AGIS is a new feature introduced in R12 to facilitate transactions between two Legal entities, these transaction occur between two legal entities are called as the Inter company transactions.
Inter company transactions are transactions that occur between two or more related internal legal entities which belong to a single ledger or between unrelated legal entities that belong to different Ledgers.
Advanced Global Inter company System (AGIS) enables you to create, settle and reconcile inter company transactions. AGIS is a vast improvement of the Global Intercompany System functionality in GL.
- Interaction with sub ledgers facilitating invoicing using Receivables and Payables
-A brand new ingenious and robust security model
- Facilitates transaction processing between different Legal Entities under one or more Ledgers.
- Completely operated from SSWA Pages(Web Pages) with out any forms
Inter company Accounting in 11i:
Inter company transaction: An intra-set of book transactions which happens with in the set of books.
GIS Transaction: An inter-set of book transaction that takes place between the set of books. GIS transactions are restricted in General ledger and sub ledger level transaction are never allowed.
Inter company Accounting in Rel 12.
Transaction happens within a single legal entity or within a group of balancing segment values mapped to a ledger
AGIS Setup Navigation:
Inter company Setup Pre-Requisites:
In an Inter company Transaction there are 2 or more Legal entities involved.One would be the initiator or Transacting LE and one or more would be the Recipient or trading partner LE.
In AGIS always The Initiator or Transacting LE would be creating an Inter company transaction and send it to the Recipient LE for Approval The transaction type will identify if transaction requires manual approval and also invoicing is required In case transaction need invoicing then destination would be sub ledger applications if transaction does not need invoicing then the destination would be General Ledger.
AGIS Flow:
Transacting LE is ACE East LE
Trading Partner LE is ACE West LE
Intercompany Reconciliation:
Reports:
Reconciliation is the process of ensuring an intercompany transactions
- accounted in AR for initiator legal entity
- Payables for recipient legal entity
- Intercompany reconciliation report allows for checking of discrepancies or missing transactions
online reconciliation reporting tool.
- Allow drill down from account balances to transactions
- uses xml publisher to provide export to excel and customization of outputs.
Open Interface Tables:
Intercompany transactions from external source populate following intercompany interface tables
- FUN_INTERFACE_CONTROLS
- FUN_INTERFACE_BATCHES
- FUN_INTERFACE_HEADERS
- FUN_INTERFACE_DIST_LINES
Intercompany import program will import transactions in base tables(FUN)
Business Events:
AGIS supports Multiple business events which enables real time outbound/inbound intergration with legacy systems.
Source: My OracleSupport.
Inter company transactions are transactions that occur between two or more related internal legal entities which belong to a single ledger or between unrelated legal entities that belong to different Ledgers.
Advanced Global Inter company System (AGIS) enables you to create, settle and reconcile inter company transactions. AGIS is a vast improvement of the Global Intercompany System functionality in GL.
- Interaction with sub ledgers facilitating invoicing using Receivables and Payables
-A brand new ingenious and robust security model
- Facilitates transaction processing between different Legal Entities under one or more Ledgers.
- Completely operated from SSWA Pages(Web Pages) with out any forms
Inter company Accounting in 11i:
Inter company transaction: An intra-set of book transactions which happens with in the set of books.
GIS Transaction: An inter-set of book transaction that takes place between the set of books. GIS transactions are restricted in General ledger and sub ledger level transaction are never allowed.
Inter company Accounting in Rel 12.
Transaction happens within a single legal entity or within a group of balancing segment values mapped to a ledger
Setup are covered in Four parts:
- Environment setups
- General Ledger Setups
- Receivables(AR) and Payables (AP) setups
- Advanced Global Intercompany (AGIS) setups.
Transaction Processing in AGIS is as follows:
- Initiation of Transactions by an Intercompany Organization.
- Completion of Accounting from the initiator side.
- Completion of the Accounting by the Recipient Side.
- Approval of the transaction by the Recipient.
If the invoicing is enabled/required in the transaction type setup, then
- Processing of the invoice from Receivables - for the initiator subsidiary side.
- Processing of the invoices in Payables - for the Recipient Subsidiary Side.
AGIS Setup Navigation:
Inter company Setup Pre-Requisites:
- Define the Employee in HRMS Responsibility.
- Assign employees to the user in the sys administrator responsibility
- Complete definition of Legal entity and ledger in General ledger responsibility
- Complete operating unit setup for Accounts Payable and Accounts Receivables responsibilities
In an Inter company Transaction there are 2 or more Legal entities involved.One would be the initiator or Transacting LE and one or more would be the Recipient or trading partner LE.
In AGIS always The Initiator or Transacting LE would be creating an Inter company transaction and send it to the Recipient LE for Approval The transaction type will identify if transaction requires manual approval and also invoicing is required In case transaction need invoicing then destination would be sub ledger applications if transaction does not need invoicing then the destination would be General Ledger.
AGIS Flow:
Note that when a transaction is created by ACE East to be transferred to ACE West,
ACE East is initiator of transaction and ACE West is Recipient of transaction.
Transacting LE is ACE East LE
Trading Partner LE is ACE West LE
We check if
invoices are required and there are two places that we look for that. First is
the AGIS transaction type flag, seen on the AGIS Transaction Page in the Set Up
Tab.
You can also create a rule in the
Legal Entity setup, we create that rule at the registration level. This is set
by selecting the Legal Function ‘Create Inter company Invoice’ when entering the
Legal Entity Registration. If the this rule is set for one of the Legal Entity
involved in an AGIS transaction it will take precedence over the Transaction
Type rule and the invoice will be created.
We create an AR invoice (via an
Invoice API or the Open Interface tables) at that point the eTax module will
kick in and calculate the tax for you and add that to the invoice. When the AR
invoice has been created we create the AP invoice (via the AP Invoice
Interface) using the invoice number from the AR invoice , so it will be easy to
match those invoices. We also ensure that the same information required by eTax
is on the AP invoice so the tax calculation will be the same on the AR and AP
invoices.
Setups:
1 Setup Employee in HRMS, these employee definitions are used later on in security setup for AGIS.
Navigation: HRMS>People>Enter and Maintain.
2. Create the user and assign the employee to the user and assign the GL,Inv, AR, AP, AGIS, eBtax responsibility to the user.
3. Setup Ledger.
The Ledger Definition is done using GL- Accounting Setup Manager
Navigation: GL> Setup> Financials > Accounting Setup Manager > Accounting Setups.
Ensure that the relevant Legal Entities are assigned to the Ledgers.
Note that the balancing Segment values have been assigned as adn when the Legal entities were created.
Two Operating units.
1 ACE East Operating unit
2 ACE West Operating unit
have been created and assigned to ACE Ledger.
4. Define Intra-Company Balancing Rules, option to define intra company rules option would be visible, If and only If intra company balancing option is enabled for the concerned Ledgers,
GL provides to define the intra company balancing rules for different LE's.
5. Setup Receivables module
Note :
1) In AR system options for both OU's , the system options defined columns shows as Yes, this shows that the required setup is completed from receivables side.
2) Check the transactions form if the LOV appears correctly for the OU's or not , Check if Batch Sources LOV is appearing with the OU names that means the responsibility has been setup correctly.
3) Both the OU's are appearing in the LOV since the Security Profile has been set like that.
4) Receivables Transaction types and receivables memo line can be linked only if receivables setups are complete. if those setups are not complete then the lov will not appear, The values appearing there Intercompany and Global Intercompany respectively are new seeded values in receivables, these have been specifically seeded in receivables for AGIS
The recipient subsidiary will have this invoice transferred in their payables hence need to setup Payables.
6. Setup Payables Module
7. Setup AGIS
Transaction types- if invoices are required to be generated for the AGIS transaction is defined here, if the invoicing is set to required then receivables and payables setups are mandatory.
System options: If you intended to use separate calendar in AGIS then you can define the same here , if a calendar is defined in system options then the period statuses can be controlled based on transaction types as well.
If the system options is setup to online, there is no need to run the Transfer to Payables and Transfer to Receivables Program , then instead of using concurrent requests the workflow will be used to populate the interface tables.
if this option is set to Batch then the data will be transferred to receivables and payables interface on running the requests only.
The period opening and closing is done in periods tab.
Invoice options: There are two parts in invoicing options definition.
- Receivables assignments
- Customer and Supplier Associations
Create the relationship setups and account definition for the intercompany accounts.
Under Intercompany accounts link there is a link called Define Relationships where one can create the relationships between various Legal Entities. This is the place where GL is notified of from where and to where the transactions are going to Flow.
Define the relationship, there are two parties in a relationship.
Transaction Entity and Trading Partner Entity.
Note that for using the invoicing feature in AGIS it is mandatory that the receivables responsibility has been created and setup correctly for both the operating units unless the receivables is setup for both OU's the AGIS transaction processing does not work correctly.
Transactions:
The Transaction created by Initiator transacting LE is called as an outbound transaction and the transaction received by the recipient LE is called as inbound transaction.
The outbound fields are Transaction type, Initiator, GL Date and currency.
The Initiator Subsidiary organization uses the outbound and the recipient subsidiary organization is inbound.
Setups:
- Ledger Creation
- Legal Entities creation, balancing Segment Value assignment.
- Assignment of Legal Entities to the Ledger.
- Operating units creation and assignment to the Ledger.
- Definition of Intracompany Accounting Rules.
- Definition of Intercompany relationship definitions and respective account definition.
1 Setup Employee in HRMS, these employee definitions are used later on in security setup for AGIS.
Navigation: HRMS>People>Enter and Maintain.
2. Create the user and assign the employee to the user and assign the GL,Inv, AR, AP, AGIS, eBtax responsibility to the user.
3. Setup Ledger.
The Ledger Definition is done using GL- Accounting Setup Manager
Navigation: GL> Setup> Financials > Accounting Setup Manager > Accounting Setups.
Ensure that the relevant Legal Entities are assigned to the Ledgers.
Note that the balancing Segment values have been assigned as adn when the Legal entities were created.
Two Operating units.
1 ACE East Operating unit
2 ACE West Operating unit
have been created and assigned to ACE Ledger.
4. Define Intra-Company Balancing Rules, option to define intra company rules option would be visible, If and only If intra company balancing option is enabled for the concerned Ledgers,
GL provides to define the intra company balancing rules for different LE's.
5. Setup Receivables module
Note :
1) In AR system options for both OU's , the system options defined columns shows as Yes, this shows that the required setup is completed from receivables side.
2) Check the transactions form if the LOV appears correctly for the OU's or not , Check if Batch Sources LOV is appearing with the OU names that means the responsibility has been setup correctly.
3) Both the OU's are appearing in the LOV since the Security Profile has been set like that.
4) Receivables Transaction types and receivables memo line can be linked only if receivables setups are complete. if those setups are not complete then the lov will not appear, The values appearing there Intercompany and Global Intercompany respectively are new seeded values in receivables, these have been specifically seeded in receivables for AGIS
The recipient subsidiary will have this invoice transferred in their payables hence need to setup Payables.
6. Setup Payables Module
7. Setup AGIS
- Organization creation
- Accounting- Balancing Accounts search, Intercompany Balancing Rules, Intercompany Accounts.
- Security setup for users
- Transaction type creation
- Invoicing options- Receivables Assignments
- Invoicing options- Customer/Supplier Assoication Definition
- Defining System options
- Period Control (optional)
Transaction types- if invoices are required to be generated for the AGIS transaction is defined here, if the invoicing is set to required then receivables and payables setups are mandatory.
System options: If you intended to use separate calendar in AGIS then you can define the same here , if a calendar is defined in system options then the period statuses can be controlled based on transaction types as well.
If the system options is setup to online, there is no need to run the Transfer to Payables and Transfer to Receivables Program , then instead of using concurrent requests the workflow will be used to populate the interface tables.
if this option is set to Batch then the data will be transferred to receivables and payables interface on running the requests only.
The period opening and closing is done in periods tab.
Invoice options: There are two parts in invoicing options definition.
- Receivables assignments
- Customer and Supplier Associations
Create the relationship setups and account definition for the intercompany accounts.
Under Intercompany accounts link there is a link called Define Relationships where one can create the relationships between various Legal Entities. This is the place where GL is notified of from where and to where the transactions are going to Flow.
Define the relationship, there are two parties in a relationship.
Transaction Entity and Trading Partner Entity.
Note that for using the invoicing feature in AGIS it is mandatory that the receivables responsibility has been created and setup correctly for both the operating units unless the receivables is setup for both OU's the AGIS transaction processing does not work correctly.
Transactions:
The Transaction created by Initiator transacting LE is called as an outbound transaction and the transaction received by the recipient LE is called as inbound transaction.
The outbound fields are Transaction type, Initiator, GL Date and currency.
The Initiator Subsidiary organization uses the outbound and the recipient subsidiary organization is inbound.
Intercompany Reconciliation:
Reports:
- Transaction Summary Report
- Oracle Intercompany Account Details Report.
- Intercompany Reconciliation Report.
Reconciliation is the process of ensuring an intercompany transactions
- accounted in AR for initiator legal entity
- Payables for recipient legal entity
- Intercompany reconciliation report allows for checking of discrepancies or missing transactions
online reconciliation reporting tool.
- Allow drill down from account balances to transactions
- uses xml publisher to provide export to excel and customization of outputs.
Open Interface Tables:
Intercompany transactions from external source populate following intercompany interface tables
- FUN_INTERFACE_CONTROLS
- FUN_INTERFACE_BATCHES
- FUN_INTERFACE_HEADERS
- FUN_INTERFACE_DIST_LINES
Intercompany import program will import transactions in base tables(FUN)
Business Events:
AGIS supports Multiple business events which enables real time outbound/inbound intergration with legacy systems.
Source: My OracleSupport.
