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R12 “AGIS” : What makes “Advanced”

Posted on January 30th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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Since last fortnight,I was looking into R12 GIS Module, seems some of the old features and functionlity have been greatly enhanced with addition of some more new features introduced.The point which should be noted here is,R11i GIS get new name commonly known as "Advanced Global Intercompany System" in short 'AGIS'. The difference is the prefix 'A', therfore will take a close microscopic view on feature that makes 11i GIS into Advanced GIS of R12. Here are the candidate features :

double-arrow Ability to create invoices (AR and AP)
Oracle Advanced Global Intercompany System can create invoices in payables and receivables sub ledger from intercompany transactions.

Using Oracle Advanced Global Intercompany System user can enter transactions for multiple recipients within a single batch. This allows user to submit intercompany transactions from one initiator to one or more recipients in a single batch.

double-arrowProration of transaction distribution amounts

When user allocates more than one distribution account in a batch that has multiple recipient transactions, Oracle Advanced Global Intercompany System can automatically prorate the distribution amounts based on the recipient transaction amounts. The proration of amounts is also used by Oracle Advanced Global Intercompany System to adjust the distribution amounts in the batch when a recipient transaction is deleted or it is rejected.

double-arrowUpload Transaction Batches created in Excel

This was a missing link in the earlier version, as earlier product does not have capability to use direct upload functionality, rather than interfacing through Open GIS interface. In Release 12 ADI is heavily used in this module, which is replacement of external integration for AGIS System using by mean of Microsoft based Excel spreadsheet. Now flexibility is provided to user that can generate spreadsheet templates that have features of intercompany entry pages and using the templates the user can enter transactions in the spreadsheet and upload them into Oracle Advanced Global Intercompany System. The good thing has found the standard templates can be customized by removing or adding the entry fields from a list of available fields. This feature is used to create a template that contains only the entry fields that are important for the business. The required fields cannot be removed from the template. Once the templates are generated, user can save them in their local computer to reuse them in the future. This figure describe the options available in both the versions.

intercompany

double-arrowMultiple recipients Support

double-arrowReversal of batch/transaction

This changed feature enables a user to reverse a whole batch or an individual transaction in a batch. When the user reverses a batch or a transaction, a new reversal batch is created, which displays the references to the original transaction. One point to be noticed is that new batch is submitted automatically immediately after it is created. Not both the parties (Sender /receiver), its only users with access to the initiator organization can reverse its batches or transactions. The set up is there where a user can choose a reversal method determining if the new batch will be created with opposite signs, or with switched debits and credits.

double-arrowDescriptive flexfield support

In AGIS descriptive flexfields is supported on the batch and also on individual transactions within the batch. Descriptive flexfields allow user to enter any additional information specific to the nature of business, in the batch and in the transactions. Important to note that these DFF can be used by sender. The user can enter descriptive flexfield information for the recipient in the Recipient Accounting section.

double-arrowFlexible Approval Rules and Workflow Notifications

In R12, AGIS very similar to other module, home page displays notifications about approval or rejection statuses of intercompany transactions. You should note that notifications can be sent to the users via email. The rules for approvals and notifications can be customized using Oracle Approval Management Engine (AME), which allows the user to add extra approval rules and hierarchies to suit their business needs.

double-arrowDocument attachment

The user can attach the documents for the batch as well as for each of the transaction. When user submits the batch, the documents are transferred to respective recipients.

double-arrowTransaction security

Intercompany transactions entry pages incorporate various security features. The user can enter transactions only for those intercompany organizations that are assigned to the user. Other security features include minimum transaction amount, control amount and function security.

For example:

Intercompany accountant processes intercompany transactions for many intercompany organizations in the enterprise.What is different between these two is :

  • R11i - Each responsibility has only one subsidiary assigned, therefore a user can initiate intercompany transactions for one subsidiary from each responsibility
  • R12 – the user can initiate intercompany transactions for many trading partners without changing responsibility

double-arrowIntercompany Periods

The new Intercompany calendar gives the user the option to control intercompany transaction processing by periods status.

What is observed in this functionality can be best describe as:

If a user wants to control intercompany cut-off dates, then the user can choose which General Ledger calendar will be used to control transaction entry by intercompany period status. Intercompany Calendar prevents users from entering transactions in closed periods and from closing the period if open transactions exist for the period user wants to close. When the user tries to close General Ledger accounting period, or Oracle Payables period or Oracle Receivables period while Intercompany Period is still open, the warning message can be displayed informing user about the status of intercompany period.

double-arrowSetup Profile Options

In AGIS there is no profile options that means these three as below intercompany profile options used in R11i are obsolete in this release.

  • Intercompany: Protect Receiver Natural Account
  • ntercompany: Subsidiary
  • Intercompany: Use Automatic Transaction

double-arrowIntercompany Reconciliation and Reporting

There are two new reports avaible in XML Publisher format

  • Intercompany Transaction Summary report
  • Intercompany Account Details report.

These reports replace reports that were available in the Global Intercompany System (GIS) in Release 11i.

The new reports offer all of the functionality of the obsolete reports plus additional benefits.

A bit on these 2 reports:

1)Intercompany Transaction Summary report replaces the Intercompany Transaction Detail report and Unapproved Transaction Listing report.

The purpsoe of this report is to give user a clear overview of intercompany transactions and their statuses, there so that day-to-day tasks and speeds up period close activities.

This report also provides supporting documentation for intercompany reconciliation and helps keep intercompany in balance by uncovering any potential discrepancies.

2) Intercompany Account Details report replaces the Transaction Activity Summary report

This new report provides a detailed listing of all accounting lines for intercompany batches, grouped by transaction.

The report is divided into two sections:

  • one section for outbound batches
  • one section inbound transactions.

The outbound section shows transactions initiated by the organizations to which the user has an access, the inbound section shows transactions received by these organizations. The user can choose whether to include inbound, outbound, or both sections in the report.

The user can run the report for one or many organizations to which the user is given the access.

User can select what parameters like initiator, Recipient, GL Date range, Batch Number range, Transaction Status, Currency, Batch Type, Invoice Number, and many more to run the report by. User can run the report by ranges of initiator and recipient accounts to see what transactions make up their balances.

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Posted in Oracle General Ledger | 9 Comments »Email This Post Email This Post | Print This Post Print This Post

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9 Responses
  1. David Haimes Says:

    A very detailed look at AGIS – I would be interested in your opinion/conclusion – does the new functionality deserve the tag ‘A’ for Advanced?

    One omission is in the section Intercompany Reconciliation and Reporting.

    You did not mention that there is a whole tab on the new web based UI that provides Interactive Reconciliation Reporting – this is in addition to the reports you describe.

    It is a nice feature that allows drilldown from Account balances to an individual transaction. I have just added some posts on this on my blog

    http://davidhaimes.wordpress.com/2007/12/05/intercompany-reconciliation-reports-just-got-interactive/

    http://davidhaimes.wordpress.com/2008/02/01/using-bip-for-interactive-reconciliation-reports/

    Thanks, David

  2. Sanjit Anand Says:

    Thanks David,
    Yes Some of new feature indeed deserved candidate for the tag ‘A’ that makes AGIS

    As of my consultaing experince with some of my global rollout, we encountered these issue in Intercompany Track did manage through customization , which i would like to mention.

    1.Spreadsheet based Data entry Form.
    This is one of greatest feature in this area.As in one of my project,it was template based spreadsheet for (Inter Group Funding) , that was used push the data by Middleware to create transactions into oracle.As manytimes, the transaction does not created in that particular period month and thus it was a difficult situation.

    feature like ADI is really going to help potential issue for creating GIS journal.

    2.Another issue I can mention here was ;

    Within one set of books we have multiple entities. Standard setup requires that each entity must balance at a currency level. i.e. we cannot post an out of balance journal in an entity.

    And the ,security rules only allow access to specific entities, reinforcing the rule that each journal must balance by entity.

    therefore for the automated entries across the balance sheet inter-company accounts are summaries by journal and contain only a generic line item narrative

    and no DFFs, without any reference to the underlying transactions. This makes an issue in reviewing of the balance sheet difficult.

    The R12 feature like
    #managing Intercompany Periods
    #Descriptive flexfield support
    #Reversal of batch/transaction

    these features really helped to overcome, some of key issues that mention above.

    3.Yet another issue was, 11i Responsiblity rather than R12 role based approach. As most of MNC’s operate, in Zone basis ..NAC(north America & canada), EMEA, APAC, etc, each zone consist of servral entities and thus many time it was requirement to pass Journal from HQ, there fore it was really difficult situation,to logon in respective responsiblity and then book the GIS transaction.
    MOAC role based approch greatly helped a person to enter and manage by mean of Transaction security.

    4.Another feature like usage of AME and integration for approval Rules and Workflow Notification.

    5. Intercompany Reconciliation process
    Frankly , I am not very sure, as I didnot look this process as of now , so does not able to comment how this functionality extend and help Companies to settle Intercompany transaction, but it seems, this feature automated and easily reconcile intercompany receivables and intercompany payables account balances.

    Thanks for providing a node for Interactive Reconciliation Reporting, i will add a note.

    I am still trying to investigate, how best:

    1)Intercompany Reconciliation process would be targetting currency Revulation.

    2)Intercompany Payment. Recent trend has been seen most of global companies either outsource or manage payment by third paties.and we cann’t denied in real complex situation ,Intercompany settlement takes around 50-60 days therefore multilateral netting is still one area , where external netting system should be triggered with ERP system, very similar to bank statement intergration with Cash management.

    3) Third area would be cash pooling, i didnot see any direct linkage with Intercompany funding.

    What I believe, the next couple of releases must be highlight Intercompany with treasury cash module integration rather than Intercompany with Genral Ledger.

    The recent outsourcing trend for payment for global companies to global banking patner is next challenge in ERP to syncronize the data.

    What you say David?

  3. R12 - Oracle General Ledger - New and enhanced features Says:

    [...] – Oracle General Ledger – New and enhanced featuresA single Query covering P2P life CycleR12 “AGIS” : What makes “Advanced”Oracle FA :From 10.7SC, 10.7 ,11 , 11i & Release 12Release 12: 6 New and Changed Feature in [...]

  4. David Haimes Says:

    For point 2) I’m not clear on the requirement, is this to nett with a third party payment provider?
    I would think netting off your Intercompany payments before sending it for payment is a better option there.

    For 3) Cash pooling and centralized cash management is a big deal for large corporations. In R12 we do have some integration with Payments, we provide the accounting when a bank account transfer occurs between two accounts in different Legal Entities. As banks are now owned by an LE in R12 this is quite easy for us to figure out.

    I’m not really in a position to comment on future feature plans – there are complex revenue recognition rules about that. SO I will refrain from going into specifics of future plans at this point.

  5. R12 Balancing API Says:

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

  6. Paul Guillen Says:

    I am trying to setup security rules, accounts excluded, and responsibilities assigned. But in R12 there is no Sceurity navigation.

    Kindly advice were in R12 can the security be set as it was done in 11.5.10?

    Thank you

  7. Balaji Says:

    Hi

    I have used two different LEs with two different ledgers for GIS, now while approving the transactions from the recipiant side – system shows and
    “unexpected error , contact your system adminstrator” with a log out prompt. Please do advice how to solve this issue

  8. Laxmi Says:

    Hi,

    I want to know whether intercompany transfer can be done when the COA structure is different.
    Please elaborate how this can be achieved.

  9. K Says:

    What happens if there are actual receiving descrepancies? i.e. if the shipment is sent for value 100 (Qty 10*price10) but the actual receipt due to damages is only 90 (Qty 9*price10). Is there a feature that can capture a quantity variance at the receiving end?

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