Intercompany Accounting

Sreeni Devireddy
Platform Technology Solutions
Oracle Development
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Agenda
1

Intercompany Balancing

Intercompany Transactions

Copyright 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal/Restricted/Highly Restricted

Agenda
1

Intercompany Balancing

Intercompany Transactions

Copyright 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal/Restricted/Highly Restricted

Intercompany Balancing
Balancing Rules

Intercompany balancing rules are used to generate the accounts needed to balance
journals that are out of balance by legal entity or primary balancing segment values
You can define intercompany balancing rules at the following rule levels:
Primary balancing segment
Legal entity
Ledger
Chart of accounts

Ledger balancing options are defined for the ledger to balance the second balancing
segment and/or the third balancing segment, when a transaction is unbalanced by one
of these segments

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Intercompany Balancing

Balancing Rules Precedence Order

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Intercompany Balancing
Example

Create and Save GL Journal

Post Journal

Intercompany Receivables Account

Intercompany Payables Account

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Intercompany Balancing
Ledger Balancing Options

Ledger balancing options are defined for the ledger to balance the second balancing
segment and/or the third balancing segment, when a transaction is unbalanced by one
of these segments

Accounts
These accounts are used for the balancing lines generated when a journal is balanced by its primary
balancing segment values but is not balanced by its second balancing segment and/or third balancing
segment.

Summarization
You can choose to summarize balancing lines generated for a primary balancing segment out of
balance scenario, where all the primary balancing segment values are assigned to the same legal
entity. You do this by specifying the Summarization option of Summary Net or Detail.

Clearing Company options

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Intercompany Balancing
Demo

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Agenda
1

Intercompany Balancing

Intercompany Transactions

Copyright 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal/Restricted/Highly Restricted

11

Intercompany Transactions
Flow

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Intercompany Transactions
Without Invoicing

Provider : Create and Submit the transaction

Receiver : Review, populate the account and Approve

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Intercompany Transactions
Without Invoicing
On Approval,

Intercompany Receivables Account

Intercompany Payables Account

Transfer to GL

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Intercompany Transactions
With Invoicing

Provider creates & submits Transaction

Approval by Receiver

Transfer to Receivables
Run AR AutoInvoice ( in Vision US BU)

Intercompany Receivables Account

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Intercompany Transactions
With Invoicing

Transfer to Payables
Intercompany Payables Account

Run AP Invoice Import ( in Vision CA BU)

Account AR Invoice & AP Invoice and Transfer to GL

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Intercompany Processing
Delta with EBS

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Intercompany Transactions
Demo

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