R11i, Allocation of amounts among Legal Entities

Hi
We are on Release 11i and have one generic requirement to distribute the amounts in different legal entities
We have three legal entities and some resources are shared like salary of IT employees who are supporting three companies, this amount should be allocated amount these three LE's proportionately
Presently accountants are passing manual JV in Oracle GL in each legal entity, how can we put system control …I don’t think we can use mass allocation as it will distribute the amount in within one legal entity. what are the other options available for us.
Appreciate your immediate help
Regards
Irfan

hi
as for u r scenario you can cannot restrict employees to position that is not possible and what i suggest is you mighr have grouped employee sub groups to country wise and while creating personal are you assign company codes to personal area there you can restrict .what i conclude if the person maintained wrong position suppose he has taken a position for Australia and in the employee group and employee sub group he has to maintain the same employee group ,employee sub group and personal Area belong to Australia other wise you get the error ..so i Think that is how you the system checks

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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has a requirement to rationalise the number of Legal Entities and on the day that some of these Legal Entities are no longer valid transactions in the sub-ledgers under the old Legal Entities need to be converted to the new Legal Entities in the GL.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

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."
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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?
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Enter single receipt to multiple legal entities / operating units

Dear All,
My customer having a business requirement where customer is clubbing the payment for two separate organizations and sending them as one check (single receipt). However they are entering separate invoices for each organization. That mean they do not clubbing invoices in multiple organization but they are accepting checks for both organization and issuing one receipt to the customer. How can i handle this scenario in oracle EBS R12. Is it possible for me to handle this through inter company functionality in oracle.
Organization set up :These two companies have have separate ledgers , legal entities under same business unit.
Edited by: 914625 on Jun 1, 2012 4:35 AM

Hi Vikash
Legal Entity can have many establishments, like warehouse, showrooms, distribution hub spread across a country.
Each Establishment may be in different states/counties with the same federal country.
So in case of India, it can be in Arunachal Pradesh, Gujrat and Karnataka.
Each of them may be subject to Municpal tax or local State taxes.
Oracle would need to identify that operating units/ inventory organization doing transactions is associated with which Establishement ( under this legal entity ).
And it will calculate the local and state taxes accordingly.
In nutshell this setup is for tax. So go by what Tarun has said.
Thanks

Consolidation of legal entities defined as co code

we have two codes in SAP ECC 6 both are separate legal entities.Co Code A owns 80% of shares of Co Code B
what should be the structure from consolidation point of View i.e parent subsidary relationship how would this be presented in SAP for consolidation purpose .
Do we have to assign both co codes to single company.or two codes would have separate Company assignment
Requirement is separate financial statements for both co codes & consoldated Financial statement (elimination of Inter Co code profits & Calculation of minority intrest

Hi Faisal,
In my configuration knowledge Company and Company code must be same, because in load from data stream we mapped company source filed is company code and attribute is company i,e. Company code A and Company A and another Company code B and Company B. In BCS parent subsidary relationship is configred in accounting techniques and consolidation hierarchy.
If this is wrong Please suggest me correct one

Pay Operating Units from different Legal Entities?

Pay Operating Units from different Legal Entities?
Hi there,
This is the current scenario:
Legal Entity A has Operating Unit A
Legal Entity B has Operating Unit B.
In R12 Payables, can payments be setup so that in the payments manager of Operating Unit A (LE A), payments can be made for Operating Unit B (LE B)?
i.e. Can an operating unit from one legal entity make payments from an operating unit from another legal entity?
The bank account is setup in LE A, but when we create a payment process request with invoices from different OUs of different LEs, then only invoices from the LE in which the bank is setup are selected for payment.

1.OU's are not mapped to LE directly (at least for Payables). The OU LE relationship is derived via the ledgers. So if Ledger A is attached to OU A and Ledger A is attached to LE1 and LE2. I guess what I am saying should be possible.
2.If I understand correctly the new functionality that you are refering to is for the Payment Process Request (PPR, payment batches in 11i). This feature is more wrt MOAC changes that were done and not Cross OU payments.
What it allows you is to select invoices from different LE,different OU's, different Currencies and different pay groups. It does not allow you to have Invoice in OU1 and payment for that invoice in OU2.
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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

Multiple legal entities in one Request Set

Hi, I have a question that hopefully someone can help with. It will make life so much easier here!
In our environment on 11.5.9, we have multiple legal entities each a separate set of books.
We're trying to create a request set to run multiple financial reports at once for multiple legal entities. Since a responsibility is tied to one set of books, we can't find a way to run the request set under a responsibility where it will work for all. Today we switch hats and run separately for each. Is there a workaround here to get this to work?
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Unfortunately, there is no workaround for this Kevin in 11i version of the application ....
In R12 version of the application, a new feature called Ledger Set is introduced, in which you can club more than one ledgers and can execute FSG reports for multiple ledgers within a single responsibility ....
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Ivruksha

11.5.10 Setup OSP process in two Legal entities in Oracle

Dear All
I have two legal entities A, and B, all the raw materials belongs to company A, this raw materials will be transfer to company B, as consignment, but those materials will not be sell to company B.
Company B, is going to manufacture all the finish goods to Company A, but is only going to generate the conversion cost (Labor and Indirect Cost plus Markup).
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Will you please send me some comments
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Highest amount among children in a BW hierarchy

Hi All
I have a Webi report directly using a BeX query with 0COSTCENTRE hierarchy. My report only displays information about Level 3 cost centers but I want to show the highest [Amount] among Level 4 children of that particular Level 3 cost center.
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Was able to figure this out myself.
Max([measure];[0COSTCENTRE].Children)
Furthermore I was able to show the Level 4 Cost center text and amount along side level 3 parent cost center.
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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

Query to find legal entities associated with a SOB IN GL

Hi ,
I'm building a report in which I need a SQL "Query to find legal entities associated with a SOB IN gl". Can anyone came across same situation. Please let me know.
Thanks

SELECT
les.name as legal_entity
, sob.name as set_of_books
, sob.short_name
, sob.currency_code
, sob.description
FROM
hr_legal_entities les
, gl_sets_of_books sob
WHERE 1=1
AND les.set_of_books_id = sob.set_of_books_id

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

Documentation about Legal Entities (company Code)

Hi,
I have found some interesting documentation about Legal Entities (company Code).
The url is http://help.sap.com/saphelp_46c/helpdata/fr/5d/a77d9bec1111d2bc1000105a5e5b3c/content.htm .
I would replace this documentation in its context, but I don't find where it is coming from.
I searched in help.sap.com and I don't find the same documentation.
Does anybody know the path for finding the same documentation from help.sap.com ?
Or is this obsolete documentation ?

Hi Henri,
It seems that this documentation is not used anymore in ERP ECC5/6, but was used only for 4.6. So, it looks obsolete to me. But, you are right, it's indeed quite interesting, especially for those who start with SAP implementation.
http://help.sap.com/saphelp_46c/helpdata/fr/7e/d42640455911d189400000e8323c4f/frameset.htm
Regards,
Eli

R11i, Allocation of amounts among Legal Entities

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