Fusion Intercompany Accounting - Issues For Clarification (Doc ID 2859965.1)

Last updated on APRIL 19, 2023

Applies to:

Goal

In connection with the Intercompany Accounting have the following points for clarification:

1.) Every Intercompany Organization must be tagged to a Legal Entity – Since either 1 or more Balancing Segment Values are assigned to Legal Entities as a part of Ledger Configuration through Task – “Assign Balancing Segment Values to Legal Entities” expect the BSVs to be restricted during creation of IC Transaction to those tagged to the respective IC Organizations (either as Provider or Receiver) -*> However, find that all BSVs are available in LoV ? Is this the seeded functionality ?

This seems to create unnecessary confusion and scope for error during IC Transaction creation?

2.) Coming to Ledger Balancing Segments (ie. Balancing Segments assigned only to Ledger and NOT to any Legal Entities) ---* Is the right way to enter IC Transaction between Ledger BSVs only thru a Journal Entry recorded within General Ledger?
Will Intercompany Reconciliation Report work correctly if IC Transaction is recorded within GL.
 As stated in (1) there seems to be no problem even creating a IC Transaction between Ledger BSVs thru the Intercompany Transaction \ Create Transaction User Interface since LoV of BSVs include those assigned to Ledger as well ?

3.) There is an actual customer scenario where Global CoA is being used. Due to various reasons 2 different Legal Entities attached to 2 Ledgers are operational across 2 separate Application environments - ie. Legal Entity 1 with BSV 100 a part of Ledger 1 is in Environment 1 – Likewise, Legal Entity 2 with BSV 200 a part of Ledger 2 is in Environment 2 – Both use Global CoA and use the same Segment Values in Value Sets though in different instances.

In this case, if LE 1 with BSV 100 wants to create an IC Transaction as Provider for LE2 with BSV 200 as Receiver (illustratively) then considering the environment operational model, appears that some shadow configuration of Legal Entity 2 / Ledger 2 of Environment 2 is needed
within Environment 1 and similarly another shadow configuration of Legal Entity 1 / Ledger 1 of Environment 1 within Environment 2 with all other requisite configurations for Approvals, Receivable / Payable BU Setups (If Invoicing is required in IC Transactions) will be essential and the IC Transaction needs to be completed in both Environments for Outbound and Inbound for proper accounting / intercompany reconciliation.

The entries in the shadow Ledgers in the respective environments are just for transaction completion and should be ignored for any other processing / consideration including those in Receivables / Payables sub ledgers.
a.) Is the above a correct understanding?
b.) There is duplication of Configurations / Transactions / Accounting – Can this be eliminated?
c.) What purpose does the FBDI Upload of IC Transactions serve?
d.) In the earlier version of EBS there was an option for handling IC Transactions from other Environments? If this was so, what are the Product Development Plans to address this within Fusion Applications too?
 

Solution

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