ERPstuff - Oracle EBS Community

Hi,

I am making a fresh implementation in R12, the company structure like this, the parent company is Indian, two LE in india and two in US. The company requirement is that they want to have a consolidated balance sheet of two indian LE's and two US LE's and finally a consolidated BS in INR of all indian and US LE's.

Just dont understand how to map the ledger and how can i consolidate.

Expecting you expertise on this.

Thanks in advance.

Gurus, please help, its really important.

At some piece of advice.

Below are my views ... not the final solution as such ...

BG = Indian Parent Company
LEDGER = Indian Ledger, US Ledger
LEGAL ENTITY = Indian LE 1, Indian LE 2, US LE 1, US LE 2
OPERATING UNIT = As per the business

Now coming to consolidation,
Option 1) You can consolidate US ledger data with Indian Ledger data , so that Indian Ledger has full organisation details
Option 2) You can have a separate Ledger for Consolidation. The separate ledger will be called as parent, and Indian ledger, US ledgers will be subsidiaries for that parent ledger. You can transfer from subidiaries to parent and generate reports from parent ledger.
By Ledger i am referring to Primary Ledger only.

If the above is done, then ...
You can create a FSG report for Consolidated Balancesheet of Indian Ledger which will include Indian LE1 and Indian LE 2 data, same way for US ledger.
After performing the consolidation between subsidiary and parent, prepare an FSG in the parent ledger, which will display the final consolidated balance sheet.
On top of it the changes will further depend on you having single instance or multiple instances for your indian and US operations.

Regards,
Karthikeyan

Dear Karthikeyan,

I am really really very greatfull for your reply.

That solution is absouloutly fantastic, infact i was really very confused, now i am clear.

I am going with solution two. So need some more help on this.

In R12 when creating ledger we create Primary ledger and under that we can add secondary ledgers. So do you want me to create ledgers like this.

Or should be creating total 5 primary ledgers, 2 for india, 2 for US and 1 for consolidation.

I know this might be a very basic questions, but i want to clear my doubts.

Regards

KK

Dear Karthikeyan,

The 2 India LE's will have a common Ledger with a common COA, same for US LE's.

So in that way we will have 3 ledgers, 1 for india LE's, 1 for US LE's and one for consolidations. But all will be created as primary.

Can it be like this???

Regards
KK

If your legal entities in india share the same Chart of Accounts Structure, Currency, Calendar and Accounting method you will create 1 primary ledger for india, like wise for US. If both the legal entities in India differs in any of the above components, then you are required to create two primary ledgers for india itself.
Secondary ledgers only represents the primary ledger data, its not a container of fresh data directly.
When ever we speak of ledgers, it is meant that we are referring Primary Ledgers only.

As stated 3 primary ledgers, 1 for india, 1 for us, and 1 for consolidation can be used. You can proceed with this and test the impact, you will be in a better position to make further judgment yourself.
All the Best ...

Regards,
Karthikeyan

Hey Karthikeyan,

Really really appreciate your advice, it will be of great help, like you said i will be now proceeding with 1 ledger for consolidation, 1 for india LE's and 1 for US LE's.

One more query i have to bother u more, do we really have to have a intercompany segment?? I am keeping the warehouse location as IO and the same as balancing segment. So do i need to keep a intercompany segment??

regards

KK

Open another thread for your intercompany query ... continuing on this same thread will confuse the readers and also me ...

Hence locking this one ...