R12: Intracompany Balancing Lines Are Created In Addition To Intercompany
Last updated on SEPTEMBER 19, 2016
Applies to:Oracle General Ledger - Version: 12.0.5
Information in this document applies to any platform.
***Checked for relevance on 16-2-2012***
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 0074001 is assigned to Legal Entity A.
BSV 0730093 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: 00740000-0000-000-000-12101
Intercompany Payables Account: 00740000-0000-000-000-22101
b. Transacting BSV: 00740001, Trading Partner LE: Legal Entity B, Trading Partner Ledger: Primary Ledger, Trading Partner BSV: 07300095
Intercompany Receivables Acccount: 00740001-0000-000-000-12101
Intercompany Payables Account: 00740001-0000-000-000-22101
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: 00740000-0000-000-000-49101, Credit Account: 0074000-0000-000-000-49101
A 2 line journal is created, using balancing segment values assigned to 2 different legal entities.
10 00740001-0001-000-000-43105 DR 200.00
20 07300093-0001-000-000-43101 CR 200.00
4 inter/intracompany lines are generated:
- 00740001-0000-000-000-49101 CR 200.00 Intracompany balancing line added by Posting
- 00740000-0000-000-000-49101 DR 200.00 Intracompany balancing line added by Posting
- 00740000-0000-000-000-22101 CR 200.00 Intercompany balancing line added by Posting
- 07300093-0000-000-000-12101 DR 200.00 Intercompany balancing line added by Posting
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