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Elimination Set with Intercompany segment creation 9 Years, 2 Months ago
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Hi Hasan,
Re: 04 - Oracle General Ledger - GL >> 180 Creating Elimination Set >> Video 4/6 (see attached file).
I have watched the videos on the Creation of Consolidation Elimination Set, based on the scenario you provided.
Assuming that a client is using Intercompany segments on their subsidiaries COA structure, and, of course, on the parent COA structure, with the subsidiaries Intercompany segment values being 01, 02, … 0n .
How would we configure the Elimination Set in terms of the SOURCE values (or combinations) and the TARGET values (or combinations)? I believe, here, it is irrelevant, whether the subsidiaries are using a dedicated Natural Accounts in their COA, as in your videos. Every other thing remaining the same, as in your scenario (that is, two BSVs in the same ledger, three segments COA structure etc).
Thank you in advance.
Gavrobere
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Re:Elimination Set with Intercompany segment creation 9 Years, 2 Months ago
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So it all depends on the business requirements. You have really asked an open ended question.
First of all, the source and target notion in the elimination set has nothing to do with subsidiary company and parent company.
Source means, from which accounts balances will be picked up for eliminations, and Target means in which account they will be closed in.
You can choose various ways of doing it.
Option 1:
You can say you will only eliminate balances from certain natural accounts.
In source you can enter:
-189100- (lets say this is your intercompany account)
In target you can enter:
E1-- (lets say this is your elimination company).
Option 2:
You can say you will eliminate balances from any natural accounts where there is certain value in intercompany segment
In source you can enter:
01--02 (trades between company 01 and 02)
In target you can enter:
E1-- (lets say this is your elimination company).
Option 3:
You can specify all segment values in your source accounts.
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Re:Elimination Set with Intercompany segment creation 9 Years, 2 Months ago
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Hasan, thank toy very much. This clarified things, especially how to configure the option 2. You have already covered Option 1 in your Elimination Set video.
So, for Option 2, assuming we have (n) values in the Intercompany segment, and E1 being an Elimination company, we can have:
Line Source Target
===== ======= ========
10 01 E1
20 02 E1
30 03 E1
.
.
.
n n E1
Please, let me know if my interpretation is wrong.
Thank you.
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Re:Elimination Set with Intercompany segment creation 9 Years, 1 Month ago
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Lets say the chart of account structure is the following:
COMPANY-ACCOUNT-INTERCOMPANY
and you wish to eliminate all transactions between company 01 and 02 and company 01 and 03, you can enter the elimination set as follows:
SOURCE: 01--02 -> target: E1
SOURCE: 01--03 -> target: E1
The intercompany transactions should only touch specific natural accounts. In otherwords the intercompany segment should be 00 for all natural accounts except for designated ones. Cross validation rules could be used to implement that.
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