Chart Of Accounts Setup In Oracle Fusion

Aytan Vahidova
7 min readJan 31, 2021

Learn how to set up Chart of Accounts (COA) value sets, values, structure and instances in Oracle Fusion Applications

What is Chart of Accounts (COA)?

Chart of Accounts (CoA) is used to record transactions in a company’s general ledger. As part of the accounting cycle, the CoA is used in the journaling process (i.e., performing journal entries) and also serves as the title for each ledger. In general, all accounts are filed under one of five categories: assets, liabilities, owner’s equity, revenue and expenses.

Steps we need to setup COA for a company in Oracle Fusion Applications:

  • Manage Chart of Accounts Value Sets
  • Manage Chart of Accounts Structure
  • Manage Chart of Accounts Structure Instances
  • Manage Chart of Accounts Value Set Values

Manage Chart of Accounts Value sets

Login to Fusion Applications and go to Setup and Maintenance by clicking on your name on Homepage.

Select Setup: Financials and search for task name: Chart of Accounts. Click on Manage Chart of Accounts Value Sets:

As we are creating a new value set click on “+” icon:

For test purpose, I am going to create 3 value sets: Company, Account and Department. But in real business cases, you can create value sets according to segments that you will be going to use for COA within the company.

  • Value Set Code: You need to define a value set code, whether it is company, account, department, project and etc.
  • Module: Where do you want to use these value sets? Select module: General Ledger
  • Validation type: Mainly we need to select either Dependent or Independent. Say, for example, there are 4 business units in your business group. If you select dependent it means that this value set can be used only for that particular business unit not across other business units. But in my case, I want to use “Company” value set within all business units that I will have, that is the reason I choose independent value.
  • Value data type: Character
  • Value Subtype: Text
  • Maximum length: It means data for this value set you want in 4 characters only.
  • Save and Close

The same way you will create a second value set in your Chart of Accounts: Department.

The third value set in your Chart of Accounts: Account.

Define Chart of Accounts Structure

To define the Chart of Account Structure we have to use Accounting Flexfield.
Choose Manage Chart of Account Structures from Financials:

We need to select Key flexfield name as Accounting Flexfield. This flexfield is under General Ledger Application:

Click on Manage Structures:

Click on “+” icon to create a new structure:

First fill in structure code, name and choose delimiter how you want to separate combination. Make sure that the COA flexfield structure is enabled. Save your work. If you do not click on Save you will not be able to add segments to COA structure.

After you click on Save, “+” button will be active. Now it is time to define segments for our structure.

First, we will create company segment:

Segment Code: Name of segment
API name: Name for reporting or data integration if needed. This name will be displayed in BI reports within Oracle.
Sequence number: This is the 1st segment in your COA, that is the reason choose 1.
Prompt: How do you want to display the segment name to the user
Display width: How many characters you want to display to the user. In my case, up to 20 characters it will be displayed to the user.
Column name: As it is first segment, select Segment 1. Segment numbers should be in serial: segment 2, segment 3 and etc. There can be a maximum of 30 segments in COA structure.
Default Value Set Code: Select value set which we have created earlier ( in the first part of this article).
Segment Label: Choose Primary Balancing Segment as you want this segment to perform as primary within the application.

Continue to create Department segment:and Account segments as well:

And Account segments as well:

Now as we have defined all 3 segments for our COA structure Save and Close your work.

Manage Chart of Account Structure Instances

After you define COA structure Oracle gives you an opportunity to create COA Instances. What is this instance for? Say, for example, you have 2 business units. You will have the same COA structure but you want each business unit to display different value sets. In this case, you can separate the different data by creating 2 different instances and assign different value sets for each business unit.

In our example, I will show you how to create an Instance for 1 business unit . From Setup and Maintenance choose Manage Chart of Accounts Structure Instance.

Again choose Accounting Flexfield and click on Manage Structure Instances:

Click on “+” icon to create a new instance:

Fill in details below and make sure you enable “Dynamic combination creation allowed’” to be able to create a combination for this instance.

After you fill in details and choose structure name, segments which we have created in COA structure will appear in Segment Instances. Now click on Edit button for Company segment. As you can see, you can use the different value set for Company segment but I will keep mine as below. Make sure you enable the box “Required”:

Go to “Department” and “Account” segments as well and make the fields required. Save and close your work.

Now you need to deploy your changes. Go to “Manage Chart of Accounts Structures” and find COA structure you have created. Click on Deploy Flexfield. After Deployment is completed Deployment Status will show a green tick.

Manage Chart of Accounts Value Set Values

As Structure and Value Sets have been created we need to define Values for Value Sets. Go to Setup and Maintenance again and search for “Manage Chart of Accounts Value Set Values” task under Financials:

Search Value Sets which we have created before. First, we will create values for Company Value set. Click on Manage Values.

Fill in company details and click on Save and Close:

Now create values for Department segment:

Finally, create Values for Account Value Set:

Now you can start to use COA for your company.

That is it, guys:) Hope you are clear with the topic. If not, please do not hesitate to reach me.

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I am an Oracle Functional Specialist with more than 6 years of experience. I help clients to understand software capabilities and to analyze business needs. My main goal is to recommend solutions and ultimately guide through all phases of Oracle Cloud Applications. I am also inspired to write about life, improvement and personal growth.