For Create New Legal Entity Basic Steps Check List

Setup New Legal Entity

1.  Create Legal Entity

Navigation: Organization administration –> Common –> Organizations –> Internal organizations

Enter data to the fields like Country, Address and Time Zone (Close all the Client systems to change the time zone)

2.  Create COG Group

Navigation: General Ledger –> Setup –> Chart of Accounts –> Chart of Accounts

Enter the values like name and description of Chart of accounts (Do not create COA accounts here)

3.  Create Financial dimensions

Navigation: General Ledger –> Setup –> Financial dimensions –> Financial dimensions

New button will not be enabled in the Common –> Main accounts form until we create a financial dimension

4.  Create Main accounts

Navigation: General Ledger –> Common –> Main accounts

5.  Activate the account structure

Navigation: General Ledger –> Setup –> Chart of Accounts –> Configure account Structures

After configuring the account structure click Activate button.

6.  Create Fiscal Year

Navigation: General Ledger –> Setup –> Fiscal Calendars

7.  Create Fiscal Calendar

Navigation: General Ledger –> Setup –> Fiscal Calendars

8.  Create Ledgers for Legal entity

Navigation: General Ledger –> Setup –> Ledger

Enter the values like Chart of accounts group created, Fiscal Calendar and Accounting Currency.

We should add the Account structure created in the Account structure section.

9.  Configure exchange rate types

Navigation: General Ledger –> Setup –> Currency –> Exchange rate types

We can create any number of exchange rate types and add exchange rate to that type.

10. Configure currency exchange rate

Navigation: General Ledger –> Setup –> Currency –> Exchange rate types

Select the Exchange rate type in the drop down and click new button to create a currency exchange rate.

11. Configure General Ledger parameters

Navigation: General Ledger –> Setup –> General Ledger parameters

By default, some of the setups are configured.

In the Batch transfer rules section, set the transfer mode to Synchronous in order to create the vouchers automatically when we post the packing slip and invoice for Sales and purchase orders.

For ‘Scheduled batch’ transfer mode, the transactions will be posted to the general ledger later when you run General ledger –> Periodic –> ‘Batch transfer for subledger journals’.

12.Configure Posting profiles

Navigation: Inventory Management –> Setup –> Posting –> Posting

For Sales Order: Demo Chart of Account INTE_A/C_Structure (India Accounting Structure)

Cost of units, Delivered	142300	Inventory Clearing Shipped Un-Invoiced
Cost of Goods Sold, Delivered	130300	Trade Receivables -Not Invoiced
Cost of Units, Invoiced	500010-FG 500020-RM	Issue-Finished Goods Issue-Raw Materials
Cost of Goods Sold, Invoiced	500100-FG 500110-RM	COGS-Finish Goods COGS-Raw Materials
Revenue	401110-FG 401120-RM	Sale-Finish Goods Sale-Raw Materials
Discount	520100	Discount and Allowance Taken
Commission	602150	Commission Expense
Commission Offset	201110	Commission Payable

For Purchase order: Demo Chart of Account INTE_A/C_Structure (India Accounting Structure)

Cost of purchased Materials Received	142100	Inventory Clearing Received Un Invoiced
Purchased Expenditure Invoiced	200125	Accounts Payable Un invoiced
Cost of Purchased Materials Invoiced	600182-FG 600180-RM	Finish Goods-Receipt Raw Material-Receipt
Purchased Expenditure for Product	500600-FG 500610-RM	Cost of Returned Goods-FG Cost of Returned Goods-RM
Discount	403300	Vendor Discount
Fixed Receipt Price Profit	510400	Fixed Receipt Price Inventory Adj.
Fixed Receipt Price Loss	510400	Fixed Receipt Price Inventory Adj.
Fixed Receipt Price Offset	600182-FG 600180-RM	Finish Goods -Receipt Raw Material - Receipt
Purchase, Accrual	200190	Accrued Purchased
Purchase Price Variance	510310	Purchase Price Variance
Purchase Expenditure for Expense	600150	Other Misc., Expense

For Inventory: Demo Chart of Account INTE_A/C_Structure (India Accounting Structure)

Fixed Receipt Price Profit	510400	Fixed Receipt Price Inventory Adjustment
Fixed Receipt Price Loss	510400	Fixed Receipt Price Inventory Adjustment
Inventory Issue	500010-FG 500020-RM	Issue-Finish Goods Issue-Raw Material
Inventory Expenditure Loss	510520	Inventory Adjustment
Inventory Receipt	600182-FG 600180-RM	Finish Goods-Receipts Raw Material-Receipts
Inventory Expenditure Profit	510520	Inventory Adjustment
Inventory Cost Revaluation	510330	Inventory Cost Revaluation
Inter-Unit Payable	200120	Accounts Payable-Intercompany
Inter-Unit Receivable	130200	Accounts Receivable-Intercompany
Cost Change Variance	510320	Cost Change Variance
Rounding Variance	510380	Others Variance
Issue	500010-FG 500020-RM	Issue-Finish Goods Issue-Raw Material
Receipt	600182-FG 600180-RM	Receipt-Finish Goods Receipt-Raw Material
Unrealized Gain	801600	Currency Adjustment Profit-Unrealized
Unrealized Loss	801400	Currency Adjustment Loss-Unrealized
Goods In transit	140120	Goods in Transit-RM/SS
Scrap	900200	Scrap Expense
Interim Transit	140200	Interim Transit Accounts

Above are the sample main accounts assigned to each posting.

13. Configure Item model group

Navigation: Inventory Management –> Setup –> Inventory –> Item model groups

Select No check for Approved vendor check method field to avoid warning like “Vendor XXXX is not authorized for the item XXXX” during purchase order / Sales order processing.

14. Configure Item groups

Navigation: Inventory Management –> Setup –> Inventory –> Item groups

Whenever we create a new Item group, the main accounts are populated automatically from the posting profiles created above.

15. Create Sites

Navigation: Inventory Management –> Setup –> Inventory breakdown à sites

16. Create Warehouses

Navigation: Inventory Management –> Setup –> Inventory breakdown –> warehouses

17. Configure Dimension groups

Navigation: Product information management –> Setup –> Dimension groups –> Product dimension groups

Navigation: Product information management –>Setup –> Dimension groups –> Storage dimension groups

Navigation: Product information management –> Setup –> Dimension groups –> Tracking dimension groups

18. Configure Vendor Posting profiles

Navigation: Accounts payable –> Setup –> Vendor posting profiles

19. Configure Terms of Payment

Navigation: Accounts Payable –> Setup –> Payment –> Terms of payment

20. Configure Vendor groups

Navigation: Accounts Payable –> Setup –> Vendors –> Vendor groups

21. Configure Accounts payable parameters

Navigation: Accounts Payable –> Setup –> Accounts payable parameters

By default some of the setups will get activated and make sure that Post product receipt in ledger should be checked in Updates section for posting the transactions of Product receipt into Ledger during processing of purchase order.

22. Create Vendors

Navigation: Accounts payable –> Common –> Vendors –> All vendors

23. Configure Customer Posting profiles

Navigation: Accounts receivable –> Setup –> Customer posting profiles

24. Configure Customer groups

Navigation: Accounts receivable –> Setup –> Customers –> Customer groups

25. Configure Account receivable parameters

Navigation: Accounts receivable –> Setup –> Accounts receivable parameters

By default, some of the setups will get activated and make sure that Post packing slip in ledger should be checked in Updates section for posting the transactions of packing slip into Ledger during processing of Sales order.

26. Create Customers

Navigation: Accounts receivable –> Common –> Customers –> All customers

27. Configure Journals

Navigation: General Ledger –> Setup –> Journals –> Journal names

we can create an Item, purchase the item, sell an item and also, we can post all the transactions to the respective accounts.

Go to General ledger → Setup → Journals → Journal names Click new

§  Set a name

§  Set a description

§  Select a Journal type

§  There are many kinds of journals, the journals will be available in an specific module for an specific transaction depend on what kind of journal do you select here example:

o   Daily it will be available on General ledger → journals → General journal

o   Invoice Register it will be available on Accounts payable →Journals → Invoices →invoice journals

o   Vendor Disbursement it will be available on Accounts payable →Journals → Payment → Payment Journal

o   Customer payment it will be available on Accounts receivable → Journals → Payment → Payment journal

§  Configure a number sequence for voucher series, here we recommend configuring a unique number sequence for each Journal, this voucher number is very important for trace ability of transactions 

§  Financial dimensions, here you can select a specific financial dimensions values and this values will be set default when you make a journal