Release 12.1
Part Number E13482-03
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| Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12 Release 12.1 Part Number E13482-03 | Contents | Previous | Next |
This chapter covers the following topics:
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.
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.
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.
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.
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:
HRMS organizations with a classification of GRE/Legal Entity will be considered as candidates for migration.
HRMS organizations with a classification of GRE/Legal Entity that do not have any Legal Entity Accounting information, such as set of books information, will not be considered.
HRMS organizations with a classification of GRE/Legal Entity that do not have any address associated to it will not be considered.
If a candidate GRE/Legal Entity organization has no information in the country specific fields such as company name, inception date and others then the relevant data from the organization will be used.
Default values might be used in those cases where there is insufficient data. For those cases, a sequence number will be generated by the system.
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:
Data used in the migration for Legal Entity will be used to create both the Legal Entity and Establishment of type Main Establishment.
If a candidate organization with a classification of Operating Unit also has an accompanying GRE/Legal Entity classification, it will be assumed that the organization has already been upgraded and used in the creation of a Legal Entity and Establishment (type Main Establishment).
If a candidate organization with a classification of Operating Unit without an accompanying GRE/Legal Entity classification, but has the same location as the GRE/LE it is associated to will be used in creation of Establishment (type Main Establishment).
Secondary Establishments
Regarding Secondary Establishments:
Organizations with a classification of Operating Unit and no accompanying GRE/Legal Entity classification and are associated with a candidate GRE/Legal Entity will be considered as Secondary Establishments.
For some countries, such as Brazil, most of the Secondary Establishment information will come from various localization sources. Refer to the Country Specific Upgrade Assumptions section of this document for more information.
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 are as follows:
Portugal - The information in the Global Descriptive Flexfield attached to a Reporting Entity will be migrated as the Legal Authorities.
Singapore, Chile, Korea, Taiwan - The information in the Global Descriptive Flexfield attached to an HR Location will be migrated as the Legal Contacts.
Brazil - The information in the Global Descriptive Flexfield attached to a Reporting Entity will be migrated as the Legal Authority and Legal Contacts.
Belgium - The information found in the JEBE VAT Reporters form will be migrated as Legal Contacts.
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.
The upgrade assumptions regarding legal-entity stamping on transactions are:
The ID of the GRE/LE associated to the operating unit will be stamped as the legal entity ID on transactions.
In Release 11i, the subledger transactions are stamped with an operating unit ID; this operating unit is used to determine the legal entity.
When the legal entities are created based of the GRE/LE, the ID from the GRE/LE is copied over as the ID of the XLE Legal Entity.
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:
The Brazilian companies defined in the Brazilian Company Information form for Brazil are assumed to represent establishments. Each GRE/LE is related to a Brazilian company through the set of books and has a many-to-one relationship.
The information found in the Brazilian company information form will be used to create secondary establishments.
The Brazilian companies also stores the balancing segment value. This balancing segment value denotes how the Brazilian companies are accounted for in the set of books. Based on this information, an association between the BSV and the establishments is created.
The assumption for creating this association is based on the fact, that there is single GRE/LE that is associated to the same set of books as the Brazilian companies set of books. If this assumption is not met, the association between the BSV and the establishments is not automatically migrated and should be manually created.
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.
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