General Ledger & Intercompany

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    Yasmin
    Legal Entity Setup and Intercompany accountingAnswered
    Topic posted August 24, 2017 by YasminSilver Trophy: 7,500+ Points, last edited January 30, 2019, tagged Accounting Hub Cloud Service, Allocations, Budgetary control, Collections, Configuration, Expenses, Financials, General Ledger, Intercompany, Period Close / Reconciliation, Reports, Security, Setup / Administration, Subledger Accounting 
    272 Views, 4 Comments
    Title:
    Legal Entity Setup and Intercompany accounting
    Summary:
    Legal Entity Setup and Intercompany/Intracompany accounting
    Content:

    If we had a transaction from company 10010 to company 10001 as well as 10003 (10001 and 10003 are both in the same LE) Oracle will do an intercompany for the full amount between 10010 and 10001, and then will do an intracompany between 10001  and 10003.  So we never see the intercompany accounting directly between 10010 and 10003.  This is a problem for reconciliation and will make the Allocation and intercompany accounting process very complicated.

     

    Any options/advices/thoughts?

     

    Best Comment

    Sylvain Lemay CPA CA
    At our company we did not want any intracompany and intercompany split just because of what you just mentioned. As a design decision, we decided not to assign the BSV to the legal entity. We have assigned all BSV directly to the ledger. In our case we have only two ledger one USD and one CAD, so all intercompany are generated properly for transactions with all BSV within the ledger. We just went live in July. In our case we have more than 280 BSV and intercompany is a big part of our accounting process , we needed to have a clear and identifiable way to identify all interco transactions
    

    Comment

     

    • Sylvain Lemay CPA CA
      At our company we did not want any intracompany and intercompany split just because of what you just mentioned. As a design decision, we decided not to assign the BSV to the legal entity. We have assigned all BSV directly to the ledger. In our case we have only two ledger one USD and one CAD, so all intercompany are generated properly for transactions with all BSV within the ledger. We just went live in July. In our case we have more than 280 BSV and intercompany is a big part of our accounting process , we needed to have a clear and identifiable way to identify all interco transactions
      
      • Yasmin

        Thanks Sylvain,

        This is exactly what we are looking for,

        do you have any documentations or setup documents how you did that, so we can follow ?

         

      • Yasmin

        Any update ?

      • Rohan Kamat

        Hi Sylvain 

        In your case as well , if there is a many to many transactions between the BSV's , they would error out ,if clearing company is not set . Even after setting the clearing company , there might be recs issue since it would show balancing entries - IC receivable and IC payable using the Clearing company rather than the primary BSV's . 

        How did you manage that 

        Thanks RK