Processing

To process intercompany receivables:

1. On the Organization Structures screen, designate the due from and due to accounts for each top-level organization.

   These accounts serve as the receivable and payable accounts, respectively, in the intercompany process. You may want to locate these accounts in the equity section of your primary balance sheet to keep assets and liabilities from being overstated.

2. Create the intercompany entries in the Create/Delete Intercompany Receivables screen.

   You must specify the fiscal year and period for which you wish to calculate the intercompany receivable journal entry. Because you generate financial statements only for accounting periods, you do not specify a subperiod.

3. Select the journals and journal sequences in the Create/Delete Intercompany Receivables screen.

   Normally, select all journals to ensure a complete intercompany transfer, but if appropriate, such as after a last-minute posting, you can select only one journal. The journal sequences are the numbers assigned to the individual posting processes that have been executed for each journal for each period. Normally, select all journal sequences, but, again, you have the option to select only one posting sequence. If you want to create intercompany receivable journal entries for specific sources and posting sequences, use the original posting journals for reference, so that your selection is correct. Not all journals are evaluated in the intercompany receivable process. For example, the Sales Journal, the Billing Journal, and the Project Allocation Journal do not involve intercompany transactions and thus are not included in the process.

4. After you ensure that all selections are correct, click Process Intercompany Receivables on the Action menu to generate the journal entry.

   At the conclusion of the process, a message indicating the number of the journal entry created displays. If you want to cancel the journal entry before it is created, click the Cancel button.

5. Generate the Intercompany Receivable Edit report to review the resulting journal entry before you post it to the general ledger.

   If the entry is incorrect, delete it in the Create/Delete Intercompany Receivables screen and then recreate it in the same screen. You cannot edit the entry at the transaction level because you should not need to delete a specific timesheet or voucher from the calculation process. To delete an intercompany receivable journal entry, make the same selections in the Create/Delete Intercompany Receivables screen that you did when you created the original entry.

6. If the entry is correct, use the Post Intercompany Receivables screen to post it to the general ledger.

   Costpoint posts intercompany receivable journal entries to the general ledger at the summary level. In other words, Costpoint summarizes and posts the entries at the account/organization level with no transaction level detail.

7. After you post the intercompany receivable journal entries, you can generate financial statements for individual organizations.