Advanced Global Intercompany System (AGIS) Functional Setup Part 1

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.

Advanced Global Intercompany Setup Part 2

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 intercompany 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

Advanced Global Intercompany Setup Part 3

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.

Advanced Global Intercompany(AGIS) Setup Part 4

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.

R12 AGIS : What makes Advanced in Oracle Apps

R12 AGIS : What makes Advanced

Since last fortnight,I was looking into R12 GIS Module, seems some of the old
features and functionlity have been greatly enhanced with addition of some more
new features introduced.The point which should be noted here is,R11i GIS get
new name commonly known as "Advanced Global Intercompany System" in short
'AGIS'. The difference is the prefix 'A', therfore will take a close microscopic view
on feature that makes 11i GIS into Advanced GIS of R12. Here are the candidate
features :
Ability to create invoices (AR and AP)
Oracle Advanced Global Intercompany System can create invoices in payables
and receivables sub ledger from intercompany transactions.
Using Oracle Advanced Global Intercompany System user can enter transactions
for multiple recipients within a single batch. This allows user to submit
intercompany transactions from one initiator to one or more recipients in a single
batch.
Proration of transaction distribution amounts
When user allocates more than one distribution account in a batch that has
multiple recipient transactions, Oracle Advanced Global Intercompany System
can automatically prorate the distribution amounts based on the recipient
transaction amounts. The proration of amounts is also used by Oracle Advanced
Global Intercompany System to adjust the distribution amounts in the batch when
a recipient transaction is deleted or it is rejected.
Upload Transaction Batches created in Excel
This was a missing link in the earlier version, as earlier product does not have
capability to use direct upload functionality, rather than interfacing through Open
GIS interface. In Release 12 ADI is heavily used in this module, which is
replacement of external integration for AGIS System using by mean of Microsoft
based Excel spreadsheet. Now flexibility is provided to user that can generate
spreadsheet templates that have features of intercompany entry pages and using
the templates the user can enter transactions in the spreadsheet and upload
them into Oracle Advanced Global Intercompany System. The good thing has
found the standard templates can be customized by removing or adding the entry
fields from a list of available fields. This feature is used to create a template that
contains only the entry fields that are important for the business. The required
fields cannot be removed from the template. Once the templates are generated,
user can save them in their local computer to reuse them in the future. This figure
describe the options available in both the versions.

Multiple recipients Support

Reversal of batch/transaction
This changed feature enables a user to reverse a whole batch or an individual
transaction in a batch. When the user reverses a batch or a transaction, a new
reversal batch is created, which displays the references to the original
transaction. One point to be noticed is that new batch is submitted automatically
immediately after it is created. Not both the parties (Sender /receiver), its only
users with access to the initiator organization can reverse its batches or
transactions. The set up is there where a user can choose a reversal method
determining if the new batch will be created with opposite signs, or with switched
debits and credits.
Descriptive flexfield support
In AGIS descriptive flexfields is supported on the batch and also on individual
transactions within the batch. Descriptive flexfields allow user to enter any
additional information specific to the nature of business, in the batch and in the
transactions. Important to note that these DFF can be used by sender. The user
can enter descriptive flexfield information for the recipient in the Recipient
Accounting section.
Flexible Approval Rules and Workflow Notifications
In R12, AGIS very similar to other module, home page displays notifications
about approval or rejection statuses of intercompany transactions. You should
note that notifications can be sent to the users via email. The rules for approvals
and notifications can be customized using Oracle Approval Management Engine
(AME), which allows the user to add extra approval rules and hierarchies to suit
their business needs.
Document attachment
The user can attach the documents for the batch as well as for each of the
transaction. When user submits the batch, the documents are transferred to
respective recipients.
Transaction security
Intercompany transactions entry pages incorporate various security features. The
user can enter transactions only for those intercompany organizations that are

assigned to the user. Other security features include minimum transaction

amount, control amount and function security.
For example:
Intercompany accountant processes intercompany transactions for many
intercompany organizations in the enterprise.What is different between these two
is :

R11i - Each responsibility has only one subsidiary assigned, therefore a

user can initiate intercompany transactions for one subsidiary from each
responsibility

R12 the user can initiate intercompany transactions for many trading
partners without changing responsibility
Intercompany Periods
The new Intercompany calendar gives the user the option to control
intercompany transaction processing by periods status.
What is observed in this functionality can be best describe as:
If a user wants to control intercompany cut-off dates, then the user can choose
which General Ledger calendar will be used to control transaction entry by
intercompany period status. Intercompany Calendar prevents users from entering
transactions in closed periods and from closing the period if open transactions
exist for the period user wants to close. When the user tries to close General
Ledger accounting period, or Oracle Payables period or Oracle Receivables
period while Intercompany Period is still open, the warning message can be
displayed informing user about the status of intercompany period.
Setup Profile Options
In AGIS there is no profile options that means these three as below intercompany
profile options used in R11i are obsolete in this release.

Intercompany: Protect Receiver Natural Account

ntercompany: Subsidiary

Intercompany: Use Automatic Transaction

Intercompany Reconciliation and Reporting
There are two new reports avaible in XML Publisher format

Intercompany Transaction Summary report

Intercompany Account Details report.

These reports replace reports that were available in the Global Intercompany
System (GIS) in Release 11i.
The new reports offer all of the functionality of the obsolete reports plus additional
benefits.
A bit on these 2 reports:
1)Intercompany Transaction Summary report replaces the Intercompany
Transaction Detail report and Unapproved Transaction Listing report.
The purpsoe of this report is to give user a clear overview of intercompany
transactions and their statuses, there so that day-to-day tasks and speeds up

period close activities.

This report also provides supporting documentation for intercompany
reconciliation and helps keep intercompany in balance by uncovering any
potential discrepancies.
2) Intercompany Account Details report replaces the Transaction Activity
Summary report
This new report provides a detailed listing of all accounting lines for intercompany
batches, grouped by transaction.
The report is divided into two sections:

one section for outbound batches

one section inbound transactions.
The outbound section shows transactions initiated by the organizations to which
the user has an access, the inbound section shows transactions received by
these organizations. The user can choose whether to include inbound, outbound,
or both sections in the report.
The user can run the report for one or many organizations to which the user is
given the access.
User can select what parameters like initiator, Recipient, GL Date range, Batch
Number range, Transaction Status, Currency, Batch Type, Invoice Number, and
many more to run the report by. User can run the report by ranges of initiator and
recipient accounts to see what transactions make up their balances

AGIS(Advanced Global InterCompany Organization) in R12

Intercompany Setup

This chapter covers the following topics:

Introduction
Setting up AGIS

Introduction
Advanced Global Intercompany System (AGIS) enables you to create, settle and
reconcile intercompany transactions. Intercompany transactions are transactions
that
occur between two related legal entities in an enterprise or between groups in the
same
legal entity.
1) Transactions that occur between two legal entities are called intercompany
transactions.
2)Transactions that occur between two groups within one legal entity are
called intracompany transactions.
The balances of the intercompany transactions must be eliminated or adjusted
when
preparing the consolidated financial statement, or it might result in overstated
financial
results, which in turn might lead to legal repercussions against the enterprise.
Intercompany transactions can be identified and eliminated by the use of specific
accounts to book these transactions. Defining these accounts allows you to book
transactions that are identified as intercompany transactions in the specific
accounts.
These accounts must be defined as a part of the General Ledger setup process.

Before you start working on AGIS, you must setup the following:
Complete the Accounting Setup Manager to set up General Ledger and legal
entities
Set up AGIS
Intercompany Transaction Processing
Intercompany Home Page
Use the Intercompany Home and Transaction pages to receive, respond to, and
initiate
intercompany transactions for multiple recipients. The transactions that you
receive are
inbound transactions and the transactions that you initiate are outbound
transactions.
The Intercompany Home displays the most recent transactions that require your
intervention. This page displays a summary of your open notifications, and a list
of five
most recently received transactions.
On the Home page, you can search transactions by Inbound or Outbound Batch
Number, or navigate to the Create Batch page to create an intercompany
transaction.
The Intercompany Transaction pages enables you to enter transactions
addressed to
multiple recipients thereby speeding up data entry and simplifying management
of
intercompany allocations.
Intercompany Transaction Page
There are two distinct flows for the Intercompany transaction entry and
processing: an
outbound transaction flow, and an inbound transaction flow. These flows are
implemented in the Transactions pages as tabs: Outbound and Inbound. The
Outbound
tab provides all the functions an initiator of an intercompany transaction can
perform.
The inbound tab provides all the functions a recipient of the transaction can
perform.
Outbound Transactions Page
Use the Outbound Batches page to create intercompany transactions in batch
mode,
submit them to the recipients for approval. Additionally, you can search,

personalize
views, create, and update batches. You can personalize and create new views.
You can create a batch for organizations you can access and include any number
of
recipients in the batch.
Creating a batch is a two-step process:
Enter the batch header and transactions.
Enter the batch expense or revenue distributions.
Transferring Transactions to General Ledger
Intercompany transactions that do not need invoices are directly transferred to
General
Ledger once approved.
Before you transfer the transactions, ensure the following:
The transfer options are set in the Setup tab
The corresponding period in general ledger is open
The transaction status is approved
The exchange rate exists between the intercompany and general ledger
currency if
they are different
The transaction date is specified for calculating the exchange rate
The workflow process transfers the intercompany transactions depending on the
options set in the System Options page of the Intercompany Setup tab. If you
select
Online mode, then no intervention is necessary, the initiator and recipient
workflow
transfers transactions on approval. If you select Batch mode, then you must run
the
concurrent request to transfer the transactions or schedule the concurrent
request.
Note: On successful transfer, the transaction status changes to
Transferred to Initiator GL or Transferred to Recipient GL respectively
for the initiator and recipient workflows. The Batch and Transaction
status is set to Complete once the transactions are transferred to both
initiator and recipient ledgers.
Intercompany only populates an interface table in General Ledger for
intercompany transactions. After Intercompany transfers the
transactions to the GL Interface tables, you must run or schedule the
GL Journal Import concurrent program to import these journals into
General Ledger for both the Online and Batch mode. The actual posting
of the transactions into the appropriate General Ledger accounting

tables is performed separately by the GL Posting process after the

journals are imported into General Ledger.
Transferring Transactions to Receivables and Payables
The initiator workflow transfers the intercompany transactions to Receivables to
create
invoices as required by legal or business requirements. After creating the
invoices,
Receivables updates the intercompany transactions with the invoice numbers
and
passes the number to the recipient workflow, which updates and transfers the
transaction to Payables.
Before you transfer the transactions, ensure the following:
Transfer options are set in the System Options page of the Intercompany Setup
tab.
Receivables Transaction Type, Receivables Memo Line are mapped to
intercompany transactions in the Invoicing Options subtab.
Customer and supplier associations are defined in the Invoicing Options subtab.
Transaction status is approved.
Transaction date is specified for calculating the exchange rate.
The application transfers the transactions to Receivables and Payables
depending on the
options set in the System Options page of the Intercompany Setup tab.
Execute the following steps to transfer the transactions in Online and Batch
modes.
To transfer the transactions in Online mode:
1. The user must approve the transaction.
The initiator workflow transfers the intercompany transaction details to the
Receivables Interface tables and the transaction status changes to Transferred to
Receivables.
2. Run the Receivables AutoInvoice Program or schedule it to run at regular
intervals.
On successful completion of the Receivables AutoInvoice Program, the invoice
number is updated on the Intercompany transaction and the recipient workflow
transfers the intercompany transaction details to Payables Interface tables and
the
transaction status changes to Complete.

3. Run the Payables Open Interface Program or schedule it to run at regular

intervals.
To transfer the transactions in Batch mode:
1. The user must approve the transaction.
2. Run the Transfer Intercompany Transactions to Receivables or schedule it to
run at
regular intervals.
The transaction status changes to Transferred to Receivables.
3. Run the Receivables AutoInvoice Program or schedule it to run at regular
intervals.
On successful completion of the Receivables AutoInvoice Program, the invoice
number is updated on the intercompany transaction.
4. Run the Transfer Intercompany Transactions to Payables or schedule it to run
at
regular intervals.
The transaction status changes to Complete.
5. Run the Payables Open Interface Program or schedule it to run at regular
intervals