Create Legal Entity

Legal Entity – Legal entities are tax reporting entities of an organization. They are the body of the company which complies with legal norms and tax reporting for government agencies. If you have business in multiple regions where legal obligations and tax rules are different, then you need to have multiple legal entities.

Create Primary Ledgers

Ledgers – Ledgers are the financial reporting entity within organization. It is a unique combination of 3 components. In R12 a fourth component is introduced that gives flexibility to control sub ledgers (OM/AR/AP etc.) accounting.

1. Chart of Account
2. Currency
3. Calendar
4. Sub Ledger Accounting

All the accounting entries are captured in Ledgers. In 11i its called Set of Books having 3 components (Chart of Account, Currency and Calendar).

Create Multi Organization Structure

As we discussed in our last post ‘Multi Organization – An Overview’ we discussed the structure and brief details of multi organization, now its time to take it further and define all of them. The idea is to setup your own structure of business and configure the system so that we get every aspect of it and learn more.