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R12 Balancing API

Posted on August 13th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

There are two very distinct features in E-Business Suite Release 12 of AGIS.

  1. Automatic Balancing – When a transaction with multiple BSV’s is entered, the Balancing Process automatically generates the correct intracompany or intercompany accounting entries, depending on whether the balancing segments are in the same legal entity or in different legal entities. If the balancing segments values are in the same legal entity (intracompany accounting) the automatic Balancing Process uses Cross-Entity Balancing Rules to generate the balancing accounting entries. You can specify both the Debit Balancing Segment Value and Credit Balancing Segment Value for the balancing relationship; this new dimension allows you to define explicitly the accounts that should be used when any pair of balancing segments values are balanced against each other. If the BSVs are in different legal entities (intercompany accounting) the automatic Balancing Routine uses Intercompany Accounts setup to create the balancing accounting lines. You can setup several intercompany accounts for your intercompany activities, and select one as the default to be used for automatic balancing.
  2. Manual Intercompany Transaction entry – entry of intercompany transactions is enhanced . For all requestor(initiator) and recipient organizations, the legal entity information is displayed on each transaction. Intercompany accounting entries are generated automatically based on centralized setup. The requesting organization is able to create a single batch containing multiple recipient transactions across different ledgers, currencies and calendars, which are automatically submitted to all recipients for approval. When a batch is entered with multiple recipients, Oracle AGIS optionally prorates the distribution amounts for each recipient, based on the proportion of the transaction allocated to that recipient.

dgreybarrowBalancing : Difference (11i vs R12)

  • In 11, balancing journal entries were generated at posting time by the GL posting routine
  • In R12, the Balancing Routine (balancing API is called by GL and SLA): Generates balancing accounting entries for subledger journal entries at time accounting is created Generates balancing journal entries at posting time for all other journals.

dgreybarrowR12 Balancing API

Balancing API is triggered from Journal Posting process or from Subledger Journal Creation process. Once it is called it creates balancing journal lines automatically based on the setup for the combination of journal source and category.

Balancing has 3 elements :

  1. The Balancing API
  2. Intracompany Balancing Rules (Navigation: Setup->Financials->Accounting Setup Manager->Accounting Setups)
  3. Intercompany Accounts

The Intracompany Balancing Rules and Intercompany Accounts are used by the Balancing API to generate accounting lines for transactions that include multiple balancing segment values.

The Balancing API is called from the General Ledger at posting time for GL Journals, and from the Subledger Accounting Architecture during the accounting process for subledger transactions. Transactions originating in Payables and Receivables will be balanced using the Balancing API when SLA performs the accounting for them.

dgreybarrowTechnical Interest

Following two tables involved

  1. FUN_BALANCE_OPTIONS
    This table stores the ledger, journal source and category information for which the Intracompany balancing rules have been defined. These rules are used by the Intercompany Balancing API to balancing Intracompany journals. This table also gives the clearing balancing value option selected for a particular source and category.
  2. FUN_BALANCE_ACCOUNTS
    This stores the intracompany accounts defined between each trading and transacting balancing segment value. These accounts are used by the Intercompany Balancing API to balancing Intracompany journals
  • The table FUN_BALANCE_OPTIONS and the table FUN_BALANCE_ACCOUNTS are linked by a Template_id.
  • The posting program uses the package FUN_BAL_UTILS_GRP while creating the intracompany lines.The pls files for the package FUN_BAL_UTILS_GRP are fungbalutilb.pls and fungbalutils.pls. File location would be at $FUN_TOP/patch/<version>/sql.

dgreybarrow

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dgreybarrowMetalink Note

  • 604441.1 :AGIS Setting Up Intracompany And Intercompany Accounting - An Example

Posted in InterCompany | 2 Comments »

R12 AGIS : What makes “Advanced” – Part II

Posted on February 3rd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Thanks to David, who pointed me a node for process that makes Intercompany settlement easy.

For more details , here are the link:

A note on "Reconciliation process"

Reconciliation process is automated to easily reconcile intercompany receivables and intercompany payables account balances. The process helps user to identify account balances difference and to research the cause of difference. The reconciliation process supports drilldown to General Ledger journal details and subledger transaction details to investigate the reason of balance difference. The underline report have capablity to show:

  • Details by Reconciliation Summary
  • Details Reconciliation Summary by Source
  • Details Reconciliation Summary by Journals

Posted in InterCompany | 1 Comment »

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