Advanced Global Intercompany Systems : Transaction Account Definition (TAD) In Release 12

Transcription

1 Advanced Global Intercompany Systems : Transaction Account Definition (TAD) In Release 12 An Oracle White Paper [May] [2011]

2 TABLE OF CONTENTS Executive Overview... 3 Introduction... 3 Scope... 3 Overview... 4 Processing Transaction Account Definition Rules... 5 Setup for Transaction Account Definition (TAD)... 6

3 EXECUTIVE OVERVIEW The purpose of this document is to familiarize the users of Oracle Applications Release 12 (R12) with the Transaction Account Definition (TAD) feature introduced as part of Advanced Global Intercompany System. The aim is to know the details on the Usage and related Setups. INTRODUCTION Advanced Global Intercompany System (AGIS) enables you to create, settle and reconcile intercompany transactions. While entering these transactions, we give the details of the Distribution Accounts to be used. Once the Transactions are submitted, Clearing accounts are generated based on the setup defined for the Ledger. Transaction Account Definition (TAD) rules can be defined to automatically generate the Distribution Accounts based on the Intercompany Organization or the Transaction Type being used. Also we can have separate Clearing accounts for separate Organizations or Transaction Types. SCOPE The scope of this Document is to understand the usage of Transaction Account Definition in Advanced Global Intercompany System. The document would also discuss the setups that need to be done to use TAD. Please note that the document is mainly referring to TAD which is an advanced feature in AGIS. For the details on the functionalities in AGIS, refer to Oracle Advanced Global Intercompany System User's Guide.

4 Overview Transaction Account Definition (TAD) rules are called to default initiator and recipient distribution accounts for each transaction. You need to enter the distribution accounts manually in the Outbound Distribution page if these rules are not been set up in Subledger Accounting. These rules default the accounts based on the Intercompany Organizations being used or the Transaction type being used (depending on what rule is defined) Once the AGIS transactions are approved, the Intercompany accounts i.e the initiator receivables account and the recipient payables account, are generated automatically based on the setup done at the Ledger level. However these accounts can also be generated based on the Intercompany Organizations, being used or the Transaction Type being used, using TAD.

5 Processing Transaction Account Definition Rules To use TAD in AGIS, following steps are to be followed: Step 1: Define the Responsibility to be used for Defining TAD Step2: Define Account Derivation Rules. Step3: Define Transaction Account Definitions. Step4: Compile the Transaction Account Definitions. Step5: Assign Transaction Account Definitions to the Ledger. While defining TAD there are various options available for the Conditions to be used. However in this Whitepaper, we would be discussing the steps to define TAD based on the Intercompany Organization or the Transaction Type. ADR can be defined for two Output Types: Flexfield Segment There is a third type available as Value Set but this would be grayed out and hence can not be selected. In Flexfield Output Type, you will be giving the complete code combination that needs to be defaulted. In case of Segment Output Type, you need to defined ADRs for all of your Segments and then assign them to the TAD. Following Value Types would be available while defining the ADR: 1. Constant : We would be giving a constant value to default. 2. Mapping Sets : We will assign a Mapping set and will mention the Input Source. Thus based on the Source, the value would be picked from the Mapping Set. 3. Account Derivation Rule : We can use a ADR within an ADR and hence the results of the ADR would be used here 4. Source : We can use Sources defined in the SLA setup here. However this option is not available currently for Intercompany TAD. For getting a better clarity, in this Whitepaper, we are showing the setups for following combinations: Flexfield Output type / Constant Value Type

6 Setup for Transaction Account Definition (TAD) Step 1 : Define Responsibility to be used for Defining Rule We need an SLA responsibility defined for the Financial Common Module application, for defining TAD for AGIS. If you already have such a responsibility, then skip this step. If the responsibility does not exist already, then we can define it as follows: Go to System Administrator responsibility Security > Responsibility > Define Enter the following parameters : o Name for the responsibility o Internal Name o Menu : o Concurrent group : Save the changes

7 Step 2 : Define Transaction Account Definition Rules (TADR) Defining a TADR involves the following steps: To validate a Transaction Account Definitions, we need to define Transaction Account Definition Rules for the following types AGIS Initiator Intercompany Distribution Account AGIS Initiator Intercompany Clearing Account AGIS Recipient Distribution Account AGIS Recipient Intercompany Clearing Account - Required - Optional - Required - Optional Thus it is mandatory to have the rules defined for Initiator and Recipient Distribution Accounts. Consider the following setup that we are going to use in the example: Intercompany Organizations : 1. Oracle Hyderabad : created for Legal entity Oracle Hyderabad 2. Oracle Bangalore : created for Legal Entity Oracle Bangalore Balancing segment values assigned to the two Legal entities: 1. Oracle Hyderabad : 1000, Oracle Bangalore : 1003, 2000 Transaction Type being used : Oracle_TAD In the Example, we would be defining the rule for the combination Flexfield Output type / Constant Value Type. Example: Transaction Accounting Derivation Rules with Flexfield Output type / Constant Value Type We would be defining a TADR that will default the Initiator Distribution Account to whenever the Initiator Intercompany Organization would be Oracle Hyderabad. Navigation : IC SLA Developer TRY responsibility (responsibility that you have defined in Step 1 above) Sub ledger Accounting Setup > Transaction Account Builder Setup > Account Derivation Rules

8 Since the responsibility being used is defined for the Application Financials Common Modules, the Application here is hard coded. Click on New to define the TADR.

9 Enter the Rule code and Rule Name Select the Recipient Ledger s Chart of Account in Transaction and Accounting Chart of Accounts fields. In this example, it is selected as Oracle Accounting. Select Output type as Flex field Enter the Priority Number 1 Choose the Value Type as Constant Enter the Value as code combination that we wish to default. As mentioned before, for this example, we are using After entering the above required information, click on Conditions, to enter the conditions that should be met, for System to generate the Distribution Accounts for Initiator side. Here you need to enter the following conditions Sequence : Sequence Number Source : Intercompany Initiator Organization(since in this example the condition is based on the Intercompany Organization) Operator : select = Choose the Value Type as Constant

10 Choose AGIS Intercompany Initiator Organization name in the LOV of Value Click on SAVE Thus our TADR is defined here. Following the same steps, we can define rules for the Initiator Clearing Accounts. Recipient Distribution TADR Enter the Rule code and Rule Name. Select the Recipient Chart of Account name in Transaction and Accounting Chart of Accounts LOV Select Output type as Flex field Enter the Priority Number 1 Choose the Value Type as Constant

11 Enter the Value as code combination After entering the above required information, click on Conditions to generate the Recipient Distribution Accounts. Once this condition is met then system would generate the Distribution Accounts for Recipient side. Click on Condition Button Here you need to enter the following conditions Sequence : Sequence Number Source : Intercompany Recipient Organization Operator : Here user can select the following operators as = Value Type : Choose value Type as Constant Value : Choose Intercompany AGIS Recipient Organization name. Click on SAVE Note: - Repeat the same Setup steps for Recipient Clearing Accounts by changing the Constant value as with same condition.

12 Step 3 : Define Transaction Account Definitions Define the Transaction Account Definitions to assign the Account Derivation rules to TAD Navigation path to Define Transaction Account Definition Navigation :- IC SLA Developer TRY Sub ledger Accounting Setup -> Transaction Account Builder - >Transaction Account Definitions To Define the Transaction Account Definition click on Create Transaction Account Definition button

13 Enter Transaction Account Definition Code Enter Transaction Account Definition Name Select Chart of Accounts Name from LOV Click on Continue Button To assign Account Derivation rules Click on Assign Rule Button for AGIS Initiator Intercompany Distribution Account Since Output Type in this Example is Flexfield, Select * Segment as All Segments. Select * Account Derivation Rule as INITIATOR DISTRIBUTION

14 In the same way assign Rules for AGIS Initiator Intercompany Clearing Accounts AGIS Recipient Distribution Accounts AGIS Recipient Intercompany Clearing Accounts After completing all the assignments, Click on Apply Button. Note: - In the same way the Transaction Accounting Derivation Rules with Segment Rules can be defined with the required Conditions. While assigning the ADR to TAD, it will have to be assigned for each Segment instead of a single assignment of All Segments.

15 Step4 : Compile the Transaction Account Definitions. The validation status for the TAD Code at this stage would be Not Validated To validate the definition, run the following Program : 1. Transaction Account Builder - Generate API Objects 2. Transaction Account Builder - Validate Transaction Account Definitions

16 Once the requests complete successfully, query the TAD and Validate it: Select the TAD name and click on Validate button TAD status should now become Valid

17 TAD Code with Valid status is ready to be used and can be assigned to the Ledger.

18 Step5 : Assign Transaction Account Definitions to the Ledger. Assign the TAD to Ledger to generate the distribution and clearing accounts based on Transaction type/organization. To assign the TAD to Ledger use the following navigation General Ledger responsibility Setup-> Financials ->Accounting Setup Manager ->Accounting Setups Query the Ledger and Click on Update Accounting Option Click on Update icon for Intercompany Accounts. Select the TAD defined and Click on Done. This completes the TAD setup.

19 When an AGIS batch is entered, click on Add line button such that system would automatically populate the Initiator and Recipient Distributions accounts The Distribution Account will get defaulted as follows: Initiator Intercompany Clearing Accounts and Recipient Intercompany Clearing Accounts would be generated after approving the AGIS batch Once the AGIS Batch is Approved, System will generate the Accounting code combinations as below.

20 Thus TAD has defaulted the Distribution and the Clearing Accounts as per the requirement.

21 White Paper Title: Oracle Applications Advanced Global Inter Company Systems : Transaction Account Definition (TAD) In Release 12 May 2011 Author: Sivaranganath Chittaprada Contributing Authors: Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA U.S.A. Worldwide Inquiries: Phone: Fax: oracle.com Copyright 2006, Oracle. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.