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”

Intercompany Segment in Secondary Ledgers

I was recently asked – Do I need to define an Intercompany Segment in my secondary ledger if the primary it is attached to has an Intercompany Segment? Continue reading “Intercompany Segment in Secondary Ledgers”

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:

Oracle Intercompany is FUN

In release 12 of Oracle financials we decided to pull the existing Global Intercompany System (GIS) functionality out of the GL product, add a whole bunch of new functionality and make it a product in its own right. We decided to call this new product (wait for it…) Advanced Global Intercompany System (AGIS) – I bet you didn’t see that name coming! Continue reading “Oracle Intercompany is FUN”

How do I define my Legal Entities?

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?”

Intercompany Segments in the Vision Demo

One of the most common questions I get asked is

‘Do we need to define an Intercompany segment in our chart of accounts?’

The answer is:

‘We do not require an Intercompany Segment, but we still recommend defining one’.

Even if you do not have a great deal of intercompany activity at the moment, it is worth having one defined now as it is difficult to add one later.

Another question I have been asked is

‘Can I define the same segment to be my balancing segment (aka Company Code) and my Intercompany segment?’ Continue reading “Intercompany Segments in the Vision Demo”