About Me

Me and Z

I’m a Senior Director working in Oracle Financial Applications Product Development. I started out in Oracle UK and found my way out to California in 2000. I’m interested in technology both inside and outside of Oracle and am always thinking of how I can incorporate new ideas, technologies, methodologies or innovations into my work here at Oracle.

My current role is product owner for Fusion Accounting Hub, General Ledger, Intercompany and Legal Entity products in Oracle Fusion Financials and eBusiness Suite General Ledger. I have also worked on EMEA Globalizations, Federal and Public Sector Financials, XML Payments and a variety of projects on other products down the years.

The primary focus of this blog is Intercompany and Oracle Financials, but I certainly reserve the right to post about anything I see that is interesting or potentially useful. If there are particular topics you would like me to cover than let me know.

You might also see me on twitter as dhaimes, or friendfeed as mrhaimes or check out my about.me page.

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54 Responses

  1. veteran? you make me feel old… LOL

    Like

  2. David, i’m looking to talk to someone about working with Oracle and intercompany accounting with foreign currencies. Is there a way to contact you directly?

    thanks,
    dave

    Like

  3. David
    The stuff that explained the difference betwen inter-co and intra-co was wonderful.I am sure most of the organizations use them interchangeably.

    Are you aware of any such blogs on Order management too?

    Regards

    Naveen

    Like

  4. Hi Naveen,

    Welcome to the blog, glad to have you on board.

    I am not aware of any order management blogs. Might be worth posting the question to the Order Management OTN forum

    http://forums.oracle.com/forums/forum.jspa?forumID=119

    somebody there will know of any OM related blogs that might be around.

    Like

  5. Do you have any inputs/documents pertaining to changing the chart of accounts. We have been instructed to change the existing CoA to a new CoA. The approach we have adopted is: first classify the accounts as ‘changeable’ and ‘non-changeable’. The changeable accounts will be identified and a journal entry affecting the existing account and the new account will be passed. But we do not have an approach for the unchangeable accounts. Unchangeable accounts are those which have been defined during the setup/options level. It would be of great help if you could, with your vast experience, throw some light on this and suggest a better approach.

    Thanks and Regards
    Mahesh Adiga

    Like

  6. Mahesh,

    Is the requirement to change your chart of accounts and change al accounts in the system? Are you planning to use a new set of books for this?

    Like

  7. No David. We are planning to use the existing CoA for this. Only the description ofr the accounts change. The major problem, as i mentioned earlier, is changing the account segment values for all those accounts done during the initial setups.

    Thanks and Regards
    Mahesh Adiga

    Like

  8. Hi

    We are implementing R12 and have ledger with monthly calendar. But at the same time finance wants to have weekly reporting. So the option we are thinking is to define secondary ledger with a weekly calendar. Would you suggest this approach or is there any other better way of doing this? Any implications of defining secondary legder just for weekly reporting?

    Many Thanks.

    Like

  9. Hi,

    You could do that – the secondary ledger should be at balance level only to keep the data volumes and processing impact to a minimum.

    You could also use GCS to move the balance data to another ledger.

    See no reason why these would not work, but seems there has to be a better way to store a weekly balance of your accounts… let me ask around.

    Like

  10. David,

    Your an innovator, great blogg, i looking to down load the latest version of AIM , do you know the latest version would it require a password ? if so how can this be obtained .

    Regards,
    Patc

    Like

    • You should contact your Oracle support rep if you want any downloads, obtaining passwords and using accounts that you are not authorized to do is something I strongly condemn personally and is more importantly not likely to be legal.

      Like

  11. Patric
    Sorry no idea where to get AIM or if it is free. Try metalink maybe.

    Like

  12. Dave

    This is David Murray. I lost contact with you a long time ago. I am now living in Australia. What are you up to?

    Like

  13. Hi Dave,

    I read your comments and posts , it is of great help. thank you.

    I have couple of questions:

    1) We have requirement to clasify the loans from shor term to long term, How can we maintain loans in oracle, and is there a way to clasify them?

    2) Can we have multiple version of budgets, Like ver1 is first time we created, and ver2 is any changes in budgets like increasing the amount, and we need actual against ver1 and ver2 report? is it posible?

    thanks
    ghouse

    Like

  14. Hi Dave,

    1. Do you happen to have a checklist of questions one might ask the business before deciding the Org Structure setups (Ledgers, LE, OU, etc.) ? (both for US and EMEA) ?

    2. One of the client is using US Ledger with one OU – and transacting in all currencies. They would like to setup another OU for European countries. In what conditions one would recommend having a seperate OU for each country ? Can they setup one OU for all European countries ? any drawbacks ?

    By the way enjoyed reading your articles and looking forward to new postings.

    thanks
    gopal

    Like

  15. Hi David,

    I read lot of interesting stuffs on your blog. However,

    I can’t find anything on how oracle GL R12 proceed with intercom/intracom elimination when consolidating!!

    Not only netting off inter-pay and inter-rec but also reduce the expense/revenue accounts which have been overstated by the intercom/intracom trxns.

    Could you explain this feature in details pls.

    Thks!
    roopesh

    Like

  16. Hi Dave,
    Mate, we have to undergo a change in 11i COA. I know that we need to define new SOB and then transfer everything to this new one. But I am sure it is not going to be as simpler as saying this.
    Do you know if there is a checklist which gives a sequence in which the transformation should be done so as to avoid any data corruption?
    Your advice on this will be greatly appreciated.
    Thanks,
    Manish

    Like

  17. [...] by more people than just the two of us.   We quickly recruited Amy to our plan, and, inspired by David’s why development should blog series, we started to look into what blogging was all [...]

    Like

  18. Hi Dave,

    We have 9 ledgers of which 2 are on a different COA. We want to intercompany among all 9 ledgers. The only difference in the COA for the 2 ledgers is one of the segments (future use) is being used and it has a different field length that the other ledgers. Can I still intercompany these 2 ledgers, and are there any additional considerations for the configuration.

    Thanks!
    Tina

    Like

  19. We are faced with a similar situation. Add to that on COA has company segment with 3 char and the only avail segment for the intercompany qualifier has 4 char ( and no GIS)

    Thanks,
    Oscar

    Like

  20. Hi,

    I am working for Packt Publishing and we are pulishing a book on Oracle Hyperion Interactive Reporting. Are you interested in reviewing this book for us. We would be glad to hear from you. Please contact me in case you want to any details

    Like

  21. Dear David,

    How we can map ebusiness tax setups for US based manufacturing companies.

    what are the things we need to consider before starting Legal entity and Ebusiness tax setup.

    Ragards
    Rao

    Like

  22. We are implementing Oracle Intercompany functionality between our US and Canada operating units.
    Selling Operating Unit is “Canada”
    Shipping Operating Unit is “US”

    All the transactions are being generated at transfer price.
    The inventory transactions in the Canadian books should pick the standard costs defined in the Canadian Inventory organization and not just the transfer price defined in the transfer price list.

    The reason for this is that Canada has to add the overheads like Duty, Freight and other overheads.

    This will reflect the Inventory value on Canadian books correctly and then the COGS should also be generated @standard cost.

    Like

  23. can u tell me, how can i transfer standard costing account to another business unit or operating unit?

    Like

  24. Hi David
    I’m looking to implement AGIS for 10* companies so have to create 10+ legal entities. All of the companies are in the UK and Ireland and there is a Tax Regime set up against the UK LE and the IRE LE. My question is if I create multiple LEs for AGIS do I need to create a full tax setup in the tax engine for each of the new LEs or can I add them on to the current tax setup?

    Cheers
    Finn

    Like

  25. We are a start up medical services company. We anticipate using Oracle for our DB, but would prefer to begin by integrating everything possible including company finaancials. We would normally use QuickBooks Enterprise, but wonder about two things:
    1. Is there a simple interface for QB with Oracle?
    2. Is there a basic accounting package available from Oracle that most certainly integrates easily?

    Thank you.

    Like

  26. Hi David,

    As an Oracle eTax specialist, I see the intercompany failing in two areas when it comes to the ability to correctly calcualte tax. The first is the lack of an option to determine the type of transaciton that is being put through the AGIS intercompany process, namely whether the transaction is for a service or for goods. It is essential to be able to split the tax being calculated if what you are selling is GOODS or if it is for a SERVICE. for AGIS, I usually create a memo line that i can assign a tax rate too which is incorporate into the tax rules to ensure the right tax is calcualted but there is no where of influencing the AP transaction so it too knows it is a service related invoice and calcualted the tax accordingly.

    Another area where intercompany fails when it comes to tax is when intercompany is setup for drop shipments. The shiiping org cannot hold the ship to address because the ship to address belongs to another operating unit, the selling org. if the sellig org is in the EU, the bill to for the shipping org is int he EU but if the end customer is not in the EU then how can the shipping org correctly determine whet tax rate to use when it only has the bill to location that is in the EU?

    Is intercompany being enhanced for Oracle Fusion to accomodate these needed requriements?

    cheers

    Andrew

    Like

  27. Hello David,

    I guess I am in confusion with “Intercompany Invoices” and “Intracompany Invoices” and want your help to sort it out.

    Question is related to AR – AP invoice generation for internal orders. We are on R12.1.3. No Oracle document is clear on below scenario.

    Scenario : 1 Ledger — 1 LE(1BSV) and they are linked to 2 seperate OUs i.e. OU1 and OU2. Shipping org/Source = OU1 and Receiving org/Target = OU2. Inventory flows from OU1 to OU2 which are linked to same 1 LE and Ledger.

    Questions:

    1.) Will this be called as “Internal Orders”?

    2.) As we have two seperate OUs, will it generate AR-AP invoices for respective OUs? If no, then why?

    3.) In R12, if AP – AR invoices are generated then are they called “Intercompany” or “Intracompany”?

    4.) Can I do some setups in AGIS to generate AP AR Invoices for above Internal Sales Order?

    Your response is highly appreciated.

    with regards, Maullin

    Like

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    Like

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    Like

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  36. David,

    I have a Mexico Ledger with 2 legal entities and 1 operating unit. I am using EBTax to calculate and account for the Mexican VAT. Here you assign a single account string to the tax rate. Can you recommend of the best set up that allows the right legal entity company code to be created for the tax accounting (in an automated way)?

    Thanks,

    Mike

    Like

  37. David:

    What tables do I need to use to find the users and their access in AGIS?

    Tried everything but no clue.

    Thanks.

    Linda Muller
    lindamuller@cgg.com

    Like

  38. Hi David,

    Thank you for all the detailed posts on AGIS functionality. Nothing beats the posts from the developer who architected the product himself :)

    I have a question on integrating multiple AGIS applications from different Oracle EBS instances. I know you mentioned that it can be acheived with a bit of integration using services and workflow events. Is there some documentation in this regard? Hightly appreciate your guidance.

    Thanks,
    Raghu

    Like

  39. David: Please correct me if I am wrong. In 11i any entry between 2 BSV’s in the same ledger are Intracompany? And in r12, any entry between 2 BSV’s in the same LE are Intracompany? It would be nice, if we were give the option to continue to have all BSV’s in the same ledger (regardless of LE) considered Intracompany in r12. We find ourselves in the situation of creating over 10,000 specific rules in the Intercompany setups, because we want any transaction between 2 LE’s in the same ledger to be considered Intracompany and hit a different GL account than the default rule for Intercompany. We have over 70 LE’s in 1 ledger alone (which means 4830 rules), and we have over 80 ledgers. If we can’t have an option of making all BSV’s in a ledger (regardless of LE) treated like Intracompany, then it would be nice if there was an API to load the rules.

    Like

    • Kerri,
      You do have the option of not defining any Intercompany rules (or indeed not creating or assigning any LE) so you can continue to use the BSV level rules as you would in 11i

      Would that work for you?

      Like

  40. Hi David

    Great blog…I have a question on AGIS for you? I would like to know whether the AGIS invoicing functionality in R12 will work within 1 OU? Our proposed model is as follows: 1 Ledger, with Multiple LE’s (within the Ledger at BSV) and 1 OU. Would this work?… I fear not because the Default Legal Context value specified at the OU level can only be the 1 LE value?

    Your help much appreciated

    Jay

    Liked by 1 person

    • The Manual AGIS transactions with invoice generation will work within a single OU. They do not honor the default legal context, the LE is specified on the Intercompany Organization.

      Like

  41. Thank you David. What about the downstream internal orders inter-company functionality.. Would that work within a single OU? I have reviewed the Oracle documentation and it appears intercompany invoicing there must be across OU’s. I have set-up that particular piece of functionality across inventory orgs that reside in different OU’s but not wihin the same OU. Could you confirm?

    Cheers

    Jay

    Liked by 1 person

    • The internal order functionality is different, this is part of the Inventory module and for invoices to be generated it might have to cross an OU. However you should check with Oracle support and latest documentation to make sure nothing has changed, I do not track enhancements in the inventory module regularly.

      Like

  42. Hi David

    Can you please clear my doubt in when I am checking the Funds inGL–> funds inquiry screen. I found some 1200 balances for the Period APR-14 for an Account. When I go to Tools–>Period Balances i can see that the Encumbrance Balance for the Period APR-14 is less (like 1000), what is the situation we can expect for it?

    Thanks in Advance,
    Suresh

    Like

  43. Need urgent Help:
    Hi David
    I’m a consultant reviewing ledger architecture of a global company. They are on R12. Each country has one primary ledger in USD currency. They then use reporting currency ledger in the local currency (at detail level). There are no secondary ledgers. The model being used is 1:1:1.

    I find it peculiar to have USD as the accounting currency for each ledger, and don’t know the reasoning behind this setup, but was told that it was decided by Treasury to avoid hedging needs.

    Q1: What may be the impacts of having USD as accounting currency for each ledger?
    Q2: What are the Pros and cons of having primary ledger in local currency as compared to having primary ledger in USD.

    I’m trying to evaluate:
    Option1:
    Each primary ledger in USD and reporting currency in local currency
    Opton 2:
    Each primary ledger in local currency and reporting currency in USD

    Q3: Would you know details behind the hedging/treasury requirements that have driven this setup (done 8 yrs ago)

    Thanks for any help you can provide
    Regards
    Raj

    Like

    • In general we would say local first and a reporting currency in USD for the corporate reporting. However without specific details of what exactly these requirements were it is hard for me to comment.

      Like

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