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R12: Intracompany Balancing Lines Are Created In Addition To Intercompany (Doc ID 781391.1)

Last updated on DECEMBER 19, 2020

Applies to:

Oracle General Ledger - Version 12.0.5 and later
Information in this document applies to any platform.

Symptoms

NOTE: In the images/examples above or below and/or the attached document, user details / company name / address / email / telephone number represent a fictitious sample (based upon made up data used in the Oracle Demo Vision instance).  Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.

The Intercompany lines created by posting are not as expected.

When entering an Intercompany transaction (2 balancing segment values, from 2 different Legal Entities and within the same ledger), either from Payables or GL, Posting is generating both Intra and Intercompany journal lines.
It is expected that in this case, only Intercompany lines would be created by Posting.

The example below  is a manual journal entry:

BSV Assignments:
------------------
BSV <BSV VALUE 1> is assigned to Legal Entity A.
BSV <BSV VALUE 2> is assigned to Legal Entity B.

Intercompany Setup for Legal Entity A:
-------------------------------
Navigation: Accounting Setups > Accounting Options: Primary Ledger > Intercompany Accounts >

- 2 relationships are defined.
    a. Transacting BSV: All Other, Trading Partner LE: All Other, Trading Partner BSV: All Other
Intercompany Receivables Account: <BSV 3 CODE COMBINATION 12101>
Intercompany Payables Account:     <BSV 3 CODE COMBINATION 22101>
    b. Transacting BSV: <BSV VALUE 1>, Trading Partner LE: Legal Entity B, Trading Partner Ledger: Primary Ledger, Trading Partner BSV: <BSV 4>
Intercompany Receivables Account: <BSV 1 CODE COMBINATION 12101>
Intercompany Payables Account:     <BSV 1 CODE COMBINATION 22101>

Intracompany Setup for Legal Entity A:
---------------------------
Navigation: Accounting Setups > Accounting Options: Primary Ledger > Intracompany Balancing Rules > Legal Entity > Legal Entity A
One rule is defined, for Source: Other, Category: Other.
   Debit BSV: All Other, Credit BSV: All Other
   Debit Account: <BSV 3 CODE COMBINATION-49101>, Credit Account: <BSV 3 CODE COMBINATION-49101>


A 2 line journal is created, using balancing segment values assigned to 2 different legal entities.
  10  <BSV 1 CODE COMBINATION-43105>    DR 200.00
  20  <BSV 2 CODE COMBINATION-43101>                          CR 200.00
 
4 inter/intracompany lines are generated:
- <BSV 1 CODE COMBINATION-49101> CR 200.00 Intracompany balancing line added by Posting
- <BSV 3 CODE COMBINATION-49101> DR 200.00 Intracompany balancing line added by Posting
- <BSV 3 CODE COMBINATION-22101> CR 200.00 Intercompany balancing line added by Posting
- <BSV 2 CODE COMBINATION-12101> DR 200.00 Intercompany balancing line added by Posting
 

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References

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