in the subledgers but to restrict that account code while entering in the GL manual journal entries.
A new value- ‘Restrict Manual Journals’- is added to the List of values of the Third Party Control Account segment qualifier.
Users can assign ‘Restrict Manual Journals’ value in the list of values of the Third Party Control Account segment qualifier to natural account segment values and prevent the GL manual journal entries from posting to these account code combinations containing the respective natural account segment values.

User procedures:
1. When the need is to define an account code as a Third Party Control Account for the sole purpose of preventing the GL manual journal entries from posting to these accounts then the user needs to select the value ‘Restrict Manual Journals’ in the list of values for the Third Party Control Account segment qualifier in the accounting flexfield segment value definition form, as shown in the attached screenshot.
Navigation path:

Setup> Financials>Flexfields>Key>Values

Query for your structure
Account segment>Segment Qualifiers> Select Third Party Control Account qualifier
Save.
At this point the user will not be able to select this particular account code while creating a manual journal entry in the GL. But the user can still select these account codes without the third party information in the respective subledgers because the system treats this third party control account for the purpose of restricting the usage in the GL manual journal entries only.

2. After the setting up an account code as ‘Restrict Manual Journals’ Third Party Control Account as shown in the attachment, the user needs to run the concurrent program ‘Inherit Segment Value Attributes’ to reflect the Third Party Control Account qualifier changes in the account code combinations.

Note: it is advised not to change the qualifier from ‘Supplier’/’Customer’ to ‘Restrict Manual Journals’ for existing accounts, but rather to define new accounts that will be set up as restricted for GL usage from the beginning.
Such a change, if performed, would affect the subledger reports that consider these qualifiers(e.g. ‘Third Party Balances Report’ -which would still show data from the past, before the change was made) .

About these ads

One response to “Oracle R12 GL : Enhanced Third Party Control Account Validations ( Restrict Manual Journals )

  1. Hi Shiva , Very Good Information Thanks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s