R12/XTR: Intercompany Funding, Unable To Get Required Company Value In Intercompany Segment (Doc ID 1117826.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Treasury - Version 11.5.10.2 to 12.2.5 [Release 11.5 to 12.2]
Information in this document applies to any platform.

Goal

THE COMPANY is planning to use Intercompany funding for doing all there funds transfers. THE COMPANY has more than 100 entities (as no of country). No. of bank accounts and have multiple currencies. THE COMPANY US has multiple Counterparties as:
THE COMPANY FR - France
THE COMPANY UK - UK
ETC..
Now there requirements are:
THE COMPANY tracks the Intercompany payments/receipts through Intercompany segment value(Segment 7).

Question 1) How to achieve this objective of generating the Journals in Treasury, with the value of the Receiving Company in the Intercompany Segment, in the Paying Company books?

Question 2) How to achieve this objective of generating the Journals in Treasury, with the value of the Paying Company in the Intercompany Segment, in the Receiving Company books?

Example: GL Account:
• Company – No prob. We can define.
• Account – No prob. We can define.
• Sub Account – No prob. We can define.
• Region – No prob. We can define.
• Function – No prob. We can define.
• Cost Center – No prob. We can define.
• Interco – We need to get the Receiving Company segment value in Paying Company books and vice versa. We are not able to configure this. The question is how to achieve this objective?

ANALYSIS:
THE COMPANY to SETUP JE ACTION: Choose the Intercompany Accounts tab and setup for each IG Counterparty for the Company:
Eg.: THE COMPANY US >> THE COMPANY FR, THE COMPANY UK..ETC

1. Journal Entry Action for: Defining Intercompany General Ledger Accounts and Here they give:

In the Principal GL field
Interest GL field
Banks: Currency and account etc.

2. Journal Structure Tab:
For Each Deal Type, Sub Type, Prod Type, Portfolio
Define JE actions as:

Deal Type IG - Intercompany Funding
Subtype FUND

Date Type Amount Type Action Code Bank GL Prin GL Int GL Db/Cr GL Acct

COMENCE PRINFLW REC * Db
COMENCE PRINFLW REC * Cr
ACCRUAL INTADJ POS Db Intercompany Interest Expense
ACCRUAL INTADJ POS Cr Accrued Interest
INTCOMP COMPOND PAY Db Accrued Interest
INTCOMP COMPOND PAY * Cr
SETTLE INTSET PAY Db Accrued Interest
SETTLE INTSET PAY * Cr
REVAL CCYREAL GAIN * Db
REVAL CCYREAL GAIN Cr Realized Currency Gain/Loss
REVAL CCYREAL LOSS Db Realized Currency Gain/Loss
REVAL CCYREAL LOSS * Cr
INTCOMP COMPOND PAY * Db
INTCOMP COMPOND PAY Cr Accrued Interest

Deal Type IG - Intercompany Funding
Subtype INVEST

Date Type Amount Type Action Code Bank GL Prin GL Int GL Db/Cr GL Acct

COMENCE PRINFLW PAY * Db
COMENCE PRINFLW PAY * Cr
ACCRUAL INTADJ POS Db Accrued Interest
ACCRUAL INTADJ POS Cr Intercompany Interest Expense
INTCOMP COMPOND REC * Db
INTCOMP COMPOND REC Cr Accrued Interest
SETTLE INTSET REC * Db
SETTLE INTSET REC Cr Accrued Interest
REVAL CCYREAL GAIN Db Realized Currency Gain/Loss
REVAL CCYREAL GAIN * Cr
REVAL CCYREAL LOSS * Db
REVAL CCYREAL LOSS Cr Realized Currency Gain/Loss
INTCOMP COMPOND REC Db Accrued Interest
INTCOMP COMPOND REC * Cr

How Journals will be formed: When Intercompany Journals will be created, it will create Journals by picking up the:
General Ledger accounts provided at the Intercompany Accounts tab for posting the amount types: principal or Interest for that company and Counter party.
General Ledger accounts provided at the Journal Structure setups for other amount types.

Therefore whatever could be setup here can only be used as per the combination.

QUESTION:

(1).
What THE COMPANY is proposing, is that possible?
THE COMPANY tracks the Intercompany payments/receipts through Intercompany segment value(Segment 7).

Question 1) How to achieve this objective of generating the Journals in Treasury, with the value of the Receiving Company in the Intercompany Segment, in the Paying Company books?

Question 2) How to achieve this objective of generating the Journals in Treasury, with the value of the Paying Company in the Intercompany Segment, in the Receiving Company books?

Please respond as detailed as possible.

(2).
Do we have any white paper dealing with such implementation or application use?

(3).
Do you think it can be achieved?

Solution

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