I’ve been preparing these for a presentation at Oracle OpenWorld next week, they were mostly taken from the questions asked by Alyssa Johnson in her comment, but they are very typical questions that I get asked a lot.
What is the difference between the 11i GRE/LE and R12 LE?
- GRE/LE is upgraded as an LE in R12
- In 11i GRE/LE was often a dummy LE, not real LE structure and had little use
- R12 LE has a more robust definition
- R12 LE is used more by processes and reports across financials
Where does the LE impact R12 processing?
- Short answer – Tax, Intercompany (AGIS), Global Features
Why should I assign BSVs to my LEs in the Ledger?
- It is optional, if your BSV is your company code, you have an implied LE there in your GL
- It helps with some LE derivation for transaction stamping
- Allows you to run reports by LE
- May make Intercompany rules easier to define
In 11i, the LE doesn’t really correspond to the true Legal Entities of the Organization (e.g. only one LE is setup even though there are multiple companies). What is going to break in R12 if I leave it that way?
- Nothing will break if you do nothing and stay with one ‘dummy’ LE
- You won’t get all the good stuff we talked about earlier
Is there a connection between the LE and the BU?
- If you map LE to Ledgers / BSV, there is an indirect LE-OU relationship
- There is a Default Legal Entity for an OU (Default Legal Context) which in some cases(1:1:1) it will be the only LE so it is a direct assingment
If you want to add anything to this, or have more questions then fine the comments section below…
I was perusing the statistics that wordpress.com provides for this blog and was interested to learn that the most commented on post, with a whopping 69 comments, is the classic from November 2007 – How do I define my Legal Entities? . It has also received 18,449 page views which is the second most viewed post on this blog. My conclusion is that people are interested in this topic and want to learn more, so I thought I would mention the OAUG GL SIG meeting at OpenWorld where I have been asked to make a short presentation about Legal Entities, essential details are:
||OAUG General Ledger SIG
||Sunday, 04:00 PM, Moscone West – 3005
||The OAUG General Ledger SIG is a worldwide community of professionals engaged in the use of record-to-report business processes. Group members are business users, consultants, and support members engaged in the use of Oracle General Ledger.
This session focuses on Oracle Fusion Financials’ General Ledger feature, the Oracle E-Business Suite Release 12+ update, and the Oracle Financials release roadmap.
I have just started to think about preparing slides and I thought that rather than actually work on them, I would blog and see if anyone had ideas on the type of thing I should talk about (the hip crowd would call it crowd sourcing). It’s been almost 4 years since that post, so let me know in the comments what more information you would like on Legal Entities in Oracle Apps.
The comments section is just down below, past all the widgets asking you to like the post and share it…
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.
In 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?”
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:
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?”