Use-of-Multiple-Balancing-Segment-in-Fusion

Oracle Fusion Financial offers multiple balancing segment in General ledger. It offers three balance segments i.e. Primary, Second and Third balancing segment. The Primary segment is very critical and it is mandatory but the other two are optional and they can be assigned to different divisions.

Balancing segment is required in a chart structure. User has to define balancing segments. Primary Balancing Segment tries to rectify entries in receivables and payables. It makes sure that general entries are balanced at last and all debits are equal to all credits for each value in the system. In this segment values are assigned for the company itself. The other two are optional and can represent the other part of the firm. It may belong to the other line of businesses. They contain the liability and asset side of the balance sheet. They can also be an insight to make the future business plans.

Advantages of balancing segment are as under:

They make sure that every journal entry balanced with the segment.
General ledger creates balancing lines to make entries.
All the three segments collectively offer Multiple Balancing Segment in oracle in which gives unique reports and analysis.
The user gets more visibility of all the operations and does a thorough research work to take bigger decision for the future of the organizations.

If a firm uses the Multiple Balancing Segments its charts of account becomes more consistent and entries are swiftly monitored. One should be careful in assigning a new balancing segment if an older system is already present. It can to discrepancy in the account system.

One must check properly before deciding about the implementation of all the balancing segments. First Primary segment should be implemented. Basis of the finding firm should assign second or third or their combinations to suit their business requirement.