Fixed Assests Intercompany in R12

Fixed Asset?
Fixed Asset?

Something I often forget to mention is the enhancement of Intercompany functionality in Fixed Assets (FA) that has been provided in R12. So here is my attempt to explain it, based on an old email discussion with the FA team, I wouldn’t describe myslef as an FA expert, but if there are any comments or questions I might be able to find an FA expert to get an answer. :)

In 11i FA stores reference accounts in two setup entities; Book Controls and Categories. The intercompany Payables and Receivables accounts were stored directly on the book, only the natural accounts segment were stored for these two accounts. The Account Generator definition would combine the natural account with other sources to get a full account combination. Out of the box, those sources were a default ccid which is also on the book and a ccid from the asset assignment. So the balancing segment is derived from the asset assignment, the natural account from the values on the book, and other segments from the default account.

The intercompany would kick in for two transaction types “Transfer” and “Unit Adjustment”. However, other transactions could result in intercompany impacts, but they would not be generated in FA so GL would do the balancing when the accounting was posted there.

So in R12 FA uses the AGIS Intercompany balancing feature, which is called from SLA and so we’ll balance all transactions that are out of balance right there in the subledger without having to let some of it hit GL and with all the flexible rules available in the new Intercompany Accounts Set Up.

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.

4 thoughts on “Fixed Assests Intercompany in R12”

  1. Please explain how Third Party Control Account – Restrict Manual Journal asssigned to Intercompany AP/AR accounts impacts the Intercompany Balancing during GL Post and Create Accounting. Will patch 16460312 resolve?

    Kindest regards,
    PR

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    1. If an account is marked as a third part control account, you cannot enter a manual GL journal against that account. However you can use the account in an AGIS transaction.

      If you want specific information about patches, you need to file a service request with support as I don’t think it is appropriate for me to discuss those specifics here.

      Like

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