Inter Company Invoicing across Legal Entities within operating unit Adwait Marathe. Resource owned by one Legal Entity may be used by a project being executed by another Legal Entity. Transactions across Legal Entities are subject to statutory compliance e.g. Generation of legal documents, assessment of tax etc.
Inter Company Invoicing across Legal Entities within operating unit Adwait Marathe. Resource owned by one Legal Entity may be used by a project being executed by another Legal Entity. Transactions across Legal Entities are subject to statutory compliance e.g. Generation of legal documents, assessment of tax etc.
Inter Company Invoicing across Legal Entities within operating unit Adwait Marathe. Resource owned by one Legal Entity may be used by a project being executed by another Legal Entity. Transactions across Legal Entities are subject to statutory compliance e.g. Generation of legal documents, assessment of tax etc.
Inter Company Invoicing across Legal Entities within operating unit Adwait Marathe. Resource owned by one Legal Entity may be used by a project being executed by another Legal Entity. Transactions across Legal Entities are subject to statutory compliance e.g. Generation of legal documents, assessment of tax etc.
Operating unit Adwait Marathe. Director, Projects Development Safe Harbor Statements The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle. Program Agenda Business Issue User Stories Requirement Summary Proposed Solution Flow Use Case Dry Run Business Issue Global organizations operating through multiple legal entities execute projects across the world. Resources owned by one legal entity may be used by a project being executed by another legal entity or payments made by one legal entity on behalf of another. Transactions across legal entities are subject to statutory compliance e.g. generation of legal documents, assessment of tax etc. Business Issue Organization Structure Financial (LE) and Organization (LOB) Business Issue Scenarios In Scope LE2 incurs and pays for expenditure for a project that is owned by LE1. (For example, a Supplier Invoice for material or services: LE2 enters into a contract with a supplier to supply goods/services to a project that belongs to LE1) LE1 uses resources fromLE2 (For example, an employee of LE2 works on a project executed by LE1) Out of Scope LE2 transacting on behalf of LE1 using resources fromLE3 is not a common scenario as per customers feedback. Business Issue Pain Points / Success Criteria Pain Points Success Criteria Ensuring accounting is compliant when resources are used from another Legal Entity Ensure the right Legal Entity is determined Generation of accounting at granularity required for monitoring and reconciliation Statutory compliance with respect to legal documentation when crossing Legal Entities Generation of legal documents with applicable taxes Reconciling Inter Company Transactions Settlement and reconciliation of intercompany documents and balances Align with EBS direction for LE in R12 Business Issue Value Drive value in projects by using the best resources without risk of statutory non-compliance by: Automatically and accurately deriving the LEs (Provide the ability to) Automatically account for I/C transactions (Provide the ability to) Automatically determine taxes for I/C transactions Minimize cost of reconciling intercompany transactions Lower Implementation Cost in setting up for handling intercompany transactions Reduce the cost of training users because of intuitive usability User Stories As Finance Manager define the terms (transfer price) for resources owned by one LE being used by another LE within the group for compliance with internal policies As Project Manager I need to identify and reconcile costs incurred by other LEs on my project to confirmproject profitability is maintained As Accountant confirm legal documentation is generated for intercompany transactions for statutory compliance Requirements Summary 1. Associate legal entity to Project 2. Identify legal entity for transactions e.g. Expenditure Items, Revenue, Invoice 3. Define transfer price for resources owned by LE1 used by LE2 4. Generate legal documents for intercompany transactions including the applicable taxes 5. Generate accounting by legal entity 6. Reconcile intercompany transactions by legal entity / project Proposed Solution Flow Set-up Costing and Accounting Intercompany Invoicing Implementation level option to turn the feature on. Provider receiver controls to be enhanced to be defined between OU/LE combination. Organizations to be mapped to LE in LE, If organization is not mapped to LE, default LE to be used of an OU Proposed Solution Flow Set-up Costing and Accounting Intercompany Invoicing Enhance Cross Charge Identification process to consider LE from org(project and expenditure) Add additional columns on Expenditure item to facilitate additional grouping for IC invoicing Populate additional attributes on expenditure items during cross charge identification. This to be carried forward throughout the processing of documents Provider and receiver LE to be added as sources for Accounting Proposed Solution Flow Set-up Costing and Accounting Intercompany Invoicing Generation of IC invoices for IC projects specified in provider receiver controls IC invoice process to use additional grouping criteria's specified, in addition to the one specified at provider receiver controls Add post extension for IC invoicing Enhance existing Internal Payables Invoice Attributes Override Extension to support overriding supplier site and few other attributes Use case Dry Run Set-ups Legal Entity Organization Division Project Resource LE1 Org1 D1 LE1 Org1.1 D1 LE1 Org1.1.1 D1 E1 LE1 Org1.1.2 D1 Project3 E2 LE1 Org1.2 D1 LE2 Org2 D2 LE2 Org2.1 D2 Project2 LE2 Org2.2 D2 LE2 Org2.2.1 D2 Project4 LE2 Org2.2.2 D2 Project1 Project5 LE1 Org3 D2 E3 Dry Run Cost Transactions Emp provider Org Project Amount E1 Org1.1.1 Project1 1000 E2 Org1.1.2 Project2 3000 E3 Org3 Project2 4000 E3 Org3 Project1 5000 E3 Org3 Project3 2000 E1 Org1.1.1 Project4 6000 E1 Org1.1.1 Project5 1500 provider LE receiver Org receiver LE CC type LE1 Org2.2.2 LE2 IC LE1 Org2.1 LE2 IC LE1 Org2.1 LE2 IC LE1 Org2.2.2 LE2 IC LE1 Org1.1.2 LE1 IC LE1 Org2.2.1 LE2 IC LE1 Org2.2.2 LE2 IC ICGroup D1 D1 D2 D2 D2 D1 D1 Dry Run IC Invoicing - Scenario 1 Provider OU ProviderL E Receiver OU Receiver LE ICProject IC Grouping Extension ABC LE1 ABC LE2 ICfrmLE1 toLE2 None NoIC GroupExtn Invoice Number Description Amount 1 LE1 LE2 20500 Dry Run IC Invoicing - Scenario 2 Provider OU ProviderL E Receiver OU Receiver LE ICProject IC Grouping Extension ABC LE1 ABC LE2 ICfrmLE1 toLE2 Cross Charge Project NoIC GroupExtn Invoice Number Description Amount 1 Project1 6000 2 Project2 7000 3 Project4 6000 4 Project5 1500 Dry Run IC Invoicing - Scenario 3 Provider OU ProviderL E Receiver OU Receiver LE ICProject IC Grouping Extension ABC LE1 ABC LE2 ICfrmLE1 toLE2 Cross Charge Project Populate Division Invoice Number Description Amount ICGroup 1 Project1 D1 1000 D1 2 Project1 D2 5000 D2 3 Project2 D1 3000 D1 4 Project2 D2 4000 D2 5 Project4 D1 6000 D1 6 Project5 D1 1500 D1 Dry Run IC Invoicing - Scenario 4 Provider OU ProviderL E Receiver OU Receiver LE ICProject IC Grouping Extension ABC LE1 ABC LE2 ICfrmLE1 toLE2 None Receiver Organization Invoice Number Description Amount ICGroup 1 Org2.2.2 7500 Org2.2.2 2 Org2.1 7000 Org2.1 3 Org2.2.1 6000 Org2.2.1 Dry Run IC Invoicing - Scenario 5 Provider OU ProviderL E Receiver OU Receiver LE ICProject IC Grouping Extension ABC LE1 ABC LE2 ICfrmLE1 toLE2 None Division Invoice Number Description Amount ICGroup 1 D1 11500 D1 2 D2 9000 D2 Questions Copyright 2010, Oracle and/or its Affiliates. 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