Chapter 8. Defining Transactions for the General Ledger
In this chapter, we will cover:
Defining the chart of accounts
Setting up the ledger
Defining subledger accounting
Defining E-Business Tax accounting
Introduction
Financial transactions are entered into ledgers. Oracle uses Subledgers (for example, Payables, Receivables, Assets, and Inventory) and the General Ledger to record the financial transactions. The transactions are entered in the Subledger and then transferred to the General Ledger through the Subledger Accounting engine. The General Ledger is used mainly to produce financial reports for decision-making.
The following diagram summarizes the process for transferring financial transactions from the Subledger to the General Ledger:
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1. The transactions are entered in the Subledger, for example, in Payables.
2. Tax is calculated on the transactions based on the E-Business tax settings.
3. The transaction is completed and we run the Create Accounting program to transfer the transactions...
