Collaborate 14 Paper: Balancing by 2 Segments

It is a very common requirement to automatically balance by two different segments of the chart of accounts, typically the Legal Entity and some sort of Management Entity (department, line of business, cost center, etc).  Fusion financials allows you to balance by up to three segments, which is always a well received feature.  However at Collaborate you can learn how one company built a custom to do this in EBusiness Suite.  I’m honored to have been asked to Co-present with GE on this topic, they have done some really good work here and I’m sure it will be of great interest to others too.  So come along and join us, you’ll get the specifics of what they did, the details are below:

Session ID: 13941
When: 10 Apr 11:00 AM-12:00 PM
Room: Level 1, Marco Polo – 801
Speakers: Sangeeta Sameer, General Electric (GE),  David Haimes, Oracle Corporation
Abstract: This paper describes the Custom solution that General Electric (GE) implemented in collaboration with Oracle to achieve Balancing by 2 segments in Release 12.1.3 of Oracle E-Business Suite (EBS). GE has the business need to Balance by both the Legal Entity (LE) and Management Entity (ME) segments in the Chart of Accounts. While Fusion Applications allow Balancing by 3 segments, Oracle EBS Applications do not have this Functionality. This paper covers the requirements and solution in detail for 2 Segment Balancing.

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.

11 thoughts on “Collaborate 14 Paper: Balancing by 2 Segments”

  1. Thank you for sharing, David. Is there an attachment to this posting? I can’t seem to find it for some reason.

    Thank you.

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  2. Hello David,

    This is very exciting news.

    Have you ever heard of companies customizing the balancing api to also balance journals against the intercompany segment?

    One issue we’re currently facing is many-to-many transactions.
    The client would like to always see a value populated for the interco segment to facilitate eliminations.

    However, both external interfaces and subledgers are creating GL journals that the system categorizes as “many to many”, and uses the default intercompany accounts to balance by LE (interco segment is zero).

    Any help would be appreciated!

    Thanks

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  3. Paul,

    For a many to many scenario, how would any system logic inherently know the counterparty without additional external information?

    We did not require the intercompany segment to be populated for many to many transactions. Expectation is that such transactions need to be analyzed and settled.

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  6. Paul and Umakant,

    WordPress does not publish your e-mail address so I could not e-mail. Sometime over the next few weeks, I will write a guest post on this blog and include the paper and slides. Also, David and I will be doing a webinar in June on this topic. More details to follow.

    Sangeeta

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  7. Pingback: Report from Collaborate 14, Las Vegas | David Haimes Oracle Intercompany Financials Blog

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