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? Continue reading “Intercompany Segment in Secondary Ledgers”

Intercompany Vs Intracompany

When I present about Oracle Intercompany products I always start with a couple of slides explaining the difference between Intercompany and Intracompany and why we might care about the difference. This is sometimes obvious but often the two terms are used interchangeably or the term Intercompany is used generically to discuss Inter and Intra company (Oracle Apps is certainly guilty of the latter). So here goes…

InterCompany Transactions are between two or more related internal legal entities with common control, i.e. in the same enterprise (Inter = Latin for “BETWEEN”)

IntraCompany Transactions are between two or more entities within the same legal entity (Intra = Latin for “WITHIN”)

So that’s it then and a free latin lesson to boot. No? Want more?

get-out-of-jail.jpg

Well the real difference is that Intracompany processing is determined by company management, whereas Intercompany has to follow the law.

Continue reading “Intercompany Vs Intracompany”

Cleaning Out My Closet

I am moving up in the Oracle World. Yes, after 6 years on the 12th floor in Oracle HQ, today I moved up to the newly refurbished 16th floor in building 300 (that’s the tallest emerald tower that says ‘Oracle’ on the top)

myoffice1.jpg

This will have a real impact on my life in a number of ways, Continue reading “Cleaning Out My Closet”

New Intercompany features in R12

R12 introduces the new product Advanced Global Intercompany System (AGIS), which takes forward the features provided by GIS in 11i GL and adds a number of important new capabilities. The major new capabilities are:

Oracle Intercompany is FUN

In release 12 of Oracle financials we decided to pull the existing Global Intercompany System (GIS) functionality out of the GL product, add a whole bunch of new functionality and make it a product in its own right. We decided to call this new product (wait for it…) Advanced Global Intercompany System (AGIS) – I bet you didn’t see that name coming! Continue reading “Oracle Intercompany is FUN”

How do I define my Legal Entities?

In the real world a Legal Entity (LE) can enter into contracts, own cash (bank accounts), employ people, pay taxes, be sued and simlar. In Oracle Financials Release 12, a whole new product; Legal Entity Configurator, was created to manage them. We allow you to define your real world Legal Entities and then map them to the E-Business Suite objects and structures. Transactions are stamped with an owning (first party) Legal Entity and that will be used to drive tax, accounting, intercompany and Legal Reporting.

So let’s look at the relationships LE have to other E-Business suite objects. Continue reading “How do I define my Legal Entities?”

Intercompany Segments in the Vision Demo

One of the most common questions I get asked is

‘Do we need to define an Intercompany segment in our chart of accounts?’

The answer is:

‘We do not require an Intercompany Segment, but we still recommend defining one’.

Even if you do not have a great deal of intercompany activity at the moment, it is worth having one defined now as it is difficult to add one later.

Another question I have been asked is

‘Can I define the same segment to be my balancing segment (aka Company Code) and my Intercompany segment?’ Continue reading “Intercompany Segments in the Vision Demo”

Mixed Messages

 The open social network Oracle Mix was launched at Oracle Open World and I’ll be watching closely to see what level of uptake it has from within and without Oracle. It could change the way we interact with our user community and how we both get input for product direction and disseminate product features, best practice etc.

I enjoy events like Open World, even if there are many tough questions, it’s a way to understand more about the user community and how they use (or why they can’t use) our products.  I always give out my business card to people I talk to and people tend to be surprised as they think developers ‘don’t want to be pestered by customers’.  The number of people from product development registered on Oracle Mix demonstrates we do want to mix it up in the user community.  I set up an Intercompany Group on Oracle Mix so please feel free to join and toss your ideas and thoughts into the mix.

Enough mix puns?

Intercompany is over 60% of World Trade

bananas_pajamas.jpg

As Intercompany is the area I focus on in my work in Oracle Financials Developemt, I was interested to see a comment in an article in The Guardian (UK Newspaper) which stated:

“Over 60% of international trade now takes place between subsidiaries within transnational groups, according to the OECD.”

Maybe that is why I feel so busy all the time!

The article is coming from a particular political point of view, which you may or may not subscribe to but regardless of that aspect, it does a nice job of highlighting the complex financial implications of a multinational selling bananas. It also makes reference to some of the problems companies have had when the tax authorities deemed they had not paid enough tax, this is the very reason it is important to track carefully the intercompany transactions and transfer pricing – the tax authorities will want to keep a very close eye on it and the consequences of getting wrong can be serious (ie. expensive).

Oracle Open World Nights

I live a few blocks from the Moscone in San Francisco I can hardly avoid it even if I wanted to, every bar and second rate resteruant (Yes you Chevy’s!) is packed out and you can’t get a taxi for love nor money. So I decided to blog not about what I did at the conference but the evening events.

This year I arrived late Monday evening, flying in from a family vacation in the UK and missing the AppsLab event at 21st Amendment. I was disappointed especially as it was me who recommended that bar to Jake as it does some of the finest beer in the City and I like hanging out there – Of course meeting Jake and Anthony from Appslab is always enjoyable.

Tuesday I was hanging out at the W Hotel and I stumbled upon a few interesting people from My Virtual Lab. They have an interesting beta available which I haven’t had a chance to fully road test but looks pretty useful at first glance. I also got a free T-Shirt, I normally shun ‘freebie fashion’ as frankly free T-Shirts are only fit for giving to relatives to sleep or work out in, but the My Virtual Lab dudes do have a very cool logo.

my-virtual-lab.jpg

Wednesday was party night, when we get to see which acts need cash this year, if Elton John is reading this I may get hit with a Law suit. Oracle employee passes do not get a conference ticket, which may explain to many attendees why the people on the demo pods are always asking if you have a spare wristband. The first problem was getting to the Cow Palace, the line at the Moscone was insane, so I jumped in a Limo splitting the cost ($40 – bargain) with a similarly frustrated dba – get there fast and make a new friend, I highly recommend it. The thing that amazes me about these parties is how I can see so few people I know despite half of Oracle being there – I suspect they see me coming and avoid me, but can’t be certain. Anyway I have to confess I left early, grabbing a big handful of Strawberries for my 2 year old on the way out. I saw a little of Lenny Kravitz, eat some nice food but there is a limit to how long I can hang around drinking Bud from a plastic cup.

I did go back to the W Hotel for a few drinks Wednesday and met a group of people who had just finished some financial reporting class in a college around the corner. When I was a student, I didn’t hang out in bars with prices like the W, a round there would have cleaned me out for the entire term, times must have changed. I was also surprised that there was anyone there not associated with Open World, but I had a great chat with one guy about the similarities between some of the Web 2.0 hype and the dotcom boom, even if some of the people there said they were too young to really remember the dotcom era. Feeling old I went home and decided to stay in Thursday evening and fall asleep on the sofa, blaming it on Jet Lag and not my age.

So the roads are all open now and life in SOMA gets back to normal – here’s to next year.