InterOffice Solution Discussion

AGENDA
Process InterOffice Transactions
Intracompany Transaction Overview
Key Design and Guidelines

Accounts Payables Business Process Requirements Mapping

Inter-Office Cash Transfer Budget Releases/Excess: NBA Authority to Pay Transactions ATP Personal Services ATP Maintenance and Other Operating Expenses ATP Purchase of Fixed Assets

INTRACOMPANY TRANSACTION OVERVIEW

Intra Company balancing rules are used to create balancing lines on journals between balancing segment values either within the same legal entity. Intra Company balancing rules are used when more than one balancing segment value exists on a transaction or journal entry. Journal in General Ledger cannot be posted when the debit and credit amounts for each balancing segment value do not net to zero. These journals can be balanced automatically by setting up the balancing rules and enabling the option to balance cross-entity journals.

KEY DESIGN AND GUIDELINES

Create New Accounting Structure: PPA_ACCTG_FF

KEY DESIGN AND GUIDELINES

Define the segments for the structure PPA_ACCTG_FF assign same value set for company segment and the Intracompany segment Assign Flexfield Qualifiers to all the segments including the Intercompany Segment

Intracompany Segment

Intracompany Segment Qualifiers

KEY DESIGN AND GUIDELINES

Same Values for Value Sets: Operating Unit and Intracompany Segment

KEY DESIGN AND GUIDELINES

Enable Intracompany Balancing

KEY DESIGN AND GUIDELINES

Create Rule for No Legal Entity

Key Design and Guidelines

IMPACT OF INTRACOMPANY TO THE CURRENT COA
Current COA Structure Company - OU RC - Account Project ID Future 1 Future 2
The current COA structure do not have segment for intracompany transactions, with the existing setup intracompany transaction is not feasible.

Recommendation:
A new COA structure to implement intracompany trasactions Remove company segment and create intracompany segment

Pros:
Facilitate faster reconciliation of Due To/Fr accounts since InterCO entries are automatically generated by the system. Chances of committing mistakes will be minimized Receiving Office can easily check and follow-up for any impending cash transfer from Issuing Office by simply looking at the balance of Cash in Transit account

Process Flow Diagram (Option 1)

INTEROFFICE CASH TRANSFER BUDGET RELEASE AND EXCESS NBA
Notice of Budget Allocation/Excess NBA

AP - Issuing Office

AP-Issuing Office APTP 7.2 Create Payment Check Oracle AP

Automatic APTP 7.3 Notification to Receiving Office of Cash Transfer Workflow * Manual for off-line

APTP 7.1 Create Standard Invoice and Validate Intra Office Cash Transfer Invoice
Oracle AP

AR Receiving Office

Automatic APTP 7.5 Subledger Journals Post to GL Oracle GL

GL Analyst APTP 7.6 Run Trial Balance Reports Oracle GL

APTP 7.4 Create Miscellaneous Receipts Oracle AR

PROCESS FLOW DIAGRAM (OPTION 2)

Interoffice Cash Transfer Budget Release and Excess NBA
CM-Issuing Office CM - Issuing Office

Perform Bank to Bank Transfer

Create Accounting Entry: Final Post

Oracle CM

Oracle CM

Sample Entry:

Debit
4100-Cash in Bank 1100-Cash in Bank 4100-Due To/From 1100-Due To/From 50,000.00

Credit

Accounts Cash in Bank Due to/From

Issuing Office (50,000.00) 50,000.00

Receiving Office 50,000.00 (50,000.00)

Corp Book 0.00 0.00

50,000.00 50,000.00 50,000.00

Process Flow Diagram (Option 1)

AUTHORITY TO PAY PERSONAL SERVICES (PAYMENT THROUGH INDIVIDUAL VOUCHER)
AP - Issuing Office AP-Issuing Office APTP 8.2 Create Payment Check Oracle AP Automatic APTP 7.3 Notification to Receiving Office of Cash Transfer Workflow * Manual for off-line AP Receiving Office

APTP 8.1 Create Standard Invoice and Validate Intra Office Cash Transfer Invoice
Oracle AP

AR Receiving Office

AP Receiving Office

APTP 8.4 Create Miscellaneous Receipts Oracle AR

APTP 8.5
Create Standard Invoice and Validate Intra Office Cash Transfer Invoice Oracle GL

APTP 8.6 Create Payment Check

Oracle GL

Automatic APTP 7.5 Subledger Journals Post to GL Oracle GL

Automatic

APTP 7.6 Run Trial Balance Reports

Oracle GL

Process Flow Diagram (Option 2)

AUTHORITY TO PAY PERSONAL SERVICES (PAYMENT THROUGH INDIVIDUAL VOUCHER)
GL Issuing Office CM Issuing Office

Create Manual Encumbrance Entry and Post

Oracle GL
Sample Entry: Debit 1100-Expense-4100 50,000.00 1100-Reserve for Encumbrance Credit

Perform Bank to Bank Transfer

Oracle CM

50,000.00

CM Issuing Office

AP Receiving Office Create Standard Invoice Intra Office Cash Transfer Invoice Oracle AP
Sample Entry:

Perform Create Account Entry Final Post

Oracle CM
Sample Entry: Debit 4100-Cash in Bank 1100-Cash in Bank 4100-Due to/From 1100-Due to/From 50,000.00 50,000.00 50,000.00 50,000.00 Credit

Debit 1100-Expense 4100-Accounts Payable 1100-Due to/From 4100-Due to/From 50,000.00 50,000.00

Credit

50,000.00 50,000.00

Process Flow Diagram (Option 2)

AUTHORITY TO PAY PERSONAL SERVICES (PAYMENT THROUGH INDIVIDUAL VOUCHER)
GL Receiving Office AP Issuing Office
Validate and Create Accounting Entry Standard Invoice Intra Office Cash Transfer Invoice

Reverse Manual Encumbrance Entry Oracle GL

Oracle AP
Sample Entry: Debit Credit 1100-Expense 4100-Accounts Payable 1100-Due to/From 4100-Due to/From **IntraCO Entry 1100-Expense 1100-Reserve for Encumbrance **Encumbrance Entry 1100-Reserve for Encumbrance 1100-Expense **Encumbrance Entry Reversal Debit 50,000.00 50,000.00 50,000.00 50,000.00 Credit

Sample Entry:

1100-Reserve for Encumbrance 50,000.00 1100-Expense-4100 50,000.00

50,000.00 50,000.00

50,000.00 50,000.00

PROCESS FLOW DIAGRAM (OPTION 2)

Authority to Pay Personal Services (Payment through Individual Voucher)
AP Receiving Office
Create Payment Check/ Create Accounting Entry (Final Post)

Automatic

Run Trial Balance Reports

Oracle GL

Oracle GL
Sample Entry: Debit 4100-Accounts Payable 4100-Cash in Bank 50,000.00 Credit Accounts Expense Due to/From Cash in Bank

Issuing Office 50,000.00 0.00 (50,000.00)

Receiving Office 0.00 0.00

Corp Book 50,000.00 0.00 (50,000.00)

50,000.00

Accounts Payable

0.00

0.00

Process Flow Diagram (Option 1)

AUTHORITY TO PAY PERSONAL SERVICES (PAYMENT THROUGH PAYROLL)
AP - Issuing Office APTP 8.1 AP-Issuing Office APTP 8.2 Create Payment Check Oracle AP Automatic APTP 7.3 Notification to Receiving Office of Cash Transfer Workflow * Manual for off-line AP Receiving Office

APTP 8.1 Create Standard Invoice and Validate Intra Office Cash Transfer Invoice
Oracle AP

AR Receiving Office

AP Receiving Office

APTP 8.4 Create Miscellaneous Receipts Oracle AR

APTP 8.5 Create Prepayment Invoice and Validate Intra Office Cash Transfer Invoice
Oracle AP

APTP 8.6 Create Payment Check

Oracle AP

AP Receiving Office APTP 8.7 Create Standard Invoice (LIQ) and Approve Intra Office Cash Transfer Invoice
Oracle AP

AP Receiving Office
APTP 8.8 Prepayment Application
Oracle AP

PROCESS FLOW DIAGRAM (OPTION 1)

Authority to Pay Personal Services (Payment through Payroll)

A
Automatic
APTP 7.5 Subledger Journals Post to GL Oracle GL Automatic

APTP 7.6 Run Trial Balance Reports

Oracle GL

PROCESS FLOW DIAGRAM (OPTION 2)

Authority to Pay Personal Services (Payment through Payroll)
GL Issuing Office CM Issuing Office

Create Manual Encumbrance Entry and Post

Oracle GL
Sample Entry: Debit 1100-Expense-4100 50,000.00 1100-Reserve for Encumbrance Credit

Perform Bank to Bank Transfer

Oracle CM

50,000.00

CM Issuing Office

AP Receiving Office Create Prepayment Invoice Intra Office Cash Transfer Invoice Oracle AP
Sample Entry: Credit Debit Credit

Perform Create Account Entry Final Post

Oracle CM
Sample Entry: Debit 4100-Cash in Bank 1100-Cash in Bank 4100-Due to/From 1100-Due to/From 50,000.00 50,000.00 50,000.00 50,000.00

4100-Prepayment 4100-Accounts Payable

50,000.00
50,000.00

PROCESS FLOW DIAGRAM (OPTION 2)

Authority to Pay Personal Services (Payment through Payroll)
GL Receiving Office AP Issuing Office
Validate and Create Accounting Entry Prepayment Invoice Intra Office Cash Transfer Invoice

Reverse Manual Encumbrance Entry Oracle GL

Oracle AP
Sample Entry: Debit Credit 4100-Prepayment 4100-Accounts Payable Debit 50,000.00 50,000.00 Credit

Sample Entry:

1100-Reserve for Encumbrance 50,000.00 1100-Expense-4100 50,000.00

PROCESS FLOW DIAGRAM (OPTION 2)

Authority to Pay Personal Services (Payment through Payroll)
AP Receiving Office
Create Payment Check/ Create Accounting Entry (Final Post)

Automatic

Run Trial Balance Reports

Oracle GL

Oracle GL
Sample Entry: Debit Credit Accounts Prepayment 50,000.00 Due to/From Cash in Bank Accounts Payable 50,000.00

Issuing Office 50,000.00

Receiving Office 0.00 (50,000.00) (50,000.00) 0.00

Corp Book 50,000.00 0.00 (50,000.00) 0.00

4100-Accounts Payable 4100-Cash in Bank

50,000.00

Process Flow Diagram (Option 1)

AUTHORITY TO PAY MAINTENANCE AND OTHER OPERATING EXPENSES)
AP - Issuing Office AP-Issuing Office APTP 8.2 Create Payment Check Oracle AP Automatic APTP 7.3 Notification to Receiving Office of Cash Transfer Workflow * Manual for off-line AP Receiving Office

APTP 8.1 Create Standard Invoice and Validate Intra Office Cash Transfer Invoice
Oracle AP

AR Receiving Office

AP Receiving Office

APTP 8.4 Create Miscellaneous Receipts Oracle AR

APTP 8.5
Create Standard Invoice and Validate Intra Office Cash Transfer Invoice Oracle AP

APTP 8.6 Create Payment Check

Oracle AP

Automatic APTP 7.5 Subledger Journals Post to GL Oracle GL

Automatic

APTP 7.6 Run Trial Balance Reports

Oracle GL

Process Flow Diagram (Option 1 )

Authority to Pay Purchase of Fixed Assets)
AP - Issuing Office AP-Issuing Office APTP 8.2 Create Payment Check Oracle AP Automatic APTP 7.3 Notification to Receiving Office of Cash Transfer Workflow * Manual for off-line AP Receiving Office

APTP 8.1 Create Standard Invoice and Validate Intra Office Cash Transfer Invoice
Oracle AP

AR Receiving Office

AP Receiving Office
APTP 8.5 Create invoice and Validate Intra Office Cash Transfer Invoice (PO Matching)

APTP 8.4 Create Miscellaneous Receipts Oracle AR

APTP 8.6 Create Payment Check

Oracle AP

Oracle AP

Automatic APTP 7.5 Subledger Journals Post to GL Oracle GL

Automatic

APTP 7.6 Run Trial Balance Reports

Oracle GL