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.

My Session at Collaborate 14 in Las Vegas

I am honored to have had one of my papers selected by the Oracle Applications User Group for the Collaborate conference this year.  These conferences are really good because all the content is nominated by and voted on by users and I personally think people get really good advice from their peers on how to get the most from their investment in Oracle’s products.  As well as trying to get some useful information out there for people, I also like the interaction with users both in the sessions and around the conference in general.

I am the main speaker for the session below, so mark your Calendars (or add me to your agenda on the conference app, available for iOS or Android)

E-Business Suite Coexistince With Fusion Accounting Hub and Implementing a Global Chart of Accounts

7 Apr 3:20 PM-4:20 PM

Session ID: 14977

Room: Level 1, Marco Polo – 805

Abstract: Hear how Oracle implemented Fusion Accounting Hub Coexisting with it’s R12 EBS Financials and transitioned to a new single Global Chart of Accounts in less than a year. You will learn the principles and process used to determine and reach agreement on the new chart of accounts as well as how the final result looks. In addition you will learn how over 100 ledgers are consolidated in Fusion Accounting Hub and the time to close reduced. We will discuss the best practice recommendations for Fusion Accounting Hub.

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I am also going to be speaking at the GL SIG and may be co-presenting another session with a customer (need to confirm that one), I’ll post details of those a little nearer the time.

Changing the Legal Entity to Balancing Segment Assignement

In the R12 Accounting Setup Manager, you can assign Balancing segment values (aka BSV, Company Codes) to Legal Entities, that’s nothing new for me to blog about.  However a few times in the last month or two I have been asked a question along the lines of

“We are doing a re-org or have created a new LE and now we want to reassign an existing BSV to the new LE, how do we do that?”

My reply is

“I don’t think you really want to do that”

The reason why is because moving ownership of assets and liabilities from one Legal Entity to another is an Intercompany Sale, it has to be done correctly and any taxes due etc must be paid.  Also you need to keep all the history of the activity the old legal entity did and report on that and have it available for audit.  Also you probably want to deal with all the open transactions against the old LE in one way and just start recording new transactions against the new LE.  A good option is to create a new balancing segment value and assign that to the new LE.

There is one situation where I am ok with people wanting to change the assignment, that is when it was a mistake during implementation and you have not entered any transactions against it yet.  That is essentially a data fix.

Can I assign an Operating Unit to Multiple Legal Entities?

The short answer is sort of. Which is not much help to anyone, hopefully you will have a few moments to read on and I can explain myself. This post assumes that you understand the relationship between Legal Entities and Ledgers which I discussed in an earlier post.

XLE brandIn R12, a new Legal Entity Configurator was introduced in financials and Legal Entities defined here are are assigned to Ledgers and/or Balancing Segments (Company Codes). However it is not possible to assign a Financials Legal Entity to an Operating Unit, you can only define a Default Legal Context (DLC) to an Operating Unit. This assignment can cause confusion as it is only possible to assign one DLC, but I can use more than one LE in that Operating Unit. The key word in DLC is default. Continue reading “Can I assign an Operating Unit to Multiple Legal Entities?”