Friday, May 23, 2008

Intercompany Accounts with All Other-All Other Rules

I recently had a question about what Balancing Segment Value (BSV) to enter in the accounts for the All Other All Other rule and I have to admit it could be a little confusing. There is a technical limitation with the flexfield infrastructure we use to capture and store accounts which means we have to have some value for BSV and Intercompany Segments, even though we will substitute in the real BSV when we generate the Intercompany accounting.

Here is an example (chart of accounts is balancing-natural account-intercompany)

I define the following rule

Debit BSV Credit BSV
Debit AccountCredit Account
All OtherAll Other99-4000-9999-2000-99

Then I enter a journal

Account DebitCreditLine
13-1000-00100.00Original Line
03-6000-00100.00Original Line

When I post this, the balancing lines generated are

03-4000-13100.00Balancing Line
13-2000-03100.00Balancing Line

So you can see we discard the BSV and Intercompany segment from the set up and use the correct ones from the transactions. If we always reatined 99, we would be using 99 as a clearing company for everything, if you wanted to do that you would use the clearing company options.


S. Venkataramanan said...

Can you explain the difference between inter company and intra company features in Inter Company Released 12? Many people get confused with this.

David Haimes said...

Venkat - funny you should mention this, I had an email from an Oracle consultant about it recently too.

It can be confusing because the same transaction can be Intercompany in one ledger and Intracompany in another, depending on your set up.

Watch this space for a blog post to try and explain the ambiguities.

temizlik said...

thank you...:)

nakliyat said...

thank you

47.wing said...


this is useful information. However, I am trying to find out the mapping between AutoAccounting rules functionality and the new AGIS functionality.

Here is a scenario - we have 43 companies (BSV values also) and 100 expense accounts and 50 revenue accounts. These companies could use these to transact between themselves.

Where do I perform AutoAccounting rules function in R12 to setup these companies?

David Haimes said...

47.wing (is that your real name?)

Auto accounting rules are replaced with te Transaction Account Builder(TAB) ,which is part of Subledger Acounting. You can define rules for deriving yor accounts in TAB which are the populated on transactions automatically.

47.wing said...

send me an email and I will tell you the story of my screen name.

I got the Intracompany working in the ledger configuration. However, the intercompany segment is not getting populated when the system generates the balancing entries.


David Haimes said...

47 wing

I can't think of any reason why your Intercompany segment would not be populated on the generated balancing lines. You should open an SR with support and let them take a look at your set up etc. It might be a bug.

Olav Tennøy said...

Hi David,

I have a question regarding the limitations of the Intercompany solution. It seems like the system starts populating the I/C segment with the value from the Intercompany Account setup screen when we post journals with several Legal Entities and severeal I/C's.

Do you know how many Legal Entities / I/C values the system can handle before it starts populating the I/C segment with the value from the Intercompany Account setup?

We are on version 11.5.10.

angela said...


I can tell you that we are having multiple issues with the intercompany/intracompany R12 setup. For example, we setup intercompany accounting between two LEs in the same ledger, with BSVs assigned, and it does not substitute the proper IC segment. Support has told an OC consultant that you have to set it up pair by pair, and populate the IC segment yourself in the rule! If companies use balsegs to segregate Joint Ventures, etc. this can become very cumbersome.

The other issue we had is that, if you have a US and CAD ledger, if you assign BSVs to them, you cannot enter an Interco txn with CAD in the USD ledger, even if you set up Intercompany accounting for the LE, all other/all other. It receives an 'Intercompany Processing Error' in the Post, with no messages as to how to proceed.

The only way I could, for example, enter an Interco in the USD ledger with a balancing segment that technically belongs to the CAD ledger, was to not assign ANY BSVs to the legal entities, and just let intracompany take care of the balancing. We have a global chart of accounts, and global bal seg value set, of course.

Could it be that the BSV assignments are really only useful if you are using AGIS Issuer/Receiver, and Subledger Invoicing functionality? The BSV assignments in the scenario where you just want to balance across ledgers in GL (with no approvals), does not work. It makes intercompany balancing kick in, which fails if you go across BSVs that are assigned to LEs across multiple ledgers. I have found that the only way to make this type of balancing work is to assign NO BSVs, and just set up intraco to do balancing in the ledger, no matter what LE / Ledger that BSV logically belongs to. I say 'logically' because to make it work, we were not assigning any BSVs to LEs. I guess we take care of the security within ledger with Segment Security in this scenario, and parents on BSVs can take care of LE reporting..

Does this make sense to you, or am I missing something big here:-)


David Haimes said...

Angela, A very detailed comment - there are some items I can help with, I'll send an email.

Francis said...

Hi David,

I would like to get your opinion or suggested workaround on our requirement below. Basically it's a requirement relating to the Many to Many journals between INTERCOMPANY legal entities.

Below is the sample of our client's requirement:


01 - Company Segment

1000 - Natural Account Segment

00 - Intercompany Segment

Sample Original Journal scenario:


01.1000.00 100

02.1000.00 200

03.1000.00 250

04.1000.00 150

Expected Outcome after posting:

01.1000.00 100

02.1000.00 200

03.1000.00 250

04.1000.00 150

01.1000.04 100 Expected intercompany line to be added

02.1000.04 200 Expected intercompany line to be added

03.1000.04 250Expected intercompany line to be added

04.1000.01 100
Expected intercompany line to be added

04.1000.02 200Expected intercompany line to be added

04.1000.03 250 Expected intercompany line to be added



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