Oracle GL 2026 (1Z0-1054-26) cheat sheet

Configuration sequence: Legal Entity → Ledger → Business Unit → Primary Ledger assignment; a ledger must have exactly one Chart of Accounts, one Calendar, and one Currency before it can be assigned.

Accounting Calendar defines the period structure; the ledger's calendar determines period statuses (Never Opened, Open, Closed, Permanently Closed) used by period close and subledger posting.

Four Cs of a ledger: Chart of Accounts, Calendar, Currency, and Convention (accounting method such as Standard Accrual); changing any of these on a posted ledger requires a new ledger.

Legal Entity is the registered entity for legal reporting and tax; it owns the ledger association and drives intercompany balancing and sequential numbering.

Business Unit is a management reporting and transaction-processing entity that can be shared across ledgers; it is not a legal construct.

Reference data sets (cost centers, management segments) are assigned to business units to partition value sets; a business unit uses exactly one reference data set per segment.

Ledger options control retained earnings account, journal approval, suspense, and whether subledger journals require the same currency as the ledger.

A primary ledger can have secondary ledgers and reporting currencies; reporting currency converts balances, secondary ledger can differ in CoA, calendar, or method.

Key Flexfield structure defines segments, order, and labels; the combination of segment values forms the Accounting Flexfield (CCID) stored on every distribution.

Value sets control validation: format type (Char, Number), maximum size, uppercase, precision, and security; segment values are validated against their value set.

Segment qualifiers drive behavior: Natural Account (Asset/Liability/Equity/Revenue/Expense), Balancing, Cost Center, Intercompany, and Secondary Tracking.

Only one Balancing segment value per journal line combination is allowed unless the line is intercompany; balancing segment values determine which legal entity owns the balance.

Dynamic insertion allows new combination creation at transaction entry; if disabled, combinations must be pre-created or the entry fails validation.

Cross-validation rules restrict which segment value combinations can coexist; they are evaluated at combination creation and journal entry.

Account hierarchy (parent-child rollup) enables summary reporting and allocation/revaluation grouping; parents are non-posting and children are posting.

Shorthand aliases map a short code to a full combination to speed journal entry; they do not bypass cross-validation or security rules.

Subledger Accounting (SLA) derives journal entries from subledger transactions via Journal Entry Rule Sets: Event Class → Event Type → Journal Line Type → Account Derivation Rule.

Account Derivation Rule sources include constant values, transaction flexfields, ledger segment values, and mapping sets; precedence order resolves conflicts.

SLA creates the final accounting; the Create Accounting process transfers entries to GL, and the Transfer to GL step can be combined or run separately.

Journal sources and categories control posting behavior; the source identifies origin (Payables, Receivables, Manual) and category classifies the entry type.

Suspense accounting is used when SLA cannot derive a valid account; suspense entries must be cleared before period close.

Accounting method (Standard Accrual, Cash, etc.) determines which events create accounting and how reversals are generated.

Subledger journal entries carry a GL date; the GL period must be open for the transfer to succeed, otherwise entries remain in SLA.

Journal line types define debit/credit indicator, side, and whether the line is a gain/loss or tax line; they drive the shape of the generated entry.

Journal entry balance rule: total debits must equal total credits before posting; an unbalanced journal cannot be posted and remains in Entered status.

Journal statuses progress Entered → Posted; approval adds Submitted/Approved/Rejected when journal approval is enabled for the source.

Recurring journals use a template with a recurrence pattern (e.g., every period) and generate journal entries on a schedule; the template itself never posts.

Allocations distribute balances using a basis (e.g., headcount, revenue) and a target; allocation formulas use basis, target, offset, and rounding rules.

Allocation run generates a journal entry in the target period; if the basis totals zero, the allocation fails or produces no entry depending on configuration.

Mass allocation and recurring journals both create journals in the same source/category defined on the template; the generated entries are editable before posting.

Reversal methods: switch debit/credit, change sign, or no reversal; reversal period can be the next period, same period, or a specific period.

Journal approval workflow routes by amount, source, or preparer; rejected journals return to Entered and must be resubmitted.

Period close sequence: run subledger accounting and transfer to GL → post journals → run revaluation → run translation → reconcile → close period.

Revaluation restates foreign-currency balances to the current rate and posts unrealized gain/loss to a designated account; it does not change the original transaction currency balance.

Translation converts functional-currency balances to a reporting currency using period-end rate for assets/liabilities, average rate for revenue/expense, and historical rate for equity.

Cumulative Translation Adjustment (CTA) captures the translation difference and is posted to equity, not to income.

Consolidation combines multiple ledgers into a consolidation ledger; intercompany eliminations remove intra-group balances before reporting.

Period status must be Open to post; closing a period prevents further posting unless reopened; Permanently Closed cannot be reopened.

Reconciliation of subledger to GL should confirm that transferred SLA entries equal posted GL balances for each source before close.

Revaluation and translation run per ledger and per period; running them twice in the same period without reversal creates duplicate entries.

Financial Reporting Studio builds reports from the GL balances cube; rows, columns, and point-of-view (ledger, period, currency) define the report output.

Account groups and hierarchies enable rollup reporting; a report can drill from summary to detail balances and then to journal lines.

Budgetary Control validates transactions against budget or control budgets; control budget defines the amount available and the control level (absolute, advisory).

Budgetary control checks run at transaction entry and at journal posting; a failed check blocks the transaction or produces a warning based on the control setting.

Smart View connects to the GL balances cube for ad hoc analysis and supports refresh and submit of budget data.

Account inquiry and drill-down show beginning balance, period activity, and ending balance; the sum must reconcile to the trial balance.

Budgetary control uses a control budget and a budget manager; funds check results are Absolute, Advisory, or Not Available.

Analytics and OTBI subject areas expose GL balances, journal lines, and budget data; security determines which ledgers and segments a user sees.

Intercompany transactions occur when the balancing segment differs between journal lines; the system generates a due-to/due-from pair to keep each legal entity balanced.

Intercompany balancing rules define the accounts used for the due-to and due-from entries based on the intercompany segment or balancing segment values.

Intercompany reconciliation matches payables and receivables across legal entities; unmatched balances remain open and must be investigated before close.

Multi-ledger processing: a single transaction can be accounted in the primary ledger and replicated to secondary ledgers or reporting currencies, each with its own accounting.

Secondary ledger can differ in CoA, calendar, currency, or accounting method; conversion rules map values between ledgers.

Reporting currency ledger uses the same CoA and calendar as the primary ledger but a different currency; translation rates apply.

Intercompany segment is a separate segment used to identify the counterparty legal entity; it is populated by intercompany balancing rules.

Elimination entries remove intercompany balances during consolidation; they are generated from the intercompany rules and posted to the consolidation ledger.

Data access sets control which ledgers, balancing segment values, and management segment values a user can access; they are assigned to roles.

Data access set types: Full Ledger, Ledger Set, and Specific Ledger; the set determines the read/write scope for GL and subledger data.

Segment value security restricts which segment values a user can use or see; it is enforced in addition to data access sets.

Role-based access: a user needs a role with the GL privileges plus a data access set; missing either results in no access or restricted access.

Journal approval workflow uses AME or the approval hierarchy; approvers are determined by amount, source, and preparer, and approval is required before posting.

Approval rules can require multiple approvers; a rejected journal returns to the preparer and must be resubmitted for a new approval cycle.

Function and data security are separate: function security controls which pages/actions are available, data security controls which records are visible.

Audit and reconciliation: security changes and journal approvals are logged; period close should verify that all journals are posted or explicitly excluded.

Configuration sequence: Legal Entity → Ledger → Business Unit → Primary Ledger assignment; a ledger must have exactly one Chart of Accounts, one Calendar, and one Currency before it can be assigned.

Accounting Calendar defines the period structure; the ledger's calendar determines period statuses (Never Opened, Open, Closed, Permanently Closed) used by period close and subledger posting.

Four Cs of a ledger: Chart of Accounts, Calendar, Currency, and Convention (accounting method such as Standard Accrual); changing any of these on a posted ledger requires a new ledger.

Legal Entity is the registered entity for legal reporting and tax; it owns the ledger association and drives intercompany balancing and sequential numbering.

Business Unit is a management reporting and transaction-processing entity that can be shared across ledgers; it is not a legal construct.

Reference data sets (cost centers, management segments) are assigned to business units to partition value sets; a business unit uses exactly one reference data set per segment.

Ledger options control retained earnings account, journal approval, suspense, and whether subledger journals require the same currency as the ledger.

A primary ledger can have secondary ledgers and reporting currencies; reporting currency converts balances, secondary ledger can differ in CoA, calendar, or method.

Key Flexfield structure defines segments, order, and labels; the combination of segment values forms the Accounting Flexfield (CCID) stored on every distribution.

Value sets control validation: format type (Char, Number), maximum size, uppercase, precision, and security; segment values are validated against their value set.

Segment qualifiers drive behavior: Natural Account (Asset/Liability/Equity/Revenue/Expense), Balancing, Cost Center, Intercompany, and Secondary Tracking.

Only one Balancing segment value per journal line combination is allowed unless the line is intercompany; balancing segment values determine which legal entity owns the balance.

Dynamic insertion allows new combination creation at transaction entry; if disabled, combinations must be pre-created or the entry fails validation.

Cross-validation rules restrict which segment value combinations can coexist; they are evaluated at combination creation and journal entry.

Account hierarchy (parent-child rollup) enables summary reporting and allocation/revaluation grouping; parents are non-posting and children are posting.

Shorthand aliases map a short code to a full combination to speed journal entry; they do not bypass cross-validation or security rules.

Subledger Accounting (SLA) derives journal entries from subledger transactions via Journal Entry Rule Sets: Event Class → Event Type → Journal Line Type → Account Derivation Rule.

Account Derivation Rule sources include constant values, transaction flexfields, ledger segment values, and mapping sets; precedence order resolves conflicts.

SLA creates the final accounting; the Create Accounting process transfers entries to GL, and the Transfer to GL step can be combined or run separately.

Journal sources and categories control posting behavior; the source identifies origin (Payables, Receivables, Manual) and category classifies the entry type.

Suspense accounting is used when SLA cannot derive a valid account; suspense entries must be cleared before period close.

Accounting method (Standard Accrual, Cash, etc.) determines which events create accounting and how reversals are generated.

Subledger journal entries carry a GL date; the GL period must be open for the transfer to succeed, otherwise entries remain in SLA.

Journal line types define debit/credit indicator, side, and whether the line is a gain/loss or tax line; they drive the shape of the generated entry.

Journal entry balance rule: total debits must equal total credits before posting; an unbalanced journal cannot be posted and remains in Entered status.

Journal statuses progress Entered → Posted; approval adds Submitted/Approved/Rejected when journal approval is enabled for the source.

Recurring journals use a template with a recurrence pattern (e.g., every period) and generate journal entries on a schedule; the template itself never posts.

Allocations distribute balances using a basis (e.g., headcount, revenue) and a target; allocation formulas use basis, target, offset, and rounding rules.

Allocation run generates a journal entry in the target period; if the basis totals zero, the allocation fails or produces no entry depending on configuration.

Mass allocation and recurring journals both create journals in the same source/category defined on the template; the generated entries are editable before posting.

Reversal methods: switch debit/credit, change sign, or no reversal; reversal period can be the next period, same period, or a specific period.

Journal approval workflow routes by amount, source, or preparer; rejected journals return to Entered and must be resubmitted.

Period close sequence: run subledger accounting and transfer to GL → post journals → run revaluation → run translation → reconcile → close period.

Revaluation restates foreign-currency balances to the current rate and posts unrealized gain/loss to a designated account; it does not change the original transaction currency balance.

Translation converts functional-currency balances to a reporting currency using period-end rate for assets/liabilities, average rate for revenue/expense, and historical rate for equity.

Cumulative Translation Adjustment (CTA) captures the translation difference and is posted to equity, not to income.

Consolidation combines multiple ledgers into a consolidation ledger; intercompany eliminations remove intra-group balances before reporting.

Period status must be Open to post; closing a period prevents further posting unless reopened; Permanently Closed cannot be reopened.

Reconciliation of subledger to GL should confirm that transferred SLA entries equal posted GL balances for each source before close.

Revaluation and translation run per ledger and per period; running them twice in the same period without reversal creates duplicate entries.

Financial Reporting Studio builds reports from the GL balances cube; rows, columns, and point-of-view (ledger, period, currency) define the report output.

Account groups and hierarchies enable rollup reporting; a report can drill from summary to detail balances and then to journal lines.

Budgetary Control validates transactions against budget or control budgets; control budget defines the amount available and the control level (absolute, advisory).

Budgetary control checks run at transaction entry and at journal posting; a failed check blocks the transaction or produces a warning based on the control setting.

Smart View connects to the GL balances cube for ad hoc analysis and supports refresh and submit of budget data.

Account inquiry and drill-down show beginning balance, period activity, and ending balance; the sum must reconcile to the trial balance.

Budgetary control uses a control budget and a budget manager; funds check results are Absolute, Advisory, or Not Available.

Analytics and OTBI subject areas expose GL balances, journal lines, and budget data; security determines which ledgers and segments a user sees.

Intercompany transactions occur when the balancing segment differs between journal lines; the system generates a due-to/due-from pair to keep each legal entity balanced.

Intercompany balancing rules define the accounts used for the due-to and due-from entries based on the intercompany segment or balancing segment values.

Intercompany reconciliation matches payables and receivables across legal entities; unmatched balances remain open and must be investigated before close.

Multi-ledger processing: a single transaction can be accounted in the primary ledger and replicated to secondary ledgers or reporting currencies, each with its own accounting.

Secondary ledger can differ in CoA, calendar, currency, or accounting method; conversion rules map values between ledgers.

Reporting currency ledger uses the same CoA and calendar as the primary ledger but a different currency; translation rates apply.

Intercompany segment is a separate segment used to identify the counterparty legal entity; it is populated by intercompany balancing rules.

Elimination entries remove intercompany balances during consolidation; they are generated from the intercompany rules and posted to the consolidation ledger.

Data access sets control which ledgers, balancing segment values, and management segment values a user can access; they are assigned to roles.

Data access set types: Full Ledger, Ledger Set, and Specific Ledger; the set determines the read/write scope for GL and subledger data.

Segment value security restricts which segment values a user can use or see; it is enforced in addition to data access sets.

Role-based access: a user needs a role with the GL privileges plus a data access set; missing either results in no access or restricted access.

Journal approval workflow uses AME or the approval hierarchy; approvers are determined by amount, source, and preparer, and approval is required before posting.

Approval rules can require multiple approvers; a rejected journal returns to the preparer and must be resubmitted for a new approval cycle.

Function and data security are separate: function security controls which pages/actions are available, data security controls which records are visible.

Audit and reconciliation: security changes and journal approvals are logged; period close should verify that all journals are posted or explicitly excluded.