Intercompany Processing with Dyanmics GP

We generally advise clients to set up separate databases for each legal entity they are managing in their ERP system. This helps make sure that clients maintain a complete set of accounting records for each entity they are managing. It also makes it much easier to spin off a entity during a reorganization situation.

If you have multiple entities you manage, you usually have intercompany transactions that need to be recorded in two or more companies. A typical case is where a parent company is paying an expense on behalf of several subsidiary companies. For example if the parent company is paying an accounting service fee for itself and it’s subsidiary, it may want to distribute some of the expense directly to the subsidiary companies, even though the service invoice will be paid in whole by the parent company.

This type of transaction will create transactions in the parent company and the subsidiary companies. Typically an intercompany due-to and due-from account is set up to keep the ledger in balance and to accurately track intercompany liabilities. This involves a lot of accounting transactions.

The Intercompany Processing module assists with creating and posting these types of transactions. If set up properly, much of the process is automated.

This quick video shows you how to set up Intercompany Processing with Dynamics GP and how to process transactions using this functionality: http://youtu.be/DpQSarYvB8A

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