About Natural Account
in Oracle Fusion
(Documented by Venkat)
******************************************************
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.
