Understanding on Flex Fields (Focus on GL) in Apps

Flex fields are the flexible fields used to capture the business information of the organization. Flex fields are of two types.

  1. Key Flex Fields (KFF)
  2. Descriptive Flex Fields (DFF)

Key Flex Fields are used to capture mandatory or key business information of the organization.

Descriptive Flex Fields are used to capture additional or extra business information of the organization.

Let us understand in-detail about KFF:

A flex field is a collection of structures; a structure is a collection of segments.  Each segment is associated with value set, Value set is a collection of values.

We have almost 41 Key Flex Fields which comes in a package, which are used in different functional areas like Accounting Flex field (GL Module), Job Flex Field (HR Module), Asset category Flex Field (FA Module), Sales tax location Flex Field (AR Module).

Let us now discuss on Accounting Flex Field whichis used for recording accounting information. The structure created using Accounting flex fields are known as Chart of Accounts

 Below is the Structure as an illustration A:

Note: Cross Validation Rules is used for restricting the user to enter wrong combinations of Segments for instance( from the above illustration) to restrict the user to enter the account as 01.11 where 01 is for Tata motors and 11 is for Development which should be associated with Tata motors as its created for TCS.

01.00.00.00.1002    -> This is a example for defining the Accounts at the company level, as 00 (Nodiv,NoLoc,NoDept) can be used in two scenario one when there are no further division of the segments and one when we need to define

01.01.00.00.1003  -> Defining account at division level.

NOTE: Each Ledger account is the combination of all the segments that are defined.

Qualifiers:

Qualifiers are the properties which are used to determine the behavior of the segments and there values as Oracle is not aware why the Segment is been defined and for what purpose. Using Qualifiers we inform Oracle about the functionality of the segments. In other words it is also used for segment identification. Qualifiers are used to set a specific property to the segment columns or segment values.

Qualifiers are of two types Flex Field Qualifiers and Segment Qualifier.

Flex Field Qualifiers are used to assign/set the properties of the Segment Columns

Segment Qualifier are used to set the properties to the values of the segment. Segment Qualifier is depending on the Flex Field Qualifiers. It is also used for segment identification

NOTE: For any structure Balancing segment & Natural accounting segment should be mandatorily set.

Flex Field Qualifiers:

Now Flex Field Qualifiers is categorized into:

Balancing Segment:

These are unique and Mandatory to which segment we enable this property application has to balance the journals at that segment. Balancing Segment is also used to account for retained earnings, unrealized gains and losses and cumulative transaction adjusting accounts. Balancing segments are accounted at the end of the year for which we prepare the Balance Sheet.

Note: Retained earnings are undistributed earnings, undistributed profits to the share holders.

Natural Accounting Segment:

Its unique and mandatory to which segment we enable this property internally application is going to associate accounting type segment qualifier to the values of the segment.

Accounting Types are as below:

a)      Assets

b)      Liability

c)       Revenue

d)      Expense

e)      Ownership/Retained earning

In our example account is Natural accounting segment where

1001  –  Rent   is a Expense

1002  – Cash is a Asset

1003  – Payables is a Liability

1004  – Sales is a Revenue

1005  – Salary is a Expense

Natural accounts exist for a range of Assets, Liabilities, Equity accounts, Revenues, and Expenses,

In other words, natural segment determines the account type. There are five types of account type’s assets, liabilities, expenses, revenue and owner’s equity.

Considering our illustration A, Company is Balancing Segment and Account is Natural Accounting Segment

Other types of Flex Field Qualifiers are Intercompany, Management Segments, Secondary Tracking and Cost Center.

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