In R12 the Advanced Global Intercompany System was introduced and one of the main goals was to make the reconciliation process more efficient. Intercompany is often the top barrier to a fast period close, because you have to be sure you eliminated it all to zero, so your parent company does not report a profit from trading internally. Fail to do this and you might go to jail, I have no legal training but when it comes to accounting irregularity I understand claiming it was an honest mistake is not much of a defense.
So what we want to do is check every credit I booked to my Intercompany account for trading with you, has a debit in your Intercompany accounts in the same period. So our GL account balances should match and if they don’t I need to find out where the differences are, which means drilldown on the balances. Or even better we do some matching of what we know is ok and show you the journals we couldn’t match and you drill to just those ones to find the problem.
So we turned to XML Publisher to build some reports that we could embed in our UI. We took advantage of the XML Publisher OA Framework region and created a number of extracts with increasing degrees of detail. The top level shows the account balances for the trading partner pairs and any differences between the two.
To drill into the details of the balances or difference amounts I just click on the links and they direct you back to the OA Framework page calling the template and/or extract showing the next level of detail.
What’s also neat is I can download any of these reports into Excel; sort them, order them cut and paste rows and maybe email them to somebody to investigate the differences. All the amounts in the excel spreadsheet also have the links so I just click on that link in excel to drill back into the applications and see the next level of detail.
We call this interactive reconciliation reporting and we think you might like it.
UPDATE: More details available in this post by Bidisha