About Natural Account in Oracle Fusion
About Natural Account in Oracle Fusion
(Documented by Venkat)
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How is the Natural Account identified and mapped in the Oracle Fusion GL Table?
Step 1: A journal entry is created using a code combination.
Step 2: The combination includes multiple segments (Company, Department, Natural Account, etc.).
Step 3: The Accounting Flexfield Definition identifies the Natural Account segment (e.g., SEGMENT3).
Step 4: That segment value (e.g., 5100) determines the account type (e.g., Expense)
GL_CODE_COMBINATIONS Table
Holds up to 30 segment columns (SEGMENT1 to SEGMENT30).
One of these segments is designated as the Natural Account.
Accounting Flexfield Definition
v Defines which segment corresponds to the Natural Account.
Example: SEGMENT3 might be labeled as Natural Account in the above pic.
Mapping Process
We check the Flexfield Setup to see which segment is assigned.
That segment in the GL combinations table holds the Natural Account values (like 5100 for “Expenses”).
GL_CODE_COMBINATIONS → Accounting Flexfield Definition → Natural Account Segment
What is Account Type?
Each Natural Account is assigned an Account Type (A, L, E, R, or X).
It is critical because it determines how Oracle performs Year-End Closing.
Revenue/Expense accounts are zeroed out to Retained Earnings.
Asset/Liability/Equity accounts carry their balances forward.
What is Account Validation?
It usually has a Value Set attached to it to ensure only predefined, valid account numbers are used in the system.
Why is the account called "Natural"?
It is called "natural" because it follows the logical, inherent classification of accounting.
Regardless of which department spends the money, the "natural" classification of a "Laptop Purchase" remains an "Asset" or "Equipment Expense."
Q: Write a SQL query to fetch Natural Account, account_type, currency, and invoice amount details
SELECT
gcc.segment1 AS natural_account,
gcc.account_type,
ai.invoice_currency_code,
SUM(ail.amount) AS total_invoice_amount
FROM
ap_invoices_all ai,
ap_invoice_lines_all ail,
ap_invoice_distributions_all aid,
xla_distribution_links xdl,
xla_ae_lines xal,
gl_code_combinations gcc
WHERE
ai.invoice_id = ail.invoice_id
AND ail.invoice_id = aid.invoice_id
AND ail.line_number = aid.invoice_line_number
AND aid.invoice_distribution_id = xdl.source_distribution_id_num_1
AND xdl.source_distribution_type = 'AP_INV_DIST'
AND xdl.ae_header_id = xal.ae_header_id
AND xdl.ae_line_num = xal.ae_line_num
AND xal.code_combination_id = gcc.code_combination_id
AND ai.cancelled_date IS NULL
GROUP BY
gcc.segment1,
gcc.account_type,
ai.invoice_currency_code
ORDER BY
total_invoice_amount DESC
FAQ
Q: If a journal entry fails due to an invalid Natural Account, how would you troubleshoot?
A: Check the chart of accounts setup, validate the Natural Account segment value, and ensure it is enabled and assigned to the correct account type.
Q: How would you design a Chart of Accounts for a multinational company?
A: Include segments like Company, Department, Natural Account, and Location. Ensure Natural Account is standardized across entities for consolidated reporting.
Q:Can you give an example of a Natural Account value?
A:Example: 5100 – Office Supplies Expense (Expense account).
Q: How does the Natural Account interact with Subledger Accounting (SLA)?
A: SLA rules map transactions from subledgers (AP, AR, FA) to the Natural Account segment in GL.
Q: How do BI Publisher or OTBI reports use the Natural Account?
A:They filter and group financial data based on Natural Account values for reporting.
Q: What controls can be applied to Natural Accounts?
A: Cross-validation rules, segment value security, and account hierarchies.
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