Why do I need another period ?

In R12 we introduced AGIS periods that control the transactions entered in AGIS, this is a feature that is often misunderstood. The usual question is – Why do I want another period? I’ll give some ideas why you might want one, but if you decide you don’t need one, don’t worry we made it optional so you don’t have to use it. If you decide to use it just pick one of your GL Calendars to use for your Intercompany periods, if you never enter a calendar in the system options periods will not be enabled and you can enter transactions whenever you want with no interference from the system.

So, I ask again – Why do I want another period ? Continue reading “Why do I need another period ?”

Friday Night Writes

My primary reason for starting this blog was to discuss issues customers asked me a lot at about at Open World and on various forums. My rationale being that if I blog about our products we might help people understand them and a) Make informed choices implementing them, get more value from them and maybe log less support calls and bugs for us to look at; b) Learn how people use our apps, or why they can’t use them and be in a position to engineer better apps. What I didn’t have in mind was being able to sound off about whatever I want to on a Friday night and people actually read it and link to it from other blogs, which is dangerous because it just encourages me. I was also encouraged this week reading Meg’s girl on a rant, nice to see other people getting things off their chest too. The last few days I’ve been thinking about what I wrote about Google last week. Why? Because on Monday I was asked by Terrance if I could go to the Google office and talk to them about Intercompany. Doh! My first question was, Continue reading “Friday Night Writes”

What Exchange Rate to use for Intercompany

Leslie posted some excellent comments, which touched on the exchange rates to use on intercompany transactions, a very interesting and complex topic. I have discussed this at length with Seamus Moran many times, he has educated and enlightened me and I use an example of his here.

Consider Top Hat Global Corp

Intercompany Reconciliation Reports just got Interactive

In R12 the Advanced Global Intercompany System was introduced and one of the main goals was to make the reconciliation process more efficient. Intercompany is often the top barrier to a fast period close, because you have to be sure you eliminated it all to zero, so your parent company does not report a profit from trading internally. Fail to do this and you might go to jail, I have no legal training but when it comes to accounting irregularity I understand claiming it was an honest mistake is not much of a defense. Continue reading “Intercompany Reconciliation Reports just got Interactive”

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:

Intercompany is over 60% of World Trade


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).