Nov 11, 2011

The Bank Account Model in R12

I have been working recently on R12 financials and I came across an interesting insight.
The problem faced by customer was as follows.

  1. The user created a bank account in Operating Unit 1 / Legal Entity 1.
  2. They now navigated to Operating Unit 2 / Legal Entity 2
  3. The Bank account created in OU1 / LE1 was visible and editable in OU2 / LE2
This was a major audit violation.
As you know, Oracle has come up with significant changes in the design of R12 which are aimed to handle the requirements of Shared Services. For example, a payable unit in India can handle the payments of multiple Legal Entities and Operating Units.

One of the design approaches in R12 (to handle Shared Services) is to use MOAC.
The other relates to Supplier Model
And another, most important change, is relating to Bank Account Model.

In 11i, Payables Owned the Bank Accounts, in R12, the bank accounts are owned by Cash Management
In 11i, the bank accounts were at the operating unit level, in R12, they are at the Legal Entity Level.

If Bank accounts were controlled at the Legal Entity Level, how come the user is able to see the bank accounts created in LE1 when working on LE2?

This question baffled us for some time. However, finally we found the answer.

The access control in R12 is not only at the Legal Entity Level, it is at the User - Legal Entity level.

The following attached diagram will help you understand this concept better.

As this diagram shows:

1. Bank Account 1 is created under LE1 / OU1
2. Bank Account 2 is created under LE2 / OU2
3. User 1 has access only to LE1 / OU1
4. User 2 has access to both LE1 / OU1 and LE2 / OU2
5. User 3 has access only to LE2 / OU2
6. User 1 can access / modify only Bank Account 1
7. User 2 can access / modify both Bank Accounts
8. User 3 can access / modify only Bank Account 2

Your feedback? Experience?

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