Wednesday, 24 May 2017

R12 Accounting Flex Field

As salamo alaikum wa rahmatullah

Segment Label: Identifies certain segments in your chart of accounts and assigns special functionality to those segments. The required segment labels are:
Balancing Segment: Ensures that all journals balance for each balancing segment value or combination of multiple balancing segment values to use in financial processes and reporting. The three balancing segment labels are: Primary balancing segment, Second balancing segment, and Third balancing segment. The Primary balancing segment label is required and must be the first segment in the Rapid Implementation spreadsheet.
Natural Account: Facilitates processes in the General Ledger application, such as retained earnings posting. For each child value, you must assign an Account Type. You can select from one of the general choices to mark the account value as an Asset, Liability, Owner's Equity, Revenue, or Expense account.
If the account is used by the rapid implementation solution to provide accounts for setup objects, select the appropriate Expanded Account Type value for the child account. Examples of expanded account types required for setup objects are:
Owner's Equity - Retained Earnings: To set up General Ledger ledgers.
Liability - Accounts Payable: To set up Payables common options.
Asset - Accounts Receivable: To set up Receivables receipt methods.
Accounts tagged with expanded account types are automatically assigned a financial category. You can override the default category in the Financial Category field, or leave it out.

Cost Center: Facilitates grouping of natural accounts by functional cost types, accommodating tracking of specific business expenses across natural accounts.

Ma ASalaam
Passion 4 Oracle


  1. When setting up the chart of accounts in Oracle E-Business Suite, the accounting flexfield is the collection of segmented values which define the various characteristics of a particular combination of values such as company/legal entity, (natural) account, cost center, distribution channel, etc. You can have up to 30 segments in you accounting flexfield, but you must have at least two: natural account and balancing segment.

    A natural account segment contains values representing account types, such as cash, accounts receivable, product revenue and salary expense. Only one natural account segment can be defined in a chart of accounts.

    A balancing segment is used in the General Ledger to ensure that all journal entries balance for each value of the balancing segment and to ensure that entries that impact more than one balancing segment use the appropriate intercompany or interfund accounting. Only one balancing segment can be defined in a chart of accounts. It is best practice for the balancing segment to equate to company so that the debits and credits in the General Ledger balance by company.

  2. Inter company Segment - Inter company segment - This segment can help with intercompany and intra company balancing by tracking all inter company transaction in this segment.

  3. Secondary Tracking - Utilized by Revaluation, Transaction Gains / Losses, fiscal close journals to record cumulative translation adjustments, unrealized gains and losses, and fiscal close etnries to retained earnings into a unique account combinations of balancing segment and secondary tracking segment.