Intercompany Accounts

When you track multiple companies in Deltek, you must create intercompany accounts that are available to all companies in your enterprise. Deltek uses these accounts to process labor and expense charges for intercompany transactions.

Intercompany accounts can be the same across the enterprise, but they are not required to be the same.

After you set up the accounts in Settings > Accounting > Chart of Accounts, you identify them as Intercompany Accounts on the Accounts tab of Settings > Accounting > Company.

Employee Types

Employee types determine which accounts are used when charging labor to projects, phases, and tasks:

• You create or modify employee types at the enterprise level on the General tab of Settings > Advanced Accounting > Employee Types.

• On a company-by-company basis, you assign employee types to direct and indirect accounts. Use the Accounting tab of Settings > Advanced Accounting > Employee Types.

You probably will not use the same employee types for all companies in your enterprise. To allow for the possibility that Company A may reference an employee type that Company B does not use, you must specify the direct and indirect accounts that Deltek should use to process timesheets or labor adjustments that reference "foreign" employee types. Deltek uses the intercompany account numbers specified in the Foreign Employee Type Labor Posting Accounts fields on the Accounts tab of Settings > Accounting > Company.

Intercompany Accounts and Their Purposes

Intercompany Account	Account Type	Purpose
Accounts Receivable	Asset	Deltek debits this account when processing invoices for intercompany billing.
Accounts Payable	Liability	Deltek debits this account when you post vouchers for an intercompany transaction.
Suspense	Asset or Liability	When a transaction involves another company, some time will pass between the transaction posting date and the date that you run the Intercompany Billing process. To support the need to balance accounts during this time, you must create an intercompany suspense account. This account keeps your books in balance until the process of running intercompany billing creates the appropriate accounts receivable and accounts payable entries, clears this suspense account, and redistributes the credit amount to the correct company. In this way, you avoid creating tolerances on the companies' Balance Sheets.
Labor Revenue	Revenue	Set up this account only if the Enable Detailed Subledgers for Intercompany Billing option is selected on the General tab of Settings > Advanced Accounting > System. Deltek uses this account for labor revenue when generating intercompany invoice transaction files for a company. You must map this account to the company's intercompany AR Account column on the Invoice Mapping Accounts tab in Settings > Accounting > Accounts Receivable.
Expense Revenue	Expense	Set up this account only if the Enable Detailed Subledgers for Intercompany Billing option is selected on the General tab of Settings > Advanced Accounting > System. Deltek uses this account for expense revenue when generating intercompany invoice transaction files for a company. You must map this account to the company's intercompany AR Account column on the Invoice Mapping Accounts tab in Settings > Accounting > Accounts Receivable.
Intercompany Cash Basis Suspense	Revenue or expense	Set up this account only if both of the following options are selected: Enable Detailed Subledgers for Intercompany Billing on the General tab of Settings > Advanced Accounting > System Allow for Reporting: Cash-basis reporting on the Reporting tab of Settings > Advanced Accounting > System Deltek uses the intercompany cash-basis suspense account when creating cash-basis entries for intercompany transactions. This should be an indirect expense account, because this account is likely to retain a balance. Depending on your intercompany billing configuration, that balance will represent any markups on intercompany expense transactions or the cash-basis expenses and revenue associated with intercompany entries. Deltek uses this account for cash-basis entries when processing the following intercompany transactions: Accounts payable payments, employee expense payments, accounts payable disbursements, and cash disbursements Cash receipts for intercompany billing transactions Payment of intercompany vouchers To ensure that this account is used correctly for intercompany cash receipts, you must specify this account as the cash-basis account for your intercompany accounts receivable account. To do this, go to the intercompany accounts receivable account on the General tab of Settings > Advanced Accounting > System. Select the intercompany cash-basis suspense account from the lookup in the Cash Basis Account field. If you do not complete this step, your intercompany accounts receivable account will have a balance that will not be cleared, and you will have to post a journal entry to clear it manually.
Foreign Employee Type Labor Posting Accounts
Direct	Direct Expense Account	Deltek credits direct labor charges to this account when you post timesheets or labor adjustments that reference a foreign employee type. Enter the account on the Accounts tab of Settings > Accounting > Company.
Indirect	Indirect Expense Account	Deltek credits indirect labor charges to this account when you post timesheets or labor adjustments that reference a foreign employee type. Enter the account on the Accounts tab of Settings > Accounting > Company.