| Intercompany Type
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Each line in the table part represents an intercompany transaction type. For each type, you can specify a dimension combination and a posting description for the responsible company and the intercompany company, respectively. These posting descriptions and the accounts and any other dimension values specified in the dimension combinations in question will be used in intercompany balancing of the type in question. The intercompany transaction types are described below. The descriptions disregard situations where the system parameter “Create intercompany entries for companies with same parent company” is not marked and the two companies involved are both assigned to the same parent company (which would mean that no intercompany entries would be created).
- A/P Control Account — This type of intercompany balancing is used when posting vendor invoices if a company purchases items from a vendor who is assigned to another company. In a vendor invoice journal, this situation arises when the company specified in the island Company is different from the settling company of the vendor.
The settling company of the vendor is specified on the information card of the vendor in question. The company specified in the island Company in the card part is the responsible company while the settling company of the vendor is the intercompany company. For further information about the influence of a settling company and of how such a company is selected, please see “Multiple Companies” in the chapter “Introduction to the G/L module.”
If, for example Company A registers a vendor invoice for $100 covering items purchased from a vendor assigned to company B, Maconomy will create a debit entry for $100 on the purchase account and a corresponding credit entry on the intercompany account for the responsible company. The value for the dimension Company will be company A on both entries. Maconomy also creates a credit entry for $100 on the vendor control account and a corresponding debit entry on the intercompany account for the intercompany company. The value for the dimension Company will be company B on these two entries. The entries are created at the posting of the vendor invoice journal.
This intercompany transaction type is also used when a vendor number has been specified on a general journal line, and the vendor in question is assigned to another company than the one specified in the island Company in the card part of the journal. In this case, the responsible company is the one specified in the card part, while the intercompany company is the settling company of the vendor.
- Inventory Journal — This intercompany transaction type is used when posting item journals containing transactions in which a company caused item movements in a warehouse assigned to another company. The item movement can be caused by sales or purchase.
On a sales order, the situation where a company sells items from a warehouse assigned to another company is arises when one company is specified in the island Company and the warehouse on one of the sales order lines is assigned to a another company. In this case, the responsible company is the one specified in the island Company while the company to which the warehouse is assigned is the intercompany company. The warehouse is assigned to a company in the Warehouse Information Card workspace.
On an item purchase order, the situation where a company buys items to be placed in a warehouse assigned to another company is arises when one company is specified in the island Company and the warehouse selected is assigned to a another company. In this case, the responsible company is the one specified in the island Company while the company to which the warehouse is assigned is the intercompany company.
If, for example Company A buys items worth $100 to be placed in a warehouse assigned to company B, Maconomy will create a credit entry for $100 on the A/P suspense account and a corresponding debit entry on the intercompany account for the responsible company. The value for the dimension Company will be company A on both entries. Maconomy also creates a debit entry for $100 on the account for inventory value and a corresponding credit entry on the intercompany account for the intercompany company. The value for the dimension Company will be company B on these two entries. The entries are created at the posting of the inventory journal.
- Vendor Invoice — This intercompany transaction type is used when posting two types of journals: When posting a vendor invoice journal if a vendor invoice has been allocated in the Invoice Allocation workspace, and the posting of a reallocation journal if a vendor invoice journal has been reallocated in the Reallocate Invoices workspace.
In both cases, Intercompany balancing is made if the company in the island Company is different from the one in the field “Company No.” on a line in the table part. The company in the card part is the responsible company while the company on the line in question is the intercompany company.
If, for example Company A registers a vendor invoice and allocates the invoice to a number of accounts, using company B in the field “Company No.,” the posting of the invoice journal will result in a credit entry for the full amount on the vendor control account and a debit entry for each allocation line on the intercompany account for the responsible company. The value for the dimension Company will be company A on all of these entries. On the account to which the amount was allocated, Maconomy also creates a debit entry for each allocation line, and a credit entry for the full amount on the intercompany account for the intercompany company. The value for the dimension Company will be company B on these entries.
- General Journal — This type of intercompany balancing is used when posting general journals in which different companies have been specified in the card and table parts. This could, for example, happen in a situation where one company covers an expense of another company. The company specified in the island Company in the card part is the responsible company while the company specified in the field Company No. on the journal line in question is the intercompany company.
If an offset account is specified, the company specified in the card part will be used on the offset entry created.
If, for example Company A creates a general journal in which a payment for $100 is registered to cover the purchase of office supplies for company B, Maconomy will create a credit entry for $100 on the cash account and a corresponding debit entry on the intercompany account for the responsible company. The value for the dimension Company will be company A on both entries. Maconomy also creates a debit entry for $100 on the account for office supplies and a corresponding credit entry on the intercompany account for the intercompany company. The value for the dimension Company will be company B on these two entries.
The posting references of this intercompany transaction type are only used if the account number specified in the field “Account No.” on the general journal line is a G/L account. If a customer number or a vendor number is specified, Maconomy uses the intercompany posting references specified for the either the intercompany transaction type “A/R Control Account” or “A/P Control Account,” depending on the type of account.
- Job Registration — This type of intercompany balancing is used when posting time or amount activities on a job in the Job Journal and Time Sheets workspaces. The job entries will only cause the creation of intercompany entries if the executing company specified on the job is different from the company responsible for the job.
In the Job Journal workspace, the responsible company is shown in the island Company in the card part of the workspace, while the executing company is specified in the field “Executing Company No.” in the table part of the workspace. In the Time Sheets workspace, the executing company is the company to which the employee is assigned, while the responsible is the company specified on the job on which hours are being registered.
- Budget Journal— This type of intercompany balancing is used when approving budget journals, where entries have been made with reference to different companies in the island Company in the card part and the field “Company No.” in the table part of the Budget Journal workspace. This will, for example, be the case if one company budgets for the accounts of another company. The responsible company is the company specified as a dimension value in the card part, and the intercompany company is the company specified as a dimension value in the table part of the budget journal.
- Asset Journal — This type of intercompany balancing is used when posting asset journals with entries that concern internal transfer or sales of fixed assets. The responsible company is the company from which the asset is transferred or sold, and the intercompany company is the company to which the asset is transferred or sold.
- Tax at Cash Discount — This type of intercompany balancing is used when posting payment journals if a company pays a vendor invoice assigned to another company. On a vendor invoice, this situation arises when the company responsible for the journal in which the vendor invoice is specified is different from the settling company of the vendor in question. However, this intercompany type is only used if the system parameter “Intercompany tax balancing” is marked and the vendor in question has a tax discount code on which tax adjustment is used. The intercompany type is used for intercompany posting of the tax included in any cash discount granted in connection with a payment.
If, for example, Company A pays a vendor invoice which gives rise to a cash discount of which tax constitutes $10, and company B is responsible for the vendor invoice in question, Maconomy will create a debit entry for the full cash discount amount on the A/P control account. Furthermore, Maconomy will create a credit entry for the cash discount amount less tax on the account for vendor cash discounts and a credit memo for the tax amount of $10 on the intercompany account for the responsible company. The value for the dimension Company will be company A on all three entries. Maconomy also creates a debit entry for $10 on the intercompany account for the intercompany company and a credit entry for the same amount on the account for ingoing tax. The value for the dimension Company will be company B on these two entries. The entries are created when the payment journal is posted.
Please note that this functionality is only used if the payment is registered in the Change Payment Selection by Vendor workspace in the Banking module.
- A/R Control Account — This type of intercompany balancing is used when posting sales invoices if a company sells an item to a customer who is assigned to another company. On a sales order, this situation arises when the company specified in the island Company is different from the one shown in the field “Settling Company.” For further information about the influence of a settling company and of how such a company is selected, please see “Multiple Companies” in the chapter “Introduction to the G/L module.”
The company specified in the island Company in the card part is the responsible company while the company shown in the island Settling Company is the intercompany company. The settling company is transferred from the information card of the customer in question.
If, for example Company A invoices $100 to a customer assigned to company B, Maconomy will create a credit entry for $100 on the sales account and a corresponding debit entry on the intercompany account for the responsible company. The value for the dimension Company will be company A on both entries. Maconomy also creates a debit entry for $100 on the customer control account and a corresponding credit entry on the intercompany account for the intercompany company. The value for the dimension Company will be company B on these two entries. The entries are created at the posting of the invoice.
This intercompany transaction type is also used when a customer number has been specified on a general journal line, and the customer in question is assigned to another company than the one specified in the island Company in the card part of the journal. In this case, the responsible company is the one specified in the card part, while the intercompany company is the settling company of the customer.
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