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 Organization 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.
For further information, please see Special Topic GL-4, "Intercompany Receivables."
The Create/Delete Intercompany Receivables screen consists of three blocks: Identification, Selection Ranges, and Options.
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, you can print balanced financial statements 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.
Check the following items:
Have you set up the "due to" and "due from" accounts in the Organization Structures screen for each top level org?
Is the balance sheet level correct in the Organization Structures screen for each top level org?
Is the intercompany activity at or below the balance sheet level?
Are all of the journals with intercompany activity open for the current period?
This means that you have already created the intercompany receivable. Go to the Print Intercompany Receivable Edit Report and you should see the transactions. If you are not sure that this is correct, delete the transactions and start again.
Use the fields in this block to create a new parameter ID or to retrieve a previously saved parameter ID. A parameter ID represents a set of screen selection parameters. Once you have saved a parameter ID and its related parameters, you can retrieve them using Query.
You can use the retrieved parameters to produce reports and run processes more efficiently and with greater consistency. Many users save a unique set of parameters for each different way they run a report or process. If you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters will automatically display as selection defaults. You can change any of the associated selection defaults as necessary.
Enter, or use Query to select, a parameter ID of up to 15 alphanumeric characters. You should choose characters for your parameter ID that help identify the type of selections you made in the screen, such as “PERIOD” or “QUARTERLY.”
When you save your record, all the selections made in the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.
You can use the parameter to produce reports and run processes more efficiently because you can select the parameter ID with its previously defined screen selections. Once the default selections display in the screen, you can override the defaults as necessary.
Enter, or use Query to select, a parameter description of up to 30 alphanumeric characters.
Use the fields in this block to specify the selection ranges of source journals, journal posting sequences, and the fiscal year/period.
Enter, or use the drop-down box to select, the range of source journals that you want to include in the intercompany receivable journal entry creation or deletion.
The following options are available:
All - Select this option to include all available records. The Start and End fields are disabled for this option.
One - Select this option to include only one record. You must enter that value in the Start field. The End field is disabled for this option.
Range - Select this option to include a contiguous range of records. You must enter the beginning value for the range in the Start field and the ending value of the range in the End field.
From Beginning - Select this option to include all the records from the beginning of the available records to a specific record in the range. You must enter the last value for the range in the End field. The Start field is disabled for this option.
To End - Select this option to include all the records from a specific record to the end of all the available records. You must enter the value from which the range should begin in the Start field. The End field is disabled for this option.
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 are evaluated in the intercompany receivable process. Some journals — for example, the Units Usage Journal, the Billing Journal, and the Project Transfer Journal — do not involve intercompany transactions and therefore are 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.
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Note: In order to be included in the creation/deletion process, you must designate journals open for that fiscal year and period. You can assign journals an Open status for a particular period in the Entry Edit Status subtask of the Accounting Periods screen. |
Enter, or use Lookup to select, a starting journal description.
Enter, or use Lookup to select, an ending journal code.
Select the range of journal posting sequences that should be included in the Intercompany Receivable journal entry. The following options are available:
All - Select this option to include all available records. The Start and End fields are disabled for this option.
One - Select this option to include only one record. You must enter that value in the Start field. The End field is disabled for this option.
Range - Select this option to include a contiguous range of records. You must enter the beginning value for the range in the Start field and the ending value of the range in the End field.
From Beginning - Select this option to include all the records from the beginning of the available records to a specific record in the range. You must enter the last value for the range in the End field. The Start field is disabled for this option.
To End - Select this option to include all the records from a specific record to the end of all the available records. You must enter the value from which the range should begin in the Start field. The End field is disabled for this option.
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.
Enter the starting journal sequence number in this field.
Enter the ending journal sequence number in this field.
This non-editable field displays a value of "One."
Enter, or use Lookup to 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 you created the original entry.
Period *
Enter, or use Lookup to 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 you created the original entry.
Use the fields in this block to either create or delete intercompany receivables as well as allow out of balance entries.
Select this radio button to create an Intercompany Receivable journal entry.
Select this radio button to delete an Intercompany Receivable journal entry.
Select this checkbox if you want the system to allow out of balance entries.
Process Intercompany Receivables
Select the Action button on the toolbar and then select this option to begin the creation or deletion process.
At the end of the process, the system will display a message, 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.
* A red asterisk denotes a required field.
Changes to this screen update the JE_HDR (JE Header), JE_TRN (JE Transaction), ICR_HDR (Intercompany Header), and ICR_TRN (Intercompany Transaction) tables.
