R 12 = GENERAL LEDGER INTRA COMPANY ACCOUNTS Inter Company transactions will take place between 2 companies. At the time of journal entry, one company will be debited and other company will be credited. No need to be balanced at segment level. Intercompany off set Debit and credit lines will be added by the system to get balance at company level. There are 2 types of Inter Company. Inter Company & Intra Company. This will be decided based on the Legal Entity. Each company tax system is called Legal Entity. Intra company: Within the Legal Entity – between 2 companies Inter Company: Between 2 Legal Entities – between 2 Companies Step: 1 Define Inter Company Receivables & Payables Accounts Navigation: Setup Financials Flex Fields Key Values Inter Company Payables A/c Yes, Yes, Expenses, No, No Page | 1
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R 12 = GENERAL LEDGER
INTRA COMPANY ACCOUNTS
Inter Company transactions will take place between 2 companies. At the time of journal entry, one company will be debited and other company will be credited. No need to be balanced at segment level. Intercompany off set Debit and credit lines will be added by the system to get balance at company
level. There are 2 types of Inter Company. Inter Company & Intra Company. This will be decided based on the Legal Entity. Each company tax system is called Legal Entity. Intra company: Within the Legal Entity – between 2 companies Inter Company: Between 2 Legal Entities – between 2 Companies
Step: 1 Define Inter Company Receivables & Payables AccountsNavigation: Setup Financials Flex Fields Key Values
Inter Company Payables A/c Yes, Yes, Expenses, No, No Inter Company Receivables A/c Yes, Yes, Revenue, No, No
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Save.
Step: 2 Assign inter Company Qualifier at chart of accounts level
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Navigation: Setup Financials Flex Fields Key Segments
Query your structure
Unfreeze flex field definition Click on “Segments” button
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Choose Company Segments Click on “Flex field Qualifiers” button
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Enable “Inter Company Segment”Save.Close this window.
Freeze Flex Field DefinitionCompile your structure
Ensure program completed normal.
Step: 3 Define Legal EntityNavigation: Setup Financials Accounting Setup Manager Accounting setup
Step: 4 Assign Legal Entity to LedgerPage | 5
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Navigation: Setup Financials Accounting Setup Manager Accounting setup
Step: 5 Enable Intra Company feature at Ledger LevelNavigation: Setup Financials Accounting Setup Manager Accounting setup
Query your ledger
Click on “Update Accounting Options” button
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Click on “Update” button of set up step “Primary Ledger”
Go to “Ledger Options” tab
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Go to Journal processing Fields:√ Enable Intra Company Balancing
Say “Finish”
You will see one more setup step added by system “Intra Company Balancing Rules”
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Step: 6 assign balancing Segment Values to Legal EntityNavigation: Setup Financials Accounting Setup Manager Accounting setup
Step: 7 complete Operating unit, Inter Company Accounts and Intra Company balancing RulesNavigation: Setup Financials Accounting Setup Manager Accounting setup
Click on “Update” button of Operating Units setup stepSay “Complete”
Click on “Update” button of “Inter Company Accounts”Change the status to “Complete’Say “Done”
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Go to “Intra Company Balancing Rules”
Click on “Define Rules” button of Legal Entity
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Click on “Create Rule”
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Choose: Status: Enabled Debit Balancing Segment value: All Other Credit Balancing Segment Value: All Other Debit Account: Inter Company Payables Credit Account: Inter Company Receivables account
Go to “Options” tab
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Level of Summarization: Detail
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Clearing Balancing Segment value: Use for Many to Many Journals only Default option: Default Rule
Say “Apply”
Status: CompleteSay: Done
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Step: 8 Create Intra Company Journal and PostNavigation: journal Enter
Go to “New Journal”
SavePost Make sure concurrent ID program completed Normal
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Step: 9 Query Inter Company Journal to check the statusNavigation: Journal Entry
Say “Find”
Place cursor on “Intra Company Journal”Say “Review Journal”
You can see the description as “Inter Company balancing line added by posting”
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