Oracle R 12 GL Implementation - Auto Offset in Payables works even if Dist Acct’s Balancing Segment belongs to a different Legal Entity

R12 Functionality:

1. Primary Ledger can be associated with Multiple Secondary Ledgers
2. Primary Ledger can be assigned to Multiple Legal Entities
3. Primary Ledger can be assigned to Multiple Operating Units
4. An Operating Unit is tied to the Primary Ledger through the Legal Entity Context
5. Specific Balancing Segment Values are assigned to specific Legal Entities in the Primary Ledger
6. Payables supports the auto offset features wherein the Balancing Segment of the Trade Liability Acct will equal the Dist Acct’s Balancing Segment
7. Payables allows the selection of Balancing Segment values not assigned to the Legal Entity that owns the Operating Unit in the Distribution Window
8. Accordingly, it also allows the selection of the corresponding balancing segment when it builds the Trade Liability Account
9. Question: What is the specific purpose of assigning Balancing Segment Values to the Legal Entity in Accounting Manager Setup (as once assigned, the same value is not allowed to be selected for any other Legal Entity), if this value is usable for the Operating Unit(s) that does not have this Legal Entity Context?

Summary of key facts:

1. Common COA Structure used for Primary and Secondary Ledgers
2. Ledger shared by Multiple Legal Entities
3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed)
4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity Context
5. User preference set to Access Vision Operations OU by Default in Payables

Conclusion and Findings:

1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger does not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating Unit specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the link of the Primary Ledger
2. However, access to these Balancing Segment Values could be controlled through Security Rules being assigned to the Value Set and the Respective Responsibility
3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the common Ledger does not have assignment to it, what impact it has on the integrity of data when this access is otherwise allowed, except through Security Rules?