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5 Replies Latest reply: Jun 19, 2013 5:17 AM by Jayakumar Manoharan RSS

Impact on accounting if 4 balancing segment is used within OU

Jayakumar Manoharan Newbie
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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

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