CHAPTER 10: MULTICOMPANY OPERATIONS - INTERCOMPANY · Chapter 10: Multicompany Operations - Intercompany 10 - 5 Set up the Intercompany Partner The first step in setting up Intercompany

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Chapter 10: Multicompany Operations - Intercompany

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CHAPTER 10: MULTICOMPANY OPERATIONS - INTERCOMPANY Objectives

The objectives are:

• Review the IC feature and provide instructions for preparing the database to complete this section.

• Explain the IC Partner Card and the process of setting up an intercompany partner.

• Assign an IC partner to a customer and/or vendor. • Set up the centralized IC Chart of Accounts to be used for IC

transactions. • Set up the centralized IC dimensions to be used for IC transactions. • Set up G/L accounts with default IC partner G/L account

information. • Explain the IC Outbox and IC Inbox used to transfer IC transactions. • Demonstrate the process of creating an IC document. • Explain the process of sending an IC transaction to an IC partner. • Explain the process of receiving and accepting an IC transaction

from an IC partner. • Review handled incoming and outgoing IC transactions. • Explain the process of rejecting an IC transaction from an IC partner. • Explain the process of returning and cancelling a rejected IC

transaction from an IC partner. • Process IC transactions using the IC General Journal. • Explain the process of allocating costs to multiple IC partners.


Finance in Microsoft Dynamics� NAV 5.0

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Introduction The Intercompany (IC) Posting feature in Microsoft Dynamics� NAV 5.0 is designed for companies that control more than one legal business entity. Using Intercompany Postings, doing business with subsidiary and internal partner organization is as simple as working with external vendors and customers. IC transaction information is entered once in the appropriate documents, and using that data, Microsoft Dynamics NAV 5.0 creates transactions in the appropriate companies. Mapping between the companies, charts of accounts, and dimensions facilitates the creation of these transactions. In this section, the steps required to perform Intercompany Postings are described beginning with setting up the companies as intercompany partners, called IC partners, and with the central Chart of Accounts and Dimensions. Once the setup is complete, IC documents and journals are processed.



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Intercompany Overview and Database Preparation Intercompany Postings uses a number of entries and documents for the relevant transactions:

• General Journal entries • Purchase and sales orders • Purchase and sales invoices • Credit memos • Return orders

To set up Intercompany Postings, a list of IC partners and an IC chart of accounts are created. This allows General Journal transactions to be created. Dimensions, if needed, are set up separately. Customers and vendors are then set up as business partners, and assigned IC partner codes; this permits exchange of IC purchase and sales documents, including items and item charges. Because the receivables and payables functionalities in Microsoft Dynamics NAV 5.0 facilitate handling different currencies, IC transactions can proceed in any currency.

Database Preparation and Backup Restoration A backup of the intercompany demo database is required to complete this section. The Intercompany.fbk file is available on the training manual download page of PartnerSource. The Intercompany.fbk contains two companies used in this section:

• CRONUS Consultancy Ltd. • CRONUS International Ltd.

Therefore, the existing CRONUS International Ltd. company in the Microsoft Dynamics NAV 5.0 database must be renamed prior to importing the intercompany backup. To rename the existing CRONUS International Ltd. company in the Microsoft Dynamics NAV 5.0 database, follow these steps:

1. Open the Microsoft Dynamics NAV 5.0 database. 2. On the File menu, click Company > Open. 3. Select CRONUS International Ltd. and click OK. 4. Click OK to the message regarding demonstration data. 5. On the File menu, click Company > Rename.



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6. In the New Company Name field, enter CRONUS InternationalOLD.

7. Click OK to rename the company. 8. Click OK to the message regarding demonstration data.

NOTE: To avoid expanding the database because of the restoration, a clean Microsoft Dynamics NAV 5.0 database must be used.

To restore the backup, follow these steps:

1. Locate and save the Intercompany.fbk file to a drive accessible to the database.

2. Open the Microsoft Dynamics NAV 5.0 database with the renamed company.

3. On the Tools menu, click Restore. 4. In the Restore window, locate and select the Intercompany.fbk file

and click Open. 5. In the Restore window, click OK. 6. Click OK to the message that the backup was restored.

To open the CRONUS International Ltd. company to prepare for processing, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. Click OK to the message regarding demonstration data.



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Set up the Intercompany Partner The first step in setting up Intercompany Postings is to create the IC partners for each company involved in intercompany transactions. IC partners are set up on the IC Partner Card window, accessed from the Navigation Pane by clicking Financial Management > Setup > Intercompany Postings > IC Partners.

FIGURE 10.1 IC PARTNER CARD WINDOW

The code specified in the IC Partner Card window is assigned to IC customers and vendors. Later, when IC transactions are sent and received with partners, this code is used to identify each company. Therefore, IC partners must all agree on one set of codes to use. For example, if one company is identified as IC partner 30, the other companies must have that company set up as IC partner 30. In this section, the fields and menu button on the IC Partner Card window are described and the process of setting up IC partners is explained.



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IC Partner Card Overview The General tab of the IC Partner Card window contains the following fields: Field Description Code A unique identifier, assigned to IC customers and vendors. Name Name of the IC partner. Currency Code The IC partner's currency code. Inbox Type Indicates how data is transferred to the IC partner's IC Inbox.

The options are: File Location: Used if a file containing IC transactions is sent to IC partners. Database: Used if the IC partner is set up as another company in the same database. E-mail: Used if the transactions are sent by e-mail to the IC partner. No IC Transfer: Used when other transmission formats are used, such as printed invoices, manual data entry, or Microsoft® BizTalk®.

Inbox Details Identifies the details of the IC partner's Inbox. The options depend on the selection in the Inbox Type field: If File Location is selected, this field contains the name and location of the file to send to the IC partner. If Database is selected, this field contains the name of the partner company. If E-mail is selected, this field contains the e-mail address of the IC partner. If No IC Transfer is selected, nothing is specified in this field.

Blocked If selected, IC postings are prevented with this IC partner. Figure 10.2 illustrates the movement of IC data in Microsoft Dynamics NAV 5.0 either within the same database or between different databases.



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FIGURE 10.2 INTERCOMPANY DATA MOVEMENT

The Posting tab contains the following fields:

Field Description Receivables Account

Identifies the default receivables account used as the balancing account for the IC partner in General Journals. When a line is posted from the IC Inbox, this account is used if the Account No. field contains an IC Partner Code. However, if the Source Type on the line is Sales Document, the receivables account is retrieved from the Customer Posting Group.

Payables Account

Identifies the default payables account used as the balancing account for the IC partner in General Journals. When a line is posted from the IC Inbox, this account is used if the Account No. field contains an IC Partner Code. However, if the Source Type on the line is Purchase Document, the payables account is retrieved from the Vendor Posting Group.



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Field Description Outbound Sales Item No. Type

Indicates what type of item number is entered in the IC Partner Reference for items on sales lines sent to this IC partner. The options are: Internal No.: The item number is copied from the No. field on the sales line. Common Item No.: The content of the Common Item No. field on the item card is copied for the item on the sales line. Cross Reference: If there is an entry in the Item Cross Reference table for the partner and the item on the sales line, the content of the Cross-Reference No. field in that table is copied.

Outbound Purchase Item No. Type

Indicates what type of item number is entered in the IC Partner Reference field for items on purchase lines sent to this IC partner. The options are: Internal No.: The item number is copied from the No. field on the purchase line. Common Item No.: The content of the Common Item No. field on the item card is copied for the item on the purchase line. Cross Reference: If there is an entry in the Item Cross Reference table for the partner and the item on the purchase line, the content of the Cross-Reference No. field in that table is copied. Vendor Item No.: If there is an entry in the Vendor Item table for the partner and the item on the purchase line, the content of the Vendor Item No. in that table is copied.

The IC Partner button contains two menu items:

Menu Option

Description

List Accesses the IC Partner List window, which displays all IC partners.

Dimensions Accesses the Default Dimensions window, used to assign default dimensions to this IC partner.



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Set up an IC Partner To set up an IC partner, follow these steps:

1. On the Navigation Pane, click Financial Management > Setup > Intercompany Postings > IC Partners.

2. Press F3 to insert a new record. 3. In the Code field, enter the identifier agreed upon with the IC

partner. 4. In the Name field, enter the IC partner's name. 5. In the Currency Code field, click the AssistButton and select the IC

partner's currency. 6. In the Inbox Type field, click the AssistButton and select the inbox

used by the IC partner. 7. In the Inbox Details field:

• If File Location was selected as Inbox Type, click the AssistButton

and select the file location • If Database was selected as Inbox Type, click the AssistButton and

select the IC partner's company name. • If E-mail was selected as Inbox Type, enter the IC partner's e-mail

address.

1. Insert a check mark in the Blocked check box if this IC partner is not yet available for use.

2. Click the Posting tab. 3. In the Receivables Account field, click the AssistButton and select

the default account. 4. In the Payables Account field, click the AssistButton and select the

default account. 5. In the Outbound Sales Item No. Type field, click the AssistButton

and select the item number type used by this IC partner. 6. In the Outbound Purchase Item No. Type field, click the

AssistButton and select the item number type used by this IC partner.



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To assign dimensions to the IC partner, follow these steps:

1. Click IC Partner > Dimensions. 2. In the Dimension Code field, click the AssistButton and select the

relevant dimension. 3. In the Dimension Value Code field, click the AssistButton and

select the relevant dimension value from the list. 4. If there are dimension posting requirements, in the Value Posting

field, click the AssistButton and select the appropriate option. 5. Close the Default Dimension window.



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Lab 10.1: − Set up an IC Partner Scenario CRONUS International Ltd. has acquired a new subsidiary, CRONUS Biking Ltd. As the accountant, it is your responsibility to set up the new IC partner. The IC partner code is ICP40, and the partner uses the local currency. CRONUS International Ltd. will be sending their IC transactions by file in a directory on their hard disk. For the purpose of this lab, when setting up the file location, create a new folder on the desktop called IC Inbox, and save file name ICP40 in the folder. The accounting manager has decided that the receivables and payable GL accounts are 2325 and 5425, respectively. Finally, CRONUS Biking Ltd. will use their internal numbers for sales and purchasing on documents. Dimensions are not set up for this IC partner.

Challenge Yourself! Set up the new IC partner as specified in the scenario.



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Lab 10.1: − Set up an IC Partner Scenario CRONUS International Ltd. has acquired a new subsidiary, CRONUS Biking Ltd. As the accountant, it is your responsibility to set up the new IC partner. The IC partner code is ICP40, and the partner uses the local currency. CRONUS International Ltd. will be sending their IC transactions by file in a directory on their hard disk. For the purpose of this lab, when setting up the file location, create a new folder on the desktop called IC Inbox, and save file name ICP40 in the folder. The accounting manager has decided that the receivables and payable GL accounts are 2325 and 5425, respectively. Finally, CRONUS Biking Ltd. will use their internal numbers for sales and purchasing on documents. Dimensions are not set up for this IC partner.

Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the IC Partner Card window. 3. Set up the new IC partner as specified in the scenario.



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Assign IC Partners to Customers and Vendors Once an IC partner is set up, it is assigned to a customer and/or vendor. It is possible to set up IC transactions using the same customer and vendor setup as with normal customer and vendor transactions; there is very little difference in handling documents for/from IC partners compared with the known customer and vendor functionality.

NOTE: You can only assign an IC partner to one customer and/or vendor.

In this section, an IC customer and vendor is designated as an IC partner by assigning an IC Partner Code on the customer and vendor cards.

Assign an IC Partner to a Customer and a Vendor To set up a customer as an IC partner, follow these steps:

1. On the Navigation Pane, click Financial Management > Receivables > Customers.

2. Locate and select the IC customer. 3. Click the Communication tab. 4. In the IC Partner Code field, click the AssistButton and select the

corresponding IC partner. 5. Click the Invoicing tab. 6. In the Gen. Bus. Posting Group field, click the AssistButton and

assign the IC posting group. 7. Close the Customer Card window.

To set up a vendor as an IC partner, follow these steps:

1. On the Navigation Pane, click Financial Management > Payables > Vendors.

2. Locate and select the IC vendor. 3. Click the Communication tab. 4. In the IC Partner Code field, click the AssistButton and select the

corresponding IC partner. 5. Click the Invoicing tab. 6. In the Gen. Bus. Posting Group field, click the AssistButton and

assign the IC posting group. 7. Close the Vendor Card window.



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Lab 10.2: − Create an IC Partner Vendor Scenario In Lab 10.1, CRONUS Biking Ltd. was set up as an IC Partner. Currently, this partner will only sell to CRONUS International Ltd., therefore, a vendor must be created for CRONUS Biking Ltd. As the accounts payable coordinator, you are responsible for setting up the IC partner as a vendor, using the following criteria:

• To keep IC vendors grouped, use IC1040 as the Vendor No. • Assign the corresponding IC Partner Code. • General Business Posting Group is Intercompany and the Vendor

Posting group is Domestic.

Challenge Yourself! Create the CRONUS Biking Ltd. vendor using the criteria specified in the scenario.



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Lab 10.2: − Create an IC Partner Vendor Scenario In Lab 10.1, CRONUS Biking Ltd. was set up as an IC Partner. Currently, this partner will only sell to CRONUS International Ltd., therefore, a vendor must be created for CRONUS Biking Ltd. As the accounts payable coordinator, you are responsible for setting up the IC partner as a vendor, using the following criteria:



Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the Vendor Card window. 3. Create the vendor using the criteria specified in the scenario.



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Set up the Chart of Accounts for IC Transactions Before IC partners can begin to transfer IC transactions electronically, each company must set up the IC Chart of Accounts in their company. IC partners must agree on the account numbers that are used when IC transactions are processed. Typically, the following steps occur to create the IC Chart of Accounts:

1. The parent company creates a simplified version of their own chart of accounts.

2. This IC Chart of Accounts is exported from their database into an XML file.

3. The XML file is distributed to each of the subsidiaries performing IC transactions.

4. Each subsidiary imports the XML file into the IC Chart of Accounts window and maps the accounts to the accounts in their own chart of accounts.

The IC Chart of Accounts window can also be filled out manually, however, the parent company will still define which account numbers and names are used. When the IC partners map their Chart of Accounts to the agreed upon IC Chart of Accounts, account number that do not match must be manually mapped. This section explains how to set up the IC Chart of Accounts using the copying and mapping functionality, as well as how to export and import an XML file containing the IC Chart of Accounts.

Demonstration: Set up the IC Chart of Accounts in Two Companies Scenario: Cassie, the accountant at CRONUS International Ltd., is in the process of setting up the IC Chart of Accounts for use between:

• CRONUS International Ltd. • CRONUS Consultancy Ltd.

Since both companies are in the same Microsoft Dynamics NAV 5.0 database, Cassie completes the process for both companies:

1. Copies the chart of accounts from CRONUS International Ltd. 2. Maps the accounts to the same accounts. 3. Exports the IC Chart of Accounts to an XML file on the desktop.



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4. Imports the XML file into the CRONUS Consultancy Ltd. company. 5. Maps the accounts to the same accounts, since both companies use

the same chart of accounts.

Steps To copy the IC Chart of Accounts in the CRONUS International Ltd. company, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Chart of Accounts. 4. Click Functions > Copy from Chart of Accounts. 5. Click Yes to copy from the Chart of Accounts.

To map all accounts to the same accounts at once, follow these steps:

1. Highlight all the lines and click Functions > Map to Acc. with Same No.

2. Click Yes to map the selected lines. The Map-to G/L Acc. No. field on each line is populated with the same number as in the No. field. To export the IC Chart of Accounts, follow these steps:

1. Click Functions > Export. 2. In the Save in field, click the AssistButton and select the desktop. 3. Do not change the default name of ICGLAcc in the File Name field. 4. Click Save to export the IC Chart of Accounts to an XML file.

To import the IC Chart of Accounts into the CRONUS Consultancy Ltd. company, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS Consultancy Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Chart of Accounts. 5. Click Functions > Import. 6. Locate and select the ICGLAcc file on the desktop. 7. Click Open. 8. Click OK to the message stating the number of G/L accounts added.



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To map all accounts to the same accounts at once, follow these steps:

1. Highlight all the lines and click Functions > Map to Acc. with Same No.

2. Click Yes to map the selected lines. The Map-to G/L Acc. No. field on each line is populated with the same number as in the No. field.



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Lab 10.3: − Add an Account and Update the IC Chart of Accounts

Scenario In CRONUS International Ltd., a new account 2811, T-Bills, needs to be added to the balance sheet, under Securities. Once this account is added in the CRONUS International Ltd. company, it must be added to the IC Chart of Accounts. Copy and map to all accounts and then export the file to the desktop. In the CRONUS Consultancy Ltd. company, add the same account to the Chart of Accounts and then import the XML file. Locate the new account in the IC Chart of Accounts window and manually map the same account number.

HINT: Indent the chart of accounts after adding the new account and do not change the default file name in the export. If necessary, overwrite any existing files with the same name.

Challenge Yourself!

1. Add the new account in the CRONUS International Ltd. company as specified in the scenario.

2. Update and export the IC Chart of Accounts as specified in the scenario.

3. Add the new account in the CRONUS Consultancy Ltd. company as specified in the scenario.

4. Update the IC Chart of Accounts as specified in the scenario.



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Lab 10.3: − Add an Account and Update the IC Chart of Accounts

Scenario In CRONUS International Ltd., a new account 2811, T-Bills, needs to be added to the balance sheet, under Securities. Once this account is added in the CRONUS International Ltd. company, it must be added to the IC Chart of Accounts. Copy and map to all accounts and then export the file to the desktop. In the CRONUS Consultancy Ltd. company, add the same account to the Chart of Accounts and then import the XML file. Locate the new account in the IC Chart of Accounts window and manually map the same account number.


Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the Chart of Accounts window. 3. Add the new account as specified in the scenario. 4. Open the IC Chart of Accounts window. 5. Copy and map all accounts. 6. Export the IC Chart of Accounts, using the default file name. 7. Open the CRONUS Consultancy Ltd. company. 8. Open the Chart of Accounts window. 9. Add the new account as specified in the scenario. 10. Open the IC Chart of Accounts window. 11. Import the exported XML file. 12. Locate the new account and map manually to the same account.



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Set up Dimensions for IC Transactions Before IC partners can begin to transfer IC transactions electronically, each company must set up IC Dimensions in their company. IC partners must agree on the dimensions codes and values that are used when IC transactions are processed. Typically, the following steps occur to create the IC Dimensions:

1. The parent company defines the IC dimension codes and values based on its own dimension codes and values.

2. The IC Dimensions are exported into an XML file. 3. The XML file is distributed to each of the subsidiaries performing IC

transactions. 4. Each subsidiary imports the XML file into the IC Dimensions

window and maps the dimensions to their own dimension codes and values.

The IC Dimensions window can also be filled out manually, however, the parent company will still define the dimension codes and values used. When the IC partners map their dimensions to the agreed upon IC Dimensions, dimensions that do not match must be manually mapped. This section shows how to set up the IC Dimensions using the copying and mapping functionality as well as how to export and import an XML document containing the IC Dimensions.

Demonstration: Set up Dimensions in Two Companies Scenario: Cassie, the accountant at CRONUS International Ltd., is in the process of setting up IC dimensions for use between:

• CRONUS International Ltd. • CRONUS Consultancy Ltd.

There are two dimensions used by CRONUS International Ltd. that will not be included in IC transactions. Therefore, the following dimensions will be removed in this process:

• Department • Salesperson



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Since both companies are in the same Microsoft Dynamics NAV 5.0 database, Cassie completes the process for both companies:

1. Copies the dimensions from CRONUS International Ltd. 2. Removes the Department and Salesperson dimensions. 3. Maps the dimensions to the same dimension codes. 4. Exports the IC Dimensions to an XML file on the desktop. 5. Imports the XML file into the CRONUS Consultancy Ltd. company. 6. Maps the dimensions to the same dimension codes, since both

companies use the same dimensions.

Steps To copy the dimensions in the CRONUS International Ltd. company, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Dimensions. 5. Click Functions > Copy from Dimensions. 6. Click Yes to copy from dimensions.

To view the Dimensions Values of a dimension, follow these steps:

1. Click a dimension line. 2. Click IC Dimension > IC Dimension Values. 3. Close the IC Dimension Values window.

To remove the department and salesperson IC Dimensions, follow these steps:

1. Click the line for the Department dimension. 2. Press F4. 3. Click Yes to delete the IC Dimension. 4. Click the line for the Salesperson dimension. 5. Press F4. 6. Click Yes to delete the IC Dimension.



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To map all dimensions to the same dimensions at once, follow these steps:

1. Highlight all the lines and click Functions > Map to Dim. with Same Code.

2. Click Yes to map the selected lines. The Map-to Dimension Code field on each line is populated with the same code as in the Code field. To export the IC Dimensions, follow these steps:

1. Click Functions > Export. 2. In the Save in field, click the AssistButton and select the desktop. 3. Do not change the default name of ICDim in the File Name field. 4. Click Save to export the IC Dimension to an XML file.

To import the IC Chart of Accounts into the CRONUS Consultancy Ltd. company, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS Consultancy Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Dimensions. 5. Click Functions > Import. 6. Locate and select the ICDim file on the desktop. 7. Click Open. 8. Click OK to the message stating the number of dimensions added.

To map all dimensions to the same dimensions at once, follow these steps:

1. Highlight all the lines and click Functions > Map to Dim. with Same Code.

2. Click Yes to map the selected lines. The Map-to Dimension Code field on each line is populated with the same number as in the No. field.



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Lab 10.4: − Remove and Update IC Dimensions Scenario After analysis, the Area dimension is not as relevant as initially expected. Therefore, it is no longer an active dimension. To maintain history, the Area dimension is blocked. As the accounting manager, you have already blocked the standard dimension and you now need to block the IC dimension. After the dimension is blocked, export the IC dimensions and import the changes into the CRONUS Consultancy Ltd. company.

Challenge Yourself!

1. Block the Area dimension and export the file. 2. Import the XML file into the CRONUS Consultancy Ltd. company.



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Lab 10.4: − Remove and Update IC Dimensions Scenario After analysis, the Area dimension is not as relevant as initially expected. Therefore, it is no longer an active dimension. To maintain history, the Area dimension is blocked. As the accounting manager, you have already blocked the standard dimension and you now need to block the IC dimension. After the dimension is blocked, export the IC dimensions and import the changes into the CRONUS Consultancy Ltd. company.

Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the IC Dimensions window. 3. Block the Area dimension and export the file. 4. Open the CRONUS Consultancy Ltd. company. 5. Open the IC Dimensions window and import the XML file.



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Set up Default IC Partner G/L Accounts When an IC journal or document line is created to send as an outgoing transaction, an account from the IC Chart of Accounts is entered indicating the account used for posting in the IC partner's company. For accounts that are often used on outgoing IC journal or document lines, a default IC partner G/L account can be specified in the Chart of Accounts window. For example, for the receivables accounts, enter the IC partner's payables accounts from the IC Chart of Accounts. Microsoft Dynamics NAV 5.0 automatically copies the contents of the Default IC Partner G/L Acc. No. field to the IC Partner G/L Acc. No. field on the line:

• On a journal, when a line is entered with an Account Type of IC Partner and the G/L account is entered in the Bal. Account No. field.

• On a document, when an IC partner (customer or vendor) is selected in the header and the G/L account is entered in the Account No. field on the document line.

Set up a Default IC Partner G/L Account To set up a default IC partner G/L account, follow these steps:

1. On the Navigation Pane, click Financial Management > General Ledger > Chart of Accounts.

2. Locate and select the G/L account to assign a default. 3. Click Account > Card. 4. Click the Posting tab. 5. In the Default IC Partner G/L Acc. No. field, click the

AssistButton. The IC G/L Account List window appears, containing the G/L accounts specified in the IC Chart of Account window.

6. Select the IC G/L account that the IC partner will post to when posting to the G/L account on the line.

7. Click OK.



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IC Outbox and IC Inbox Overview The Intercompany Postings feature includes an IC Inbox and an IC Outbox that provide an overview of the IC transactions to process and the origins of the IC documents. When IC transactions are posted, they are transferred to the IC Outbox. Transactions can be managed simultaneously or filters can be set to process transactions separately.

• If the information is correct, it can be sent on to the IC partner for processing.

• If the information is erroneous, it can be cancelled and removed from the IC Outbox and then corrected using the standard functionality of correcting posted entries.

All incoming documents from IC partners can be reviewed in the IC Inbox. Transactions can be managed simultaneously or filters can be set to process transactions separately. When an IC transaction is accepted, the corresponding documents or IC General Journal lines are created automatically.

FIGURE 10.3 INTERCOMPANY SALES INVOICE DOCUMENT FLOW



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Each IC partner also has the ability to reject incorrect IC transactions. When IC transactions are rejected, the transaction information is returned to the IC Inbox of the IC partner that sent it originally. That IC partner can then review the information and take action, such as:

• If the transaction is incorrect, cancel the transaction in the IC Inbox, credit or reverse the original transaction, and then create and send a new transaction.

• If the transaction is correct, cancel the transaction in the IC Inbox, and then re-create the outbox transaction from the Handled IC Outbox Transactions window and resend.

However, if an IC transaction is erroneously rejected and has not yet been returned to the IC partner, the Return to IC Inbox function can reconstitute the original IC transaction in the IC Inbox, where it can be accepted. In this section, the IC Outbox Transactions and IC Inbox Transactions windows, and the Complete IC Inbox Action batch job are described.

IC Outbox Transactions Overview The IC Outbox Transactions window displays the IC transactions that are ready to be sent to IC Partners. Each line in this window represents either:

• A transaction that originated in this company. • A transaction received from an IC partner that has been rejected, so

that it may be sent back. The IC Outbox Transactions window is accessed on the Navigation Pane by clicking Financial Management > General Ledger > Intercompany Postings > Outbox Transactions.



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FIGURE 10.4 IC OUTBOX TRANSACTIONS WINDOW

The header in this window contains filtering options for the transaction lines:

Filter Field Description Partner Filter Filters on specific partners. Show Transaction Source Filters on new or rejected transactions. Show Line Action Filters on all or specific line actions.

The fields in the lines are:

Field Description Transaction No. Identifies the number of the

transaction. IC Partner Code Indicates the code of the IC

partner that the transaction will be sent to.

Source Type Indicates whether the transaction was created in a journal, a sales document, or a purchase document.

Document Type, Document No., Posting Date, and Document Date

Information from the transferred IC document.



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Field Description

Transaction Source

Indicates which company created the transaction. The options are: Rejected by Current Company: The transaction was received from the IC partner and was rejected by the current company. Created by Current Company: The transaction was created by the current company.

Line Action

Determines the action taken when the Complete Line Actions function is run. The options are: No Action: The line remains in the Outbox. Send to IC Partner: The transaction is sent to the IC partner's inbox. Return to Inbox: The transaction is not returned to the partner, but is sent back to the IC Inbox for re-evaluation. Cancel: The transaction is deleted from the outbox and is not sent to the IC partner.

The Outbox Transactions button contains the following menu items:

• Details: Opens the source document of the selected line. • Comments: Used to document comments about the selected line.

The Functions button contains the following menu items:

• Set Line Action: Used to change the action to be taken when the Complete Line Actions function is run.

• Complete Line Actions: Processes the IC transactions based on the selection in the Line Action field on each line.

IC Inbox Transactions Overview In the IC Inbox Transactions window, each line in this window represents either:

• A transaction that was created and sent from an IC partner. • A transaction that originated in this company but was rejected by the

IC partner and sent back. The IC Inbox Transactions window is accessed on the Navigation Pane by clicking Financial Management > General Ledger > Intercompany Postings > Inbox Transactions.



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FIGURE 10.5 IC INBOX TRANSACTIONS WINDOW

The header in this window contains filtering options for the transaction lines:

Filter Field Description Partner Filter Filters on specific partners. Show Transaction Source Filters on new or returned transactions from

the IC partner. Show Line Action Filters on all or specific line actions.

The fields in the lines are:

Field Description Transaction No. Identifies the number of the transaction. IC Partner Code Indicates the code of the IC partner that the

transaction is from. Source Type Indicates whether the transaction was created in a

journal, a sales document, or a purchase document. Document Type, Document No., Posting Date, and Document Date

Information from the transferred IC document.



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Field Description Transaction Source

Indicates which company created the transaction. The options are: Returned by Partner: The transaction was rejected by the IC partner. Created by Partner: The transaction was created and sent from the IC partner.

Line Action Determines the action taken when the Complete Line Actions function is run. The options are: No Action: The line remains in the IC Inbox. Accept: The transaction is transferred to a document or journal. Return to Partner: The transaction is moved to the IC Outbox. From there, it can be returned to the IC partner. Cancel: The transaction is deleted from the IC Inbox.

The Inbox Transactions button contains the following menu items:

• Details: Opens the source document of the selected line. • Comments: Used to document comments about the selected line.

The Functions button contains the following menu items:

• Set Line Action: Used to change the action to be taken when the Complete Line Actions function is run.

• Complete Line Actions: Opens the Complete IC Inbox Action batch job that processes the IC transactions based on the selection in the Line Action field on each line.

• Import Transaction File: Used to import an .xml file of IC transactions from IC partners that are not in the same database as the current company.

Complete IC Inbox Action Batch Job Overview When actions are completed in the IC Inbox Translations window, the Complete IC Inbox Action batch job processes each transaction according to the contents of the Line Action field for that transaction. The IC Inbox Transaction tab provides the ability to set filters on the fields on the lines in the IC Inbox Transaction window.



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NOTE: If no filters are set, the batch job processes all of the transactions in the IC Inbox.

The Options tab contains fields separated into two sections that determine the type of IC document created in the current company:

• Journals: Used when the IC transaction is created from a journal; creates IC lines in the specified journal.

• Documents: Used when the IC transaction is created from a sales or purchase document; creates IC sales or purchase documents.

The Journals section includes the following fields:

Field Description IC Gen. Journal Template Identifies the journal template where the

journal lines are created. Gen. Journal Batch Identifies the journal batch where the journal

lines are created. Starting Document No. Specifies the next available number in the

number series for the journal batch that is linked to the journal. When the batch job is run, this document number appears on the first journal line.

Replace Posting Date If selected, the journal's posting date is replaced with the date entered in the Posting Date field below.

Posting Date Indicates the date used as the posting date in the journal when the batch job is run, if the Replace Posting Date check box contains a check mark.

The Document section contains the following fields:

Field Description Replace Posting Date

If selected, the document's posting date is replaced with the date entered in the Posting Date field below.

Posting Date

Indicates the date used as the document's posting date when the batch job is run, if the Replace Posting Date check box contains a check mark.



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Categorize Activity: IC Outbox and IC Inbox Overview Task: Categorize the following items: Categories

1. 1. IC Outbox 2. 2. IC Inbox 3. 3. Complete IC Inbox Action batch job

_____ - Item 1: Where an IC transaction is rejected. _____ - Item 2: Creates IC General Journal lines. _____ - Item 3: Where an IC transaction is accepted. _____ - Item 4: Posted IC transactions are transferred here. _____ - Item 5: Creates IC sales or purchase documents. _____ - Item 6: Where a returned IC transaction is received. _____ - Item 7: Where erroneously rejected, but unreturned, IC transactions can be reinstated.

Create an IC Document The first step in handling IC documents is creating an order or invoice. When creating an IC document, the same functionality is used as when creating an ordinary order or invoice. The only differences are:

• The IC Partner Reference field must have an IC G/L account number.

• Microsoft Dynamics NAV 5.0 automatically sends the IC document to the IC Outbox when the order or invoice is posted.

This section provides a demonstration of creating an IC sales invoice and explains how order confirmations can be sent to an IC partner.

Demonstration: Create an IC Sales Document Scenario: On January 15, 2007, CRONUS International Ltd. requested 24 hours of consulting time from CRONUS Consultancy Ltd. Arnie, the accounts receivable administrator for CRONUS Consultancy Ltd. posts the following IC invoice:

• G/L Account 6710, Consulting Fees - Dom. • IC Partner Reference 8320, Consultant Services • Unit Price of 107.00 per hour

After posting the invoice, Arnie verifies that the document appears in the IC Outbox.



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Steps To create the IC sales invoice, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS Consultancy Ltd. and click OK. 3. On the Navigation Pane, click Financial Management > Receivables

> Invoices. 4. Press F3 and ENTER. 5. In the Sell-to Customer No. field, enter IC1001. 6. Press TAB or ENTER. 7. In the Posting Date field, enter 01/15/07. 8. Click the lines. 9. On the View menu, click Show Column. 10. Select the IC Partner Ref. Type and IC Partner Reference fields. 11. Click OK to close the Show Column window. 12. In the Type field, click the AssistButton and select G/L Account. 13. In the No. field, enter 6710 and then press TAB or ENTER. 14. Ensure that the IC Partner Ref. Type is set to G/L Account. 15. In the IC Partner Reference field, enter 8320. 16. In the Quantity field, enter 24. 17. In the Unit of Measure Code field, click the AssistButton and

select Hour. 18. In the Unit Price field, enter 107.00. 19. Click Posting > Post. 20. Click Yes to post the invoice. 21. Close the Sales Invoice window.

To review the IC Outbox, follow these steps:

1. On the Financial Management menu, click General Ledger > Intercompany Postings > Outbox Transactions.

2. Locate and select the file posted 01/15/07. 3. To verify this is the posted invoice, click Outbox Transaction >

Details. 4. After reviewing the document, close the IC Outbox Sales Doc. and

IC Outbox Transactions windows.



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Generate an Order Confirmation When creating sales or purchase orders, it is possible to send an order confirmation to the IC Outbox and then to the IC partner. The sequence of events is as follows:

1. An order is created in company A. 2. An order confirmation is generated in company A and is sent to the

IC Outbox. 3. The order confirmation is manually sent from the IC Outbox to

company B's IC Inbox. 4. The confirmation is reviewed in company B's IC Inbox:

a. If accepted, an order is created. b. If simply reviewed and deleted, an order is not created.

5. When the order created in company A is invoiced, the posted invoice

is sent to company A's IC Outbox. 6. The posted invoice is manually sent from the IC Outbox to company

B's IC Inbox. 7. The posted invoice is reviewed in company B's IC Inbox and if

accepted, an invoice is created. To generate a sales order confirmation, follow these steps:

1. On the Navigation Pane, click Sales & Marketing > Order Processing > Order.

2. Press F3 and ENTER to insert a new sales order. 3. In the Sell-to Customer No. field, enter the IC partner's customer

number. 4. Press TAB or ENTER. 5. Complete the other fields, as needed, in the header. 6. Enter the sales lines. 7. Click Functions > Send IC Sales Order Cnfmn.



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To review the IC Outbox, follow these steps:

1. On the Navigation Pane, click Financial Management > General Ledger > Intercompany Postings > Outbox Transactions.

2. Locate and select the sales order created above. 3. Click Outbox Transactions > Detail. 4. Review the sales order confirmation and then close the IC Outbox

Sales Doc. and IC Outbox Transactions windows. The same process is used for generating purchase order confirmations.

NOTE: The order confirmation functionality is not available on sales or purchase invoices.



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Lab 10.5: − Create an IC Sales Document Scenario On January 25, 2007, a senior advisor from CRONUS Consultancy Ltd. met with a group at CRONUS International Ltd. for a consult appointment. The advisor spent 10 hours onsite, and has a billing rate of 20.00. Create an invoice to CRONUS International Ltd. for the consulting services performed. The service is posted to G/L account 6710 and the IC Partner Reference is G/L account 8320.

HINT: Ensure that the IC Partner Ref. Type and IC Partner Reference fields are shown on the sales invoice lines.

Challenge Yourself! Enter and post the sales invoice as specified in the scenario.



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Lab 10.5: − Create an IC Sales Document Scenario On January 25, 2007, a senior advisor from CRONUS Consultancy Ltd. met with a group at CRONUS International Ltd. for a consult appointment. The advisor spent 10 hours onsite, and has a billing rate of 20.00. Create an invoice to CRONUS International Ltd. for the consulting services performed. The service is posted to G/L account 6710 and the IC Partner Reference is G/L account 8320.

HINT: Ensure that the IC Partner Ref. Type and IC Partner Reference fields are shown on the sales invoice lines.

Need a Little Help?

1. Open the CRONUS Consultancy Ltd. company. 2. Open the Sales Invoice window. 3. Enter the sales invoice for CRONUS International Ltd. as specified

in the scenario. 4. Post the sales invoice.



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Send IC Documents Once an IC document is created and appears in the IC Outbox, the next step is to send the IC document to the IC Inbox of the IC partner. In this section, the process of sending IC documents is explained.

Send an IC Document To send an IC document from the IC Outbox Transaction window, follow these steps:


2. Click the line of the IC document to send. 3. Click Functions > Set Line Action > Send to IC Partner. 4. Click Functions > Complete Line Actions. 5. Click Yes to complete line actions.

The following actions have occurred during this process:

• The sent line was removed from the IC Outbox Transaction window.

• A corresponding line was created in the Handled IC Outbox Transactions window.

• The IC document appeared in the IC Inbox in the IC partner��s company.

NOTE: Line actions can also be set by clicking the AssistButton in the Line Action field and selecting the relevant action.



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Lab 10.6: − Send IC Documents Scenario It is nearing the end of the month, and the accountant at CRONUS International Ltd. has requested that all IC invoices. There is only one invoice, posted 01/25/07 After sending this IC document, review the Handled IC Outbox and open the CRONUS International Ltd. company��s IC Inbox to verify that the document was sent.

Challenge Yourself!

1. Send the IC document as specified in the scenario. 2. Review the sent document as specified in the scenario.



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Lab 10.6: − Send IC Documents Scenario It is nearing the end of the month, and the accountant at CRONUS International Ltd. has requested that all IC invoices. There is only one invoice, posted 01/25/07 After sending this IC document, review the Handled IC Outbox and open the CRONUS International Ltd. company��s IC Inbox to verify that the document was sent.

Need a Little Help?

1. Open the CRONUS Consultancy Ltd. company. 2. Open the IC Outbox Transactions window. 3. Send the IC document posted 01/25/07. 4. Open and review the line in the Handled IC Outbox Transactions

window. 5. Open the CRONUS International Ltd. company. 6. Open and review the sent IC document in the IC Inbox

Transactions window.



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Receive and Accept IC Documents When an IC partner sends an IC document, the transaction appears in the receiving company's IC Inbox.

• If the IC document was transferred in a joint database, the transaction automatically appears in the IC Inbox.

• If the IC document was sent as an XML document, the XML file is imported into the IC Inbox.

In this section, IC documents received in the IC Inbox are accepted. This section also explains the process of importing XML files.

Accept an IC Document as a Purchase Document To accept an IC document and create a purchase document, follow these steps:

1. On the Navigation Pane, click Financial Management > General Ledger > Intercompany Postings > Inbox Transactions.

2. Select the IC transaction line to accept. 3. Click Functions > Set Line Action > Accept. 4. Click Functions > Complete Line Actions. 5. Set line filters on the IC Inbox Transactions tab. 6. If the Posting Date needs to change, click the Options tab. 7. Place a check mark in the Replace Posting Date check box. 8. In the Posting Date field, enter the new posting date for the purchase

document. 9. Click OK to run the batch job.

NOTE: Line actions can also be set by clicking the AssistButton in the Line Action field and selecting the relevant action.

To review the purchase document, follow these steps:

1. On the Financial Management menu, click Payables > Invoices. 2. Click Invoice > List. 3. Select an IC purchase invoice and click OK. 4. Review the purchase invoices created from the Complete IC Inbox

Action batch job. 5. Close the Purchase Invoice window.



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Accept an IC Document as a Journal To accept an IC transaction created from an IC General Journal, and create an IC General Journal, follow these steps:


2. Select the IC transaction line to accept. 3. Click Functions > Set Line Action > Accept. 4. Click Functions > Complete Line Actions. 5. Set line filters on the IC Inbox Transactions tab. 6. Click the Options tab. 7. In the IC Gen. Journal Template field, click the AssistButton and

select the IC journal template. 8. In the Gen. Journal Batch field, click the AssistButton and select

the IC journal batch. 9. If the posting date needs to be changed, place a check mark in the

Replace Posting Date check box. 10. In the Posting Date field, enter the new posting date for the purchase

document. 11. Click OK to run the batch job. 12. Close the IC Inbox Transactions window.

To review the general journal lines, follow these steps:

1. In the Intercompany Postings folder, click General Journals. 2. Review the journal lines created from the Complete IC Inbox Action

batch job. 3. Close the IC General Journal window.



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Import an XML File When IC partners do not share the same database, IC transactions can be imported into the IC Inbox from an .xml file. When the IC partner sends the file, it is stored in the location specified in the Inbox Details on the IC Partner Card. To import IC transactions from an .xml file, follow these steps:


2. Click Functions > Import Transaction File. 3. In the Select file to import into IC Inbox Transactions window,

locate and select the .xml file. 4. Click Open.

Once the transactions are imported, they are processed as any other IC transaction.



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Lab 10.7: − Accept an IC Document and Create a Purchase Invoice

Scenario The IC transaction from CRONUS Consultancy Ltd. has been received and approved. As the accounts payable coordinator at CRONUS International Ltd., accept the IC transaction with a posting date of 01/25/07 and create a purchase invoice with the same posting date. Review the purchase invoice.

Challenge Yourself!

1. Accept the IC document as specified in the scenario. 2. Review the IC purchase invoice.



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Lab 10.7: − Accept an IC Document and Create a Purchase Invoice

Scenario The IC transaction from CRONUS Consultancy Ltd. has been received and approved. As the accounts payable coordinator at CRONUS International Ltd., accept the IC transaction with a posting date of 01/25/07 and create a purchase invoice with the same posting date. Review the purchase invoice.

Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the IC Inbox Transactions window. 3. Accept the IC document dated 01/25/07. If necessary, set a filter to

only accept this line. 4. Run the Complete IC Inbox Action batch job. 5. Open the Purchase Invoice window. 6. Review the IC purchase invoice posted 01/25/07.



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View Handled IC Inbox and IC Outbox Transactions The Handled IC Inbox Transactions and Handled IC Outbox Transactions windows both provide the ability to easily review the status and origin of all handled IC transactions, including:

• Sent IC transactions • Accepted IC transactions • Posted IC transactions • Rejected IC transactions • Cancelled IC transactions

In the Handled IC Outbox Transaction window, a line represents an IC transaction handled in the IC Outbox.

Handled IC Inbox Transactions Overview In the Handled IC Inbox Transaction window, a line represents an IC transaction handled in the IC Inbox. This window is accessed on the Navigation Pane by clicking Financial Management > General Ledger > Intercompany Postings > Handled Inbox Transactions.

FIGURE 10.6 HANDLED IC INBOX TRANSACTIONS WINDOW The fields in this window are the same as those in the IC Inbox Transactions window except the Line Action field is removed and the Status field appears. The Status field indicates what action has been taken on the IC transaction.



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The Inbox Transaction button contains the same menu items as those in the IC Inbox Transactions window, but the Functions button contains different menu items:

Menu Option Description Re-create Inbox Transaction

Used to recreate the transaction line in the IC Inbox if the documents created from the IC Inbox lines were deleted before they were posted. This provides a backup of received IC transactions.

Delete Lines Used to permanently remove the IC transaction lines.

Handled IC Outbox Transactions Overview In the Handled IC Outbox Transaction window, a line represents an IC transaction handled in the IC Outbox. This window is accessed on the Navigation Pane by clicking Financial Management > General Ledger > Intercompany Postings > Handled Outbox Transactions.

FIGURE 10.7 HANDLED IC OUTBOX TRANSACTIONS WINDOW

The fields in this window are the same as those in the IC Outbox Transactions window except the Line Action field is removed and the Status field appears. The Status field indicates what action has been taken on the IC transaction. The Outbox Transaction button contains the same menu items as those in the IC Inbox Transactions window, but the Functions button contains different menu items:



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Menu Option Description

Re-create Outbox Transaction

Used as a backup if the IC partner did not receive the transaction or the .xml file was accidentally deleted or otherwise corrupt.

Delete Lines Used to permanently remove the IC transaction lines.



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Lab 10.8: − Delete a Handled IC Transaction Scenario As the accounts receivable administrator at CRONUS International Ltd., you are reviewing IC documents in the Handled IC Outbox Transactions window, and notice an entry from 01/25/01. Since it is 2007, and because there is no outstanding issue with this order, you decide to delete the transaction line.

Challenge Yourself! Delete the IC transaction as specified in the scenario.



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Lab 10.8: − Delete a Handled IC Transaction Scenario As the accounts receivable administrator at CRONUS International Ltd., you are reviewing IC documents in the Handled IC Outbox Transactions window, and notice an entry from 01/25/01. Since it is 2007, and because there is no outstanding issue with this order, you decide to delete the transaction line.

Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the Handled IC Outbox Transactions window. 3. Delete the IC transaction with the posting date of 01/25/01.



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Reject IC Documents The Return to IC Partner functionality provides the ability to reject an incorrect IC transaction that has been sent from an IC partner. When rejecting an IC document received from an IC partner, it is first rejected in the IC Inbox, then directed to the IC Outbox, and finally sent to the IC partner's IC Inbox.

FIGURE 10.8 IC TRANSACTION REJECTION PROCESS FLOW

In this section, the process of rejecting an IC document is explained.

Reject an IC Document To reject an IC document, follow these steps:


2. Select the IC transaction line to reject. 3. Click Functions > Set Line Action > Return to IC Partner. 4. Click Functions > Complete Line Actions. 5. In the Complete IC Inbox Action batch job, in the Line Action

filter, click the AssistButton and select Return to IC Partner. 6. Click OK. 7. Close the IC Inbox Transactions window. 8. In the Intercompany Postings folder, click Outbox Transactions.



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9. Select the rejected IC transaction line. 10. Click Functions > Set Line Action > Send to IC Partner. 11. Click Functions > Complete Line Actions. 12. Click Yes to complete line actions.

Return an IC Document Rejected by Mistake If an IC document sent from an IC partner was mistakenly rejected in the IC Inbox, the IC document can be returned from the IC Outbox to the IC Inbox. Once it is back in the IC Inbox, the Line Action can be changed accordingly. To return a rejected IC document to the IC Inbox, follow these steps:


2. Select the rejected line. 3. Click Functions > Set Line Action > Return to Inbox. 4. Click Functions > Complete Line Actions. 5. Click Yes to complete line actions. 6. Close the IC Outbox Transactions window. 7. In the Intercompany Postings folder, click Inbox Transactions. 8. Click Functions > Set Line Action and select the appropriate action.



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Lab 10.9: − Reject an IC Document Scenario In the Create an IC Sales Document demonstration, a sales invoice to CRONUS International Ltd. was posted on January 15, 2007 in the amount of 2,824.80. This demonstration must be completed to perform this Lab. On January 17, 2007, the accounts payable coordinator at CRONUS International Ltd. calls the accounts receivable administrator at CRONUS Consultancy Ltd., inquiring about the status of the invoice since it has not been received.

• First, as the accounts receivable administrator at CRONUS Consultancy Ltd., send the invoice to the IC partner.

• Then, as the accounts payable coordinator at CRONUS International Ltd., review the invoice.

While reviewing the invoice, you notice that the unit cost is wrong, the agreement is 100.00 per hour. You reject the invoice and send it back to CRONUS Consultancy Ltd.

NOTE: If there is only one IC transaction in the IC Inbox Transactions window, it is not necessary to set filters in the Complete IC Inbox Action batch job.

Challenge Yourself!

1. In the CRONUS Consultancy Ltd. company, send the IC transaction posted 01/15/07.

2. In the CRONUS International Ltd. company, receive, review, and reject the IC transaction posted 01/15/07.



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Lab 10.9: − Reject an IC Document Scenario In the Create an IC Sales Document demonstration, a sales invoice to CRONUS International Ltd. was posted on January 15, 2007 in the amount of 2,824.80. This demonstration must be completed to perform this Lab. On January 17, 2007, the accounts payable coordinator at CRONUS International Ltd. calls the accounts receivable administrator at CRONUS Consultancy Ltd., inquiring about the status of the invoice since it has not been received.




HINT: If there is only one IC transaction in the IC Inbox Transactions window, it is not necessary to set filters in the Complete IC Inbox Action batch job.

Need a Little Help?

1. Open the CRONUS Consultancy Ltd. company. 2. Open the IC Outbox Transactions window. 3. Send the IC transaction posted 01/15/07. 4. Open the CRONUS International Ltd. company. 5. Open the IC Inbox Transactions window. 6. Review the IC transaction posted 01/15/07. 7. Reject the IC transaction posted 01/15/07. 8. Open the IC Outbox Transactions window. 9. Return the IC transaction posted 01/15/07.



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Return and Cancel IC Documents When an IC document is rejected from an IC partner, it is received in the current company's IC Inbox. If the IC document has no errors, it can be returned to the IC partner. If the IC document contains errors, it must be cancelled and then corrected using the standard functionality of correcting posted entries. In this section, the processes of returning and canceling rejected IC documents are explained.

Return a Rejected IC Document To return a rejected IC document that has been approved for processing, follow these steps:


2. Select the IC transaction returned from the IC partner. 3. Click Functions > Set Line Action > Cancel. 4. Click Functions > Complete Line Actions. 5. Click Yes to complete line actions. 6. Close the IC Outbox Transactions window. 7. In the Intercompany Postings folder, click Handled Outbox

Transactions. 8. Select the original posting of the rejected IC transaction. 9. Click Functions > Re-create Outbox Transactions. 10. Click Yes to re-create the transaction. 11. Close the Handled IC Outbox Transactions window. 12. In the Intercompany Postings folder, click Outbox Transactions. 13. Click the re-created IC transaction line. 14. Click Functions > Set Line Action > Send to IC Partner. 15. Click Functions > Complete Line Actions. 16. Click Yes to complete line actions.

NOTE: The function of re-creating IC transactions is only used to re-create a previously sent, identical transaction.



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Cancel a Rejected IC Document When a rejected IC document is incorrect, it must be cancelled and removed from the IC Inbox. To cancel a rejected IC document, follow these steps:


2. Select the IC transaction returned from the IC partner. 3. Click Functions > Set Line Action > Cancel. 4. Click Functions > Complete Line Actions. 5. Click Yes to complete line actions. 6. Close the IC Outbox Transactions window.

After cancelling the rejected IC transaction, the originating IC transaction must be corrected using the standard functionality of correcting posted entries. Once corrected, a new IC transaction can be posted and then sent to the IC Partner.



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Lab 10.10: − Cancel a Rejected IC Document Scenario In Lab 10.9, an IC document was rejected and sent back to CRONUS Consultancy Ltd. The accounts payable coordinator at CRONUS International Ltd. informed the accounts receivable administrator at CRONUS Consultancy Ltd. that the unit cost is 100.00, not 107.00. As the accounts receivable administrator at CRONUS Consultancy Ltd., you cancel the IC transaction and ask Annie, the bookkeeper to post the credit memo for the original invoice. Annie confirms that the credit memo is posted and you post the new sales invoice to CRONUS International Ltd. using the following criteria:

• Accept any messages regarding overdue balances • Posting Date 01/15/07 • G/L Account 6710, Consulting Fees - Dom. • IC Partner Reference 8320, Consultant Services • 24 hours at the unit price of 100.00 per hour

Once the sales invoice is posted, send the IC transaction to the IC partner.

HINT: It is not necessary to set filters in the Complete IC Inbox Action batch job.

Challenge Yourself!

1. Cancel the IC transaction as specified in the scenario. 2. Create and post the new invoice using the criteria specified in the

scenario. 3. Send the new IC transaction as specified in the scenario.



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Lab 10.10: − Cancel a Rejected IC Document Scenario In Lab 10.9, an IC document was rejected and sent back to CRONUS Consultancy Ltd. The accounts payable coordinator at CRONUS International Ltd. informed the accounts receivable administrator at CRONUS Consultancy Ltd. that the unit cost is 100.00, not 107.00. As the accounts receivable administrator at CRONUS Consultancy Ltd., you cancel the IC transaction and ask Annie, the bookkeeper to post the credit memo for the original invoice. Annie confirms that the credit memo is posted and you post the new sales invoice to CRONUS International Ltd. using the following criteria:




Need a Little Help?

1. Open the CRONUS Consultancy Ltd. company. 2. Open the IC Inbox Transactions window. 3. Cancel the IC transaction returned from the IC partner, posted

01/15/07. 4. Open the Sales Invoice window. 5. Create and post the new invoice using the criteria specified in the

scenario. 6. Open the IC Outbox Transactions window. 7. Send the IC transaction with the posting date of 01/15/07 to the IC

partner.



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Post an IC General Journal IC partners can use the IC General Journal to post IC transactions. However, to create an IC transaction, the journal line must contain either an IC partner account or a customer or vendor account that has been assigned an IC Partner Code. The intercompany lines in the IC General Journal window can be either:

• Outgoing lines set up by the current company. • Incoming lines accepted in the IC Inbox.

The IC General Journal is usually used for intra-period postings that will be reversed using proper documents at period end. This is because transactions between two legal entities must be legally binding business documents. In this section, the IC General Journal window is reviewed and then

IC General Journal Overview The IC General Journal window is accessed on the Navigation Pane by clicking Financial Management > General Ledger > Intercompany Postings > General Journals. The notable fields in the IC General Journal window are as follows:

Field Description Account Type Indicates whether the account is an IC Partner, or a Customer

or Vendor assigned to an IC partner code.

Account No. Identifies the IC partner code of the IC partner, customer, or vendor. Note that if a customer or vendor number is entered in the Account No. field, it must have an IC Partner Code assigned to it.

Bal. Account Type

Indicates the balance account type, for example, a G/L Account. Note that the Bal. Account Type field must be a G/L Account or a Bank Account.

Bal. Account No.

Identifies the balancing G/L Account or the Bank Account.



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Field Description IC Partner G/L Acc. No.

Indicates the IC G/L account that the amount is posted to in the IC partner's company. This field must be filled in for outgoing IC transactions on a line with a bank account or G/L account in either the Account No. field or the Bal. Account No. field. If the account number entered into either the Account No. or Bal. Account No. field is set up with a Default IC Partner G/L Acc. No., the account number specified in that field is automatically entered into the IC Partner G/L Acc. No. field on the IC General Journal line. The G/L account specified in this field must be set to Direct Posting in the company with the outgoing IC transaction.

Demonstration: Post an IC General Journal Transaction Scenario: On January 26, 2007, Phyllis the accounting manager at CRONUS International Ltd. posts an IC transaction to CRONUS Consultancy Ltd. in the amount of 21,000.00 for consulting fees, G/L account 6710. The IC Partner G/L account number for this transaction is 8320. After the journal is posted, she sends the IC transaction to CRONUS Consultancy Ltd. Annie, the bookkeeper at CRONUS Consultancy Ltd., receives and accepts the IC transaction. After that, she reviews and posts the IC General Journal.

Steps To post the IC General Journal, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > General

Ledger > Intercompany Postings > General Journals. 5. In the Posting Date field, enter 01/26/07. 6. In the Document Type field, click the AssistButton and select

Invoice. 7. In the Account Type field, click the AssistButton and select IC

Partner. 8. In the Account No. field, enter ICP20. 9. In the Amount field, enter 21000.



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10. In the Bal. Account Type field, click the AssistButton and select G/L Account.

11. In the Bal. Account No. field, enter 6710. 12. In the IC Partner G/L Acc. No. field, enter 8320. 13. Click Posting > Post. 14. Click Yes to post the journal lines. 15. Click OK to the message that the lines were posted. 16. Close the IC General Journal window.

To send the IC transaction, follow these steps:

1. In the Intercompany Postings folder, click Outbox Transactions. 2. Click the line with the Source Type of Journal Line, posted 01/26/07. 3. Click Functions > Set Line Action > Send to IC Partner. 4. Click Functions > Complete Line Actions. 5. Click Yes to complete line actions. 6. Close the IC Outbox Transactions window.

To receive and accept the IC transaction, follow these steps:

1. On the File menu, click Company > Open. 2. Select CRONUS Consultancy Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > General

Ledger > Intercompany Postings > Inbox Transactions. 5. Click the line with the Source Type of Journal, posted 01/26/07. 6. Click Functions > Set Line Action > Accept. 7. Click Functions > Complete Line Actions. 8. In the Complete IC Inbox Action batch job, in the Line Action

filter, click the AssistButton and select Accept. 9. Click the Options tab. 10. In the IC Gen. Journal Template field, click the AssistButton and

select INTERCOMP. 11. In the Gen. Journal Batch field, click the AssistButton and select

DEFAULT. 12. Click OK to run the batch job. 13. Close the IC Inbox Transactions window.



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To review and post the IC General Journal lines, follow these steps:

1. In the Intercompany Postings folder, click General Journals. 2. Review the two journal lines. 3. Click Posting > Post. 4. Click Yes to post the journal lines. 5. Click OK to the message that the lines were posted. 6. Close the IC General Journal window.



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Lab 10.11: − Post and Send an IC General Journal Transaction

Scenario You have just been informed that additional consultancy work was performed at CRONUS International Ltd. on January 18, 2007 for $500.00. As the accounting manager at CRONUS Consultancy Ltd. it is your responsibility to post the transaction to:

• The IC partner as an invoice • G/L account 6710 • IC Partner G/L acc. No. 8320

After posting the IC General Journal, send the IC transaction to the IC partner.

Challenge Yourself!

1. Enter and post the journal line as specified in the scenario. 2. Send the IC transaction as specified in the scenario.



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Lab 10.11: − Post and Send an IC General Journal Transaction




Need a Little Help?

1. Open the CRONUS Consultancy Ltd. company. 2. Open the IC General Journal window. 3. Enter the journal line as specified in the scenario. 4. Post the journal. 5. Open the IC Outbox Transactions window. 6. Send the IC transaction with the posting date of 01/18/07 to the IC

partner.



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Allocate Costs to IC Partners Costs can be allocated to one or several IC partners using either the:

• IC General Journal • Purchase order or invoice

Using the IC General Journal is useful when a service is purchased, such as, a parent company hires a service to set up computer systems in two subsidiaries. The invoice is sent to the parent company, but the costs are allocate to the two IC partners. Using purchase documents is useful when the purchasing functions, of operating expenses for example, are centralized in one company and then allocated to the IC partners. In this section, both methods of allocating costs are explained.

Demonstration: Allocate Costs Using the IC General Journal Scenario: CRONUS International Ltd. hired vendor 30000, CoolWood Technologies, to provide computer assistance for CRONUS Consultancy Ltd. and CRONUS Biking Ltd. The invoice from CoolWood Technologies, dated February 15, 2007, is received in the amount of 10,000.00. The costs are allocated as follows:

• CRONUS Consultancy Ltd. - 7,500.00 • CRONUS Biking Ltd. - 2,500.00

An IC General Journal is posted in CRONUS International Ltd. for these amounts and then each allocation is sent to the IC partner.

NOTE: The External Document No. must be filled in on the line with the Account Type of Vendor if the Ext. Doc. No. Mandatory check box contains a check mark in the Purchases & Payables Setup window.



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Steps To enter the vendor line in the IC General Journal, follow these steps:


Ledger > Intercompany Postings > General Journals. 5. On the View menu, click Show Column. 6. Select External Document No. and click OK. 7. In the Posting Date field, enter 02/15/07. 8. In the Document Type field, click the AssistButton and select

Invoice. 9. In the External Document No. field, enter Comp Srvc Allocation. 10. In the Account Type field, click the AssistButton and select

Vendor. 11. In the Account No. field, enter 30000. 12. In the Amount field, enter -10000. 13. In the Bal. Account Type field, click the AssistButton and select

G/L Account. 14. In the Bal. Account No. field, enter 8320.

To enter the IC partner lines, follow these steps:

1. Click the next line. 2. In the Document Type field, click the AssistButton and select

blank. 3. In the Account Type field, click the AssistButton and select IC

Partner. 4. In the Account No. field, enter ICP20. 5. In the Amount field, enter 7500. 6. In the Bal. Account No. field, enter 6710. 7. In the IC Partner G/L Acc. No. field, enter 8320. 8. Click the next line. 9. In the Account No. field, enter ICP40. 10. In the Amount field, enter 2500. 11. In the Bal. Account No. field, enter 6710. 12. In the IC Partner G/L Acc. No. field, enter 8320.



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To post the IC General Journal, follow these steps:

1. Click Posting > Post. 2. Click Yes to post the journal lines. 3. Click OK to the message that the lines were posted. 4. Close the IC General Journal window.

To send the IC transactions to the IC partners, follow these steps:

1. In the Intercompany Postings folder, click Outbox Transactions. 2. Highlight both lines with the Source Type of Journal Line, posted

02/15/07. 3. Click Functions > Set Line Action > Send to IC Partner. 4. Click Functions > Complete Line Actions. 5. Click Yes to complete line actions.

Allocate Costs Using a Purchase Document To charge purchase costs to IC partners using a purchase invoice, follow these steps:

1. On the Navigation Pane, click Financial Management > Payables > Invoices.

2. Press F3 and ENTER. 3. In the Buy-from Vendor No. field, click the AssistButton and

select the relevant vendor. Note that this must be an external vendor. 4. Press TAB or ENTER. 5. Complete the header. 6. Click the lines. 7. On the View menu, click Show Column. 8. Select the IC Partner Code, IC Partner Ref. Type, and IC

Partner Reference fields. 9. Click OK to close the Show Column window. 10. In the Type field, click the AssistButton and select G/L Account. 11. In the No. field, enter the number of the G/L account in the parent

company to be debited by the purchase transaction. This account is also credited when the transaction is posted.

12. In the IC Partner Code field, click the AssistButton and select the IC partner to whom the charges apply.

13. In the IC Partner Reference field, enter the number of the IC partner's G/L account to be debited by the IC transaction.

14. In the Quantity field, enter the number of units to be charged to the IC partner.



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15. In the Direct Unit Cost Excl. VAT (or Incl. VAT) field, enter the cost per item that is to be charged to the IC partner.

Depending on the type of expense entered, the method of entering the purchase document differs. For example, when the parent company receives vendor invoices for advertising, the amount is allocated among the subsidiaries based on the original contract. To charge the costs to the subsidiaries:

• In the Quantity field, enter 1. • In the Direct Unit Cost field, enter the total contracted cost for the

advertising for the IC partner. Alternatively, when purchasing boxes of copy paper:

• In the Quantity field, enter a value that represents the number of boxes of copy paper purchased.

• In the Direct Unit Cost field, enter the per unit cost to be charged to the IC partner.

To post the purchase invoice, follow these steps:

1. Click Posting > Post. 2. Click Yes to post the invoice. 3. Close the Purchase Invoice window.

To send the allocated IC transactions to the IC partners, follow these steps:


2. Highlight all lines related to the posted purchase invoice. 3. Click Functions > Set Line Action > Send to IC Partner. 4. If a message appears stating the line is a copy of a transaction

already set to Send to IC Partner, click Yes. 5. Click Functions > Complete Line Actions. 6. Click Yes to complete line actions.



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Lab 10.12: − Allocate Service Costs to IC Partners Scenario CRONUS International Ltd. was informed that CoolWood Technologies provided additional consulting February 21, 2007 at CRONUS Consultancy Ltd. for 1,000.00 and at CRONUS Biking Ltd. for 800.00. As the accounting manager, post an IC General Journal:

• For the 1,800 cost to CRONUS International Ltd. for vendor 30000. Use Consult Allocation as the External Document No.

• Allocate the specified costs to the IC partners using GL account 6710 and IC Partner G/L Acc. No. 8320.

Once the journal is posted, send the allocations to the IC partners.

Challenge Yourself!

1. Enter and post the IC General Journal as specified in the scenario. 2. Send the IC transactions to the IC partners simultaneously.



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Lab 10.12: − Allocate Service Costs to IC Partners Scenario CRONUS International Ltd. was informed that CoolWood Technologies provided additional consulting February 21, 2007 at CRONUS Consultancy Ltd. for 1,000.00 and at CRONUS Biking Ltd. for 800.00. As the accounting manager, post an IC General Journal:

• For the 1,800 cost to CRONUS International Ltd. for vendor 30000. Use Consult Allocation as the External Document No.



Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the IC General Journal window. 3. Enter the debit line to the vendor as specified in the scenario. 4. Enter the allocations to the IC partners as specified in the scenario. 5. Post the IC General Journal. 6. Open the IC Outbox Transactions window. 7. Send the IC transactions to the IC partners simultaneously.



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Lab 10.13: − Allocate Purchase Costs to IC Partners Scenario As the accounts payable coordinator for CRONUS International Ltd., you have been assigned the task of managing orders for all the company's IC partners. On February 1, 2007 you receive invoice number JAN07 from vendor 10000, London Postmaster. You must create a purchase invoice for postage expenses (G/L account 8240) using the following IC partner distribution:

Intercompany Partner Code

IC Partner Reference Quantity Per Unit Cost

ICP20 8240 6 39.00

ICP30 8240 12 39.00

After posting the purchase invoice, send the IC transactions to the IC partners.

HINT: Accept any messages that appear when setting the action lines to Send to IC Partner.

Challenge Yourself!

1. Enter and post the purchase lines as specified in the scenario. 2. Send the IC transactions with the posting date of 02/01/07 to the IC

partners.



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Lab 10.13: − Allocate Purchase Costs to IC Partners Scenario As the accounts payable coordinator for CRONUS International Ltd., you have been assigned the task of managing orders for all the company's IC partners. On February 1, 2007 you receive invoice number JAN07 from vendor 10000, London Postmaster. You must create a purchase invoice for postage expenses (G/L account 8240) using the following IC partner distribution:


IC Partner Reference

Quantity Per Unit Cost

ICP20 8240 6 39.00 ICP30 8240 12 39.00



Need a Little Help?

1. Open the CRONUS International Ltd. company. 2. Open the Purchase Invoice window. 3. Enter the purchase lines as specified in the scenario. 4. Post the purchase invoice. 5. Open the IC Outbox Transactions window. 6. Send the IC transactions with the posting date of 02/01/07 to the IC

partners.



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Summary In this section, the steps required to perform Intercompany Postings were described, beginning with the set up of IC partners and the central Chart of Accounts and Dimensions. Once the set up was complete, IC documents were processed, including:

• Sending and receiving IC transactions • Accepting and rejecting IC transactions • Returning and cancelling IC transactions

Posting IC transactions using the IC General Journal and allocating costs to multiple IC partners were also explained and demonstrated. The Intercompany Postings feature provides the creation of all the necessary documents when performing IC transactions, including sales and purchase documents, and general ledger entries, eliminating the need for manually processing many time-consuming and repetitious IC transactions.



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Test Your Knowledge − Multicompany Operations − Intercompany

1. Where are IC Inbox transactions available for review or re-creation?

a. Completed IC Inbox Transactions window b. Received IC Inbox Transactions window c. Handled IC Inbox Transactions window d. Posted IC Inbox Transactions window

2. From where can an IC order confirmation be sent?

a. Sales Order b. Service Order c. Work Order d. Purchase Order

3. Which methods can be used to change the line action in either the IC

Inbox or IC Outbox?

a. Click Functions > Change Line Action. b. Click the AssistButton in the Line Action field. c. Click Functions > Set Line Action. d. Click the AssistButton in the Set Line Action field.

4. From where can costs be allocated to multiple IC partners?

a. Purchase Order b. General Journal c. IC General Journal d. Purchase Invoice



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Lab 10.1 − Solution: Set up an IC Partner Scenario CRONUS International Ltd. has acquired a new subsidiary, CRONUS Biking Ltd. As the accountant, it is your responsibility to set up the new IC partner. The IC partner code is ICP40 and uses local currency. CRONUS International Ltd. will be sending their IC transactions by file in a directory on their hard disk. For the purpose of this lab, when setting up the file location, create a new folder on the desktop called IC Inbox, and save file name ICP40 in the folder. The accounting manager has decided that the receivables and payable GL accounts are 2325 and 5425, respectively. Finally, CRONUS Biking Ltd. will use their internal numbers for sales and purchasing on documents. Dimensions are not set up for this IC partner.

Step by Step

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Partners. 4. Press F3 to insert a new record. 5. In the Code field, enter ICP40. 6. In the Name field, enter CRONUS Biking Ltd. 7. Ensure that the Inbox Type is set to File Location. 8. In the Inbox Details field, click the AssistButton. 9. In the Save in field, click the AssistButton and select Desktop. 10. Click the Create New Folder icon. 11. Name the folder IC Inbox. 12. Double-click the IC Inbox folder 13. In the File Name field, verify that ICP40 is entered and click Save. 14. Click the Posting tab. 15. In the Receivables Account field, enter 2325 16. In the Payables Account field, enter 5425. 17. Ensure that the Outbound Sales Item No. Type field is set to

Internal No. 18. Ensure that the Outbound Purchase Item No. Type field is set to

Internal No. 19. Close the IC Partner Card window.



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Lab 10.2 − Solution: Create an IC Partner Vendor Scenario In Lab 10.1, CRONUS Biking Ltd. was set up as an IC Partner. Currently, this partner will only sell to CRONUS International Ltd., therefore, a vendor must be created for CRONUS Biking Ltd. As the accounts payable coordinator, you are responsible for setting up the IC partner as a vendor, using the following criteria:



Step by Step

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. On the Navigation Pane, click Financial Management > Payables >

Vendors. 4. Press F3. 5. In the No. field, enter IC1040. 6. In the Name field, enter CRONUS Biking Ltd. 7. Click the Communication tab. 8. In the IC Partner Code field, click the AssistButton and select

ICP40. 9. Click the Invoicing tab. 10. In the Gen. Bus. Posting Group field, click the AssistButton and

select INTERCOMP. 11. In the Vendor Posting Group field, click the AssistButton and

select DOMESTIC. 12. Close the Vendor Card window.



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Lab 10.3 − Solution: Add an Account and Update the IC Chart of Accounts

Scenario In CRONUS International Ltd., a new account 2811, T-Bills, needs to be added to the balance sheet, under Securities. Once this account is added in the CRONUS International Ltd. company, it must be added to the IC Chart of Accounts. Copy and map to all accounts and then export the file. In the CRONUS Consultancy Ltd. company, add the same account to the Chart of Accounts and then import the XML file. Locate the new account in the IC Chart of Accounts window and manually map the same account number.


Step by Step


Ledger > Chart of Accounts. 5. Press F3. 6. In the No. field, enter 2811. 7. In the Name field, enter T-Bills. 8. In the Income/Balance field, click the AssistButton and select

Balance Sheet. 9. Click Functions > Indent Chart of Accounts. 10. Click Yes to indent the chart of accounts. 11. Close the Chart of Accounts window. 12. On the Financial Management menu, click Setup > Intercompany

Postings > Chart of Accounts. 13. Highlight all lines and click Functions > Copy from Chart of

Accounts. 14. Click Yes to copy from the Chart of Accounts. 15. Locate and highlight account 2811. 16. Click Functions > Map to Acc. with Same No. 17. Click Yes to map the selected line.



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18. Click Functions > Export. 19. In the Save in field, click the AssistButton and select the desktop. 20. In the File Name field, do not change the default name. 21. Click Save. If prompted, overwrite any other file with this same

name. 22. On the File menu, click Company > Open. 23. Select CRONUS Consultancy Ltd. and click OK. 24. Click OK to the message regarding demonstration data. 25. On the Navigation Pane, click Financial Management > General

Ledger > Chart of Accounts. 26. Press F3. 27. In the No. field, enter 2811. 28. In the Name field, enter T-Bills. 29. Ensure that the Income/Balance field is set to Balance Sheet. 30. Click Functions > Indent Chart of Accounts. 31. Click Yes to indent the chart of accounts. 32. Close the Chart of Accounts window. 33. On the Financial Management menu, click Setup > Intercompany

Postings > Chart of Accounts. 34. Click Functions > Import. 35. Locate and select the ICGLAcc file on the desktop. 36. Click Open. 37. Click OK to the message stating the number of G/L accounts added. 38. Locate account 2811. 39. In the Map-to G/L Acc. No. field, enter 2811 and press TAB or

ENTER. 40. Close the IC Chart of Accounts window.



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Lab 10.4 − Solution: Remove and Update IC Dimensions Scenario After analysis, the Area dimension is not as relevant as initially expected. Therefore, it is no longer an active dimension. To maintain history, the Area dimension is blocked. As the accounting manager, you have already blocked the standard dimension and you now need to block the IC dimension. After the dimension is blocked, export the IC dimensions and import the changes into the CRONUS Consultancy Ltd. company.

Step by Step

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Dimensions. 5. On the Area dimension line, place a check mark in the Blocked

check box. 6. Click Functions > Export. 7. In the Save in field, click the AssistButton and select the desktop. 8. Do not change the default name of ICDim in the File Name field. 9. Click Save. 10. On the File menu, click Company > Open. 11. Select CRONUS Consultancy Ltd. and click OK. 12. Click OK to the message regarding demonstration data. 13. On the Navigation Pane, click Financial Management > Setup >

Intercompany Postings > Dimensions. 14. Click Functions > Import. 15. Locate and select the ICDim file on the desktop. 16. Click Open. 17. Click OK to the message stating the number of dimension added.



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Lab 10.5 − Solution: Create an IC Sales Document Scenario On January 25, 2007, a senior advisor from CRONUS Consultancy Ltd. met with a group at CRONUS International Ltd. for a consult appointment. The advisor spent 10 hours onsite, and has a billing rate of 20.00. Create an invoice to CRONUS International Ltd. for the consulting services performed. The service is posted to G/L account 6710 and the IC Partner Reference is G/L account 8320.

HINTS: Ensure that the IC Partner Ref. Type and IC Partner Reference fields are shown on the sales invoice lines.

Step by Step

1. On the File menu, click Company > Open. 2. Select CRONUS Consultancy Ltd. and click OK. 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > Receivables

> Invoices. 5. Press F3 and ENTER. 6. In the Sell-to Customer No. field, enter IC1001. 7. Press TAB or ENTER. 8. In the Posting Date field, enter 01/25/07. 9. Click the lines. 10. Ensure that the IC Partner Ref. Type and IC Partner Reference

fields are shown. 11. In the Type field, click the AssistButton and select G/L Account. 12. In the No. field, enter 6710 and then press TAB or ENTER. 13. Ensure that the IC Partner Ref. Type is set to G/L Account. 14. In the IC Partner Reference field, enter 8320. 15. In the Quantity field, enter 10. 16. In the Unit of Measure Code field, click the AssistButton and

select Hour. 17. In the Unit Price field, enter 20.00. 18. Click Posting > Post. 19. Click Yes to post the invoice. 20. Close the Sales Invoice window.



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Lab 10.6 − Solution: Send IC Documents Scenario It nearing the end of the month and the accountant at CRONUS International Ltd. has requested that all IC invoices. There is only one invoice, posted 01/25/07. After sending this IC document, review the Handled IC Outbox and open the CRONUS International Ltd. company's IC Inbox to verify that the document was sent.

Step by Step


Ledger > Intercompany Postings > Outbox Transactions. 5. Click the line of the IC document created 01/25/07. 6. Click Functions > Set Line Action > Send to IC Partner. 7. Click Functions > Complete Line Actions. 8. Click Yes to complete line actions. 9. Close the IC Outbox Transactions window. 10. In the Intercompany Postings folder, click Handled Outbox

Transactions. 11. Review the transferred IC document and then close the Handled IC

Outbox Transactions window. 12. On the File menu, click Company > Open. 13. Select CRONUS International Ltd. and click OK. 14. Click OK to the message regarding demonstration data. 15. On the Navigation Pane, click Financial Management > General

Ledger > Intercompany Postings > Inbox Transactions. 16. Select the line of the IC document posted 01/25/07. 17. Click Inbox Transaction > Details. 18. Review the IC document and then close the IC Inbox Purchase

Doc. and IC Inbox Transactions windows.



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Lab 10.7 − Solution: Accept an IC Document and Create a Purchase Invoice

Scenario The IC transaction from CRONUS Consultancy Ltd. has been received and approved. As the accounts payable coordinator, accept the IC transaction with a posting date of 01/25/07 and create a purchase invoice with the same posting date. Review the purchase invoice.

Step by Step


Ledger > Intercompany Postings > Inbox Transactions. 5. Select the IC transaction with the posting date of 01/25/07. 6. Click Functions > Set Line Action > Accept. 7. Click Functions > Complete Line Actions. 8. Click OK to run the batch job. 9. Close the IC Inbox Transactions window. 10. On the Financial Management menu, click Payables > Invoices. 11. Locate and review the IC purchase invoice posted 01/25/07. 12. Close the Purchase Invoice window.



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Lab 10.8 − Solution: Delete a Handled IC Transaction Scenario As the accounts receivable administrator at CRONUS International Ltd., you are reviewing IC documents in the Handled IC Outbox Transactions window, and notice an entry from 01/25/01. Since it is 2007, and because there is no outstanding issue with this order, you decide to delete the transaction line.

Step by Step


Ledger > Intercompany Postings > Handled Outbox Transactions. 5. Select the IC transaction with the posting date of 01/25/01. 6. Click Functions > Delete Lines. 7. Click Yes to delete the selected lines. 8. Close the Handled IC Outbox Transactions window.



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Lab 10.9 − Solution: Reject an IC Document Scenario In the Create an IC Sales Document demonstration, a sales invoice to CRONUS International Ltd. was posted on January 15, 2007 in the amount of 2,824.80. This demonstration must be completed to perform this Lab. On January 17, 2007, the accounts payable coordinator at CRONUS International Ltd. calls the accounts receivable administrator at CRONUS Consultancy Ltd., inquiring about the status of the invoice since it has not been received.




NOTE: If there is only one IC transaction in the IC Inbox Transactions window, it is not necessary to set filters in the Complete IC Inbox Action batch job.

Step by Step


Ledger > Intercompany Postings > Outbox Transactions. 5. Select the IC transaction posted 01/15/07. 6. Click Functions > Set Line Action > Send to IC Partner. 7. Click Functions > Complete Line Actions. 8. Click Yes to complete line actions. 9. On the File menu, click Company > Open. 10. Select CRONUS International Ltd. and click OK. 11. Click OK to the message regarding demonstration data. 12. On the Navigation Pane, click Financial Management > General

Ledger > Intercompany Postings > Inbox Transactions. 13. Select the IC transaction with a posting date of 01/15/07. 14. Click Inbound Transactions > Details. 15. Close the IC Inbox Purchase Doc. window.



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16. Click Functions > Set Line Action > Return to IC Partner. 17. Click Functions > Complete Line Actions. 18. In the Complete IC Inbox Action batch job, click OK. 19. Close the IC Inbox Transactions window. 20. In the Intercompany Postings folder, click Outbox Transactions. 21. Select the rejected IC transaction line with a posting date of

01/15/07. 22. Click Functions > Set Line Action > Send to IC Partner. 23. Click Functions > Complete Line Actions. 24. Click Yes to complete line actions. 25. Close the IC Outbox Transactions window.



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Lab 10.10 − Solution: Cancel a Rejected IC Document Scenario In Lab 10.9, an IC document was rejected and sent back to CRONUS Consultancy Ltd. The accounts payable coordinator at CRONUS International Ltd. informed the accounts receivable administrator at CRONUS Consultancy Ltd. that the unit cost is 100.00, not 107.00. As the accounts receivable administrator at CRONUS Consultancy Ltd., you cancel the IC transaction and ask Annie, the bookkeeper to post the credit memo for the original invoice. Annie confirms that the credit memo is posted and you post the new sales invoice to CRONUS International Ltd. using the following criteria:




Step by Step


Ledger > Intercompany Postings > Inbox Transactions. 5. Select the IC transaction returned from the IC partner, posted

01/15/07. 6. Click Functions > Set Line Action > Cancel. 7. Click Functions > Complete Line Actions. 8. In the Complete IC Inbox Action batch job, click OK. 9. Close the IC Inbox Transactions window. 10. In the Financial Management menu, click Receivables > Invoices. 11. Press F3 and ENTER. 12. In the Sell-to Customer No. field, enter IC1001. 13. Press TAB or ENTER. 14. Click Yes to the message stating there is an overdue balance.



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15. In the Posting Date field, enter 01/15/07. 16. Click the lines. 17. In the Type field, click the AssistButton and select G/L Account. 18. In the No. field, enter 6710 and then press TAB or ENTER. 19. Ensure that the IC Partner Ref. Type is set to G/L Account. 20. In the IC Partner Reference field, enter 8320. 21. In the Quantity field, enter 24. 22. In the Unit of Measure Code field, click the AssistButton and

select Hour. 23. In the Unit Price field, enter 100.00. 24. Click Posting > Post. 25. Click Yes to post the invoice. 26. Close the Sales Invoice window. 27. In the Financial Management menu, click General Ledger >

Intercompany Postings > Outbox Transactions. 28. Click the IC transaction with the posting date of 01/15/07. 29. Click Functions > Set Line Action > Send to IC Partner. 30. Click Functions > Complete Line Actions. 31. Click Yes to complete line actions. 32. Close the IC Outbox Transactions window.



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Lab 10.11 − Solution: Post and Send an IC General Journal Transaction




Step by Step


Ledger > Intercompany Postings > General Journals. 5. In the Posting Date field, enter 01/18/07. 6. In the Document Type field, click the AssistButton and select

Invoice. 7. In the Account Type field, click the AssistButton and select IC

Partner. 8. In the Account No. field, enter ICP01. 9. In the Amount field, enter 500. 10. In the Bal. Account Type field, click the AssistButton and select

G/L Account. 11. In the Bal. Account No. field, enter 6710. 12. In the IC Partner G/L Acc. No. field, enter 8320. 13. Click Posting > Post. 14. Click Yes to post the journal lines. 15. Click OK to the message that the lines were posted. 16. Close the IC General Journal window. 17. In the Intercompany Postings folder, click Outbox Transactions. 18. Click the line with the Source Type of Journal Line, posted 01/18/07. 19. Click Functions > Set Line Action > Send to IC Partner 20. Click Functions > Complete Line Actions.



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21. Click Yes to complete line actions. 22. Close the IC Outbox Transactions window.



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Lab 10.12 − Solution: Allocate Service Costs to IC Partners Scenario CRONUS International Ltd. was informed that CoolWood Technologies provided additional consulting February 21, 2007 at CRONUS Consultancy Ltd. for 1,000.00 and at CRONUS Biking Ltd. for 800.00. As the accounting manager, post an IC General Journal:

• For the 1,800 cost to Cronus International Ltd. for vendor 30000. Use Consult Allocation as the External Document No.



Step by Step


Ledger > Intercompany Postings > General Journals. 5. Ensure that the External Document No. field is shown. 6. In the Posting Date field, enter 02/21/07. 7. In the Document Type field, click the AssistButton and select

Invoice. 8. In the External Document No. field, enter Consult Allocation. 9. In the Account Type field, click the AssistButton and select

Vendor. 10. In the Account No. field, enter 30000. 11. In the Amount field, enter -1800. 12. In the Bal. Account Type field, click the AssistButton and select

G/L Account. 13. In the Bal. Account No. field, enter 8320. 14. Click the next line. 15. In the Account Type field, click the AssistButton and select IC

Partner. 16. In the Account No. field, enter ICP20. 17. In the Amount field, enter 1000. 18. In the Bal. Account No. field, enter 6710. 19. In the IC Partner G/L Acc. No. field, enter 8320.



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20. Click the next line. 21. In the Account No. field, enter ICP40. 22. In the Amount field, enter 800. 23. In the Bal. Account No. field, enter 6710. 24. In the IC Partner G/L Acc. No. field, enter 8320. 25. Click Posting > Post. 26. Click Yes to post the journal lines. 27. Click OK to the message that the lines were posted. 28. Close the IC General Journal window. 29. In the Intercompany Postings folder, click Outbox Transactions. 30. Highlight both lines with the Source Type of Journal Line, posted

02/21/07. 31. Click Functions > Set Line Action > Send to IC Partner. 32. Click Functions > Complete Line Actions. 33. Click Yes to complete line actions. 34. Close the IC Outbox Transactions window.



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Lab 10.13 − Solution: Allocate Purchase Costs to IC Partners Scenario As the accounts payable coordinator for CRONUS International Ltd., you have been assigned the task of managing orders for all the company's IC partners. On February 1, 2007 you receive invoice number JAN07 from vendor 10000, London Postmaster. You must create a purchase invoice for postage expenses (G/L account 8240) using the following IC partner distribution:


IC Partner Reference

Quantity Per Unit Cost

ICP20 8240 6 39.00 ICP30 8240 12 39.00



Step by Step

1. On the File menu, click Company > Open. 2. Select CRONUS International Ltd. and click OK 3. Click OK to the message regarding demonstration data. 4. On the Navigation Pane, click Financial Management > Payables >

Invoices. 5. Press F3 and ENTER. 6. In the Buy-from Vendor No. field, enter 10000. 7. Press TAB or ENTER. 8. In the Posting Date field, enter 02/01/07. 9. In the Vendor Invoice No. field, enter JAN07. 10. Click the lines. 11. Ensure that the IC Partner Code, IC Partner Ref. Type, and IC

Partner Reference fields are shown. 12. In the Type field, click the AssistButton and select G/L Account. 13. In the No. field, enter 8240. 14. In the IC Partner Code field, enter ICP20 15. Ensure that the IC Partner Reference Type is set to G/L Account. 16. In the IC Partner Reference field, enter 8240. 17. In the Quantity field, enter 6. 18. In the Direct Unit Cost Excl. VAT (or Incl. VAT) field, enter

39.00.



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19. Click the next line. 20. In the No. field, enter 8240. 21. In the IC Partner Code field, enter ICP40 22. In the IC Partner Reference field, enter 8240. 23. In the Quantity field, enter 12. 24. In the Direct Unit Cost Excl. VAT (or Incl. VAT) field, enter

39.00. 25. Click Posting > Post. 26. Click Yes to post the invoice. 27. Close the Purchase Invoice window. 28. In the Financial Management menu, click General Ledger >

Intercompany Postings > Outbox Transactions. 29. Highlight both lines with the Source Type of Journal Line, posted

02/01/07. 30. Click Yes to the message stating the line is a copy of a transaction

already set to Send to IC Partner. 31. Click Functions > Complete Line Actions. 32. Click Yes to complete line actions. 33. Close the IC Outbox Transactions window.



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Quick Interaction: Lessons Learned Take a moment and write down three Key Points you have learned from this chapter: 1.

2.

3.



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Solutions IC Outbox and IC Inbox Overview

Categorize Activity: IC Outbox and IC Inbox Overview Task: Categorize the following items: Categories

1. 1. IC Outbox 2. 2. IC Inbox 3. 3. Complete IC Inbox Action batch job

Item 1: Where an IC transaction is rejected. - 2 Item 2: Creates IC General Journal lines. - 3 Item 3: Where an IC transaction is accepted. - 2 Item 4: Posted IC transactions are transferred here. - 1 Item 5: Creates IC sales or purchase documents. - 3 Item 6: Where a returned IC transaction is received. - 2 Item 7: Where erroneously rejected, but unreturned, IC transactions can be reinstated. � 1

Test Your Knowledge − Multicompany Operations − Intercompany

1. Where are IC Inbox transactions available for review or re-creation?

a. Completed IC Inbox Transactions window b. Received IC Inbox Transactions window c. Handled IC Inbox Transactions window d. Posted IC Inbox Transactions window

2. From where can an IC order confirmation be sent?

a. Sales Order b. Service Order c. Work Order d. Purchase Order



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3. Which methods can be used to change the line action in either the IC Inbox or IC Outbox?

a. Click Functions > Change Line Action. b. Click the AssistButton in the Line Action field. c. Click Functions > Set Line Action. d. Click the AssistButton in the Set Line Action field.

4. From where can costs be allocated to multiple IC partners?

a. Purchase Order b. General Journal c. IC General Journal d. Purchase Invoice