Release 12- Advanced Global Intercompany System Setup

Part 1
Posted on April 30, 2009 by Dinesh Nair
OVERVIEW
Part one on setup offers a broad view on how AGIS is Setup in R12

The setups are divided into four parts

1. Environmental setups
2. General Ledger (GL) setups
3. Receivable (AR) setups
4. Payables(AP) setups
5. Advanced Global Intercompany System (AGIS)

Part two on transaction processing discusses the setups those are required for
processing the transaction in AGIS

Transaction Processing in AGIS

The summaries of steps those are used for AGIS transaction processing are As follows.

1. Initiation of a transaction by an intercompany organization

2. Completion of accounting from the initiator side
3. Completion of accounting from recipient side
4. Approval of the transaction by the recipient

If the invoicing is opted for, in transaction type setups then,

1. Processing of Invoice from Receivables

(For the initiator subsidiary side)
2. Processing of invoice in Payables
(For the Recipient subsidiary side)

Part three discusses the reports in AGIS and reconciliation features in AGIS

1. Standard reports Available in AGIS

2. econciliation features in AGIS

The setup steps are explained in the subsequent sections, from start to finish

The details of the examples used in this document is as follows,

-Initiator Subsidiary-Blink AGIS INV ORG. This organization is a part of BCR
Singapore Legal Entity. This Legal Entity uses 001 balancing segment value. The user
that is having access to initiator subsidiary is called BCR_S

-Recipient SubsidiaryBlink AGIS INVJ ORG. This organization is a part of BCR Japan
Legal Entity. This Legal Entity uses 002 balancing segment values. The user having
access to initiator subsidiary is called BCR_J

PART ONE- AGIS SETUP

Welcome to the Advanced Global Intercompany System (AGIS) setup

Description of the setup that is used in this viewlet is as follows

One ledger called Blink ledger.
Two legal entities under that ledger called BCR Singapore legal entity and BCR Japan
legal entity. Two operating units Blink AGIS Singapore OU, Blink AGIS Japan OU
respectively.

*Note: Setting up of receivable setup is mandatory, for using invoicing functionality.

And for setting up of receivables mandatory that inventory Organization are created as
well.

The transactions in this example are assumed to be happening from BCR Singapore to
BCR Japan. For theses two create
Two employees: BCR Singapore and BCR Japan
Two Users : BCR_S and BCR_J
Create receivables and GL Responsibilities.

As the first step we should define employees in HRMS. These employees are used later
on in the AGIS security setups.
Navigation: HRMS, Progress Admin S&L>>People>>Enter and Maintain

Define an employee BCR, Singapore .This person will be attached to the user initiating
the transaction in AGIS. In our example transaction gets initiated by BCR Singapore
Similarly create another employee (Recipient) BCR Japan and Save your new creations.

Create a users like BCR_S & BCR_J. Note the Person attached to this User is (BCR,
Singapore) he is now the contact Person

Next step is to define Custom responsibilities like GL Super User, AP Super User, AP
Super User, HRMS Management, OM, & AGIS Super user Resposibilities and attach it
to our users.

Our next setup in AGIS set id to define a business group

Login to HRMS Responsibility and create Business group called Blink AGIS, Which you
will later require to attach with the operating Units.

Navigation:
HRMS Management>>HRMS Manager>>Work
Structures>>Organization>>Description

Click on Other button at line Level and set the Business Group settings:

Next step is to set some of the system profile options.

Navigation: System Administrator>>Profile>>System
Profile options where set for
1. HR: Business Group,
2. HR: Security,
3. MO: operating Unit,
4. MO: security profile,
5. MO: Default Operating Unit Profile,
6. GL Ledger name
One might already know, If MO: Security profile is defined the MO: Operating unit
profile becomes redundant.

In this part we will see about GL ,AR, AP, setups

Now our next step is to create Legal entities namely BCR Singapore legal entity and BCR
Japan legal entity of which one will be Our Initiator and other will be Recipient for our
Intercompany transactions.

In BCR General Ledger Super User Responsibility

*Note: When you create our business group HRMS security profile gets automatically
created with the same name of our Business Group.

Navigation: Setup>>Financials>>Accounting Setup Manager>>Accounting Setup

Click on Legal Entity tab in Accounting Setup Manager page to create new legal entity.
Fill in all the mandatory columns like Territory, Legal Entity Name, Organization name,
RCB Number and Legal Address. The screen shot below shows the sample of legal entity
creation. Values such as Place of Registration, Inspection date, Primary Activity,
Secondary Activity, Type of Company, and Fiscal year end are optional fields.
Similarly Create BCR Japan Legal Entity. And query the names in Legal entity form for
confirming the creation of legal entities.
Our next step in the process is to create a valid ledger. Here I have a valid ledger called
Blink Ledger highlighted on the screen shot below. Now attach the legal entities we have
created in the previous step to this valid ledger.

In the screen shot below you can see the legal entities attached to the Ledger. Then
define the operating unit by clicking the Operating unit update icon as shown below.
Create Operating units Namely Blink AGIS Singapore OU and Blink AGIS Japan OU.
While creating attach the business group we created in the initial steps. (Blink AGIS)

Query the operating Units as show below for confirming the creation. Here you can see
your operating units, Short code, Business group to which they are attached and the
corresponding legal entities they are assigned to

So far what is covered is assignment of Legal entities and Operating units to Ledger.
Next step would be to define Inter-company Balancing Rules. Options to define inter-
company rules would be visible, If and only if the inter company option is enabled.

Clink on Update icon to define Intercompany balancing rule

Under Intercompany company accounts link, there is a link called Define Relationships
where one can create relationship between various legal entities. This is the place where
GL is noticed of from where and to where the transactions are going to flow.In case,
define the relationships for the BCR Singapore Legal Entity to BCR Japan Legal entity.
As of now reverse way transactions is not happening so only one way relationship
(Singapore LE to Japan LE) would suffice.

Define the relationship here. There are two parties in a relationship. First one is the
Transacting Entity and the second is Trading Partner Entity.

Note: The relationship can be defined individual / multiple Balancing segment values of
the transacting and trading entity.

Now we have just finished the required setups in GL for AGIS. Before entering AR setup
the prerequisite is to have a Inventory organization.
Below screen shots will tell you the creation of INV organization:

Complete the Accounting Information, Receiving Information, Inventory Information to

complete the INV. Organization creation.

Now set the following system profile option at this responsibility level
Profile options where set for
1. HR: Business Group,
2. HR: Security,
3. MO: operating Unit,
4. MO: security profile,
5. MO: Default Operating Unit Profile,
6. GL Ledger name
*Note: When you create our business group HRMS security profile gets automatically
created with the same name of our Business Group.

Now we will move on to Payables setups.

In AP Define Financial Options,Payable Option, and System profile Option.setting up of
Financial & payables options are more are less similar to 11i.

Login to Intercompany Super user responsibility assigned to our user. The First step is
defining organizations. These are the organizations which will be used by AGIS

Navigation: Intercompany Super user>>Setup>> Organization

Define Organization as shown below.

Similarly create organization for Japan legal entity also. And Query the same in
organization form for confirming your creation. Note that in the above Screen while
creating organization select Yes for enabled column. This flag indicates that this
organization is enabled for intercompany transactions. Without this processing of
transactions in those organizations, through AGIS is not possible
Next Step is to security definition. Security is defined as, which user/person will have
access to which and how many intercompany organizations
Navigation: Intercompany Super User>>Setup>>security

Query the Person name and the Respective organization on which the person should be
given access. And enable Yes for the options as shown below

In the same way shown above give access for BCR_S to Singapore Org. and BCR_J to
Japan Org.

Next set is to define Transaction types in AGIS.

Your transaction type will decide whether invoicing is required for the transaction and
manual approval is required.
Our next step inthe process is to define AGIS system options
Next we will define invoicing options

Under invoicing option Define Receivable Assignment and Customer/Supplier

association as shown in the below screen shots

Example setup of one of the operating unit is shown in figure.

Note that Receivables Transaction Type and Receivables Memo lines can be linked only
id Receivable setups are complete.If those setups are not complete then trhe LOV will
not appear.The values like Intercompany , Global Intercompany respectively are
seeded values in Receivables. These have been specifically seeded in Receivables for
AGIS

In the above step definition of Customer/ Supplier Association is done.There are two
tabs in the setup.
1.Customer/Supplier association tab to define the Association
2.Trading partner tab to reviewthe earlier Created association.
The second step in the creation of customer supplier association is selection of customer
and entering a Bill To Site for the customer
Note that both are mandatory.
With this we have completed AGIS setup required for processing AGIS transactions We
will discuss on AGIS Transaction process in the next part.

AGIS Transaction Processing

Now we are ready with the setups for processing AGIS transaction. Login using Initiator
Account . In our example BCR_S (Singapore is the initiator) and select Outbound
transaction

This is the first form for data entry. notice the Transaction type, Initiator fields entered
at the top of the screen.

In the second half, Receipient Details are entered.

The next screen is to complete accounting from the initiator side. Click on Add line
button and enter The second effect of transaction from initiator side.
Once the transaction entry is complete click On Submit button.
After submition you can see the status of the transaction appears as Submitted which
is Shown below
Now Login as Recipient. in our example BCR_J (Japan is Our Recipient)
and click on Inbound transaction as shown below
Query for the same batch number. And you will find the Status of the trasaction appears
as Received for the Recipient.
Click on update icon for entering Recipient side accounting information.
Release 12- Advanced Global Intercompany Setup Part 2
Posted on April 30, 2009 by Dinesh Nair
In this part we will see about GL ,AR, AP, setups

Now our next step is to create Legal entities namely BCR Singapore legal entity and BCR
Japan legal entity of which one will be Our Initiator and other will be Recipient for our
Intercompany transactions.

In BCR General Ledger Super User Responsibility

*Note: When you create our business group HRMS security profile gets automatically
created with the same name of our Business Group.

Navigation: Setup>>Financials>>Accounting Setup Manager>>Accounting Setup

Click on Legal Entity tab in Accounting Setup Manager page to create new legal entity.
Fill in all the mandatory columns like Territory, Legal Entity Name, Organization name,
RCB Number and Legal Address. The screen shot below shows the sample of legal entity
creation. Values such as Place of Registration, Inspection date, Primary Activity,
Secondary Activity, Type of Company, and Fiscal year end are optional fields.

Similarly Create BCR Japan Legal Entity. And query the names in Legal entity form for
confirming the creation of legal entities.
Our next step in the process is to create a valid ledger. Here I have a valid ledger called
Blink Ledger highlighted on the screen shot below. Now attach the legal entities we have
created in the previous step to this valid ledger.

In the screen shot below you can see the legal entities attached to the Ledger. Then
define the operating unit by clicking the Operating unit update icon as shown below.
Create Operating units Namely Blink AGIS Singapore OU and Blink AGIS Japan OU.
While creating attach the business group we created in the initial steps. (Blink AGIS)

Query the operating Units as show below for confirming the creation. Here you can see
your operating units, Short code, Business group to which they are attached and the
corresponding legal entities they are assigned to
So far what is covered is assignment of Legal entities and Operating units to Ledger.

Next step would be to define Inter-company Balancing Rules. Options to define inter-
company rules would be visible, If and only if the inter company option is enabled.

Clink on Update icon to define Intercompany balancing rule

Under Intercompany company accounts link, there is a link called Define Relationships
where one can create relationship between various legal entities. This is the place where
GL is noticed of from where and to where the transactions are going to flow.In case,
define the relationships for the BCR Singapore Legal Entity to BCR Japan Legal entity.
As of now reverse way transactions is not happening so only one way relationship
(Singapore LE to Japan LE) would suffice.

Define the relationship here. There are two parties in a relationship. First one is the
Transacting Entity and the second is Trading Partner Entity.
Note: The relationship can be defined individual / multiple Balancing segment values of
the transacting and trading entity.
Now we have just finished the required setups in GL for AGIS. Before entering AR setup
the prerequisite is to have a Inventory organization.

Below screen shots will tell you the creation of INV organization:

Complete the Accounting Information, Receiving Information, Inventory Information to

complete the INV. Organization creation.

Now set the following system profile option at this responsibility level
Profile options where set for
1. HR: Business Group,
2. HR: Security,
3. MO: operating Unit,
4. MO: security profile,
5. MO: Default Operating Unit Profile,
6. GL Ledger name
*Note: When you create our business group HRMS security profile gets automatically
created with the same name of our Business Group.

Now we will move on to Payables setups.

In AP Define Financial Options,Payable Option, and System profile Option.setting up of
Financial & payables options are more are less similar to 11i. We will see obout AGIS
Setup in the next part.

Posted in AGIS | 3 Comments

Release 12- Advanced Global Intercompany System Setup

Part 1
Posted on April 30, 2009 by Dinesh Nair
OVERVIEW
Part one on setup offers a broad view on how AGIS is Setup in R12
The setups are divided into four parts
1. Environmental setups
2. General Ledger (GL) setups
3. Receivable (AR) setups
4. Payables(AP) setups
5. Advanced Global Intercompany System (AGIS)

Part two on transaction processing discusses the setups those are required for
processing the transaction in AGIS

Transaction Processing in AGIS

The summaries of steps those are used for AGIS transaction processing are As follows.

1. Initiation of a transaction by an intercompany organization

2. Completion of accounting from the initiator side
3. Completion of accounting from recipient side
4. Approval of the transaction by the recipient

If the invoicing is opted for, in transaction type setups then,

1. Processing of Invoice from Receivables

(For the initiator subsidiary side)
2. Processing of invoice in Payables
(For the Recipient subsidiary side)

Part three discusses the reports in AGIS and reconciliation features in AGIS

1. Standard reports Available in AGIS

2. econciliation features in AGIS

The setup steps are explained in the subsequent sections, from start to finish

The details of the examples used in this document is as follows,

-Initiator Subsidiary-Blink AGIS INV ORG. This organization is a part of BCR
Singapore Legal Entity. This Legal Entity uses 001 balancing segment value. The user
that is having access to initiator subsidiary is called BCR_S

-Recipient SubsidiaryBlink AGIS INVJ ORG. This organization is a part of BCR Japan
Legal Entity. This Legal Entity uses 002 balancing segment values. The user having
access to initiator subsidiary is called BCR_J

PART ONE- AGIS SETUP

Welcome to the Advanced Global Intercompany System (AGIS) setup

Description of the setup that is used in this viewlet is as follows

One ledger called Blink ledger.
Two legal entities under that ledger called BCR Singapore legal entity and BCR Japan
legal entity. Two operating units Blink AGIS Singapore OU, Blink AGIS Japan OU
respectively.

*Note: Setting up of receivable setup is mandatory, for using invoicing functionality.

And for setting up of receivables mandatory that inventory Organization are created as
well.

The transactions in this example are assumed to be happening from BCR Singapore to
BCR Japan. For theses two create
Two employees: BCR Singapore and BCR Japan
Two Users : BCR_S and BCR_J
Create receivables and GL Responsibilities.

As the first step we should define employees in HRMS. These employees are used later
on in the AGIS security setups.
Navigation: HRMS, Progress Admin S&L>>People>>Enter and Maintain

Define an employee BCR, Singapore .This person will be attached to the user initiating
the transaction in AGIS. In our example transaction gets initiated by BCR Singapore
Similarly create another employee (Recipient) BCR Japan and Save your new creations.

Create a users like BCR_S & BCR_J. Note the Person attached to this User is (BCR,
Singapore) he is now the contact Person

Next step is to define Custom responsibilities like GL Super User, AP Super User, AP
Super User, HRMS Management, OM, & AGIS Super user Resposibilities and attach it
to our users.

Our next setup in AGIS set id to define a business group

Login to HRMS Responsibility and create Business group called Blink AGIS, Which you
will later require to attach with the operating Units.

Navigation:
HRMS Management>>HRMS Manager>>Work
Structures>>Organization>>Description

Click on Other button at line Level and set the Business Group settings:
Next step is to set some of the system profile options.
Navigation: System Administrator>>Profile>>System

Profile options where set for

1. HR: Business Group,
2. HR: Security,
3. MO: operating Unit,
4. MO: security profile,
5. MO: Default Operating Unit Profile,
6. GL Ledger name
One might already know, If MO: Security profile is defined the MO: Operating unit
profile becomes redundant.