Suggestion Required - Balance Sheet

[anu_uma]

Dear All,

I think this will be an interesting issue for everyone of us. Little confusing and tricky but need some suggestions

Its for a real estate industry, in which we have company as the balancing segment. and a segment for project also involves India localization also. there are more than 100 companies for the company segment and as of now there are few number of projects which will be increasing in the near future.

Requirement is Balance sheet or any financial statements based on the project wise where my secondary tracking segment is not enabled.

Issue we have is only in the procure to pay cycle where we are not able to track the liabilities details as per the project code and whatever is in the tax set up defaults in the TDS and other taxes....
Modules used are - Finance, distribution and property manager
Can anyone suggest a solution for this to take it forward as per the requirement.

I expect some very strong and good suggestion from the guru's who have done some implementations in Real estate industry and your earliest suggestions are highly appreciated.[:(]


Regards,
Anu

[AmanKhan]

Hi Anu,

If u have defined project as segment in AFF then there should be no problem as u can get project wise T/B from GL and go for FSG & customized P & L and B/S reports.

Our client almost have the same AFF with co, and project segments etc. and get all liabilities, assets etc. details and fulfill reports requirements using FSG and customized reports from GL module.

Regards,
Aman

[anu_uma]

How do we get it ? because management has decided to go for OU creation as it is not possible to get the details as desired.

Can we discuss the same in gmail.com, please click on the mail link so as we can get it touch through g chat now


Regards,
Anu

[AmanKhan]

Anu.... OU has nothing to do with GL (SOB) so there is not issue in getting project wise TB. Simply run Trial Balance - Detail report and based on that report u can create FSG as well. As u have more projects so you need to go for customize reports.

Yes we can...check ur PM.

thanks,
Aman

[admin]

Thanks AmanKhan for your valuable inputs and for your cooperation as well.

[anu_uma]

Hi Admin,

Need some more explanations on it. See my Project Segment is not a balancing segment and Company is the balancing segment and we would like to have all the financial information's out of the system project wise.

So as we can conclude it and I want some more data like how do we do and how we are going to satisfy the requirements. with OU I will be able to do the localization set ups also and the charges account will be based on my project and liability account will default from set up's where as if i dont create the Ou and if i do in single Ou for Multiple projects, there is a possibility of users entering it to the wrong project codes and its very difficult for the users to identify the mistake and time consuming to correct the same.
<b>
Please lets debate on this [?] to some more level so as even a beginner will understand.</b>

If you want I will give my COA structure

Company-LOB-Dept-Account-Sub-A/c-Project-Fut1-Fut2

Where Flexfield Qualifiers are
Company is the Balancing Segment & Intercompany,
Dept - is the Cost Center
Account - Natural Account Segment and Sub - Account is the Dependent Segment of Account.

Regards,
Uma

[admin]

GL and FSG will only deal with your AFF segments and if you are interested to generate any reports on OU level then you will have to generate those in the subsidiaries AP through available standard reports or will have to develop your own customized reports......thanks

[anu_uma]

How to generate the reports in GL based on my project segment ?

[joythomas]

You can get the GL reports by projects by running those GL reports having parameters segment Low and segment High. Use your Project segment as the value for parameters .

[oracleapps1983]

Thanks to all This topic quiet interesting. I appreciate all the people who contributed.

[AmanKhan]

Anu

you can generate the reports in GL based on project segment as i told u abt TB-Details report... as u can get TB based on any segment in yr COA... so plz run that report for quick understanding of customized report from GL.

thanks,

[anu_uma]

Hi,

Thanks for the inputs and I will let you know the issues that will arise in single OU.

Regds,
Anu

[bvenattu]

Uma

There are two ways of Approach.

Scenario 1

If the customer wants Project wise TB, Balance Sheet & Profit / Loss Account. Consider the company carrying multiple projects and Scope is limited to the implementation of Financial and Property.
That s a case, Each Projects should be balancing segment hence reporting is possible either at Child Level or at Parent Level.
If the Project treated as a separate Segment in AFF, then Report of Profit & Loss is possible, however we will not able to generate a Project wise Balance Sheet. (Required for Banking Purpose)
Take an example of two projects are carrying under one company and these two projects are being funded by that company from its common pool, the entry will be,
Company ? LOB ? Common Project- Sub-Accounts (Common Project) -Fut1 ? Fut2 for receiving fund and Distribution entry to each project shall be from the common Account.
Here we cannot generate the Balance sheet for each project since the project is not balanced as such, however we can generate un-reconciled report such as a cash flows to the management.

Scenario 2

If the Project is going to be an OU (Required only when each project is going to be self reliant, the project is being funded by Shareholders to that project, there are more than one Project partners are involved and Projects are kept to be sold fully or partly ( Leasing and Selling or Both).
There is no report available to take by OU as such; nevertheless one Ledger is part of OU.

the sceanrio is only a suggestion and it varies case to case

Babu Venattu Ali

[anu_uma]

Hi Babu,

Thanks for the update, and almost this is what is the explanation i expected in this forum... I agree with your contents.

I prefer to go on with the approach 2 as it will not allow the users to enter the tax code details... whenever we enter an invoice or make payments, we can track both the charges and liabilities based on each project.

What is ur comment on this ?

Regards,
Anu

[bvenattu]

Hi Anu

As you mentioned in the reply, the Tax Code details cannot be entered in Payable module directly and it should come through the PO only.

Since project is linked to a PO we can track the Charge account and Liability Account by project wise. (Assuming that PO item will be charged as direct expense as Destination is Expenses).

Why Project Suites left out in your implmentation[:0]

Regards

Babu Venattu Ali