Intercompany Segment in Secondary Ledgers

I was recently asked – Do I need to define an Intercompany Segment in my secondary ledger if the primary it is attached to has an Intercompany Segment?

There is no restriction so you can have same an Intercompany Segment on your primary but not on your secondary. However I would always recommend having an Intercompany segment in both ledgers, the benefits for reporting it gives you apply equally to a secondary ledger as a primary.

If you are using primary as your local ledger and secondary for corporate ledger, the intercompany segment will help you to eliminate intercompany correctly when you consolidate your corporate books.

In short, my advice would be to have an Intercompany segment in the secondary too, you might need the reporting and tracking by this segment in the future and the cost to add it now is much, much less than trying to change your chart of accounts after implementation.

Author: David Haimes

I'm Senior Director in the Oracle Research and Development Organization, with close to 20 years working in various roles on the development of the Financial Management product suite.  Since the summer of 2016 my focus is exclusively on working with customers and longer-term design work, particularly around next-generation functional and technical architecture. My task is to figure out NOW what the financial management system of the next 3, 5 or more years should look like and start working toward it.  At the moment the majority of my time is spent working on Blockchain or Distributed Ledger Technologies (DLT), leading the effort for all of SaaS applications.  I'm also interested in AI, Machine Learning and new UX and interaction paradigms such as chat bots. I started out in Oracle UK and found my way out to Oracle's Redwood Shores, California HQ in May 2000.  My previous role was 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.

2 thoughts on “Intercompany Segment in Secondary Ledgers”

  1. David,

    We have a secondary ledger with a different COA from the primary.
    With the COA mapping established, if we did NOT setup intercompany at the secondary ledger level, would this cause an issue?

    Primary Ledger COA:
    Line of Business – Contribution Seg – Cost Cent – Account – Subacct – InterLOB

    Seconadry Ledger COA:
    Line of Business – Cont Seg – Cost Cent – FERC Primary Account – FERC Secondary Account

    *Line of Business, Contibrution Seg, Cost Cent Value Sets are shared between the two.*

    Thanks,
    Paul

    Like

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