Balancing Segment issue

Hi,
I am confusing on the balance segments usage. I checked from the articles.
"If a Balancing Segment Value is assigned to a Legal Entity, one would be able to create transactions from this Legal Entity only if a Balancing Segment Value is assigned. (in payables/ receivables to which this legal entity is assigned)."
If it is true, I have the question:
I did a test. We have a ledger "USD LEDGER". Under this ledger, we have 3 legal entities "A", "B" and "C". The following is the currnet BSV assigment:
BSV 6049 to ledger "USD LEDGER"
BSV 6426 to ledger "USD LEDGER"
BSV 6439 to ledger "USD LEDGER"
BSV 6448 to ledger "USD LEDGER"
BSV 6415 to entity A
BSV 6422 to entity B
BSV 6424 to entity C
From the above setting, I created an AP invoices in entity B with the following distribution lines:
1. Item, Amount=1.00, Account=6422.0000.343162.0000.000000.000.0000.000
2. Item, Amount=1.00, Account=6049.0000.343162.0000.000000.000.0000.000
3. Item, Amount=-1.00,Account=6049.0000.343162.0000.000000.000.0000.000
The default AP liability account=6422.0000.311101.0000.000000.000.0000.000
Supposed I can use BSV 6422 only if I create AP invoice in legal entity B. However, I can also use 6409 as expense item in AP distributions and its acccounting could be created succssfully. Here is the AP jounral created in legal entity B:
6422.0000.311101.0000.000000.000.0000.000     Liability     Dr 1.00
6422.0000.311101.0000.000000.000.0000.000     Liability Cr 2.00
6422.0000.343162.0000.000000.000.0000.000     Item Expense Dr 1.00
6049.0000.343162.0000.000000.000.0000.000     Item Expense Cr 0.00
Why could I user 6049 in the above entry? Could anybody please kindly explain and show me why? Thanks.
Regards,
Edmond

Hi Edmond,
the reason for asking the source of article was to find out in what context that was referred in, i was not implying that the statement is misleading or incorrect ... Oracle Support documentations are considered final in key decision making areas during implementation and post implementation period ... hence there is no question on the validity of what Oracle says ... However the interpretations are to be carefully reviewed ....
Assignment of BSV values to Ledger and Legal Entity was a change brought forward in Release 12 version of Oracle E business suite, it was not the case in the older version i.e. 11i... Now there are two places in which BSV values are to be assigned ....
1) At the Legal Entity Level - This is MANDATORY
Every transaction that is recorded at the operating unit level will have a reference to its legal entity as well ... By looking at the account code combination or BSV
used in the subledger transaction, we can clearly identify which Legal Entity this transaction belongs to, whereas we have to let the system know of that as well i.e.
which BSV's point of which LE's. This link needs to be established for performing transaction processing at the Operating unit Level ....
There are no transactions that are processed at Legal Entity Level, all transactions are recorded and processed at Operating unit level, however this configuration
became a pre-requisite to do that ..
Assume a Scenario where,
USD Ledger has 2 Legal entities LE 1 and LE 2 ...and 3 Operating units OU 1 and OU 2 under LE 1 and OU 3 under LE 2
In 11i, when you enter a transaction in OU 1 and OU 2, it is clear that the transaction belongs to LE 1 and not any other ....
whereas in R12, that is not enough ... i have to say that which value of my company segment points to LE 1 and LE 2 ... The change is due to the system design ....and
other system dependancies ....The link between Operating unit and Legal Entity is established or governed through BSV value assignments
2) At the Ledger Level - This is purely OPTIONAL
This assignment is normally not performed in most of the client places or atleast i have not seen it being performed ....
This is useful when you are performing a transaction that does not belong to a Legal Entity .... when a transaction does not belong to LE, which means it does not have a operating unit as well ... which also means that, such transactions will not be performed at Subledger level, they can only be done at the Ledger Level ..i.e. in
General Ledger MOdule.
Assume a scenario where,
Client has 3 different Ledgers and wants to consolidate the 3 ledgers data in to a new ledger .. this new ledger would be used only to hold consolidation data and
extract financial reports nothing more .. in which case this new ledger will not require a Legal entity, when there is no Legal entity, you cannot assign BSV value ...
so in that case, BSV assignment at Ledger level would help in performing the consolidating activity and adjustments type of transactions ......
Also note, that when no BSV is assigned at Ledger level, system displays all values.
I am yet to see a documentation from oracle or others, which states the restrictions on displaying or not displaying LE values based on BSV assignments at LE or Ledger Level ....
Regards,
Ivruksha

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ABA wrote:
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