Intercompany & Consolidation

Balancing rules, elimination entries, and financial close for multi-entity groups. Oracle Fusion intercompany configuration and group consolidation — balancing rules, elimination sets, consolidation ledgers, and the financial close process for multi-entity African groups. 12 hrs · 4 sessions. Overview Every organisation with more than one legal entity has intercompany transactions: goods sold between subsidiaries, services recharged across entities, loans and interest between group members, and the shared costs that need to be allocated. Oracle Fusion Finance has a powerful intercompany framework that automates the creation of the corresponding payable and receivable entries, enforces balancing across legal entities, and supports the elimination journals that remove intercompany transactions from consolidated financial statements. This course teaches Oracle Fusion intercompany from the configuration layer up. We cover the intercompany framework setup — trading partners, intercompany accounts, and the intercompany balancing rules that Oracle Fusion uses to create offsetting entries automatically. We work through the intercompany invoicing process: how a legal entity can invoice another legal entity within Oracle Fusion, how the invoices post to both the selling and buying ledger, and how to reconcile the intercompany balances between them. We cover the Oracle Financial Consolidation and Close (FCCS) integration for organisations that do formal group consolidation, and the simpler elimination ledger approach for groups that consolidate within standard Fusion GL. The African multi-entity context is central to this course. African groups frequently have complex intercompany structures: holding companies in Mauritius with operating subsidiaries across multiple African countries, different currencies with restricted convertibility, and statutory accounts that must eliminate intercompany transactions at different levels of the group hierarchy. All of these are addressed. Learning outcomes • Configure the Oracle Fusion intercompany framework — trading partners, intercompany accounts, and balancing rules — for a multi-entity group • Enable and operate the Oracle Fusion intercompany billing cycle from AR invoice in the selling entity to AP payment in the buying entity • Design and implement elimination sets for intercompany revenue/expense elimination and investment elimination in the consolidation • Reconcile intercompany clearing accounts at period end and identify the source of any out-of-balance positions • Advise on the choice between elimination ledgers and FCCS integration based on the group's consolidation complexity • Design the consolidated financial close process sequence for an African multi-entity group from subsidiary close to published group statements Prerequisites • Completion of Ledgers, Legal Entities & Business Units — this course builds directly on that foundation • Working knowledge of Oracle Fusion GL including journal entry, period close, and financial statement generation • Basic understanding of group accounting — what intercompany elimination means, what a consolidation ledger does Modules 1. Intercompany framework — trading partners, accounts, and balancing rules (3 hours) We begin with the Oracle Fusion intercompany framework architecture: what it does, when it fires, and how it connects to the enterprise structure established in the ledger and legal entity setup. We cover trading partner setup — the configuration that identifies which legal entities trade with each other — and the intercompany accounts setup that defines the receivable and payable accounts used for intercompany balancing entries. We work through intercompany balancing rules in depth: how Oracle Fusion evaluates a journal that crosses a legal entity boundary, what entries it creates to balance each entity, and how the balancing rule priority determines which rule fires when multiple rules match. We end with intercompany clearing account reconciliation: the process of confirming that intercompany receivables in Entity A equal intercompany payables in Entity B at period end. Topics: Intercompany framework architecture; Trading partner setup; Intercompany accounts design; Balancing rule creation and priority; Cross-entity journal balancing; Intercompany clearing reconciliation 2. Intercompany invoicing — the AR/AP intercompany billing cycle (3 hours) Oracle Fusion supports a full intercompany billing cycle: legal entity A raises an AR invoice to legal entity B, which is automatically matched to an AP invoice in entity B's payables, creating a complete audit trail from recharge to payment. This session covers the configuration required to enable this: the intercompany customer and supplier setup, the intercompany price list, and the intercompany transaction type. We work through a complete intercompany billing cycle — from initiating the intercompany invoice in the selling entity, through approval, to the corresponding payable in the buying entity, to the final payment and clearing. We cover the accounting entries at every step and the period-end reconciliation that confirms the intercompany AR and AP balances are in agreement. Topics: Intercompany customer/supplier setup; Intercompany price lists; Intercompany transaction types; Full intercompany billing cycle; Accounting entries: selling and buying entities; Period-end AR/AP reconciliation 3. Consolidation — elimination sets, consolidation ledgers, and reporting hierarchies (3 hours) Consolidation is the process of combining the financial statements of multiple legal entities into a single group view, eliminating intercompany transactions and balances in the process. This session covers the two approaches available in Oracle Fusion: elimination ledgers (the simpler approach, suitable for groups with straightforward consolidation requirements) and the integration with Oracle Financial Consolidation and Close Cloud Service (FCCS) for groups with complex consolidation hierarchies, multiple reporting currencies, and formal close processes. We cover elimination set design: the rules that reverse intercompany revenue and expense, eliminate intercompany receivables and payables, and remove the investment in subsidiary against the equity of the subsidiary. We work through the reporting hierarchy structure that maps legal entities to consolidation nodes, and how the hierarchy drives both elimination and segment reporting. Topics: Elimination ledger approach; FCCS integration overview; Elimination set design; Investment elimination; Reporting hierarchy structure; Multi-level consolidation 4. Multi-currency intercompany, African group patterns, and close process design (3 hours) The final session covers the complexity that African groups encounter most often: multi-currency intercompany transactions where the trading currencies differ from the functional currencies of one or both entities, and where some currencies have restricted convertibility or official exchange rate requirements. We cover the Oracle Fusion currency translation rules for intercompany balances, the CTA (cumulative translation adjustment) account, and how revaluation interacts with intercompany balancing. We then work through three African group consolidation patterns: a Mauritius holding company consolidating subsidiaries in USD-functional East African entities; a West African group consolidating OHADA-basis subsidiaries into an IFRS group report; and a pan-African group with a London-listed parent requiring IFRS consolidation with Mauritius holding company as intermediate parent. The session ends with a consolidated close process design: the sequence of steps from subsidiary close through group elimination to published consolidated statements. Topics: Multi-currency intercompany translation; CTA account and revaluation; Mauritius holding company pattern; West African OHADA to IFRS consolidation; Pan-African group with London listing; Group close process sequence Important Intercompany is where multi-entity implementations most frequently fail Intercompany accounting is the single most common source of post-go-live financial reconciliation failures in multi-entity Oracle Fusion implementations. The reason is almost always the same: the intercompany framework was not configured correctly, the balancing rules were not tested with real intercompany transaction volumes, and the elimination process was not set up before the first period close. This course addresses all three gaps. Delivery This course requires the Ledgers, Legal Entities & Business Units prerequisite — the intercompany framework is an extension of the enterprise structure. Particularly valuable for teams working on African holding company structures, Mauritius GBC implementations, and multi-currency group consolidations. Groups of 3–6 senior consultants. Certification Certificate of completion Price USD 1200 · per participant per person · indicative · group pricing available Languages English Provider reference SIMPLIT-031-INTERCOMPANY_CONSOLIDATION

• Fusion Finance architects and senior consultants implementing Oracle Fusion for multi-entity African groups • Finance controllers at group level who are responsible for the consolidated financial close • Consultants who have implemented single-entity Fusion Finance and are now adding multi-entity complexity • Group financial controllers and CFOs who want to understand how Oracle Fusion handles their intercompany framework • Anyone debugging intercompany reconciliation failures on a live Oracle Fusion implementation