This topic explains the systematic instructions for managing the maintenance of the chart of accounts.

1. On the homepage, click Menu and click Operational Ledger, and then click Maintenance. Under Maintenance, and click Chart of Accounts, and then click Create Chart of Accounts.
   The Create Chart of Accounts screen displays.

   Figure 2-2 Chart of Accounts

   
   

   
   Description of "Figure 2-2 Chart of Accounts"

   
   
2. Specify the details, for more information on fields, refer to the field description table.

   Table 2-2 Create Chart of Accounts

   Field	Description
   General Ledger Details	This section displays the following fields related to General Ledger details.
   General Ledger Code	In Oracle Banking Operational Ledger, each General Ledger is recognized by a specific code. Specify a unique code to identify the GL. The length and format of this code are determined by the General Ledger Mask set in the Bank Parameters screen. This code has a maximum of nine alphanumeric characters. Note: The field which are marked with Required are mandatory.
   General Ledger Description	Specify a short description of the GL. This description is intended for your bank's internal reference. Note: The field which are marked with Required are mandatory.
   Level	In Oracle Banking Operational Ledger, General Ledger can be created in two levels: Node A Node General Ledger reports to another GL while also having other GLs reporting to it. Leaf A Leaf General Ledger reports to another GL but has no GLs reporting to it. A Head General Ledger is a Node GL that does not report to any other GL.
   Customer/Internal General Ledger	In Oracle Banking Operational Ledger, a GL can be defined as either a Customer or an Internal. Internal GLs consist of bank-specific accounts like cash accounts, interest income, and expense accounts, and so on. They also include customer balances from front-end modules like Loans, Deposits, Money Market and so on. Customer GLs are used for accounts such as savings, current, and Nostro accounts. According to Table 2-3, you can only post direct entries to internal leaf GLs. For internal and customer node GLs, you need to link the accounts to customer leaf GLs.
   Alternate General Ledger Code	Specify the Alternate General Ledger code along with the General Ledger code.
   General Ledger Type	General Ledgers are classified into different types based on their accounting usage. Select one of the following from the drop-down: Nostro Inter Branch Cash Normal Note: The field which are marked with Required are mandatory.
   Category	Select General Ledger category from the drop-down only for a General Ledger head. The options are: Asset Liability Expense Income Contingent Asset Contingent Liability Two Head General Ledgers can share the same category. All General Ledgers that nested under a Head General Ledger adopt the category assigned to it. Each category contains several General Ledgers within it, but the category for a General Ledger must be assigned at the Head GL level. All associated nodes and leaves will automatically inherit this category for reporting purposes. Note: The field which are marked with Required are mandatory.
   Posting Restrictions	Select the posting restrictions solely apply to internal leaf GLs, as Oracle Banking Operational Ledger permits entries to be posted only to these internal leaf GLs. The posting of entries to an internal leaf GL either Direct Posting or Indirect Posting. In the direct posting method, accounting entries are recorded directly to the Internal GL using the Data Entry Module of Oracle FLEXCUBE. In the indirect posting method, accounting entries are recorded into the General Ledger from different Oracle FLEXCUBE modules, such as a loan or a money market contract.
   Allow Back Period Entry	Switch to to allow the system to regulate the posting entries into past periods.
   Blocked	Switch to to restrict the entries being posted to a GL. Using this feature to stop the entries temporarily rather than closing a GL permanently. When a GL is blocked, no entries can be posted. Switch to to reopen the blocked status.
   Currency Restriction	Create a GL based on currency restriction: Single Currency All Foreign Currencies All Currencies Select the appropriate option from the list. If you select Single Currency, you must specify the restricted currency.
   Restricted Currency	If you select Single Currency to impose restriction. Specify the currency or select appropriate currency from the option list.
   Parent General Ledger	This section provides the following fields that related to Parent General Ledger
   Parent General Ledger Code	Specify the parent GL or select the appropriate one from the option list to which the current GL is associated.
   Parent Description	Displays the description based on selected the parent GL.
   Parent Category	Displays the category based on selected the parent GL.
   Revaluation	Switch to to revaluate the foreign currency balances. You can adjust the balances of asset, liability, contingent asset, contingent liability general ledgers and income/expense general ledgers. If you select that revaluation is necessary, Oracle FLEXCUBE will update the general ledger during the End of Day (EOD) processes.
   Revaluation Split Required	Switch to to indicate that the leaf GL requires trade split.
   Previous Year Adjustment General Ledger	Specify the general ledger to post the previous year's adjustment entries related to unrealized income and expense. This allows the system to post adjustment entries automatically between the GL for unrealized income and unrealized expense. The interest or commission from the adjustment GL accrued in the previous year would have already been transferred to the year-end Profit and Loss general ledger account during the financial closure process. Adjustment entries are passed at the contract level to fix incorrect balances in the Revaluation Income/Expense general ledgers. This issue often arises from the reversing the revaluation entries from the previous day, particularly if there was any financial transaction done in the meantime.
   Specify Year End Profit and Loss Accounts	At the end of each financial cycle, the system transfers the balances from income and expense general ledgers to the year-end profit and loss accounts. Specify the account details in the following fields.
   Profit Account	Specify or select the profit account from the option list that you want to transfer the GL balances at the end of the year.
   Profit Account General Ledger Description	Displays the description based on account selected.
   Loss Account	Specify or select the loss account from the option list that you want to transfer the GL balances at the end of the year.
   Loss Account General Ledger Description	Displays the description based on account selected.
   Other General Ledgers Linked to this Parent	Displays a list of GLs that are linked to the parent GL of the current GL.
   Child General Ledgers	Displays all child GLs connected to the current GL.

   Table 2-3 GL Combination

   GL type	Direct posting of entries
   Internal Node	No
   External Node	No
   Internal Leaf	Yes
   External Leaf	No