How to create Intercompany Transactions using Global Intercompany

Select Manage Intercompany Outbound Transactions task as an initiator of an intercompany transaction.

Goto Intercompany Accounting >> Transactions Task Bar >> Create Transaction (Using Sub Ledger Transaction Type) Create Intercompany Batch:

Provider (who is initiating Intercompany transaction)

Transaction Type: IC Transfer

Batch Date: 11-10-2019

Accounting Date: 11-10-2019

Control Amount: 2,300.00

Create Transactions:

Enter Receiver: Pango GmbH (who is Receiving Intercompany transaction), Debit Amount

Create Transaction Distributions:

Provider

Enter Distribution Account and Credit Amount

Receiver:

Enter Distribution Account and Debit Amount

Submit Transaction.

Transferring Transactions to Receivables and Payables

Initiator workflow transfers the intercompany transactions to Receivables module to create AR invoices as required by legal or business requirements. After creating the invoices, Receivables updates the intercompany transactions with the invoice numbers and passes the number to the recipient workflow, which updates and transfers the transaction to Payables.

Transfer to Receivables

Enter Business Unit (Initiator company), Legal Entity, and Submit it .

This will create transaction in Receivables Interface table & Autoinvoice ESS job will import this transaction as an Invoice in AR.

Search Intercompany AR Invoice which system created.

Validate all Invoice details

Invoice Distributions

Transfer to Payables:

Enter Business Unit (Receiving company), Legal Entity, and Submit it

This will create transaction in Payables Interface table & Import Payables Invoices ESS job will import this transaction as an Invoice in AP.

Search Intercompany AP Invoice which system created.

Validate & Approve this invoice.

Review Invoice & Line

Review Line Distribution

Settle these Open invoices as per business rules within these Intercompanies.

Task Bar >> Create Transaction (Using Journal Transaction Type) Create Intercompany Batch:

Provider (who is initiating Intercompany transaction)

Transaction Type: Journal

Batch Date: 11-13-2019

Accounting Date: 11-13-2019

Control Amount: 1,000.00

Create Transactions:

Enter Receiver: Pango GmbH (who is Receiving Intercompany transaction), Debit Amount

Create Transaction Distributions:

Provider

Enter Distribution Account and Credit Amount

Receiver:

Enter Distribution Account and Debit Amount

Submit this Transaction.

Intercompany transactions that do not Subledgers like AR/AP are directly transferred to General Ledger once it is approved.

Before you transfer the transactions, ensure the following:

The transaction date is used to derive the exchange rate.

Note: Do not enter any parameter, this will transfer all intercompany transactions entered within various ledgers(companies).

System creates Journals in Initiator & Receiver Ledgers

Verify ledger in Initiator Ledger “Pango Inc.”

Validate journal & Approve it

Verify ledger in Receiver Ledger “Pango GmbH”

Validate journal & Approve it

Post both these journals.

Intercompany Offset entries gets created as per intercompany Balancing Rules.

Manage Intercompany Balancing Rules: (Subledger having Transaction type IC Transfer) System creates offset entries for Provider & Receiver Ledgers as follows

Intercompany Offset entries gets created as per intercompany Balancing Rules. Read relevant blog here: Considerations to be made by Organizations during Bank change

Manage Intercompany Balancing Rules: (General Ledger having Transaction type Journal) System creates offset entries for Provider & Receiver Ledgers as follows.