Product: Oracle Fusion Intercompany

Product Version: 1.0

Doc Revision: 1.2
Authors: Bernardine Rogers
Guide Category: Setup FCR – Setup and Maintain Intercompany Processing Rules

Summary:
This document describes troubleshooting tips for intercompany balancing including the
intercompany balancing rules and ledger balancing options set up.

Problem Catalog:
1. Journals and subledger accounting entries are not being balanced for intercompany activity...........1
2. Intercompany balancing lines are not generated for some journals and subledger accounting entries
in a ledger....................................................................................................................................................2
3. When do you need to set up Ledger Balancing Options?........................................................................3
4. Create accounting is showing an error FUN_LEDGER_BALRULE_NOT_DEFINED.....................................3
5. Intercompany Balancing fails due to Segment Security Rules.................................................................4
6. Intercompany accounts not being generated due to validation failures.................................................4
7. Intercompany balancing fails for Many-to-Many journal........................................................................5
8. The Create Accounting program in Payables is generating errors for several Event Classes due to
intercompany balancing..............................................................................................................................5
9. Intercompany balancing in debug mode.............................................................................................5
10. Intercompany balancing lines appear to be incorrect.....................................................................7
11. Scripts to work with extremely large journals and subledger accounting entries...........................8
12. M-M legal entity journals................................................................................................................9

Problems & Solutions:

1. Journals and subledger accounting entries are not being balanced for intercompany
activity

Problem:
You have a journal or subledger accounting entry that crosses more than one primary balancing
segment value or legal entity but intercompany balancing lines are not generated.

Solution:
Verify that the Enable Intercompany Accounting is checked on the Specify Ledger Options page
for the relevant ledger.

Validation (if applicable):

N/A

2. Intercompany balancing lines are not generated for some journals and subledger
accounting entries in a ledger.

Problem:
Intercompany balancing fails to generate intercompany balancing lines in some journals and
subledger accounting lines.

Solution:
Check the following.

a) Rules need to be set up for the correct Source and Category or alternatively a rule needs
to be set up for Source=Other and Category=Other to cover all sources and categories
b) The accounting date of the journal or subledger accounting entry must fall within the date
range of a valid intercompany balancing rule
c) Have at least one chart of accounts rule to ensure balancing does not fail. The chart of
accounts rule is used as the last rule in the order of precedence.
d) Check cross validation rules to see if they will prevent the creation of the intercompany
accounts needed for balancing
e) Check if the journal header has a value populated for the primary balancing segment
(usually the Company segment) that might be prevent the intercompany account from
being generated

Validation (if applicable):

N/A.
3. When do you need to set up Ledger Balancing Options?

Problem:
You want to determine the circumstances under which ledger balancing options are required.

Solution:
Set up Ledger Balancing Options if you have one or more of the following:
1) You use balancing segment (BSV) 2 and/or 3
2) You want to use clearing company options
3) You want to change the default summarization option (which is Summarize) used by
Balancing when a journal has multiple lines within the same legal entity
4) If you expect that journals will have many to many primary balancing segment values within a
legal entity, and you do not want the journal to error change the Condition option to be Use for
Many to Many Journal, and the Source to be Default Rule.

Validation (if applicable):

N/A

4. Create accounting is showing an error FUN_LEDGER_BALRULE_NOT_DEFINED

Problem:
The SLA Create Accounting process is showing an error for a specific transaction. The error is
that there are no intercompany rules defined. However it appears that rules have been defined.

Solution:
Check the following:

a) Rules need to be set up for the correct Source and Category or alternatively a rule needs
to be set up for Source=Other and Category=Other to cover all sources and categories
b) The accounting date of the journal or subledger accounting entry must fall within the date
range of a valid intercompany balancing rule
c) If the chart of accounts structure has balancing segments 2 or 3 enabled, intercompany
ledger balancing rules must be set up for the ledger.

Validation (if applicable):

N/A
5. Intercompany Balancing fails due to Segment Security Rules

Problem:
The Balancing API is not generating intercompany balancing rules even though balancing rules
have been set up.

Solution:
If the same value set is used for the primary balancing segment and the intercompany segment
and security rules are set up in GL for the value set, there may be issues with balancing.
The work around is to have two value sets; one for the primary balancing segment and the other
for the intercompany segment. The values in each value set must be identical to avoid errors with
intercompany balancing.

Validation (if applicable):

N/A

6. Intercompany accounts not being generated due to validation failures

Problem:
The Balancing API is not able to generate the intercompany accounts.

Solution:
The intercompany account must pass the following validations.

1. Must be available in GL_CODE_COMBINATIONS table or dynamic inserts must be

turned on.
2. Must be enabled
3. Detail posting flag should be enabled
4. Summary flag should be disabled
5. The start/end dates of the account combination and the individual segment values must
cover the accounting date for the transaction
6. Journal Entry posting must be allowed

Check that the segment values of the intercompany account to be built will pass all of the above
validation.

Validation (if applicable):

N/A

7. Intercompany balancing fails for Many-to-Many journal

Problem:
The Balancing API fails to generate balancing lines for a journal because it has many debit and
many credit entries and each side has many legal entities.

Solution:
Many-to-Many balancing (i.e. many legal entities to many legal entities) is not supported for
Fusion Version 1.

Split the journal so that you only have journals with One-to-Many or Many-to-One legal entities.

Validation (if applicable):

N/A

8. The Create Accounting program in Payables is generating errors for several Event
Classes due to intercompany balancing

Problem:
Payables accounting entries cannot be generated when intercompany balancing is required.

Solution:
A patch for Bug 14223018 will need to be applied.

Validation (if applicable):

N/A

9. Intercompany balancing in debug mode

Problem:
You have a journal or subledger accounting entry that has an error status indicating an
intercompany balancing issue but no error code is displayed in the Create Accounting or Posting
programs. Prior to release 7 intercompany balancing error codes were not displayed in the log
files.
Solution:
You may not see the error code generated by the Balancing process in the Create Accounting or
Posting processes. Follow the steps below to view the error. You will need to first enable the
GL_DEBUG_MODE profile option.

A. Intercompany Errors Tables

a. Check that the ‘Debug Mode’ profile option can be updated by the user. Navigate to
Manage Profile Options task and search for profile display name %Debug%
b. Ensure the ‘Updateable’ check box for this profile option is enabled at the User level.
c. Navigate to Manage General Ledger Profile Options and search for the profile display
name ‘Debug Mode’ (this should be profile option code GL_DEBUG_MODE)
d. Turn this profile option on for the user.
e. Run the process with the issue (i.e. Create Accounting or Posting).
f. Check the following files for any error codes

select * from fusion.fun_bal_errors_t;

select * from fusion.fun_bal_lines_t;
select * from fusion.fun_bal_headers_t;
select * from fusion.fun_bal_results_t;

B. Balancing PL/SQL Log File

1) Enable FND Logging by modifying the following profile values

AFLOG_ENABLED Y
AFLOG_LEVEL FINEST
AFLOG_MODULE %
AFLOG_PLSQL_FILENAME (Check the value of file location)

2) Run the SLA accounting program.

3) To View PL/SQL Logs, navigate to one of the following locations, and open the log file:

- If the AFLOG_PLSQL_FILENAME profile option is set, navigate to the location and file name
set by the value of the profile option.

- If the AFLOG_PLSQL_FILENAME profile option is not set, navigate to the location set by
the APPLLOG_DIR directory object in the database, and open the diagnostic.log file. (select
DIRECTORY_PATH from ALL_DIRECTORIES where DIRECTORY_NAME =  'APPLLOG_DIR')

Validation (if applicable):

N/A

10. Intercompany balancing lines appear to be incorrect

Problem:
You believe the intercompany balancing lines generated for a journal or subledger accounting
entry are incorrect.

Solution:
Obtain the following information to help determine if the intercompany lines generated are
correct.

a. Screen shot of Intercompany Balancing Rules for all levels, Chart of Accounts,
Ledger, Legal Entity and Primary Balancing Segment Value
Path: Define and Maintain Intercompany Processing Rules > Manage Intercompany
Balancing Rules

Path: Define and Maintain Intercompany Processing Rules > Manage Ledger
Balancing Options

b. Screen shot of Balancing segment to legal entity assignments and balancing segment
to ledger assignments
Path: Define Ledgers > Define Accounting Configurations > Assign Balancing
Segment Values to Legal Entities

Path: Define Ledgers > Define Accounting Configurations > Assign Balancing
Segment Values to Ledger

Validation (if applicable):

This is an example of the subledger accounting lines of a payment, where both intercompany and
intracompany lines are generated.

The Balancing Segment Value to Legal Entities assignments is shown below.

Legal Entity Balancing Segment Value

InFusion USA 3111, 3121
InFusion China 3341
The subledger accounting after intercompany balancing lines are generated is shown in the table
below. Intercompany balancing across legal entities is completed before intracompany balancing
between balancing segment values for each legal entity is done.

The net amount for balancing segment values 3111 and 3121 is used for intercompany balancing
because both these values are assigned to the same legal entity. Once intercompany balancing
between legal entities is completed, intracompany balancing is done to generate the
intracompany lines shown below.

Accounting Account Debit Credit Legal Entity

Class
Cash 3121.01.1000.11010.0000 12,669.1 InFusion USA
3
Liability 3111.01.1000.22010.0000 1500.00 InFusion USA

Liability 3111.01.1000.22010.0000 50.00 InFusion USA

Liability 3111.01.1000.22010.0000 2515.00 InFusion USA

Liability 3341.06.1000.22010.0000 8604.13 InFusion

China
Intercompany 3111.00.0000.13011.3341 8604.13

Intercompany 3341.00.0000.21081.3111 8604.13

Intracompany 3121.00.0000.13011.3111 12669.13

Intracompany 3111.00.0000.21081.3121 12669.13

11. Scripts to work with extremely large journals and subledger accounting entries

Problem:
The customer has a large journal and if is too large to manage in Excel or the accounting entry
has been processed in Draft mode so an export to Excel is not feasible.

Solution:
Use the following scripts to obtain totals by primary balancing segment values for your analysis.

1. General Ledger Journal

 SELECT glc.SEGMENTn (PBSV segment number), SUM(jel.entered_dr),
SUM(jel.entered_cr), SUM(jel.accounted_dr), SUM(jel.accounted_cr)
FROM fusion.gl_je_lines jel,
fusion.gl_code_combinations glc
WHERE jel.code_combination_id = glc.code_combination_id
AND jel.je_header_id = :JE_HEADER_ID
GROUP BY glc.SEGMENTn (PBSV segment number)

2. Subledger Accounting Entry

SELECT glc.SEGMENTn (PBSV segment number) PBSV, SUM(ael.entered_dr),

SUM(ael.entered_cr), SUM(ael.accounted_dr),
SUM(ael.accounted_cr)
FROM fusion.xla_ae_lines ael,
fusion.gl_code_combinations glc
WHERE ael.code_combination_id = glc.code_combination_id AND
ael.ae_header_id = (AE header ID) AND ael.ACCOUNTING_CLASS_CODE NOT IN
('INTER', 'INTRA', 'BALANCE', 'RFE', 'ROUNDING') GROUP BY glc.SEGMENTn
(PBSV segment number)

Validation (if applicable):

N/A

12. M-M legal entity journals

Problem:
You need to balance accounting entries with many legal entity debit lines and many legal entity
credit lines.

Solution:
The feature is available in release 9 (Bug 9343549) with back ports available as follows.

Release 8 - 17584047
Release 7 - 18309172
Release 4 - 17612093

a) Set clearing company condition, source and value for the ledger so that a clearing
company can be used to balance many-to-many LE accounting entries.

b) Choose the condition ‘Use clearing company for many-to-many journals only’
and this will apply to both M-M legal entity entries (intercompany) as well as M-
M primary balancing segment entries (intracompany)
 c) Choose the ‘Default clearing balancing segment value’ for Source and select a
primary balancing segment value to be used for M-M balancing. Do not select
‘Default Rule’ even if it is available (Bug 19517685). Do not select ‘Manually
entered clearing balancing segment value’ if you use subledger accounting since
there is no opportunity to manually enter a value when the Create Accounting
process runs.

d) Ensure you have a ledger level or chart of accounts level intercompany balancing
rule which will be used to generate the clearing accounts. The balancing API does
not use legal entity and primary balancing intercompany rules to balance a M-M
legal entity journal because it is not possible to identify the trading partner of a
given legal entity/primary balancing segment value.

Validation (if applicable):

This is an example of the accounting lines of a many-to-many LE journal.

The Balancing Segment Value to Legal Entities assignments is shown below.

Legal Entity Balancing Segment Value

InFusion USA 3111
InFusion China 3341
InFusion Canada 3351
InFusion France 3361

Balancing options for the ledger have been set as follows.

Condition Source Value

Use clearing company for many-to-many Default clearing balancing 3999

journals only segment value

A chart of accounts intercompany balancing rule for the source and category of ‘Other’ has been
set up as follows.

Sourc Category Receivables Account Payables Account

e (Co.BSV2.CC.Acct.IC) (Co.BSV2.CC.Acct.IC)
Other Other 3211.00.0000.13011.000 3211.00.0000.28011.0000
0
The balanced journal will have the following lines.

Account Debit Credit Legal Entity

(Co.BSV2.CC.Acct.IC)
3111.01.1000.11010.000 12,500.00 InFusion USA
0
3341.01.1000.22010.000 3,500.00 InFusion China
0
3351.01.1000.22010.000 10,500.0 InFusion Canada
0 0
3361.06.1000.22010.000 1,500.00 InFusion France
0
3999.00.0000.13011.311 12,500.00
1
3111.01.0000.28011.399 12,500.0
9 0
3999.00.0000.13011.334 3,500.00
1
3341.01.0000.28011.399 3,500.00
9
3999.00.0000.13011.335 10,500.0
1 0
3351.01.0000.28011.399 10,500.00
9
3999.00.0000.28011.336 1,500.00
1
3361.06.0000.13011.399 1,500.00
9