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R12 AGIS Option for The Initiator to Credit The Receiver (Doc ID 578084.1)

Last updated on FEBRUARY 25, 2019

Applies to:

Oracle General Ledger - Version 12.0.0 to 12.1.3 [Release 12.0 to 12.1]
Oracle Financials Common Modules - Version 12.0.0 and later
Information in this document applies to any platform.
*** Checked for relevance on 27-Apr-2012 ***


The intention is for the Initiator to be able to Credit the Receiver and generate correct accounting based on rules defined.

Currently R12 AGIS user guide shows:
Trading Partners:
Initiator Organization: The supplier initiating the transaction.
Recipient Organization: The customer receiving the transaction.

'Transferring Transactions to Receivables and Payables':
The initiator workflow transfers the intercompany transactions to Receivables to create invoices as required by legal or business requirements. After creating the invoices, Receivables updates the intercompany transactions with the invoice numbers and passes the number to the recipient workflow, which updates and transfers the transaction to Payables'.

So currently if the Initiator Credits the Receiver this generates a revenue for the party credited and hence it should be a receivable balance.
So the accounting entry should be
In Books of Recipient
Co. Intercompany Receivables Account DR 10
Co. Revenue Account                            CR 10

In Books of Initiator:
Co. Expense Account                            DR 10
Co. Intercompany payables                   CR 10

Currently the accounting lines generated are:
In Books of Recipient:
Co. Intercompany payables Account      DR 10
Co. Revenue Account                            CR 10

In Books of Initiator:
Co.Expense Account                             DR 10
Co.Intercompany receivables                 CR 10

So presently, disregarding the fact that the Initiator debits or credits the receiver, the IC Payables/ Receivables accounts are used in the same way.

The business needs require to have the option to choose whether you want a receivables transaction as initiator or payables transaction as initiator at the point of entering the transaction.
How to accomplish that?


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