Modeling legal entities using balancing segment

Oracle documentation says:
"It is highly recommended that you model your legal entities using the balancing segment so that you can take
optimal advantage of Oracle's product features related to legal entity accounting."
My question is what features will we miss out if we do not specifically assign balancing segment values to legal entities?
Thanks

Once a BSV is assigned to the ledger it does not appear in the LOV of BSV-LE assignment field. Pl see if you can delete the BSV from ledger assignment, then only you can re-assign to LE. In my opinion, it allows you to delete the BSV from ledger level if you have not already used it in transactions. In your case, I wonder if it will allow you to delete it. If not, you have to raise SR with Oracle support.
Thanks
Tarun

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How to Associate Project and Expenditure Org to Legal Entities

This question is related to the "Derive Legal Entity from Organization Setup" Implementation Option for Intercompany Billing.
Does anyone know how Proj/Exp Orgs are associated to Legal Entities? I believe Legal Entities are defined in GL Accounting Setup Manager, not in HR. So how does the system link a Proj/Exp Org defined in HR to a Legal Entity in GL?
The guide states: "This option provides cross charge for intercompany billing within an operating unit and across legal entities by deriving legal entities from project and expenditure organizations. If an organization is not associated with legal entity establishment, then the legal entity from the operating unit is used by default."
Regards,
Adrien

Shaan- the Org Hierarchy is where I can't see the connection: Legal Entities in the org hierarchy are HR organizations, but Legal Entities used in Intercompany Billing setup (e.g. Provider/Receiver Controls page) are GL Legal Entities setup in Accounting Setup Manager. Do you know how does the system connect HR LEs to GL LEs?
Regards,
Adrien

Balancing Segment Value assignment to Legal Entity using Account Setup Mgr

Hello,
This is on r12.06
By mistake- I did not assign BSV at Legal Entity level, insteady I directly assigned at Ledger level. Now, I am getting following error when running "Accounting Program" standard program
The subledger journal entry contains lines with balancing segment values that are not assigned to any legal entity. Unassigned balancing segments cannot be used to balance a subledger journal entry with balancing segments already assigned to a legal entity. Either update the balancing segment value assignments for the ledger ADP/Claims Solutions Group or update the balancing segment values used on the subledger journal entry Upon research, It was discovered that that the Balancing segment is assigned only at ledger level and it is not assigned at Legal Entity level in account setup manager.
When I attempted to assign the BSV at LE level, it is not showing the BSV in list of values.
I even end dated BS at ledger level and tried again but still the concerned BSV is not showing up in LOV at Legal entity level.
Now I am completely stuck. Any idea what am I missing? Why, the new BSV is not showing up at LE level LOV when attempting to assign BSV at LE level?
Thank you for reading this post in advance.
Regards,
R

Once a BSV is assigned to the ledger it does not appear in the LOV of BSV-LE assignment field. Pl see if you can delete the BSV from ledger assignment, then only you can re-assign to LE. In my opinion, it allows you to delete the BSV from ledger level if you have not already used it in transactions. In your case, I wonder if it will allow you to delete it. If not, you have to raise SR with Oracle support.
Thanks
Tarun

Impact on accounting if 4 balancing segment is used within OU

Hi All,
We have requirement
Client has 1 group and 3 business unit under the group. Group as centralised team wanted to control the all activities within Oracle like raising of PO,entering Invoice,payments and receipting. Client has 1 LE, 1 OU and 4 Purchasing org( 1 for group and 3 for business unit) but they wanted to use different balancing segment for each business underneath group . There will be 4 balancing segment - 1 for Group and 3 for Business unit so that they can have individual balance sheet. We are using Encumbrance Accrual accounting method and all Accrual are accrued at the period end. Client use GL,AP,AR,iProc and PO modules.
What is impact and what key consideration we need to consider for this approach ?
Is there shortcoming in this approach ?
Thanks in advance for your response
Thanks,
Jay

Abhi
I will put the question in different way
For example
Invoice No : TEST1
Amount - 30 Pounds
AP Liability Account - 600.ZZ999.9603.0.0.0.0
3 lines and 3 distribution
Distribution Line no Expense Account Amount
1 - 600.2277.1452.0.0.0.0 - 10
2 - 601.2278.1452.0.0.0.0 - 10
3- 602.2279.1452.0.0.0.0 - 10
When accounting is created
3 lines are created for item expense account - Amount 30
1 - line for AP liabilities - 600.ZZ999.9603.0.0.0.0 - Amount 30
if i create Intracompany rules, it is transfer all 30 pounds from 600.ZZ999.9603.0.0.0.0 to 601.ZZ999.9603.0.0.0.0
Is there any possibility of making three lines for liability like
Distribution line no AP_liability_Account Amount
1 - 600.ZZ999.9603.0.0.0.0 - 10
2.- 601.ZZ999.9603.0.0.0.0 - 10
3 - 602.ZZ999.9603.0.0.0.0 - 10
Any thoughts on this
Thanks,
Jay

Updating Balancing Segment Values in Legal Entity

Dear Members :
I am trying to add one more balancing segment value to one already existing in Legal Entity. Neither am I able to add one or remove the one already existing. I am novice in Financial and really appreciate some explanation on
[1] Importance of segment values on Legal Entity/Primary ledger & Secondary Ledger(Balancing Segment Value Assignments, in last two cases)
[2] Way out for my problem.
Thanks in advance.
Atanu

Thanks. I exactly intended to do that, but surprisingly not able to select, I mean find my other company code when I opt for adding segment value to Legal entity. Say now I have company code 10 attached and there's one more 05, which I want to add; I am not seeing that value when entering in Values LOV.
Could you please provide some clues - about trouble shooting the issue. Also what repurcussion will it have if I can or can not attach my desired company code - if you please tell ?
Thanks.
Atanu

How do i restrict the balancing segment for a particular legal entity

Hi All,
There is a new feature in Release 12 where i can restrict the balancing segment values for a Legal entity.How do i implement the same in an OA Page.

Do you mean to say that the feature is enabled on forms and you want the same on OA page? Sounds contradictory.
Is it something related to functional setup or are you looking for customization through coding?
--Shiv

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

Upgrade impact of converted Legal Entities

Customer: Aviva
Sr 3-2921431541
Aviva has a requirement to rationalise the number of Legal Entities and on the day that some of these Legal Entities are no longer valid transactions in the sub-ledgers under the old Legal Entities need to be converted to the new Legal Entities in the GL.
An option that is being considered is that IDT is used as part of the Sub-Ledger (AP & AR) Transfer process to the GL. When the sub-ledger transactions are transferred to the GL Interface Table the Legal Entity (Segment 1 - a Balancing Segment) will be converted from the old Legal Entitiy to the new Legal Entity using IDT. The Request ID may also need to be blanked to allow this to happen.
Ratification Required in this context
Will the difference in LE between sub-ledger and GL impact any data migration process used when upgrading from R11i to R12?
Thanks
Hans

Hi Hans
I see following issues from SLA perspective.You might take opinion from GL/Legal entity team/AP for unseen repercussions from their end
1) Since subledgers are not updated with new entity id in 11i,reconciliation between SLA trial balance report and GL balances in R12 would not be easy as sublegders would migrate data with old entity id in SLA tables.
Customer would have to take care of discounting old entities while reconciliing.
2) Since reports are some times run with account flexfield parameter ,a report with same flexfiled parameter in SLA would not return same data in GL.
For ex GL account analysis 180 char would show different data from SLA Account analysis report.
Point 1 and 2 are usually used by customer to ensure successful upgrade happened but in this scenario actual issue would be covered by legal entity mismatch.
3) I assume that if legal entity is obselete corresponding bsv would also be disabled.In that situation subledgers like AP which use businessflow feature would be affected i.e. when 11i invoice with old bsv is paid in R12 ,payment would not account as liability line of payment would be invalid as liability ccid is copied from that of Invoice.Same issue can happen with Accounting reversal feature which is used both by AP/AR.
If old bsv is still valid even then unnecessary balancing lines/intercompany lines could be generated.Customer should think about defining alternate ccids.
However best solution could be to ensure that subledgers prior to upgrade are corrected for Bsvs such that discrepany between Subledgers and GL is resolved prior to upgrade.
Thanks
Preeti

Costing - Overriding Salary Payable Account captured in Balancing Segment

As a standard Functionality Costing Information(Salary Payable Account) recorded in the Balancing Segment of the element Link Screen cannot be over ridden at any Other Level.
Our Accounting set up involves payment from more than one salary payable accounts , which need to be appropriately selected when the costing process is run.
However using the standard functionality of the product, is it possible to have multiple salary account information in the balancing segment.?
We want different Salary Payble accounts to reflect in the Journal Voucher Entry created by costing process , according to the respective legal entity from which the employee is being paid
Is it Possible???

HI ramesh,
Thanks for your reply.
I gather that the new functionality helps us to make use of the cash management auto reconcilliation process to reconcille payroll payments in GL.
However Cash Management is available only for the Payroll payment methods of
checks/cheques. Cash Management is not available for electronic fund transfers (such as NACHA in the U.S.etc).
Cheque Payments are generally routed through AP in order to maintain a consistent cheque number series.
In case you have successfully used this to reconcille cash and electronic payments then please do us know.
Regards,
P

Assign a Balancing Segment Value

Dear Members,
I have two legal entities and one balancing segment value(bsv).
I have assigned the bsv to the first legal entity. Later I have discovered that it should be assigned to second legal entity. So I have disabled the bsv by entering the end date at the first legal entity. I want to assign it to the second legal entity but it doesnt show up in the lov.
What is the solution?
Please advise.
Many thanks in advance.

1. Exact hit. Refer Note 465928.1
2. Also refer Note 749971.1
It seems some kind of workaround is available.
Please confirm if second note helps you
Regards,
Srini

OS41: data modeler, how to use it?

Hi,
I'd like to know how to use T-code OS41: data modeler, when do I need to use it? and How to use? Please kindly help.
Thanks and Regards.

Hi Steve
<b>SD11-Data Modeler</b> is used, as its name implies, to model your processes.
You can create entity types, connect tables or views to those entities, implement connections between entities and if needed, you can also insert business objects all in a hierarchical way. You can connect data models to each other as well.
By this way, you document your own processes containing also some technical perspective.
Hope this small piece will give some basic understanding.
*--Serdar

How to delete/disable legal entities

Hello:
I am a rookie in oracle GL. The other day I started to set up legal entities in Accounting set up (EBS R12) for practicing and I made some errors. I now want to delete these entites and all associated accounting ledgers (primary and secondary). Can anyone kindly tell me how to do it? Your help is greatly appreciated. Also, is there some pre set up steps I must perform, like some profile definition before using accounting set up to create legal entities and ledgers?

I do not believe you can delete legal entities once they are defined - you may be able to disable them at best. Pl see the R12 GL Implementation Guide at http://download.oracle.com/docs/cd/B40089_10/current/acrobat/120glig.pdf
HTH
Srini

Inventory parameter no value for balancing segment account

Hi
cloud any one please help me,
i have a oracle 12.1.3
and i try to setup a new ledger, OU and IO
when i try to set a new IO, in inventory parameter
i can not chose the balancing segment value exists
there no value warning show up
but the issue is only happend in inventory module
the balancing segment value already assigned to new LE and new Ledger
did i miss configuration steps or something?
thanks
Kim

I think, You missed to assign the Balancing Segment Value to the Legal Entity.
Please assign and check it again.
Thanks
Vipul Maheshwari

Multiple legal entities one company code

Dear Gurus,
We are currently in detail design of an ERP system using SAP 6.0. We have multiple legal entities and we are trying to determine if each legal entity should also be a company code in SAP. Has anyone setup SAP using a Company Code that was not a legal entity? For example multiple legal entities as one company code or one legal entity as multiple company codes. What are the pros and cons?
Thank you.

multiple legal entities as one company code is POSSIBLE.
one legal entity as multiple company codes is NOT possible.
However, there may be different criteria to create a company code. The best criteria is if your entity is in different country and need to present your books of accounts to stakeholders, the go with a separate company code.
If you have multiple legal entities, which are in the same country and there is no issue if you present the books of accounts of all those legal entites in a single set of accounts, then go with a single company code, this would be easier and less maintenance costs in the future.
If there is no legal requirement to create each legal entity as a separate company code, then avoid it.
Regards,
Ravi

Business Groups and Legal Entities

Hello All,
Can any one please explain abt Business groups,legal entities,organizations (flow) with an example. While quering the apps tables i see column called org_id.
But when queried genal ledger tables there is no such org_id ? why?
Kind Regards,
Kumar

Hi
Org Structure that u can see like this
Business Group--> Set of Books-->Legar Entity--> OU--> Inv Org
BG: It segregates Human Resource data such as employee
SOB: It is financial entity which define a chart of account, Fuctional Currency and Accounting Calendar (it means it dealt wiht 3 C's-Currency/Calandar/Chart of a/c)
LE: Each OU must point to a legal entity that has its own set of set ups data and transaction table, each OU has its own Payables,Receivable, Cash management, OM and Purchansing. And it dealt with Local Tax authorities.
OU: Each Inv org must point to OU. and Inv org has its own bill of materials,WIP and MRP.
Inv Org: Where you have manufacturing plants and labs to which it assigned.
2. Basically org_id define the OU, whereas organization_id is used for Inventory org.
Organization_id store in table hr_organization units and orgid is stored in table a
x_y_all (eg. ap_invoices_all)
Here note "_all " every table whose name ends with all stores date that is segregated by OU (orgid)
for eg. ap_invoices is basically the veiw of ap_invoices_all where dat is segregated by org_id. for this we gendrally use an API to fetch data in ap_invoices.
Hope this little clear to you now.
Thanks
Raj
Hyd

Modeling legal entities using balancing segment

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