How Intercompany Allocations Are Generated

The two processes you can use for intercompany allocation generation are Generate Intercompany Allocations and Generate General Ledger Allocations. You can use both processes for single-ledger allocations or cross-ledger allocations. The Generate Intercompany Allocations process updates Oracle Fusion Intercompany tables.

The Generate General Ledger Allocations process updates Oracle Fusion General Ledger tables.

Settings That Affect Intercompany Allocations

The following table describes the parameters for the Generate Intercompany Allocations and Generate General Ledger Allocations processes.

Parameter	Generate Intercompany Allocation Process	Generate General Ledger Allocations Process
Rule or Rule Set	Select the rule or rule set to create allocation calculations.	Select the rule or rule set to create allocation calculations.
Intercompany Transaction Type	Select the type of transactions that are grouped together and are identified by the type of intercompany transaction.	Not Applicable
Post Allocations	Not Applicable	Select to book amounts spread from one account to another.
Process Cross-Ledger Allocations	Not Applicable	Process allocations that run across more than one ledger.
Use Intercompany Accounts	Not Applicable	Post allocation transactions to the intercompany accounts determined by the FUN application programming interface (API). This option appears only for cross-ledger allocations.
Use Suspense Account	Not Applicable	Post allocation transactions to the suspense account, if one exists. Cross-ledger allocations are processed using Journal Import. This option appears only for cross-ledger allocations.

How Intercompany Allocations are Processed Using the Generate Intercompany Allocations Process

The Generate Intercompany Allocations process:

1. Calls the FUN API to create intercompany transactions and process the allocation lines.

2. Extracts the allocation lines from the General Ledger interface table and populates the Intercompany interface tables.

3. Removes the allocation lines from the General Ledger interface table upon successfully populating the Intercompany interface tables.

4. Generates a batch by provider legal entity and groups lines by receiver legal entity so that there is one transaction per legal entity.

5. Uses the entered currency amounts for populating the Intercompany interface tables.

How Intercompany Allocations are Processed Using the Generate General Ledger Allocations Process

The Generate General Ledger Allocations process:

1. Uses Journal Import to process the intercompany allocations if you select to post allocations for single ledger journals.

2. Calls the FUN API to generate the intercompany accounts if the rule or rule set contains cross-ledger lines. You select to process cross-ledger allocations using the intercompany accounts.

   Note: If you select to process cross-ledger allocations using the suspense account, Journal Import processes the allocation lines.

3. Provides the intercompany receivables or intercompany payables account lines for cross-ledger allocations going to General Ledger.

4. Populates the General Ledger interface table with the appropriate line for each ledger of the cross-ledger allocation.