Multi Org Setup Cont-3

Define Primary Ledger:

As we discussed A ledger is collection of currency, calendar, chart of account and sub-ledger accounting method, so here we need to associate our currency, calendar, chart of account and sub-ledger accounting method to ledger.

Click Next and Finish. Click on Define Accounting Options button.



Click on Update Icon and go to 2^nd step and enter the Retained earnings account go to 4^th step and click on Finish button.

Note: Retained Earnings Account is a account where companies will transfer the profit and losses in to this account, which will not carry forward to next financial year.
 
Click on Update Balancing Segment Values.


Click on Add Balancing Segment Value and select all Balancing Segments click on select.

 
Click on Apply and Complete. Once we add Legal Entity to Balancing Segment Values we will get Operating Unit Option at Primary Ledger Section.
 
Click on Update Icon for Operating Unit Option.
Define Operating Unit: Click on Add Operating Unit.
 
Define Operating Units MCR Cars and MCR Trucks under Legal Entity MCR Motors

Here we are assigning Business Group, Legal Entity and Primary Ledger to Operating Unit.

Reason behind is…

·         When we associate Business Group to Operating Unit, we can share (work structures) complete HR information which is defined under Business Group for security and approval at OU.

·         When we associate Legal Entity, we can share the income tax and internal bank accounts for payment and receipt transaction at OU.

When we associate Primary Ledger, we can share the complete accounting information to process the financial transactions created at OU level (AP, AR, PA, PO and OM etc)
Click on Apply and Complete. Like define Operating Unit for MCR Trucks also.


Multi Org Setup Continuation