CONTROL OR THIRD PARTY ACCOUNTS IN R12 GENERAL LEDGER

CONTROL OR THIRD PARTY ACCOUNTS IN R12 GENERAL LEDGER

 

Very often the GL Super Users create manual journals either directly from the screens or using the Web ADI to upload the journals straight into General Ledger. However account codes used in these manual journals are secured via value set security and the cross validation rules. But this level of security is not enough. For the sake of an example, the GL Users must not be allowed to tamper with the amount of expenditure a company has made on Office Furniture for their offices. Let us say that all the GL Account segment value Office Furniture related expenses are 5115.

A feature named Third Party account is a feature of R12 which helps keep the Subledger like Payables or Receivables in sync with General Ledger.

The control account functionality of 11i is now called Third Party account in R12. Some accounts should only be entered via the Subledger, and not be allowed for manual journal creation in GL. Hence for those entries, we can enable the qualifier to flag those as Third Party account.
In the value set definition screen, query the segment value as shown in image below. In this case, the Account Segment value is 5115. Against the segment qualifier, in Third Party Control Account, select value = Supplier, because in this example we will control the charges to this account segment via Payables whilst ensuring that Supplier details are specified. In other words, this configuration will ensure that you cannot put a charge against office supplier into GL unless you have specified the Supplier from whom the goods were purchased.

Now create a Journal from GL Super User as shown below.




Now let us try to create a manual journal from Payables.


Click create journal

Create journal lines using the account segment value of 5115. IMPORTANT - Do not enter the supplier details as yet in the expanded line section.


You will again get a message stating that the Account code combination x.y.5115.z.a for line is a control account. Please provide a third party site for such subledger journal entry line that uses a control account. 


Now expand the lines region and in Third Party section capture the Supplier Name and Supplier Site, whilst ensuring that the Third Party Type=Supplier.


Now you can create a journal line with the Supplier details.