General Ledger Configuration and Enterprise Structures
This domain tests how you translate a company's legal and management structure into Oracle Cloud General Ledger: legal entities, business units, ledgers, calendars and the associations that bind them. Questions usually ask which object must exist before another can be created, or which structure a given transaction actually uses.
Configuration order
- Legal entity: a registered company carrying legal address, registration number and legal entity identifier. It is assigned exactly one primary ledger.
- Business unit: a management division that subledgers (Payables, Receivables, Fixed Assets) use to secure transactions. It is associated with one ledger; a ledger can serve many business units.
- Ledger: combines one chart of accounts, one accounting calendar and one currency, plus accounting method, subledger accounting method, period close and journal approval options.
- Accounting calendar: 12 or 13 periods, and the number of periods is fixed at creation. Periods move through Never Opened, Open, Closed and Permanently Closed.
Worked example
A group has three legal entities sharing one calendar and one chart of accounts, but wants a statutory ledger plus a management view that capitalises leases differently. Reasoning: create one primary ledger used by all three legal entities, because a ledger can serve many legal entities while a legal entity has only one primary ledger. Then add a secondary ledger at Balance Level so only the management difference is captured, not a full copy of every subledger journal.
Traps
Confusing secondary ledger conversion levels; assuming a legal entity can own two primary ledgers; trying to add periods after the calendar has transactions; expecting one business unit to be reusable across multiple ledgers; assuming changing a ledger currency later is possible.