scenario chart of account

[rehanali_85]

i have one scenario of a company..plz solve this

one group of companies name JS group and in this group we have different entities like AB company, BC company,CD comapy.....so we can say one group and 3 entities in a group....so how can we create chart of accounts????

in oracle language......first we create legal entity JS group and other three are the company as a segment???rite?? bt one of my friend said three companies are entity so we create intercompany segment???

[karthikeyanp1981]

Dear Rehan ali,

Business Scenario is:
There is a Group company called JS GROUP, under which there are 3 companies AB, BC, CD.
Oracle Multi org solution is:
1 Business Group to be created for JS Group
Next you need to decide on how many ledger are to be used, if all 3 companies uses same chart of structure, then you need to create a single ledger, if all three companies share different chart of account structure, then you need to create 3 different ledgers.
Assume that all 3 companies uses the same ledger, your structure should have the following segments:

1) Company Segment (With Balancing Segment Flexfield Qualifier) - This should also have values of all 3 companies
2) Account Segment (With Natural Account Flexfield Qualifer) - This should contain accounting heads used by all 3 companies ...

For intercompany transactions, there are couple of options which i know of:
Option 1: No need for Intercompany Segment
While creating the ledger, enable the option USE INTERCOMPANY BALANCING, this will allow you to set intercompany balancing rules for your ledger.
These rules will be enough to create balancing lines for your intercompany transactions ... may be you may require a dummy value in the company segment as an eliminating company

Option 2: With Intercompany Segment
You can have this segment, only when your balancing segment has more than one value to it. Also you cannot have intercompany segment flexfield qualifier placed for Company and Account segment. Your intercompany segment must share the same value set of Company Segment.

i am yet to test the options myself, i cannot comment further on this ... However expecting few experienced members to through detail insight on this .. also the applicability of of AGIS

Regards,
Karthikeyan