Send me an email. This could be a bug, or it could be some other set up.

I have one more problem..I have a LE for which a BSV has been assigned..

When I log into AR resp for the OU, then only the BSV attached to LE is visible. But this is not the same case with AP. When I am trying to enter a distribution account all the BSVs are visible.

Pls note that both AR&AP are using the same OU,LE&ledger. I have done this experiment on client’s upgraded instance.

Why is this so. I have raised an SR long way back and I am still to hear from oracle on this. Would appreciate any pointers on this.(Oracle confirmed that they are having the same behaviour in their instance, but things are at investigation)

Thanks,Durga

Your description is mixing up the first party (amazon, the company deploying EBS) and the third party (you with your credit card and bill to address.

It is up to amazon (within the laws of the countries involved) to decide who sells you the item (Amazon US or amazon CA) and how they deal with moving any goods they need to source between their Legal Entities and hence how they account for it.

I could write a white paper on this… it’s a complicated subject.

AP and AR can create balanced entries, as long as your set up is correct.

However you do the have the option of defining intercompany accounts, they you will get the balancing when you account for each transaction.

You should check out this post

http://davidhaimes.wordpress.com/2007/12/11/can-i-assign-an-operating-unit-to-2-legal-entities/

While setting up an OU you will define a Default Legal Context, the key here is default. This is not the only Legal Entity associated with the OU that can be used on transactions within that OU it is just the default one if the derivation rules cannot find a better match.

Hope this helps
David

I saw your update “….An OU may also have one LE or many LE attached…”

‘…’There is no explicit mapping of Legal Entity to an OU..”

Does this relation ship occur ONLY through ledger??

If the above statements are true, then what is the necessity to assign the legal entity context to OU while defining the OU either through the hrms form or accounting setup manager.Infact this is mandatory to my knowledge..Pls advise

Our biggest reservations are around accounting: will AP and AR create sub-ledger balanced entries (without intercompany accounts)? I think it will but the documentation Ive seen is not clear enough to dissipate all doubts. Have you seen docs on this subject?
Around the sequencing issue, we are willing to allow the user to select the document sequences (with defaults) and this is in the Netherlands which is not as strict as Italy.

Regards,
Bernardo

You go to a US website(e.g. Amazon) and order something which gets shipped to Canada. If the item gets sourced from Canada warehouse, will the accounting be in Canadian Setup of books (assuming that each country has their own set of books)? In other words, will the billing address of your credit card really matter?

Also, does Oracle recommend to have bill_tos in multiple operating units?

Yes it is very common to have multiple balancing segments in a single OU and you should certainly consider it but there are a couple of caveats:-

Do you need to secure access to these balancing segments individually in the subledger? If so they may need an OU each.

Do you have any requirements for gapless sequencing for any of these balancing segments (common if they are in some European countries, e.g. Italy)? If so you may need to give them an OU of their own.

Hope this helps
David

Thanks

Establishment is not like GRE/LE don’t let the upgrade fool you, they are very specific real world objects which we define.

The term establishment is well known in parts of Europe, the word comes form France where it has a very specific meaning. In the US it is more akin to a branch, if I am a New York based company with a branch Sales office in California then I would create a California Establishment that is going to help eTax figure out what taxes I need to pay.

An establishment is wholly owned by a Legal Entity.

The main use of this is in eTax and some global reports use it too, as for more to come I couldn’t answer that :)

Welcome to the blog. Don’t be in doubt, you seem to have a decent understanding if R12 but the main point to note is that there is no strict hierarchy of these objects.

A Ledger may have one LE or many LE attached.
An OU may also have one LE or many LE attached.
A BSV may have one LE or many LE
An LE may have many BSV
An LE should be accounted in a single Primary Ledger (of course there may be a number of secondary Ledgers for the same LE).

Don’t let the navigation order trick you into thinking there is a hard and fast hierarchical relationship that everything must follow.

Hope this helps.

I am getting basic doubt in R12.

If you see 11i Org Structure in Oracle it is as follows

BG –> SOB –> Legal Entity –> OU –> INV ORG

In R12 all demo and Oracle Presentation shows
BG –> Legal Entity –> Ledger –> OU –> INV ORG

Even if you go through Accounting set up Manager,
first it is asking you to create Legal entity before setting the Ledger. In 11i We define SOB and then we attach to GRE: Legal Entity

R12 Navigation Path: Accounting set up Manager –>
Click on Create accounting set up it goes to Legal entity first before defining ledger.

But if we go through the Oracle Multi org user guide of R12 it shows
BG–> Ledger –> Legal Entity –> OU –> INV ORG

I am confused now. Which is correct in R12

BG–> Ledger –> Legal Entity –> OU –> INV ORG? or

BG –> Legal Entity –> Ledger –> OU –> INV ORG?

According to me one Legal Entity cannot be attached to Multiple Ledger. Also by definition in Accounting set up Manager Legal entity comes first before defining Ledger. So I felt
BG –> Legal Entity –> Ledger –> OU –> INV ORG
is the right model

What is your opinion?

Please respond

Regards
Sivakumar

Could you shed light on the Establishment - I know it is required in eBizTax and that it is automatically created when a LE is created and that 11i upgrades automatically create an establishment for each OU; but what is the deal with these? Are they like GRE/LE used to be or something like that where there is limited use now with more to come later?

Capitals are considered rude as they are akin to shouting.

Requesting me to give you instructions on how to implement your system (a task I assume you are being paid to perform) and then shouting at me that this is urgent is a little irritating to me.

Not really any point to get… just amusing to see a boat parked outside our offices

I would look at the resources I mention in this post

http://davidhaimes.wordpress.com/2008/01/05/useful-oracle-financials-resources/

Also look at the blogroll, oracleappshub.com has some very good detail on features and steps to implement, but there are other blogs too.