Legal Entity vs Ledger in R12

[kommineni7]

Hi,

Intially we created the one legal entity and ledger and linked properly.

Now we added new ledger and trying to add the same legal entity. But in LOV, my legal entity is not displaying.

is there any condition like that..

" One LE should be assinged to one Ledger".

what is the logic behind it..

Please expalin me..

Thanks,
Venkatesh

[karthikeyanp1981]

Dear Venkatesh,

The Multi Org Structure falls in the below order, i.e.
Business Group => Ledger => Legal Entity => Operating Unit.
From Left to Right its ONE TO MANY Relation ship which means .....
1BG can have more than 1 Ledger, 1 Ledger can have more than 1 LE, 1 LE can have more than one OU.
From Right to Left its ONE to ONE Relationship which means ...
1 OU can point to 1 LE only
1 LE can point to 1 Ledger only
1 Ledger can point to 1 BG only

This is the architectural design, concept, process in which Multi Org is built on ....
If you want to use the already defined LE, please remove that assigned LE from the ledger, so that the LE will be available for assigning to any other ledger ....

Regards,
Karthikeyan

[kommineni7]

Thanks for you update Karthik..

But what i understood , in R12 there is no link at all between Operating unit and legal entity. If my point is correct, then what is the exact reason behind it..

could you please explain me with an example

Thanks in Advance,
Venkatesh

[karthikeyanp1981]

Dear Venkatesh,

the link between Legal Entity and Operating unit is very much available in Release 12. While setting up accounting options for your ledger, you should select/create the operating units which will be using your ledger. In this step, you have to specify your operating unit name, legal entity name, Business Group name.
The link is established at this stage.

Regards,
Karthikeyan