Great Video, good explanation. Just wanted to ask what reports are available when these intercompany/intracompany journals entries are being created by system through sub-ledgers? how a user will reconcile.
You can run "Account Analysis report " (the one registered with Subledger Accounting application... not the one regsitered with General Ledger Application)
Great explanation , Thanks a lot. I have one question is it mandatory to have the intercompany segment. I have one case in which we are upgrading the from 11 i to r 12 . After ugrade we need to define new legal entity for them. But they do not have any future segment that we can use as intercompany segment. So is it madatory to have inter company segment. To Add we have only 2 Legal enity including newone.
From system perspective, its not mandatory to have Intercompany segment. If we do not have intercompany segment, then we cannot use oracle provided intercompany functionality. Users needs to manually handle the intercompany transactions.
@@OracleEbizandFusionVideosyes, correct, if you have no separate intercompany segment, then a customisation program may required to do that if you don't do manual handling.
I am referring to the example where we have 3 company code. 01.02 have debit entry and 03 has credit entry. Why u gave 01 as counter party for 03 segment ? When we have 01 and 02 bsv?
If you are referring to say below example:- 01...... Dr 100 02......Dr 200 03......Cr 300 After posting the journal entry would be:- 01...... Dr 100 02......Dr 200 03......Cr 300 01......03 Cr 100 02....03 Cr 200 03.....01 Dr 100 03....02 Dr 200 Here, overall journal should be balanced (i.e. overall Dr and Cr should be matching) and at the same time, journal should be balanced by balancing segment....
If i understand your question properly, i believe you want to know what are the business use cases where users will select AGIS transaction type (where Invoicing is not required) in AGIS batch... If so, there are some business scenarios where user want to create a intercompany transaction between two legal entities like transfer of cost from one company to another company (which usually do not require any invoicing)
thank you, consider a scenerio in which we are creating the IntraCompany Rules for the BSV's of the source Payables and category Reconciled Payments then in this scenerio both the dr. Account and Cr. Account would be of payables accounts or one has to be recievable and one has to be payable. Moreover, Genrally what are the criterias business consider while choosing that this account has to intercompany or intracompany account.
Before i answer your question, whether in your scenario are there two BSV's assigned to a Legal entity (which is linked to OU under which Payables transactions are created)?
If so, then i believe in your scenario for payment, the journal entry would be:- Company1. Liaibility A/c Dr Company2. Cash A/c Cr If this is the journal entry, then this is a scenario of intra company accounting, system picks up intracompany receivable and intracompany payables account from Intra company rules setup in the ledger
PL1 -> LE1 -> BSV1 PL2-> LE2-> BSV2 Whether your setup is something like above and if your question is to how to enter a Journal by using BSV1 and BSV2?
Hi Arvind, When we create inter company and intracompany transactions actual payment transactions happen or only the accounts value get adjusted for intracompany payable n receivable accounts. Thank you
IT depends upon business... I have seen some clients wherein they settle intercompany transactions with physical cash payment... in some cases, they will continue as book adjustments
Yes, in general, BSV's are assigned to LE.... But there are exceptions where BSV's are assigned to Ledger... Ex:- BSV's which are not registered as Legal entities, Elimination companies which are not real Legal entities etc... these are some of the examples...
Have you covered this scenario in your any videos.If yes, Please share the link Can a Receipt in One Legal Entity be Applied to an Invoice in Another Legal Entity
Hi Laskhmiker, there are already videos on how to customize SLA rules in my youtube channel. Those will cover all SLA aspects like SLAM, AAD, JLD, JLT etc...
Transactions between BSV's of two Legal entities which fall under two different ledgers is a intercompany transaction. Ex:- USD Ledger - LE:- ABC with BSV of say 100, CAD Ledger - LE:- XYZ with BSV of say 200 In the above example, an transaction/journal between BSV 100 and BSV 200 is treated as intercompany journal
Super aravind i love your videios its very aswesome understandable.
Thanks for your feedback
Great Video, good explanation. Just wanted to ask what reports are available when these intercompany/intracompany journals entries are being created by system through sub-ledgers? how a user will reconcile.
You can run "Account Analysis report " (the one registered with Subledger Accounting application... not the one regsitered with General Ledger Application)
Very well explained. Please also share your analysis for Oracle ERP Cloud integration
Sure
Good One. One Question. Do we always use Intercompany Payable and Intercompany Receivable Account only ?
Yes
why specifically payable and receivable only ?
@@KumR Its because, when company A is payable to Company B, then in Company B its recorded as "Receivable" and in Company A, its recorded as "Payable"
Oracle E-Business Suite Functional R12 thank u
Thank you and very useful
You are welcome
Great explanation , Thanks a lot.
I have one question is it mandatory to have the intercompany segment. I have one case in which we are upgrading the from 11 i to r 12 . After ugrade we need to define new legal entity for them. But they do not have any future segment that we can use as intercompany segment. So is it madatory to have inter company segment. To Add we have only 2 Legal enity including newone.
From system perspective, its not mandatory to have Intercompany segment. If we do not have intercompany segment, then we cannot use oracle provided intercompany functionality. Users needs to manually handle the intercompany transactions.
Oracle E-Business Suite Functional R12 - What exactly is use of IC segment in the accounting ff
How is it linked in your video?
@@OracleEbizandFusionVideosyes, correct, if you have no separate intercompany segment, then a customisation program may required to do that if you don't do manual handling.
Thank you, very helpful
You are welcome
I am referring to the example where we have 3 company code. 01.02 have debit entry and 03 has credit entry. Why u gave 01 as counter party for 03 segment ? When we have 01 and 02 bsv?
If you are referring to say below example:-
01...... Dr 100
02......Dr 200
03......Cr 300
After posting the journal entry would be:-
01...... Dr 100
02......Dr 200
03......Cr 300
01......03 Cr 100
02....03 Cr 200
03.....01 Dr 100
03....02 Dr 200
Here, overall journal should be balanced (i.e. overall Dr and Cr should be matching) and at the same time, journal should be balanced by balancing segment....
@@OracleEbizandFusionVideos thanks a lot. I got it
When we need to select GL (Transaction type) instead Invoicing while creating intercompany batch and any example please?
If i understand your question properly, i believe you want to know what are the business use cases where users will select AGIS transaction type (where Invoicing is not required) in AGIS batch... If so, there are some business scenarios where user want to create a intercompany transaction between two legal entities like transfer of cost from one company to another company (which usually do not require any invoicing)
thank you, consider a scenerio in which we are creating the IntraCompany Rules for the BSV's of the source Payables and category Reconciled Payments
then in this scenerio both the dr. Account and Cr. Account would be of payables accounts or one has to be recievable and one has to be payable.
Moreover, Genrally what are the criterias business consider while choosing that this account has to intercompany or intracompany account.
Before i answer your question, whether in your scenario are there two BSV's assigned to a Legal entity (which is linked to OU under which Payables transactions are created)?
Oracle E-Business Suite Functional R12 yes, there are two bsv's assigned to the same legal entity...
If so, then i believe in your scenario for payment, the journal entry would be:-
Company1. Liaibility A/c Dr
Company2. Cash A/c Cr
If this is the journal entry, then this is a scenario of intra company accounting, system picks up intracompany receivable and intracompany payables account from Intra company rules setup in the ledger
Hi Arvind, In our scenario, we have two L.E. with different PLs, If I enter an entry in one PL how will the entry reflect in another PL?
PL1 -> LE1 -> BSV1
PL2-> LE2-> BSV2
Whether your setup is something like above and if your question is to how to enter a Journal by using BSV1 and BSV2?
@@OracleEbizandFusionVideos yes
Are you using AGIS Module?
Hi sir, can u plz show this demo in oracle fusion..?
Sure.... i will add this to my to do list of items to be covered for fusion
@@OracleEbizandFusionVideos thank u sir
Hi Arvind,
When we create inter company and intracompany transactions actual payment transactions happen or only the accounts value get adjusted for intracompany payable n receivable accounts.
Thank you
IT depends upon business... I have seen some clients wherein they settle intercompany transactions with physical cash payment... in some cases, they will continue as book adjustments
Good explanation of concepts... Can you please create a video on asset amortization.
Please see below video on FA Asset Amortization...
th-cam.com/video/5Ch-4uiiN-I/w-d-xo.html
generally we assign bsv to LE not PL. On what situation we assign bsv to PL.
Plz give an example
Yes, in general, BSV's are assigned to LE.... But there are exceptions where BSV's are assigned to Ledger... Ex:- BSV's which are not registered as Legal entities, Elimination companies which are not real Legal entities etc... these are some of the examples...
@@OracleEbizandFusionVideos thank you very much for your clarification. 😊
Have you covered this scenario in your any videos.If yes, Please share the link
Can a Receipt in One Legal Entity be Applied to an Invoice in Another Legal Entity
This is not possible in EBS... For further details, you can also refer Oracle Doc id:- 837894.1
Hi Arvind, Kindly create a video on Intercompany elimination process in Fusion.
Sure
If Intercompany setup is to be done for Sales Orders,how thiscan be setup?
Do you mean to say Intercompany relationships (or Intercompany transaction flows).. If so, this can be setup in Inventory module
Awesome - Thanks much
Thanks
Ur doing a good job. Small suggestion. Ensure that duration of ur video doesn't exceed 10 to 12 minutes.
Sure... Thanks for your feedback... There are some topics where lot of explanation is required and hence video can go upto 20 to 25 minutes
This is a good request still the way you are clarifying is really great. Keep up the good work
Hi Sir, Could you please create a video on end to end process of sub ledger accounting method in detail.. Thank You..
Hi Laskhmiker, there are already videos on how to customize SLA rules in my youtube channel. Those will cover all SLA aspects like SLAM, AAD, JLD, JLT etc...
Awesome, thanks a lot !
Thanks
Why legal entity after Ledger in R12?
In the flow, i had depicted Legal entities after Ledger because, in general you assign Legal entities under Ledger
Please create a video on "Intercompany Recon" "B/s Comments" "Monthly Pack"
Hi Mallikarjun, Sorry i did not get you..... Whats Monthly Pack?
share a video of Asset transfer between Inter/intra company
Sure
how about Intercompany with different ledger? can you give sample ?
Transactions between BSV's of two Legal entities which fall under two different ledgers is a intercompany transaction.
Ex:- USD Ledger - LE:- ABC with BSV of say 100,
CAD Ledger - LE:- XYZ with BSV of say 200
In the above example, an transaction/journal between BSV 100 and BSV 200 is treated as intercompany journal
Does AGIS also need this intercompany segment requirement ?
In order to see true Intercompany picture, its better to designate one of COA segment as "Intercompany" segment