Oracle Fusion Applications – An Approach to Rationalize Intercompany Transaction Types (AGIS) in Oracle Fusion Application
Rationalization and optimization of rules to achieve operational efficiency of Oracle Fusion Application
- To handle inter-organizational transactions to record, track, reconcile and finally eliminate transactions for external reporting.
- Bring operational efficiencies by leveraging Oracle Fusion Applications and it’s ‘Intercompany Accounting’ of Financial Common Module.
- Optimize Intercompany Company Transaction Types
- Reduce Ledger based balancing rules.
- Introduce CoA based balancing rules.
- Analyzed the existing IC Account Framework.
- Designed an efficient model for the Company that had a Global CoA, ~32 Primary Ledgers and ~121 Legal Entities.
- Proposed solution was carefully designed to be generic and have a robust capability of addressing multiple entities as a part of IC Accounting.
- Suggested to define each IC transaction type, wherever required to ensure ease of tracking on a 1 to 1 basis.
- Assuming usage of global chart accounts, balancing rules were proposed to be optimized efficiently. Even otherwise, definition of balancing rules at CoA level will be more concise.
- Recommended to desist from defining balancing rules at these levels. Use only for minimum ‘Exceptions’ as one off!
Tools & Technologies
- If using global CoA – rules can be designed to cover each IC transaction type(s) and others to address ‘Catch All’ scenarios.
- Reduced transactional errors when used with very limited IC transaction types.
- Quicker IC reconciliations.
- New IC transaction flows only requires configuration of IC transaction type and CoA balancing rules.
- New users will be able to learn, assimilate and execute the IC transaction flows very quickly.