Most large organizations undergo mergers, acquisitions, and divestitures. In the Corporate business world, the mergers, de-mergers, divestitures, and acquisitions transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities or vice versa. In today’s global, contemporary business world, a company’s LE name is of paramount importance for a unique identity. Reasons for the change can vary, it may be a management decision, local stature, or a business implication that requires you to update or maintain the legal entity name.
This blog provides in-depth steps in Oracle’s process setups and testing for desired end results.
Oracle E-Business suite (EBS) enables you to update your LE name change, update, or sell off business entities as referred to in the following process steps. These process steps are supported in Oracle EBS and Cloud ERPs. Before executing these steps, it’s always advisable to contact Oracle Corporation via Oracle Service Request for expert opinions or information.
This LE name change includes the following definition updates:
- Legal Entity Name
- Organization Name
- Organization Number
- Legal Entity Identifier
- Registration Number
- Legal Address
Oracle Development does not recommend changing the territory, but all other fields can be modified.
Essential steps to change the LE name in Oracle EBS.
- In LE Manager’s responsibilities, please query the LE name in LE definition in an editable form and update as required. You can change any details or update to a new name. However, the LE IDs will remain the same in the Oracle database.
- You can update the LE name, Org details, and other relevant details in an editable form that you can change.
- Update the LE name in Customers and Supplier definition in editable form and update as required. The rest of the definitions remain the same and Database IDs cannot be modified. This applies for Intercompany transactions or other purposes, including Invoice printing.
- Update the LE name in Bank Definitions and Tax Profiles if not automatically updated.
- Operating Unit/Business Unit definition can revalidate with updated LE Definition with appropriate ledger name.
- The LE changes must be evaluated in General Ledger, Accounts Payables, Accounts Receivables, and other related Oracle modules including Accounting Flows, and Reports.
- These LE changes must be thoroughly evaluated in Test environments before moving to Production instances. Testing includes sample transactions, Journals, Invoice printing, and generating reports for appropriate reflection of LE changes
- The LE divestitures, end date and disable related Ledgers and review Responsibilities with User access steps.
- Finally, the Technical reports wherever hardcoding vales are to consider appropriate changes. If it is soft coded, then there are no updates required for Technical solution.
We have delivered these LE Change solutions & Oracle ERP Integration projects for more than a hundred Entities in a short timespan. The same approach will follow with other Jade's customers as well.
The steps described in this blog are to show you how to update Legal Entity names to effectively take place for Operational Transactions. This procedure provides a significant process for Legal Compliance, Management Articles, Management Operations, Shareholders and Reporting Perspectives. We have designed and developed our process solutions for smooth adherence as applicable in Oracle Cloud ERP.
Businesses find this a challenging task to deliver per their steps, cut-off date, and their legal obligation to complete the tasks in the prescribed timelines; Jade has delivered over a hundred of Oracle ERP-related LE name changes for various global customers and business units, henceforth kindly consider letting us help you to simplify your Legal Entity name update requirements.