Intercompany Transaction Posting

Owned by Amit
Oct 26, 2023
3 min read

  1.   Objective 

The objective of intercompany processes is to ensure that all intercompany transactions are properly recorded and managed in the VA system.  

There are some posting changes introduce in the system that allows the user to post the transactions based on the Organization's relationship with the ledger code defined in the accounting book.  

The document contains the list of changes that introduce in the system to achieve the posting and helps the developers and end users understand and define the rules for the intercompany postings in the system. 

 

  1.  Intercompany Setting 

VIENNA introduce a new tab with the name “Intercompany Setting” in the accounting book in the system that allows the user to do the setup of the intercompany setup.

The Intercompany transaction will be posted when at the accounting localization window and the posting logic tab if the Organization Reference entity is enabled/lined then the system will check Organization. There is a couple of cases to post Intercompany transactions: 

  1. At the transaction header and line containing the different Organizations.  

For Example: At Invoice Header Organization “ALDO” is linked while the lines of the Invoice contain the different organizations “Noise”.  

  1. The transaction header and lines contain the same Organization, but linked transactions are of different organizations.  

For Example, at Allocation the Organization “ALDO” invoice is paid by Organization “Noise” and the allocation line contains the reference of the Invoice and payment. 

During the posting of the transaction, the system will check accounting localization and if the Organization Reference entity is enabled with the posting rule, then the system will check Organization and post the Intercompany transaction by picking the ledger code from the accounting book window, from the Intercompany Setting tab. In the case of the Intercompany setting tab, there are no ledger codes are defined then the system will pick the ledger code from the General Ledger tab and post the transaction. 

 

Intercompany setting defines in below screenshot:

As per Above screenshot, when user create entry on “Intercompany Setting” tab as

From Organization – ALDO

To Organization – Noise

Intercompany Due From – 12190_Not Invoice Receivable

Intercompany Due To – 11190_Petty Cash In-Transfer

 

Now, when user create Invoice with Header Organization as “ALDO” and Invoice Line Organization as “Noise” then during posting system will check the header and line Organization if the Organization Reference entity is enabled/linked on posting logic and if the organizations are different then the system will consider the Header Organization as the “From Organization” and Line Organization as the “To Organization”. Based on this, the system will check the Intercompany setting tab if the ledger codes are defined then these codes will be used to post the transaction as mentioned in below screenshot.

NOTE: If there are settings not defined then the system will consider the General Ledger Tab Intercompany codes and post the transactions.