I have been trying to post this since long but due to current workload and bandwidth issues was not able to post this. Here I am going to explain the steps to setup a new entity / operating unit in Oracle EBS 11i. This is from my experience of setting up new books and subledger and is completely practical. I was at a client site, one of the top internet companies which has businesses spanning almost all of the countries in the world for which we had to setup GL books and subledger for the newly added business regions.
Steps to define a New Entity in Oracle EBS 11i,
Step 1 - Define Set of Books (SOB)
Before defining SOB, you have to setup followings-
1.1 Define "Chart of Accounts"
>Define "Value sets" for Accounting Segments
>Define "Chart of Account structure"
>Define "Chart of Account Segments"
>Define "Segment Values"
Check out this video for setting up Chart of Accounts,
1.2 Define "Calender" for the SOB
1.3 Define "Currency" for the SOB
1.4 Define Set of Books (SOB)
Check out the following video for 1.2, 1.3, 1.4
Step 2 - Define GL responsibilities and assign following profile values,
a> Assign profile "GL Set of Books Name", value: Enter the new SOB name at responsibility level
b> Assign profile "HR: User Type", value:"HR User" at responsibility level
Step 3 - Define New Legal Entity
2.1 Define Location for New Legal Entity
2.2 Define the New Legal Entity
Step 4 - Define Opearting Unit
Step 5 - Define Inventory Organization
Define Receiving options (Pay special attention while assigning accounting code combinations)
Step 6 - Navigate to "System Administrator" responsibility > Go to submit request screen > Run "Replicate Seed Data" request > Enter the new operating unit name as the parameter for the request
Step 7 - Define subledger responsibilities (Setup, Transaction, Manager, Inquiry) for the new operating unit and assign following profiles at responsibility level,
a> "GL Set of Books Name", value: Enter the new SOB name
b> "HR: User Type", value:"HR User"
c> "MO: Operating Unit", value:Enter the new OU name
d> "MO: Top Reporting Level", value:"Operating Unit"
e> Optionally setup profile "AP: Use Invoice Batch Controls" if you want to use Invoice Batch workbench
f> Optionally setup profile "Sequential Numbering"
Step 8 - Define Cross validation rules
Step 9 - Define Security rules and assign to newly created responsibilities
Step 10 - Request for the new responsibilities
Step 11 - Setup Purchasing
Click here for Purchasing setup
Step 12 - Setup Payables
Click here for Payables setup.
Step 13 - Open first GL period
Step 14 - Open first Payable period
Step 15 - Open first Purchasing period