Skip Headers

Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12
Release 12.1
Part Number E13482-03
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Oracle Legal Entity Configurator

This chapter covers the following topics:

Overview

Oracle Legal Entity Configurator provides the ability to manage the legal corporate structure and track data from the legal perspective. Tracking data from the legal perspective will enable detailed reporting at legal entity, establishment, and registration level.

Legal Entity will impact all customers who use the HR model to define Legal Entities. After the upgrade, the users have to maintain the Legal Entity information using Legal Entity Configurator. Legal Entities (LEs) will exist as Trading Community Architecture (TCA) parties with legal information stored in the Legal Entity (XLE) Data Model. The subsidiaries of the Legal Entities will be defined as Establishments. The Establishments will also be defined as parties with legal information stored in the Legal Entity (XLE) Data Model.

Data from a number of sources in Release 11i are migrated to the Legal Entity Configurator in Release 12.

Please see Financials Concepts documentation for more information on Legal Entities and Establishments.

The key changes from Release 11i to Release 12 are below.

Legal Entity Data Migration

During the Upgrade of Release 11i to Release 12, GRE/LEs, AP Reporting Entities, VAT Reporters, Brazilian Companies, and Global Descriptive Flexfields used to represent/store legal information will be migrated to the common legal entity model.

HRMS Organizations with a classification of GRE/Legal Entity will be used to create legal entities. The information on the developer descriptive flex field Legal Entity Accounting attached to the GRE/Legal Entity will be migrated to the legal entity model.

The HRMS Organizations with a classification of GRE/Legal Entity will continue to exist for the purposes of HRMS product. The developer Descriptive Flexfield Legal Entity Accounting attached to the HRMS Organization with a classification of GRE/Legal Entity will be disabled.

HRMS Organizations with a classification of Operating Unit and Inventory Organization will be used to create establishments. The HRMS Organizations with a classification of Operating Unit and Inventory Organization will continue to function in the same way as in Release 11i.

Legal Information found in AP Reporting Entities, VAT reporters, Brazilian Companies and Global Descriptive Flexfields will be migrated to the Legal Entity Configurator.

The Legal Entity Configurator will replace features like VAT reporters, Brazilian Companies and Global Descriptive Flexfields that contain legal information.

The Reporting Entities will continue to exist only to support 1099 reporting.

After the upgrade, all features that access or report legal information will be referring to the new Legal Entity Configurator.

Legal Associations

To enable tax calculation based on existing parameters, the association between an establishment and HRMS organizations with a classification of operating unit, inventory organization, ship to location, bill to location and inventory location will be migrated.

To enable Brazilian legal reporting, the association between the establishments and the Balancing Segment Values (BSV) will be migrated. In Release 11i, the Brazilian companies contain legal information, set of books, and BSV information. These Brazilian companies will be migrated as establishments and an association between the establishments and the BSV will be built based on the existing information.

After the upgrade, these associations can be maintained through the Legal Entity Configurator.

GRE/Legal Entity, Operating Unit, and Inventory Organization

The HRMS organization with a classification of GRE/Legal Entity is where most of today's Legal Entity information can be found. A developer's Descriptive Flexfield Legal Entity Accounting, attached to the HRMS organization, with a classification of GRE/Legal Entity, allows users to store legal information for various HRMS, Financials, and other product functions. The information from the developer Descriptive Flexfield Legal Entity Accounting and the HRMS organization with a classification of GRE/Legal Entity will be used to create legal entities. After the upgrade, the HRMS organization with a classification of GRE/Legal Entity will continue to exist for the purposes of HRMS. The developer Descriptive Flexfield Legal Entity Accounting will be disabled.

HRMS organizations with a classification of Operating Unit and Inventory Organization are often related to the GRE/Legal Entity and will be migrated as establishments of the Legal Entity. After the upgrade, the HRMS Organizations with a classification of Operating Unit and Inventory Organization will continue to function in the same way as in Release 11i.

Refer to Financials Concepts documentation for more information on Legal Entities and Establishments.

Upgrade Assumptions for GRE/Legal Entity

The creation of legal entities via migration from HRMS organizations with a classification of GRE/Legal Entity to the Legal Entity data model will be based on the following assumptions:

Upgrade Assumptions for Operating Units and Inventory Organizations

The creation of establishments through the migration from HRMS organizations with a classification of operating unit and inventory organization to the Legal Entity data model will be based on the assumptions described below.

Assumptions similar to those outlined for organizations with an Operating Unit classification will also be made for Inventory organizations with the intention of creating Secondary Establishments.

No other classification of organization other than the operating unit classification or the inventory organization classification will be considered for migrating as Establishments.

Main Establishments

Regarding Main Establishments:

Secondary Establishments

Regarding Secondary Establishments:

Not Migrated

For those organizations with both GRE/Legal Entity and Operating Unit classifications, and where the Operating Unit points to a different Legal Entity, the information will not be migrated.

Country-Specific Upgrade Assumptions for Legal Contacts and Legal Authorities

Country-Specific Upgrade Assumptions for Legal Contacts and Legal Authorities are as follows:

Stamping of Legal Entities on Transactions

A column called LEGAL_ENTITY_ID has been added to some of the transaction tables like AR Transactions, AR Receipts, and so forth. The individual products handle the upgrade of stamping transactions with the legal entity ID.

Upgrade Assumptions

The upgrade assumptions regarding legal-entity stamping on transactions are:

Postupgrade Step

Review the Legal Entities and other legal information that have been migrated using the Legal Entity Configurator user UIs. All legal objects that meet the upgrade assumptions listed previously will be migrated and available for use as legal entities.

For Brazil:

For France:

The association between the balancing segment values (BSV) and establishments are not automatically created. To support DAS2 reporting, an association between the BSVs and the establishments can be done using the Legal Entity Configurator UIs.