| Automatic Interunit accounting?? [message #184566] |
Thu, 27 July 2006 01:39  |
pooja82
Messages: 16
Registered: July 2006
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Junior Member |
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Can we do automatic interunit accounting between 2 legal units of a group when they purchase or sell material to each other. No transfer pricing is there. OR do we have to settle the accounts manually?
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| Re: Automatic Interunit accounting?? [message #184641 is a reply to message #184566] |
Thu, 27 July 2006 05:14  |
David.K.Dickson
Messages: 413
Registered: October 2005
Location: Surrey, England
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Senior Member |
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Unfortunately, this is not part of the standard functionality in Oracle Applications.
If you have a group of companies, each of which is a legal entity, and they trade with each other, then one company's Receivables Invoice is the other company's Payable Invoice. It would be nice if Oracle had a facility to allow you to enter the data for these once, and have it create an Invoice / Credit Memo in both SOB's.
I once did some unit testing of a customisation that did exactly that, though I can't remember the design details. It was for a telecoms group of over 400 companies and they had a big budget for the project.
So in conclusion, it is not part of the standard functionality, but it is possible to do it via customisation, if you have the budget to pay for it.
 HTH
David.
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| Re: Automatic Interunit accounting?? [message #184715 is a reply to message #184665] |
Thu, 27 July 2006 09:31 |
David.K.Dickson
Messages: 413
Registered: October 2005
Location: Surrey, England
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Senior Member |
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Sorry, I should have said "It would be nice if Oracle had a facility to allow you to enter the data for these once, and have it create an Invoice / Credit Memo in both Legal Entities."
The sad fact is that the functionality is not there, for IO's, OU,s LE's or SOB's. Many organisations would like it. Many organisations could use it. But it is not standard functionality. If you need it, it is a customisation.
Settlement, via intercompany account, should be fairly straightforward, but the big problem is synchronising the intercompany Payables / Receivables Invoices.
 Sorry.
David.
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The procedure for doing customisations will vary from one organisation to another. If you make use of AIM, for instance, you will probably create an MD050 and and MD070 as the absolute minimum.