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Rolling Time Zone- LETZ

Posted on January 10th, 2013 by Sanjit Anand ||Email This Post Email This Post

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Timezone handling is bit tricky in EBS. Currently you may have only two options:

  1. Entering data in the standard corporate time zone as recommended by Oracle
  2. Entering data in their own local time zone and using a custom solution to resolve the issues that arise when comparing data across transactions in different time zones.

If your company/Client uses the second approach (entry in local time zone), enabling the user preferred time zone feature might result in unwanted date with time conversions (local date with times that are converted to the user preferred time zone) because the system assumes that all dates with time are stored in the corporate time zone.

If your company uses the standard corporate time zone for all business transactions, you can enable the user preferred time zone feature and have the choice to continue working in the standard corporate time zone as before, or to set your preferred time zone and start interacting with the system in your preferred time zone.

If you do not set the user level time zone preference, then the system will continue to operate in the standard corporate time zone as it always has, even though user time zone support is enabled for the implementation.

Lets discuss out-of-box LETZ feature.

Legal entity timezone(LETZ) feature will automatically report transactions in the relevant period .

In other word LETZ means that you can choose between recording accounting transactions according to a single worldwide reference location or by referring to the time zone of the legal entity involved. It means that you can select to have a rolling close, which allows you to close periods in relation to the local date, or you can continue to use a single world-wide reference when period close should take place.

This feature was introduced in 11i10 in Controlled Availability status and is also available on R12 – also in a Controlled Availability status.

arrow-up-3 Enbling LETZ

It required two simple steps to achieve this :

  1. Turn on and Set the ‘Enable Legal Entity Time Zone’ profile option to ‘Yes’ at site level.
    • Profile Option, ‘Enable Legal Entity Time Zone’, has been added and is available at site level only.
    • By default, this profile option is visible to the system administrator only. You will need to change its control access in the ‘Application Developer’ responsibility before it can be turned on.
  2. Set up the Time zone of the legal entity in HR Locations . Leave it blank for Non LETZ entities.

arrow-up-3How this works:


Conceptually, there are two types of date fields:

  • Dates with a time component – meant to indicate a specific point in time
  • Dates without a time component – meant to show a day but not a specific time

Majority of Finanancial Module , as consider as dates without time represent pointers to a financial period.

When the user preferred time zone feature enabled, date with time fields will be converted to the user’s preferred time zone.. That means if these profile setup :

  • ‘Server Timezone’ profile must be set at the Site level, and must be set to the same standard corporate time zone as the database
  • ‘Client Timezone’ profile must be set at the userlevel
  • ‘Enable Timezone Conversions’ must be set to ‘Yes’ (‘Y’) at the Sitelevel.


Example 1:

Lets assume ,

  • End user local timezone is GMT-6
  • Server timezone is GMT+8

Therefore , AR invoice date and GL date in AR Invoice Form is the date in server timezone (GMT+8), not end user local timezone.

whereas ship_date_actual in Sales Order form is in end user local timezone GMT-6, since it is a date with time and utilize the user preferred timezone feature.

Example 2:

Lets assume

  • Local timezone is GMT+9,
  • Server timezone is GMT-5

Invoice dates and GL dates are now based on the time zone of the legal entity from which goods are shipped ( end user local timezone), this would ensure that the invoice and the resulting revenue accounting is aligned with the localized GL period.

That means, when a sales order shipment is made from end user who based in Japan, on 01-Jan-2014 at 10:00Hrs, the invoice created in receivables with an invoice date of 01-Jan-2014.

Changes to support Legal Entity Time Zone have been made in Purchasing, Receiving, Inventory, Cost Management, Order Management and Process Manufacturing applications

arrow-up-3 Limitation

  • Legal Entity Time Zone features do not address encumbrance accounting transactions. Therefore you should not enable these features if you are using encumbrance accounting.
  • Oracle Reports do not display transaction dates/times in Legal Entity Time Zone, including internal reports which are used in the period end reconciliation process.
  • Legal Entity Time Zone has not yet been addressed entirely throughout Supply Chain Management (SCM).
  • Legal Entity Time Zone features do not address Periodic Costing, and Consigned Inventory Pay-on-Use Invoice Creation.
  • As per Oracle Note, in Oracle AR except for auto-invoice or debit memo documents created through upstream products such as Order Management and Procurement , all the dates for manually created transactions within Financials will be defaulted to the corporate time zone.
    • If the user wishes to enter a manual transaction and default certain dates (GL dates) in the context of the legal entity and not in the context of the corporate time zone (server time zone), the user will need to manually adjust the date and not accept the system defaulted date.

arrow-up-3 Limitation

Therefore when Implementaing , legal Entity Time Zone features make sure this does not changes to financial information, and therefore is recomendated

  • Work with Senior Finance person to determination as to whether the solution is correct for your company teams and get their buy-in.
  • Work with Oracle engagement team for Oracle Development approval for supporting LETZ. Remember this is still Controlled Availability status
  • Explore if you need to implement ‘User Preferred Time Zone’ along with LETZ.

arrow-up-3 Suggested Reading

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