Create Intracompany Balancing Rules Page

Use this page to create new balancing rules. Before creating a new rule,
you should query the rule on this page to ensure the rule does not already
exist.

Selected Fields

Ledger: Enter the ledger for which to define balancing rules. The list of
values displays all the ledgers to which you have access and indicates
whether the ledger is primary or secondary. The ledgers available here
come from the Data Access Set assigned to your responsibility. The list of
values displays only ledgers that are assigned to complete configurations
in Accounting Setup Manager and that have the Enable Intracompany
Balancing Journals check box checked on the Update Ledger: Ledger
Options page.

Status: This field indicates whether the rule is enabled or disabled.

Additional Information Context: This field allows you to enter the

context for the Intracompany Rule Descriptive flexfield. The information
entered is only for your reference.

Balancing Details Tab

Debit Balancing Segment: This field represents the debit (party

recording receivable) balancing segment value. The list of values shows
all of the balancing segment values allowed by your security profile. For
each ledger-legal entity-source-category combination, there must be the
default rule All Other-All Other.

Credit Balancing Segment: This field represents the credit (party

recording payable) balancing segment value. The list of values shows all
of the balancing segment values allowed by your security profile. For each
ledger-legal entity-source-category combination, there must be the
default rule All Other-All Other.

Debit Account: This is the balancing account that the debit balancing
segment value uses to balance when trading with the credit balancing
segment value.

For balancing segment value - balancing segment value rules where

values are explicitly chosen, the balancing account you choose is used
exactly. However, when you select the value All Other, the Balancing API
determines and substitutes the correct balancing and intercompany
segment values at the time of balancing. For example, if you enter an
account code combination 01.4000.02, it actually means xx.4000.yy,
where xx is the balancing segment value of the debit balancing segment
value on the journal and yy is the balancing segment value of the credit
balancing segment value on the journal. The Balancing API substitutes
these values during balancing.

Credit Account: This is the balancing account that the credit balancing
segment value uses to balance when trading with the debit balancing
segment value.

For balancing segment value - balancing segment value rules where

values are explicitly chosen, the balancing account you choose is used
exactly. However, when you select the value All Other, the Balancing API
determines and substitutes the correct balancing segment value at the
time of balancing. For example, if you enter and account code
combination 02.2000.01, it actually means xx.2000.yy, where xx is the
balancing segment value of the credit balancing segment value on the
journal and yy is the balancing segment value of the debit balancing
segment value on the journal. The Balancing API substitutes these values
during balancing.

Options Tab

Level of Summarization:

 Summary Net: If you select Summary Net, the Balancing API

summarizes the debits and credits for each balancing segment
value on the journal, determines the overall net debit or net credit
for each balancing segment value, balances using the net amounts
for each balancing segment value, and produces a summary
balancing line for each balancing segment value. When processing
in Summary Net mode, the Balancing API retains the differences in
exchange rates for lines with the same balancing segment value.
Negative debits are interpreted as positive credits and negative
credits as positive debits, because each balancing segment value is
summarized.

Summary Net is the default.

 Detail: If you select Detail, each line on the journal is balanced

individually and a balancing line is generated for each line on the
journal. For lines with negative amounts (debits or credits), the sign
of each original line is retained in the balancing line.

Clearing Balancing Segment Value Usage:

 Use for All Journals: This option specifies that a clearing balancing
segment value will be used for all types of journals. You can enter a
clearing balancing segment value at the journal header level (in
General Ledger only), or the default clearing balancing segment
value will be used if no value is manually entered. This option is the
default.
  Use for Many-to-Many Journals Only: This option specifies that a
clearing balancing segment value should be used only to clear
many-to-many journals. You can enter a clearing balancing segment
value at the journal header level (in General Ledger only), or the
default clearing balancing segment value will be used if no value is
manually entered.

Default Options:

Default options include specifying clearing options in case a clearing

company should be used but none can be determined for the journal.

 Default Clearing Balancing Segment Value: If no clearing

company is specified for the journal, use the default clearing
company. The list of values for the Default Clearing Balancing
Segment Value is restricted to those that are mapped to the legal
entity. If you choose the Default Clearing Balancing Segment Value,
you need to enter a clearing balancing segment value.
 Manually Entered Clearing Balancing Segment Value: If no
clearing company is specified for the journal then an error occurs.
This option should not be used with journals coming from
subledgers because the clearing company cannot be specified in
Subledger Accounting.
 Default Rule: This option can be used with either Detail or
Summary Net level balancing. The Default Rule is the rule defined
for All Other-All Other. When this option is specified, balancing lines
are built using the All Other-All Other rule, ignoring all the other
rules defined in the Balancing Rules subtab.

Note: This option is not available if you set the Clearing Balancing
Segment Value Usage to Use for All Journals. This option is available
only if you set the Clearing Balancing Segment Value Usage to Use
for Many-to-Many Journals.

Intercompany Organizations Pages

After defining intercompany accounts, you must create organizations and
assign them to the legal entities to process intercompany transactions.

Intercompany allows you to define organizations for your diverse business

needs. Once defined, intercompany organizations represent the initiators
and recipients in Intercompany.

An initiator is an organization that initiates a transaction event with

another organization.

A recipient is an organization that receives a transaction from the initiator.

The Trading Community Architecture (TCA) data model is used to define
intercompany organizations. Each organization created in Intercompany is
classified as Intercompany in the TCA model.

Use the Intercompany Organizations page to search for an existing

organization or create a new organization. You can either create a new
organization or assign a legal entity as an intercompany organization. You
can disable intercompany organizations by searching for an organization
and updating the Enabled field to No.

Note: When you create an new organization, it must be assigned to a

legal entity. When you assign a legal entity as an organization, it must be
assigned to itself. Additionally, you must associate the organizations with
an operating unit if invoices are required for the transactions.

View Intercompany Organization Page

Each intercompany organization is assigned to one or many contacts. The
contacts are defined as parties of type Person and assigned to
intercompany organizations.

Click the Organization Name to view the Contact Information for an

intercompany organization.

Related Topics

Introduction to Oracle Trading Community Architecture, Oracle Trading

Community Architecture User Guide

Intercompany Transaction Types Pages

Receivables Assignments Page

Intercompany Security Pages

Intercompany has a flexible security model because users need to enter
transactions for different organizations that are assigned to numerous
organizations belonging to different legal entities. Users can access
organizations through a single responsibility. The responsibilities available
to intercompany users are the following:

 Intercompany Super User: Full access to intercompany

transaction pages and setup pages.
 Intercompany User: Full access to intercompany transaction
pages, but only view access to setup pages.

Use the Security tab to assign a user to an organization.

Intercompany Organization Assignments Page

Use the Intercompany Organization Assignments page to search for and
update an organization assignment, or to create new assignments.

Access to Transactions

Select this option to allow the user access to the transactions of the
organization the user is assigned to.

Send Approval Notification

Select this option if you want the user assigned to the organization to
receive approval notifications.

Intercompany Transaction Types Pages

In AGIS, you can define transaction types to manage intercompany
transactions, which are shared across all the intercompany organizations.
Transaction types help you in setting up the processing rules for all
transactions, which must be processed in a systematic way following the
same rules across the enterprise. Examples of processing rules that can
be set for a transaction type are transactions that require invoice and
transactions that must be auto approved or manually approved.

Tip: Create a transaction type only if the seeded transaction type is not
sufficient for your operations.

Creating Intercompany Transaction Types Page

This section describes the Intercompany Transaction Types page. Use the
Transaction Types page to search for and update a transaction type or
create a new transaction type.

Selected Fields in the Create Transaction Types Page

Invoicing

If a legal entity requires an invoice, an invoice is created regardless of the

option selected for a transaction type. If a legal entity does not require an
invoice, an invoice is created only when Required is selected.

Select Required to create invoices.

Manual Approval

Select Required to specify transaction types that require recipients'

approval.
Note: Recipients cannot reject transactions when Manual Approval is set
to Not Required because transactions submitted by the initiator are
processed as approved.

Intercompany Periods Pages

The period status functionality provides you with a central point to control
the timing of intercompany transaction processing independent of the
General Ledger, Receivables and Payables through the Intercompany
Periods page.

You must define the intercompany calendar before changing

Intercompany Periods. See Defining Intercompany Calendar.

Note: This setup is optional. Use Periods tab to control the period status
per transaction type.

Control Period Statuses Page

Intercompany transactions are recorded and accounted for in an open
period. Use the Open/Close Intercompany Period Status pages to search
for a period and open or close the period for a transaction. Optionally, you
can close a period for all transactions.