Use this screen to create and delete Intercompany Receivable journal entries, which facilitate the intercompany transfer process. This process automatically creates "Due To" and "Due From" entries that correct an out-of-balance condition, within the same organization, resulting from one organization incurring a payable or receivable on behalf of another. This situation typically occurs during a posting involving control accounts, such as Accounts Payable, whereby the expense accounts are debited to the individual organizations incurring the cost but the liability is credited to one top-level organization. In this case, it is not possible to print financial statements by organization and have them be in balance.
The Create/Delete Intercompany Receivables process generates a journal entry that calculates the amount required to bring each organization into balance, thus allowing financial statements to be printed by organization.
The Intercompany Receivables process posts down only to the Balance Sheet Level specified in the Define Org Structures screen; it will not post to lower levels. If an Intercompany Receivable journal entry is created above the specified Balance Sheet Level, the system ignores the part of the entry that exists above that level. This generates an out-of-balance intercompany receivable entry, and the system displays a warning message, asking if you still want to create the entry. Before you create the intercompany receivable entry, you should review the original entry to see why it crossed above the Balance Sheet level. If you try to create an intercompany receivable from a one-sided journal entry at or below the level of the intercompany receivable, you will receive the same message. The system ignores all entries that are entirely above the Balance Sheet level at which the intercompany receivable should be created.
After calculating the intercompany receivables journal entry, you can review it before posting. If the journal entry is incorrect, you can delete it in its entirety in this same screen and then re-create it. You cannot edit the journal entry at the transaction level because there should be no requirement to remove a specific voucher or timesheet from the calculation. Therefore, you should delete the journal entry and re-create it in its entirety.
Create intercompany receivable journal entries at the end of your accounting period after entering and posting all transactions, but before printing financial statements. This will ensure that the Create process will include all the transactions for the period and that, after posting, balanced financial statements can be printed by organization. You can create the journal entries at any time, but if you post any intercompany activity after the creation, financial statements printed by organization may not be in balance.
Select this radio button to create an Intercompany Receivable journal entry.
Select this radio button to delete an Intercompany Receivable journal entry.
Using the drop-down box, select the Fiscal Year for which you are calculating the journal entry. If you are deleting a journal entry, be sure to select the fiscal year in which the original entry was created.
Using the drop-down box, select the period for which you are calculating the journal entry. Because financial statements are generated only at the period level, a subperiod selection is not available. If you are deleting a journal entry, be sure to select the period in which the original entry was created.
Enter, or use the drop-down box to select, the range of source journals that should be included in the intercompany receivable journal entry creation or deletion. The system-defined options are "All," "One," "Range," "From Beginning," and "To End."
These source journals are the different types of transactions that you have posted in the period. The system-defined journals are: Accounts Payable, Adjusting Journal Entries, Cash Disbursements, Cash Receipts, Fixed Assets Depr/Disp, Inter-Company Work Order, Labor Distribution, Multi-Job Allocations, Pool Allocation Journal, Recurring Journal Entries, Reversal Adjusting Jnl Entries, Reversal Recurring Jnl Entries, Sales Journal, Sales Order Entry Journal, and Travel.
Not all journals will be evaluated in the intercompany receivable process. Some journals (for example, the Units Usage Journal, the Billing Journal, and the Project Transfer Journal) will not involve intercompany transactions and therefore will not be included in the process. If you are deleting a journal entry, be sure to select the journals that were used to create the original journal entry.
Select the journal posting sequences that should be included in the Intercompany Receivable journal entry. Each time you post transaction journals, the process is assigned a sequence number, such as 001, 002, etc., to differentiate the postings within a source. If you plan on creating Intercompany Receivable journal entries for specific sources and posting sequences, you should use the posting journals for reference so that your selection is correct. If you are deleting a journal entry, be sure to select the journal sequences that were used to create the original journal entry.
Select this button on the toolbar to begin the creation or deletion process. At the conclusion of the process, a message is displayed, indicating the journal entry has been generated. This journal entry will be numbered with the next sequential journal entry number. You can then print the journal entry in the Print Intercompany Receivable Edit Report screen.