R12 : Sequence in GL made Legal Compliance Easy

Posted on January 17th, 2008 by Sanjit Anand | Print This Post | Email This Post

In R12, to cater the need for legal compliance some other counties like Asia, Latin America, and Europe ,two Journal Sequencing options have been provided. These are accounting and reporting sequence, in reality there is bit difference in these two terms.

Accounting Sequence
This is sequence used in GL journals when posted in GL ,Sequence subledger journals when completed in Subledger Accounting.

What we have seen in Release 11i, we had document sequencing that sequentially numbered documents upon creation. Accounting Sequencing will automatically assign a sequence number to GL journal entries that are posted in GL. There’s also an option to sequence subledger journals when they are completed in SLA Accounting.

Reporting Sequence
This sequence is used in GL Journals when you close a GL Period.Sequence sub ledger Journals when you complete the accounting in SLA .This is one of replacement of Accounting Engine (AX) legal sequencing and Italian Journal Book commonly known Libro Giornale.

These two Sequences can be assign mutually exclusive sequences based on:

• Ledgers or Reporting Currencies
• Journal sources
• Journal categories
• Balance types

The benefit of using these sequnces are summarized :

a) Legal Compliance made easy: The one biggest advantage of it will now addresses business requirements in many countries, such as Europe & Asia. Therefore its allows fiscal authorities to verify the completeness of a company’s accounting records.

b)Flexibility get enhanced:With this it provides greater flexibility in choosing different journal sequencing options, as mention above, these can be based out of these different criteria, such as by ledgers, reporting currencies, journal sources, journal categories, and balance types.

c)No Localization Required: Somehow related to (a) discussed above, earlier it the local reporting need was catered by localization , which now is part of GL activity.

Where to Define the the sequence.

You can define the accounting sequence in the context of a ledger in Accounting Setup Manager.There is another way ie Accounting Sequencing menu function which we can create and manage our sequencing rules.

For Accounting Sequences which is internally a posting event, the GL journals are sequenced when they are posted in GL and Subledger journals are sequenced when completed in SLA. For Reporting Sequences (period close event), GL journals and subledger journals are sequenced when a GL period is closed.You can see both can be appear in the Journal screen as below.

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