tad whitepaper

Transaction Account Definition In Release 12

Advanced Global Intercompany

Systems : Transaction Account

Definition (TAD) In Release 12 An Oracle White Paper

[May] [2011]


TABLE OF CONTENTS

Executive Overview.......................................................................... 3

Introduction....................................................................................... 3

Scope ................................................................................................ 3

Overview .......................................................................................... 4

Processing Transaction Account Definition Rules………................ 5

Setup for Transaction Account Definition (TAD) ………................ 6


EXECUTIVE OVERVIEW

The purpose of this document is to familiarize the users of Oracle

Applications Release 12 (R12) with the Transaction Account Definition

(TAD) feature introduced as part of Advanced Global Intercompany System.

The aim is to know the details on the Usage and related Setups.

INTRODUCTION

Advanced Global Intercompany System (AGIS) enables you to create, settle

and reconcile intercompany transactions. While entering these transactions,

we give the details of the Distribution Accounts to be used. Once the

Transactions are submitted, Clearing accounts are generated based on the

setup defined for the Ledger. Transaction Account Definition (TAD) rules

can be defined to automatically generate the Distribution Accounts based on

the Intercompany Organization or the Transaction Type being used. Also we

can have separate Clearing accounts for separate Organizations or

Transaction Types.

SCOPE

The scope of this Document is to understand the usage of Transaction

Account Definition in Advanced Global Intercompany System. The

document would also discuss the setups that need to be done to use TAD.

Please note that the document is mainly referring to TAD which is an

advanced feature in AGIS. For the details on the functionalities in AGIS,

refer to Oracle Advanced Global Intercompany System User's Guide.


Overview

Transaction Account Definition (TAD) rules are called to default initiator

and recipient distribution accounts for each transaction. You need to enter

the distribution accounts manually in the Outbound Distribution page if

these rules are not been set up in Subledger Accounting. These rules default

the accounts based on the Intercompany Organizations being used or the

Transaction type being used (depending on what rule is defined)

Once the AGIS transactions are approved, the Intercompany accounts i.e the

initiator receivables account and the recipient payables account, are

generated automatically based on the setup done at the Ledger level.

However these accounts can also be generated based on the Intercompany

Organizations, being used or the Transaction Type being used, using TAD.


Processing Transaction Account Definition Rules

To use TAD in AGIS, following steps are to be followed:

Step 1: Define the Responsibility to be used for Defining TAD

Step2: Define Account Derivation Rules.

Step3: Define Transaction Account Definitions.

Step4: Compile the Transaction Account Definitions.

Step5: Assign Transaction Account Definitions to the Ledger.

While defining TAD there are various options available for the Conditions to

be used. However in this Whitepaper, we would be discussing the steps to

define TAD based on the Intercompany Organization or the Transaction

Type.

ADR can be defined for two Output Types:

Flexfield

Segment

There is a third type available as Value Set but this would be grayed out and

hence can not be selected.

In Flexfield Output Type, you will be giving the complete code combination

that needs to be defaulted. In case of Segment Output Type, you need to

defined ADRs for all of your Segments and then assign them to the TAD.

Following Value Types would be available while defining the ADR:

1. Constant : We would be giving a constant value to default.

2. Mapping Sets : We will assign a Mapping set and will mention the

Input Source. Thus based on the Source, the value would be picked

from the Mapping Set.

3. Account Derivation Rule : We can use a ADR within an ADR and

hence the results of the ADR would be used here

4. Source : We can use Sources defined in the SLA setup here. However

this option is not available currently for Intercompany TAD.

For getting a better clarity, in this Whitepaper, we are showing the setups for

following combinations:

Flexfield Output type / Constant Value Type


Setup for Transaction Account Definition (TAD)

Step 1 : Define Responsibility to be used for Defining Rule

We need an SLA responsibility defined for the ‘Financial Common Module’

application, for defining TAD for AGIS. If you already have such a

responsibility, then skip this step.

If the responsibility does not exist already, then we can define it as follows:

Go to System Administrator responsibility

Security > Responsibility > Define

Enter the following parameters :

o Name for the responsibility

o Internal Name

o Menu :

o Concurrent group :

Save the changes


Step 2 : Define Transaction Account Definition Rules (TADR)

Defining a TADR involves the following steps:

To validate a Transaction Account Definitions, we need to define

Transaction Account Definition Rules for the following types

AGIS Initiator Intercompany Distribution Account - Required

AGIS Initiator Intercompany Clearing Account - Optional

AGIS Recipient Distribution Account - Required

AGIS Recipient Intercompany Clearing Account - Optional

Thus it is mandatory to have the rules defined for Initiator and Recipient

Distribution Accounts.

Consider the following setup that we are going to use in the example:

Intercompany Organizations :

1. Oracle Hyderabad : created for Legal entity ‘Oracle Hyderabad’

2. Oracle Bangalore : created for Legal Entity ‘Oracle Bangalore’

Balancing segment values assigned to the two Legal entities:

1. Oracle Hyderabad : 1000, 1001

2. Oracle Bangalore : 1003, 2000

Transaction Type being used : Oracle_TAD

In the Example, we would be defining the rule for the combination

‘Flexfield Output type / Constant Value Type’.

Example: Transaction Accounting Derivation Rules with Flexfield

Output type / Constant Value Type

We would be defining a TADR that will default the Initiator Distribution

Account to ‘00.1000.3001.1000.00’ whenever the Initiator Intercompany

Organization would be ‘Oracle Hyderabad’.

Navigation :

IC SLA Developer TRY responsibility (responsibility that you have defined

in Step 1 above)

Sub ledger Accounting Setup > Transaction Account Builder Setup >

Account Derivation Rules


Since the responsibility being used is defined for the Application ‘Financials

Common Modules’, the Application here is hard coded.

Click on ‘New’ to define the TADR.


Enter the Rule code and Rule Name

Select the Recipient Ledger’s Chart of Account in Transaction and

Accounting Chart of Accounts fields. In this example, it is selected as

‘Oracle Accounting’.

Select Output type as ‘’Flex field’’

Enter the Priority Number ‘’1’’

Choose the Value Type as ‘’Constant’’

Enter the Value as code combination that we wish to default. As

mentioned before, for this example, we are using

‘00.1000.3001.1000.00’.

After entering the above required information, click on ‘Conditions’, to enter

the conditions that should be met, for System to generate the Distribution

Accounts for Initiator side.

Here you need to enter the following conditions

Sequence : Sequence Number

Source : Intercompany Initiator Organization(since in this

example the condition is based on the Intercompany

Organization)

Operator : select ’=’

Choose the Value Type as ‘’Constant’’


Choose AGIS Intercompany Initiator Organization name in the LOV of

’Value’

Click on SAVE

Thus our TADR is defined here. Following the same steps, we can define

rules for the Initiator Clearing Accounts.

Recipient Distribution TADR

Enter the Rule code and Rule Name.

Select the Recipient Chart of Account name in Transaction and

Accounting Chart of Accounts LOV

Select Output type as ‘Flex field’

Enter the Priority Number ‘1’

Choose the Value Type as ‘Constant’


Enter the Value as code combination ‘00.2000.4001.1000.00’

After entering the above required information, click on ‘Conditions’ to

generate the Recipient Distribution Accounts. Once this condition is met

then system would generate the Distribution Accounts for Recipient side.

Click on Condition Button

Here you need to enter the following conditions

Sequence : Sequence Number

Source : Intercompany Recipient Organization

Operator : Here user can select the following operators as ‘’=’

Value Type : Choose value Type as ‘’Constant’’

Value : Choose Intercompany AGIS Recipient Organization

name.

Click on SAVE

Note: - Repeat the same Setup steps for Recipient Clearing Accounts by

changing the Constant value as ‘00.2000.9002.1000.00’ with same

condition.


Step 3 : Define Transaction Account Definitions

Define the Transaction Account Definitions to assign the Account

Derivation rules to TAD

Navigation path to Define Transaction Account Definition

Navigation :- IC SLA Developer TRY

Sub ledger Accounting Setup -> Transaction Account Builder -

>Transaction Account Definitions

To Define the Transaction Account Definition click on ‘Create Transaction

Account Definition’ button


Enter Transaction Account Definition Code

Enter Transaction Account Definition Name

Select Chart of Accounts Name from LOV

Click on ‘’Continue’’ Button

To assign Account Derivation rules Click on ‘Assign Rule’ Button for

AGIS Initiator Intercompany Distribution Account

Since Output Type in this Example is Flexfield, Select ‘* Segment’ as

‘All Segments’.

Select ‘* Account Derivation Rule’ as ‘INITIATOR DISTRIBUTION’


In the same way assign Rules for

AGIS Initiator Intercompany Clearing Accounts

AGIS Recipient Distribution Accounts

AGIS Recipient Intercompany Clearing Accounts

After completing all the assignments, Click on ‘Apply’ Button.

Note: - In the same way the Transaction Accounting Derivation Rules with

Segment Rules can be defined with the required Conditions. While assigning

the ADR to TAD, it will have to be assigned for each Segment instead of a

single assignment of ‘All Segments’.


Step4 : Compile the Transaction Account Definitions.

The validation status for the TAD Code at this stage would be ‘Not

Validated’

To validate the definition, run the following Program :

1. Transaction Account Builder - Generate API Objects

2. Transaction Account Builder - Validate Transaction Account Definitions


Once the requests complete successfully, query the TAD and Validate it:

Select the TAD name and click on ‘Validate’ button

TAD status should now become ‘Valid’


TAD Code with ‘Valid’ status is ready to be used and can be assigned to the

Ledger.


Step5 : Assign Transaction Account Definitions to the Ledger.

Assign the TAD to Ledger to generate the distribution and clearing accounts

based on Transaction type/Organization.

To assign the TAD to Ledger use the following navigation

General Ledger responsibility

Setup-> Financials ->Accounting Setup Manager ->Accounting Setups

Query the Ledger and Click on Update Accounting Option

Click on ‘Update’ icon for Intercompany Accounts.

Select the TAD defined and Click on ‘Done’.

This completes the TAD setup.


When an AGIS batch is entered, click on Add line button such that system

would automatically populate the Initiator and Recipient Distributions

accounts

The Distribution Account will get defaulted as follows:

Initiator Intercompany Clearing Accounts and Recipient Intercompany

Clearing Accounts would be generated after approving the AGIS batch

Once the AGIS Batch is Approved, System will generate the Accounting

code combinations as below.


Thus TAD has defaulted the Distribution and the Clearing Accounts as per

the requirement.


White Paper Title: Oracle Applications Advanced Global Inter Company Systems : Transaction Account

Definition (TAD) In Release 12

May 2011

Author: Sivaranganath Chittaprada

Contributing Authors:

Oracle Corporation

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