.Use General Ledger Policies to define and maintain data for the internal company. The information is used throughout the General Ledger. The account structure, budget versions and retained earnings account are defined here.
Setting up General Ledger Policies
Select Financials | Setup | General Ledger Policies.
In the General Ledger Journal Entry area, click to select the Auto-Calculate Journal Total check box if you want to automatically calculate the journal total as the sum of the debits, when journal entries are created in General Ledger Journal Entry.
Do not select this check box if you prefer to enter manually-calculated totals as a check so that you can make sure that all lines were created for the journal entry.
In the Budgeting area, specify the unique budget version in Default Budget Version that you want to use as the default budget throughout General Ledger. The budget version that is specified here will be the default value displayed in budget version dropdowns for the internal company.
You can also specify the Default Budget Version from Budget and Statistical Version by clicking .
You can also create a new budget version by using the Quick Add feature. For more information, see Quick Add.
In the Retained Earnings Account Group area, specify the account group that you want to use as the retained earnings account group during the year-end closing process. To specify the Retained Earnings Account Number, select the account in Acct, the department in Dept, the territory in Ter, and the product line in Prd.
You can also create new account group segments by using the Quick Add feature.
Select the Allow Retained Earnings Account to be Used for Journal Entries check box when you want to be able to entry journal entries against the Retained Earnings account. This field is unchecked by default.
In the Net Income Account Group area, specify the account group to which all income and expense items are posted to be used as the current year net income amount in the Balance Sheet Financial Report. To specify the Net Income Account Group, select the account in Acct, the department in Dept, the territory in Ter, and the product line in Prd.
You can also create new account group segments by using the Quick Add feature.
Select the Allow Net Income Account to be Used for Journal Entries check box when you want to be able to entry journal entries against the Net Income account. This field is unchecked by default.
In the Period Defaults area, click to select the Default to Current Period check box to default the Period box in all screens, to the current (earliest) period that is open in the System. If you do not select this check box, the Period box uses the current date period displayed in Period Closing.
Click Save to save the current general ledger policy.