Financial Apps Collaborate 16 Sessions

We’re just two days away from the start of Collaborate and there are so many session I want to get to, my focus is on Financial Applications both Cloud and E-Business Suite.  I already listed sessions where you can find me presenting, but here are ones I think will be interesting, I will attend as many as I can

Firstly two cloud customers(Alex Lee and Westmont Hotels) talking about their experiences implementing cloud financials.

Fusion Financials Implementation Customer Success Experience

Monday April 11th 12:45 PM–1:45 PM – South Seas J

Derrick Walters, Corporate Applications Manager at Alex Lee

How Westmont Hospitality Benefited by Leveraging Cloud ERP
3:15 PM–4:15 PMApr 11, 2016 – South Seas I
Sacha Agostini Oracle Functional Consultant at Vigilant Technologies, LLC.

Next some AGIS, Legal Entity and related topics on E-Business suite.  In these areas that have been out for some time, I generally learn something about innovative uses of the products.  Our partners and customers are very smart.

Intracompany, Intercompany, AGIS – Unraveling the Mysteries!
2:15 PM–3:15 PM Apr 10, 2016 – South Seas A
Bharati ManjeshwarMs at Highstreet IT Solutions, LLC

Master Data Series – Legal Entities From 11i thru Cloud
9:15 AM–10:15 AM Apr 12, 2016 – Breakers F
Thomas Simkiss Vice-President of Consulting at Denovo Ventures, LLC

Its Not too Late! How to Replace Your eBTax Solution After You Have Upgraded
10:30 AM–11:30 AM Apr 11, 2016 – South Seas I
Mr Andrew BohnetDirector ateBiz Answers Ltd

General Ledger and Financial Accounting Hub – A look at a Multi-National Structure
3:30 PM–4:30 PMApr 10, 2016 – Jasmine H
Bharati ManjeshwarMs at Highstreet IT Solutions, LLC

Finally, there are sessions called Power Hours, which are strangely two hours, but i really like the experience last year and based on the fact they are back i assume others did too.  they are not a traditional lecture format, they are more interactive and allow people to discuss their experiences and learn from each other.  If you have not tried one, I highly recommend them.  Here are a couple that jumped out at me
Power Hour – Coexistence – On Premise and Cloud Together and In Harmony
3:15 PM–5:30 PM Apr 11, 2016 – Mandalay Bay C
Mohan Iyer Practice Director at Jade Global, Inc.
Power Hour – eBTax Hacks – Your Questions Answered
9:15 AM–11:45 AM Apr 12, 2016 – Mandalay Bay C
Mr Andrew Bohnet Director at eBiz Answers Ltd
Alexander Fiteni President at Fiteni Enterprises Inc
Dev Singh Manager at KPMG LLP Canada
Power Hour – Master Data Structures in EBS and Cloud
12:45 PM–3:00 PM Apr 11, 2016 – Mandalay Bay C
Mohan Iyer Practice Director at Jade Global, Inc.

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.

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…

Want more on Legal Entities?

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:

 

Title: OAUG General Ledger SIG
Time Sunday, 04:00 PM, Moscone West – 3005
Length 1 Hour
Abstract: 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…

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?”

R12 Intercompany Accounts Set Up

In R12 the Intercompany Accounts setup is broken out from GL and included in the Advanced Global Intercompany System (AGIS) product (Don’t worry you don’t need any additional license for this product). There is a separate set up screen for Intercompany and Intracompany Accounts. The same set up pages are available through the Accounting Set Up Manager as well as AGIS so you can pick your navigation path. Continue reading “R12 Intercompany Accounts Set Up”