In R12 the Intercompany Accounts setup is broken out from GL and included in the Advanced Global Intercompany System (AGIS) product (Don’t worry you don’t need any additional license for this product). There is a separate set up screen for Intercompany and Intracompany Accounts. The same set up pages are available through the Accounting Set Up Manager as well as AGIS so you can pick your navigation path.
The Intracompany accounts are defined for pairs of Balancing Segment Values (BSV) within the same ledger; this set up is similar to the 11i approach and we upgrade 11i Intercompany accounts to Intracompany accounts here. You don’t need to uptake the Legal Entity Configurator product(new in R12) to define these.
In order to enter Intercompany Accounts you need use Legal Entity Configurator to define your Legal Entities and map them to ledgers and/or BSV. You then define accounts to use when certain pairs of Legal Entities trade.
In R12 you can now define a separate payable and receivable account for each Inter/Intracompany trading relationship. In 11i you would just define the due to/due from account and that account was used for both the payables and receivables I had with the specified trading partner.
These will be used for any AGIS transactions you create and also by the automatic intercompany balancing in GL and SLA. Doing the Intercompany balancing at the transaction level in SLA is a big enhancement for R12 and one I will talk about and give examples of in another post.
Filed under: AGIS, Oracle Intercompany | Tagged: AGIS, GL, intercompany accounts, Legal Entity, Oracle ERP, Oracle Financials, Oracle Intercompany, SLA
Stumble It!
Hi!
Your guide is fine, but don’t you think you could do it more complete if you add print screens of the application?? It’s just a suggestion
Greetings!
Lukis55
I appreciate your feedback. In some articles where I go into more detailed set up descriptions I have included screen shots for reference. Please surf around the blog for more of these articles
However the intent of this blog is not to replace the detailed steps available in the User guides but to provide context of what set up you might need in what situation.
[...] So in R12 FA uses the AGIS Intercompany balancing feature, which is called from SLA and so we’ll balance all transactions that are out of balance right there in the subledger without having to let some of it hit GL and with all the flexible rules available in the new Intercompany Accounts Set Up. [...]
Currently I’m on searching for solution to propose for the management having a system in handling their intercompany trx, however they need to know how much averagely the costs will be incurred.
Azlina,
It is impossible for me to give an estimate of cost to implement functionality without detailed information.
Maybe some other readers have data that they might share on costs of similar projects they have undertaken, but User groups and such like are a better place for that I suspect.
I think you need to do an in depth study based on your organizations specific needs.
David,
I must say your site is very informative and great!!
A screen shot is an easy way to explain what you inteand to say. Your argument that the blog is not to replace the UG :) makes sense but then why the blog itself on a specific topic? guess it is to make a simple approach more understandable to ppl who are new to R12. Thus would make an request to add a screen shots if not too details to field level but an over and screen shot with the amout of knowledge you have would be of good help to all …
David, is it possible to implement an intercompany solution withouth having to add a new segment to our accounting string? Everything I have read, says we need an intercompany balancing segment but we don’t have any extra segment available in our string. What would you suggest for a solution?
Thanks
You do not need an Intercompany segment. AGIS and Intercompany balancing will work fine without an Intercompany segment, so no need to change your chart of accounts to use the functionality.
For a new chart of a accounts I would recommend an Intercompany segment as it will make reporting easier, but it is optional and Oracle Intercompany features do NOT require it.
Check out this post for a discussion on it
http://davidhaimes.wordpress.com/2007/11/20/intercompany-segments-and-vision-demo-data/