R12:Intercompany Segment Not Automatically Populated by Intercompany Balancing Rules
(Doc ID 742891.1)
Last updated on OCTOBER 13, 2017
Applies to:Oracle General Ledger - Version 12.0.4 and later
Information in this document applies to any platform.
For Intracompany (between balancing segment values (BSVs) in the same legal entity), you can set up balancing rules. There can be one general rule, i.e. all balancing lines produced automatically by the balancing rule are coded to the same intracompany receivables/payables accounts, or specific rules, i.e. depending on trading partners (i.e. BSVs), balancing line will go to a different intracompany account. In either case, the Intercompany Segment of the accounting flexfield is automatically populated with the relevant trading partner segment.
With Intercompany (between BSVs belonging to different legal entities), it seems that it is normal to define different intercompany payable/receivable natural accounts for each legal entity and/or BSV that is transacting. The balancing line produced automatically will be coded to a different intercompany account depending on trading partners involved. Perversely, the intercompany segment seems pretty redundant in intercompany transactions, and is not automatically populated by the balancing API, as in Intracompany.
This means that for situations where there are multiple balancing segments with different legal entity contexts, many intercompany balancing rules need to be set up, whereas for intracompany, it is sufficient to set up one general rule.
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