EBusiness Suite Legal Entity FAQ

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…

Legal Entity Configurator – Why?

LEIn Oracle Ebusiness Suite 11i, the Legal Entity is tied closely to a set of books and operating Unit, so your Legal Structure has to be defined in the way you set up your apps partitions (OU, Set of Books etc.). In R12 financials breaks away from that with the introduction of the Legal Entity Configurator allowing you to model your Legal Structure separately from the partitions in your ERP system. Then you mark certain items with an owning LE, rather than use the OU or set of books to derive the LE. So let’s see what this buys you. Continue reading “Legal Entity Configurator – Why?”

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?”