In this video we are going to discuss about defining company primary ledger. Defining company primary ledger saw the last video already created three services like chat of icons currency under calendar. In this video defining that company primary ledger, what is the ledger? A ledger is a collection of three services. A ledger is a collection of three senses, but as a three senses, chat Afrikaans, currency, and calendar but these are three senses, Chart of Accounts, currency and the calendar. Chart of economies is a collection of segments in one company Chart of Accounts Minimum really quite that three segments and maximum we entered that the segments.

So, already we created our company chart of accounts that is a collection of four segments like one is a company segment, second one is a department segment, third one is a con segment and fourth one is a product segment okay and the second one is down currency currency means our function our company functional currency. So, what is the currency of our company? So, our company functional currencies INR we declared there is a INR currency because our company located in India So, we declared our functional currency of companies INR that is a currency always the company maintains one currency as functional currency. Okay, third step is calendar. The calendars are the two types in GL one is the fiscal calendar and second one is a financial calendar. Fiscal calendar means it starts from first to January ending is 31st to December it contains totally 12 periods financial calendar month starts from April 1 and ending is 31st of March next year, it is also compressing of that 12 months so you can create any one calendar already we created one calendar that is a financial calendar starts from first to January ending is 31st to December totally contents to all failures Okay, already that please pieces are completed.

Now define a company primary ledger. How to define the company primary ledger what is the purpose of this primary ledger? So before going To define a primary ledger, we needed three services already we created three services. With help of the three services we are going to define the company primary ledger. A ledger is a collection of the segment's using of this ledger, we are going to define the business transactions means business transaction means journal entries. In the GL we are going to rise different type of the journal entries.

What is a journal journalism and business transaction it comprising of the two lines, one is the debit line and second one is the credit line. If you want to raise the general capacity, we need a journal transaction details like what is a debit transaction credit line, what is the what is a company currency in which they are going to rise this gentleman we need all this information means we need all the time This is information okay After defining the three services, now assign the three C's to one object that object is nothing but a company primary ledger. Actually there are two will this be called as the company structure called as a primary ledger, but whereas in the leaven a world version we call that is as a set of books. In the in the world version we call that is as a set of books, a set of books is a collection of the thesis.

But whereas in October we call this as a primary ledger Okay, so when we have to define the ledger means within the GL module with the help of the three system we tell Papa, three sisters, that's good to login to the application. Select the data Laser responsibility and go to define that company primary ledger. So, if you want to define the ledger here, we needed three steps compulsory the ledger setup comprising of the three steps, but as a three steps, the first step is go to define a legal entity. The first step is go to define a legal entity. And the second step is define a primary ledger. And the third one is define accounting options into the primary ledger.

So these are the three steps are mandatory if you want to create your company, primary ledger. The first step is go to define a legal entity. What is the legal entity? A legal entity is a government entity It is a tax entity. We have to pay the tax according to the legal entity level. We have to pay the tax according to the legal entity level.

It's a government entity, legal entities that government entities, we have to pay the taxes according to the governmental level. For any business you take, compulsory we need one legal entity capacity we need one legal entity and maybe sometimes we can have more than one legal entities also. Maybe sometimes we can have more than one legal entities also. When we require more than one legal entities, suppose if you have multiple country operations. Suppose if You have multiple country operations suppose for example, our our company operations in India and US our company operations in Indian us okay. So, at the time we require There are two types of legal entities, one is for India operations and second is for us operations.

Why because these are the two different countries, each country Mendham they can the each country they can have a dead one practice in India, according to the Indian act, Indian Government Act we have to pay the tax to the government. That is a fixer tax and we cannot change the tax setup. The tax forms and tax numbers are given by the government. According to that norms. We have to pay the tax to the government Suppose you will compete in US according to the US government, they have to pay the taxes right. The taxes are different from one country to another country.

The taxes are different from one country to another country. Suppose if you have multiple country operations, you must have should create multiple legal entities you must and should create multiple legal entities okay. So, now, I have one company the company is in India. Now, I want to create a legal entity for India I have to pay the tax according to the Indian government. So, that's reason only I need one legal entity to pay the tax. Okay, so before going to create the primary ledger, first I need to create legal entity.

So in the GL module, we are going to define that legal entity Okay. Now what is the setup what is the setup for creating of the legal entity is the navigation is setup financials accounting Setup Manager accounting center what is the navigation for creating of the legal entity is setup financials accounting Setup Manager accounting setup compulsory one legal entity is mandatory setup can contains a three steps the first one is create accounting structure and the Define accounting options and complete accounting setup Okay. Now, so this test setup we called also called as a accounting setup the accounting setup is comprising of the three steps. The first step is legal entity defined legal entity, second one is defined primary ledger and third one is defined accounting options into the primary ledger. Actually this is a new setup Okay, now go to click on the Create accounting Setup button.

Now go to click on the Create accounting Setup button. The first setup is go to create a legal entity go to create a legal entity go to click on Create legal entity button. I need one legal entity to pay the taxes to the government. Okay, go to click on Create legal entity button. Okay, so, this is a legal entity form itself we are going to create a legal entity to our company that is a territory creditor is nothing but a country you are legal entity based on which country suppose already we declared our company currency as I enter right means our companies in India Okay, so that's why we have to use our functional currency of our companies. So means our territories in India so my company's in India now I want to create a legal entity Based on de India by default in the United States here okay now I'm going to change that territory name in stuff in the United States and Canada India.

See same things a legal entity name, organization name, identifier name and team number 10 means Tax Identification Number whenever you want to create a legal entity based on any other country apart from India. Apart from India, any country you take here tasking that in number 10 means Tax Identification Number You must and should enter a unique number means each and every company a generic customer there is a unique number is the right you have to enter that number. But in India instead of asking that the number it asking the pan number. This is the most important point here. There is sometimes we are going to create a legal entity based on us country also right at the time it asking that the number here automated the field is changed when I select that territory okay apart from India any country you take it asking that the number we must should enter the ID number here suppose if it is in India it asking the pan number when I change the country name here automatically the field is also changed okay so now I'm going to change out India here.

There it is India when I change it here automatically this field is also changed the instruct in asking the fan okay what is the legal entity name enter any name. The legal entity name is purely user defined you can give any name test legal entity And what is organization is TCS right? identifier test underscore L and what is a pan number enter any number that number is also unique. Each company maintained their one fan number right? How to enter the unit number here so any number you enter It's a unique number of transaction entities is and what is the legal address with wherever legal entities located you must and should do the legal address of your legal entity. So under this option there is a two options are there select existing address and create a new address?

Select the existing attachments already some different type of addresses are given by Oracle. Maybe we select the existing one not so Arms if you want to create a new address, you can create a new address and select that address here okay so now I want to selecting existing one already some addresses are created I'm going to selecting this addresses what to click on the list of wireless button what is select that is my companies in India now I'm going to selecting that address code based on India I entered the Hyderabad okay so let's go okay selecting Hydra been selected address and go to click on select that address you can able to see here okay and come to down so here general information. So here are place of registration in section eight business activity sub business Favorite tea type of company these are all the not mandatory information okay?

So we need not entered this information okay it's not a mandatory okay after entering of all the details then go to click on Apply button value identifier so identified is already registered just go to ratify early legal applied okay you must structure identify me with a unique name always it accepting the unique name on Mustang should use a unique name always now the legal entity created okay after create the legal entity now we are going to add the legal entity to them Primary ledger right? So how we can admins go to click on add another row button go to click on add another row button Okay. Now you have to add your legal entity, your legal entity name is test underscore legal entity right based on the country in India and this is your identifier legal entity identifier okay now the first step is completed legal entities created it and what is the second step Second step is go to define a primary ledger right so, we'll assign our primary ledger at the legal entity will create and assign the primary ledger at the legal entity level of solid illegal entities created.

Now go to assign our company Press create a company primary ledger how to create a primary ledger means it helps out the tracing system Okay the first step is completed go to click on the next so it asking the company primary ledger what is the ledger name enter the ledger name like the name is enter any name the ledger name is purely user defined you can give any name the ledger name is purely user defined you can give any name here. So, enter the tester underscore ledger customer ledger and it is purely user defined you can give any name and also it is a must and should unique name and what is a chart of icons compulsory assigned all the three C's to this lecture. already created our accounting structure right accounting test underscore accounting structure select your accounting structure name and assign here and what is your accounting calendar as check counting calendar right select your calendar and what is your currency si si en because we declared our functional currency as I enter Alright, so go to Select your INR currency Okay.

Let the name is purely user defined you can give any name and After defining after entering the ledger name you must enter assign the chart of accounts, your calendar and your currency all the places okay and the sub ledger accounting method it asking the method it's not a mandatory now later we'll discuss okay next after that go to click on the next button so now it displays the one message here, carefully review your accounting structure before saving. Once a survey you will be unable to change your primary ledger to make changes move back to the previous step. It displays a message here, carefully review your accounting structure before saving. Once the sale you will be unable to change your primary ledger to make changes move back to the previous step. Why because ledger setup is a one time setup whatever the ledger name we entered, whatever chart of account we assigned whatever currency we assigned, whatever the calendar we assigned after finishing you cannot make any merchants is a one time setup after after finishing, you cannot make any more changes just regionally one more time Whatever we assigned it is All are fine then go to click the Finish button otherwise move back to one step and then we'll go to do some changes okay by the way because ledger setup is a one time setup whenever we assign the wrong currency here wrong calendar here are wrong Chart of Accounts we entered our wrong primary ledger then we entered after saving, we cannot make any more changes.

Okay, so that's it one more time how to review the three one cities Okay, then go to click on the Finish button. After that the primary method is created successfully with help of that three system. Okay, now everything is okay. Now this is a primary ledger name and this is your chart of accounts, your currency and your calendar. Okay, everything is okay then to click on the Finish button after click the Finish button then you will get that confirmation message. You have just to save the accounting structure as ledger.

Before you can enter transactions and perform accounting. You must ensure define the accounting options for this accounting setup. You can define the accounting options number later. Now one, okay, so go to click on that define accounting Options button. Okay, so this is your legal entity name. And this is your ledger Minh.

And these are the ledger options. So the last update date is today's date and updated way operations user and the ledger status is not completed it's in progress. Why because there is no accounting options in our ledger right now go to define accounting options in our primary ledger. How to define means go to click on Update button maybe sometimes here you will get a error message will log into a ledger it displays the error message. The key flexible with application name, gender ledger, name, accounting flexible and structure. Test accounting structure is not compiled, please contact your system administrator because our last Okay, we created the structure right?

At the time we compiled it, maybe sometimes if the structure is not successfully compiled. When it open, the structure displays this type of error messages are so normal Don't worry about this error message. Whenever we'll get to this error message. Please close the window here and open your structure and combined one more time. Okay, whenever we'll get a compile error message, close that window and reopen your structure and recompile One more time setup financials. Next key segments open your structure set up financials flexible ski segments.

What did very more preset level and do the application name as General Ledger and press Ctrl F level and select the accounting tantalus accounting flexible and what is your structure name? Or structure name is test accounting structure right. Stick on instructor yes So maybe freeze the structure right before recombining the structure. First you have to unfreeze the structure for the Cassanova accounting structure as Botha unfreeze it okay. After that go to click on the segments button, sorry four segments we declared No need of changing anything here just go to save it. Okay, transaction complete one record upgrade and save and close it.

And recompile the structure one more time before going to recompile in class how to go to present after freezing then go to click on that compile button again. Now the flexible is compiling. Okay. Now you get that message transaction complete one record upload and save. Okay, so now we come recompile the structure of calculate compiling again Oh Cannavaro accounting setup window already we created a legal entity and primary ledger right now the third step is spending define accounting options. Now go to enter accounting options in your primary ledger the navigation is setup financials accounting Setup Manager accountant query over ledger ledger net mistress ledger right you the ledger name and go to click on Go button.

That's the ledger the two Ledger's so this is our ledger this ledger okay go to click on Update button Okay, now to this last updated students data and status is not completed okay go to click on Update but okay now It opens here there is at 44 pages are there. The first page displays the ledger name and the short name is by default take the short name and your currency your chart of account name in your calendar, the first period is January period. Okay, and go to next. In the second way there is a different type of options are there but it asking the reader a faster accounting setup into the primary ledger is returning second. This is the first account into the primary ledger. Before going to define the accounts, journals first we need to assign this account to our primary ledger.

This is a first step content options into the primary ledger. Actually, this occurred this Monday. Refer the general processing okay so ownership a code okay LD be created the second right what to select the code combination of the second because chord combinations segment chord combinations already four segments already created right. Got to select the combination of segments. The first one is a company because our company is at TCS 01. And what is the department actually this account is related to rural company it's not a particular department Okay?

So that's why I'm going to selecting the three zeros no department or department is overall company. And the second next account is the returning second already we enter default account right now go to select the return and the product Okay so after entering of all the four segment violence then go to click on the Create button here there is a button is that create create when the code combination is created by the system. Actually sometimes this button is not activated. So when by this button is not activated in the structure window before going to compiling the structure, so we enable one checkbox and not dynamic insert checkbox. Remember that run so once you enable that checkbox by default here the Create button is activated otherwise no means dynamically we are going to create the chord combinations right this chord combinations are not predefined. So dynamically based on the transaction, we are going to constructing this chord combinations on so if you want to construct the chord combinations, composer you must enter to enable that checkbox once we enable here the Create button is activated.

So go to click on the create whatever combination you selected that combination is created. Okay Go to Select the combination and click on OK button that will be displayed here. So there is no Create button you cannot create any combinations there is no combinations. We cannot enter any transactions here. Okay that's why you must entered enable that checkbox alone dynamic insert checkbox, okay. Now the combination is described here this is nothing but a code combination.

Segment code combinations, okay. And then remaining options are not mandatory. Now. Let me explain you one by one whenever you want. So we'll assign the combination and then explain. Okay, so now it's not mandatory Warley.

Now at this moment. The returning second is mandated. Okay. Next, Next, and finish it when I click the Finish button. Now we'll get one confirmation. So now the ledger status is completed we'll get a complete button go to click on complete.

Now one warning message is displayed you're about to complete your accounting setup, test ledger. And this will save your setup options and prevent the deletion of certain companies such as legal entities, balancing segment values and reporting currencies. Do you wish to continue? Yes. Okay, you have this completed accounting setup, ledger, the ledger accounting setup program has been submitted. Please review concurrent request ID make sure that it costs to complete it successfully before you can enter transactions.

Okay. Okay. Now the ledger is completed successfully. Okay, now the ledger is successfully completed. Now here one standard card program is created right submitted. Now let us go to see that program whether the program is successfully completed on what to request.

Find the program is successfully come after completing of this program, your ledger setup is completed successfully. Okay this is nothing better defining the company primary ledger After defining the ledger now we are going to create the journal entries using of the ledger we are going to define that journal. Okay. In the next video we'll see that defining the journals