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BCopyright © 2008, Oracle. All rights reserved.
Managing Intercompany Transactions
Copyright © 2008, Oracle. All rights reserved.
Objectives
After completing this lesson, you should be able to:
• Describe the Intercompany Transactions Module
• Open periods for intercompany transactions
• Enter intercompany transactions
• Match intercompany transactions
• Post intercompany transactions
• Create Intercompany reports
• Lock Intercompany transactions
• Close Intercompany periods
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Intercompany Transactions Module
Use the intercompany transactions module to enter or load intercompany transactions at an invoice or transaction level.
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Business Process for the Intercompany Transaction Module
Open IC periodCreate IC
transactionMatch IC
transaction
Post ICtransaction
IC = Intercompany
Generatematchingreports
Perform drill-through from
account balance
Lock entities Close IC period
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Setup Considerations for Intercompany Transactions
The following needs to be considered as part of the setup for the Intercompany Transactions module:
• IC periods must be open.
• Intercompany transaction rules must be defined in the rules file and loaded into the application (error message results if rules are not defined).
• The scaling factor affects the display of the transaction amount.
• Matching tolerances need to be determined.
• Reason codes need to be defined.
• Currency conversion rates must be entered.
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Opening Intercompany Periods
The period must be open before you can enter intercompany transactions.
Matching tolerances are set when periods are opened.
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Creating Intercompany Transactions
Invoices can be loaded from a file or entered manually.
OR
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Loading Intercompany Transactions Files
You can select multiple external files in one load process and select whether to merge or replace the existing transactions.
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About Process IC Transactions
Use Process IC Transactions to create and to perform other intercompany transaction processes.
Transaction Entries per page
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Creating IC Transactions from Process IC Transactions
Save entered IC Transaction
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Matching Intercompany Transactions
Question: Why match intercompany transactions?
Answer: Matching helps reduce the gap that can exist between intercompany account balances.
Entity A
Accts. Receivable Intercompany
500
Entity B
Accts. Payable Intercompany
500
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Intercompany Transaction Matching Methods
• Automatic matching by transaction ID, reference ID, or account with or without tolerance amount
• Manual matching with or without tolerance amount
Automatic Manual with tolerance
< 10 USD
Manual without tolerance
1 : 1
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Posting Intercompany Transactions
• Intercompany transactions must be posted in order to be included in an account balance.
• After a transaction is posted, no changes can be made to it.
• If changes are needed to a posted transaction, you must unpost it, make the changes, and then rematch and repost the transaction.
500 USD
Inv 001 100Inv 002 300
----400
Inv 003 500----900
Accounts Receivable - Intercompany
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Generating Matching Reports
Generate matching reports by:
• Account
• Transaction ID
• Reference ID
Receivables - Interco
500
Payables - Interco
500
Transaction ID
Reference ID
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Drill-Through Reports
View supporting transaction details in the matching reports.
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Locking Entities
After intercompany processing is complete, lock entities to ensure that no further changes are made.
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Closing Intercompany Periods
• When a period is closed, no intercompany transactions can be entered.
• You can still view transactions and run reports.
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Monitoring Intercompany Entity Status
The Monitor Intercompany Transactions task provides status information for intercompany entities.
Filter by status.
Click an entity to view detail.
Summary of Started and Not Started Transactions.
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Summary
In this lesson, you should have learned to:
• Describe the Intercompany Transactions Module
• Open periods for intercompany transactions
• Enter intercompany transactions
• Match intercompany transactions
• Post intercompany transactions
• Create Intercompany reports
• Lock Intercompany transactions
• Close Intercompany periods
