Professional Documents
Culture Documents
Applies To:: Apr 10, 2015 Howto
Applies To:: Apr 10, 2015 Howto
How to Add a New Legal Entity, Ledger and Operating Unit for a New Country (Doc ID 1064366.1)
Modified: Apr 10, 2015 Type: HOWTO
In this Document
Goal
E-Business Tax Information Center > EBTax Integration With EBS Modules > Legal Entity Manager > Note 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:
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
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.
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.
1 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
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?
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.
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.
2 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
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.
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.
3 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
4 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
5 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
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.
An Operating Unit can be defined from many different responsibilities. For this example we are using the seeded "Receivables Manager"
responsibility.
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"
6 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
To have the OUs available, Submit the request 'Security List Maintenance' from the HR responsibility
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.
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
7 of 8 7/16/2019, 11:35 AM
Document 1064366.1 https://support.oracle.com/epmos/faces/DocContentDisplay?_adf.ctrl-sta...
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:577996.1 - Case Study: Setup R12 E-Business Tax (EBTax) for Canada: Includes 2010 HST Changes
NOTE:1104887.1 - How to Setup a Legal Address Using HR Address Formats in R12 Legal Entity Configurator
Didn't find what you are looking for?
8 of 8 7/16/2019, 11:35 AM