How to
Add a New Legal Entity, Ledger and Operating Unit for a New Country [ID
1064366.1]
Solution
Step 1 - Set Up Country Geography
Hierarchy in TCA
Step 2 - Create a Legal Entity
Step 3 - Validate Legal Entity,
Establishment and Registration
Step 4 - Set up a Ledger for the new Legal
Entity
Step 5 - Set Up an Operating Unit
Step 6 - Associate the Operating Unit with
the Legal Establishment
Step 7 - Run Replicate Seed Data
References Applies to:
Oracle
Legal Entity Configurator - Version: 12.0 and later [Release: 12.0 and later ]
Oracle
E-Business Tax - Version: 12.0 and later
[Release: 12.0 and later]
Oracle
General Ledger - Version: 12.0 and later
[Release: 12.0 and later]
Oracle
Human Resources - Version: 12.0 and later
[Release: 12.0 and later]
Information
in this document applies to any platform.
Goal
E-Business
Tax Information Center > EBTax Integration With EBS Modules > Legal
Entity Manager > Note 1064366.1
This
note was authored to provide a detailed example of the steps required to add a
new Legal Entity to an existing instance.
The scenario covered is the addition of a new country to an already
configured application environment.
The
original onus for this note was to provide expanded guidance for a customer
attempting to configure E-Business Tax for Canada using Case Study Note
577996.1. The steps documented within
this note should also hold true for other scenarios outside of E-Business
Tax. Note that this is not intended to
serve as a comprehensive note on setting up Legal Entities, Ledgers and
Operating units. Rather this is
attempting to show how these objects are linked together and in doing so,
remove some of the potential confusion that exists when performing this setup
using the various implementation manuals for HR, GL, Legal Entity and Tax.
Solution
Step 1
- Set Up Country Geography Hierarchy in TCA
Refer
to Note 554492.1 for details. This step
is required so that you can select the State/province from the list of values
when defining your Address.
Step 2
- Create a Legal Entity
Create
legal entities with minimum required information using the Create Legal Entity
page.
If you
create a legal entity from an existing organization, the country, organization
name, and organization number are defaulted from the organization. In this
case, the organization number is not updatable even if the HZ: Generate Party
Number profile option is set to No.
When
you create a legal entity, the main establishment is created automatically. The
legal entity territory, name, address, effective date, and other information
are defaulted to the main establishment. The establishment inherits the
registration number of the legal entity only if the establishment does not have
it own number.
Responsibility
- Legal Entity Manager
Navigation
- "Create a Legal Entity"
Enter
the required fields (See example below)
Territory:
The territory where the legal entity is registered. This list displays territories
at the country level and shows only territories for which the identifying
jurisdiction has been defined. Therefore, the territory determines the
identifying jurisdiction to which the legal entity needs to register. The
territory also determines the context for the information that needs to be
displayed in the General Information region.
For Canada the BIN number is one such field
How To
Add New Legal Entity Registration Code For Countries That Are Not Available In
The List?
For
example there is no Registration Code available for country China.
Solution
Please
follow the steps below to add a Registration Code for China or any other
country that is
not
listed in the LOV when defining Jurisdictions.
1) Log
in to the responsibility 'Application Developer'.
2) Go
to Menu (Application > Lookups > XLE Lookups).
3)
Query for the Lookup Type XLE_REG_CODE.
4) Add
a new Lookup Code for the country of your choice.
5)
Save the record.
6)
Bounce Apache.
7) Now
log into the responsibility 'Legal Entity Manager'
8) Go
to Jurisdictions (Setup > Jurisdictions)
9)
Define the new Jurisdiction for the Country and select your Reg Cod from LOV.
NOTE: These steps may also be required in order
for the country to appear in the LOV for territories. For example:
Vietnam must be added to the XLE_REG_CODE in order for the legal entity
to be created.
Organization
Number: The organization number is a number used to identify organizations.
This field is displayed only when the HZ: Generate Party Number profile option
is set to No. In this case, the main establishment organization number is built
as a concatenation of the legal entity organization number and ETB
(establishment). Otherwise it is not displayed and is generated automatically.
For example, if the legal entity organization number entered is 12536, the
establishment's organization number will be 12536ETB.
Legal
Entity Identifier: The identification number used to uniquely identify the
legal entity. It is displayed only when the LE: Generate Legal Entity
Identifier profile option set to No and you must enter it manually. If this
option is set to Yes, the legal entity identifier is generated automatically
based on the International Organization
for Standardization (ISO) code of the country of registration, plus the
registration number of the identifying jurisdiction, which qualifies an entity
to be a legal entity in that particular territory.
For
example:
Example
Territory:
Singapore
ISO
Country Code: SG
Registration
number of the identifying jurisdiction (RCN number) = 23231 (this is a user
enterable field)
If the
profile option is set to Yes, the legal entity identifier will be SG23231,
otherwise you are required to enter the legal entity identifier manually. If
you enter an identifier that is not unique, an error message will be displayed.
Registration
Number: The identifying jurisdiction determines the prompt for the registration
number (in the U.S., the EIN/TIN). The Establishment registration prompt is
displayed if it is defined for the identifying jurisdiction. In this case the
main establishment is created with this registration number. The registration
number
must be unique within a jurisdiction.
Legal
Address: The address a legal entity uses to register with a legal authority. A
legal entity may use different addresses for different authorities and hence,
may have more than one registered address. This legal address must be located
within the territory entered.
Place
Of Registration: Optionally enter the place of the legal entity registration.
Inception
Date Optionally enter the date of legal entity registration (creation). It can
be on or before the system date and on or after legal entity's inception date
but must not be a future date.
Once
the above information is entered, select "Save and add details"
Refer
to Note 1104887.1 for instructions on how to configure the Address Format used
for the Legal Address.
Step 3
- Validate Legal Entity, Establishment and Registration
After
saving the legal entity record will be displayed as follows.
Note
that in this test instance the organization number was updated. This occurred because we have our system
configured to automatically generated an organization number.
Make
sure the Registration was properly created
Make
sure the Legal Establishment was properly created
Step 4
- Set up a Ledger for the new Legal Entity
Responsibility-
General Ledger Super User
Navigation
- Setup : Financials : Accounting Setup Manager : Accounting Setups
Select
"Create Accounting Setup" then "Add Another Row"
Select
the Legal Entity created in step 2
Create
the new ledger (step 1 shown below, steps 2-4 not shown)
Once
finished, make sure the ledger status (circled in red) is showing with a green
checkbox. This is required in order for
the next step to begin.
Refer
to the Financials Implementation Guide, page 3-29 for more details on each of
the configuration settings available when setting up a ledger.
Step 5
- Set Up an Operating Unit
An
Operating Unit can be defined from many different responsibilities. For this example we are using the seeded
"Receivables Manager" responsibility.
Responsibility: Receivables Manager
Navigation: Setup : System : Organizations :
Organizations
Enter
the operating unit information as indicated below. Note that you select the Location defined in
the Legal Entity setup.
Once
saved and with the cursor on "Operating Unit", select
"Others" and then "Operating Unit Information"
Select
the data as indicated below
Step 6
- Associate the Operating Unit with the Legal Establishment
Responsibility:
Legal Entity Manager
From
the LE manager screen, click to view the legal entity created in step 2. Select the "Establishments" tab and
then "View Details"
Once
you have the establishments page open select "Associate Business
Entities" and then "Update"
Add a
row under "Operating Units" to link the legal establishment with the
operating unit.
Step 7
- Run Replicate Seed Data
At
this point the minimum setup requirements are completed. Proceed with running replicate seed data and
continue with the remainder of your implementation/configuration.
Replicate
Seed Data sets defaults in the system for an operating unit after it is created
To see
how to run replicate seed data, Refer to Note 134385.1 How to Run the Replicate
Seed Data Program
For
more details on the purpose of the seed data program refer to Note 274974.1
What Effect Does "Replicate Seed Data" concurrent request have on
Appls?
References
NOTE:1104887.1
- How to Setup a Legal Address Using HR Address Formats in R12 Legal Entity
Configurator
NOTE:577996.1
- Case Study: Setup R12 E-Business Tax (EBTax) for Canada: Includes 2010 HST
Changes
