Intercompany Processing

Intercompany Processing is a standard feature.  It allows you to create transactions in one company and simultaneously create corresponding entries in one or more other company databases.  This functionality ensures that company databases are kept properly balanced, corresponding transactions in all companies are recorded, and maintains accurate related party balances.  The setup is really simple, and transactions can be processed in the general ledger and accounts payable modules.

In the setup screen you identify the “Due to” and “Due From” accounts that will be used when intercompany transactions are posted.  This helps you identify intercompany balances.  Here’s an example of the setup screen:

When you enter an intercompany transaction, you will need to specify that it is an intercompany transaction, and the transaction will need to be posted in a batch.  Transactional posting is not allowed.  You will specify which company or companies will be used in the transaction.  If you look-up account numbers for the distribution, you will be looking at the chart of accounts for the pertinent company.

This edit list shows the original distributions that were entered into the transaction and the “Due to” and “Due From” distributions that are automatically created based on the Intercompany Setup.

Once you post the batch, the appropriate transactions will be created in the specified company datababases, and will be held in a general ledger batch awaiting your review and posting.

Note:  If you’re using Integration Manager to create Intercompany Transactions, you will need to omit the segment separators from your account number strings.

Here is a simple demo I made to show this in action:  http://www.youtube.com/watch?v=DpQSarYvB8A

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