Legal Entity Creation – NBFC

Streamlining Financial Compliance with New Legal Entity Creation in Oracle Fusion for an NBFC customer based out India.
Entity needed to operate independently with localized tax, compliance, and financial reporting capabilities. Maintain integration with client’s centralized finance system.
Challenges

Regulatory and Statutory Compliance – Ensure accurate configuration of GST, TDS, and PAN details for the new entity.

Complex Chart of Accounts (COA) Mapping.

Multi-Region Tax Rules – Automated GST and TDS application for invoices and payments across different Indian states.

User Access Control and Data Security – Proper segregation of roles and responsibilities for the new entity’s finance and operations teams.

Solution Delivered

End-to-End Legal Entity Setup in Oracle Fusion – Configured GL, AP, AR, CM, and Tax.

Created test cases for:

  • Invoice creation and tax application
  • Payment processing and reconciliation & GL posting validations

Functional Enhancements –

  • Comply the AR document sequencing logic for audit norms
  • Enabled auto TDS deduction on AP based on thresholds
  • Configured bank accounts with appropriate controls and security at the legal entity level.

Conducted hands-on user training and supported UAT till sign-off.

Key Highlights

New Legal Entity Created with Minimal Time

Procurement to General Ledger Flow

Setup Configurations for Procurement & Financials Cloud