I’ve been preparing these for a presentation at Oracle OpenWorld next week, they were mostly taken from the questions asked by Alyssa Johnson in her comment, but they are very typical questions that I get asked a lot.
What is the difference between the 11i GRE/LE and R12 LE?
- GRE/LE is upgraded as an LE in R12
- In 11i GRE/LE was often a dummy LE, not real LE structure and had little use
- R12 LE has a more robust definition
- R12 LE is used more by processes and reports across financials
Where does the LE impact R12 processing?
- Short answer – Tax, Intercompany (AGIS), Global Features
Why should I assign BSVs to my LEs in the Ledger?
- It is optional, if your BSV is your company code, you have an implied LE there in your GL
- It helps with some LE derivation for transaction stamping
- Allows you to run reports by LE
- May make Intercompany rules easier to define
In 11i, the LE doesn’t really correspond to the true Legal Entities of the Organization (e.g. only one LE is setup even though there are multiple companies). What is going to break in R12 if I leave it that way?
- Nothing will break if you do nothing and stay with one ‘dummy’ LE
- You won’t get all the good stuff we talked about earlier
Is there a connection between the LE and the BU?
- If you map LE to Ledgers / BSV, there is an indirect LE-OU relationship
- There is a Default Legal Entity for an OU (Default Legal Context) which in some cases(1:1:1) it will be the only LE so it is a direct assingment
If you want to add anything to this, or have more questions then fine the comments section below…
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Filed under: General Ledger, Intercompany, Oracle Financials, Oracle Intercompany Tagged: | Advanced Global Intercompany System, AGIS, financials, General Ledger, Legal Entities, Legal Entity, Legal Entity Configurator, OpenWorld, Oracle Applications, Oracle Financials, Oracle Intercompany, R12, R12 Upgrade
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Good one David…..these are the most common questions in every functional consultant’s and client’s mind whenever they go for a Financials implementation……In my recent R12 financials implementation we had rounds of discussion just on these points…….
Hi Kamal,
Glad to hear they are useful. These set ups are key concepts and it is important to get these right or you can cause issues further down the line. I think this is a good choice of topic by the OAUG GL SIG for the OpenWorld meeting.
Hi David,
Your blog has been a great help to me in trying to understand the role of the LE within R12. So, having read your comment about “You won’t get all the good stuff we talked about earlier” if you do not correct your LE configuration prior to moving to R12, I am interested to hear your view on the following:
We appear to have multiple dummy LE’s setup up for each OU within R11i – these to not reflect the structure of the business. As we are intending to upgrade to R12 (as opposed to re-implementing), how would you suggest we go about cleaning things up?