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 for your response.
I tried playing around Intracompany balancing rules, but i am not getting accounting right. Can you please help me
I have one OU and liability account is defined at OU level. When i created one single invoice with 3 different distribution lines for each BSV. Invoice liability hits one account and that is liability account taken from OU level. How can i make liability account hit three different BSV for each distribution. Example in single invoice if Charge account BSV - 600, then liability account - should have 600. if charge account BSV - 601 then liability account - 601
I will put the question in different way
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 - 600.2277.14188.8.131.52.0 - 10
2 - 601.2278.14184.108.40.206.0 - 10
3- 602.2279.14220.127.116.11.0 - 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