IntercompanyProcessing PDF
IntercompanyProcessing PDF
IntercompanyProcessing PDF
Intercompany Processing
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Publication date
March 2007
Contents
Introduction ................................................................................................................................................. 2
Whats in this manual...................................................................................................................................2
Symbols and conventions ............................................................................................................................2
Resources available from the Help menu..................................................................................................3
Send us your documentation comments ...................................................................................................5
.......................................................................................... 26
I N T E R C O M P A N Y P R O C E S S I N G
C O N T E N T S
Glossary ......................................................................................................................................................... 35
Index ................................................................................................................................................................... 37
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INTRODUCTION
Introduction
You can use Intercompany Processing to set up, enter, and maintain relationships
between companies so revenues or expenses incurred in one company (the
originating company) can be tracked as due to or due from amounts in other
companies (destination companies).
This introduction is divided into the following sections:
Part 3, Inquiries and Reports, describes procedures that help you analyze
intercompany financial information.
Description
The light bulb symbol indicates helpful tips, shortcuts and
suggestions.
IN T E R C O M P A N Y
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IN T RO D U C T IO N
Symbol
Description
The warning symbol indicates situations you should be especially
aware of when completing tasks.
This manual uses the following conventions to refer to sections, navigation and
other information.
Convention
Description
Creating a batch
TAB
or ENTER
Contents
Opens the Help file for the active Microsoft Dynamics GP component, and displays
the main contents topic. To browse a more detailed table of contents, click the
Contents tab above the Help navigation pane. Items in the contents topic and tab
are arranged by module. If the contents for the active component includes an
Additional Help files topic, click the links to view separate Help files that
describe additional components.
To find information in Help by using the index or full-text search, click the
appropriate tab above the navigation pane, and type the keyword to find.
To save the link to a topic in the Help, select a topic and then select the Favorites tab.
Click Add.
Index
Opens the Help file for the active Microsoft Dynamics GP component, with the
Index tab active. To find information about a window thats not currently displayed,
type the name of the window, and click Display.
Lookup
Opens a lookup window, if a window that you are viewing has a lookup window.
For example, if the Checkbook Maintenance window is open, you can choose this
item to open the Checkbooks lookup window.
I N T E R C O M P A N Y P R O C E S S I N G
I N T R O D U C T I O N
the font color and style used to highlight required fields. On the Microsoft
Dynamics GP menu, choose User Preferences, and then choose Display.
Printable Manuals
Displays a list of manuals in Adobe Acrobat .pdf format, which you can print or
view.
Orientation Training
Accesses online tutorials that show you how to complete basic procedures within
Microsoft Dynamics GP. Additional tutorials are available through the
CustomerSource Web site.
Whats New
Provides information about enhancements that were added to Microsoft
Dynamics GP since the last major release.
IN T E R C O M P A N Y
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IN T RO D U C T IO N
I N T E R C O M P A N Y P R O C E S S I N G
IN T E R C O M P A N Y
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PART 1: SETUP
Part 1: Setup
Use this part of the documentation to familiarize yourself with Intercompany
Processing terms and set up intercompany relationships.
The following information is discussed:
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Chapter 1:
I N T E R C O M P A N Y P R O C E S S I N G
PA RT1
S ET U P
2.
3.
4.
Enter or select Originating Company Due To/Due From accounts. If you enter
the account number, enter it as an unformatted string. Intercompany Processing
automatically formats the account according to the account format of the
specified company.
For example, if the Originating Company Due To account number is 1000-00000000-2101, you would enter it as 1000000000002101; Intercompany Processing
adds the correct account separators for your account format when you leave the
field.
For each intercompany relationship, you can specify only one due to/due from account
for each company.
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C H A P T E R
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S E T U P
The Originating and Destination Due To/Due From accounts cannot be inactive
accounts, unit accounts, or unit allocation accounts.
5.
6.
7.
Choose Save.
8.
To print the Intercompany Setup List for all the intercompany relationships for
this originating company, enter or select the same Originating Company ID and
choose File >> Print.
You can also print the Intercompany Setup List in the General System Reports
window by choosing Reports >> System >> General >> select Intercompany
Setup from the Reports drop down list. All intercompany relationships
established for the selected range of companies will print on the Intercompany
Setup List when you print the report from this window.
I N T E R C O M P A N Y P R O C E S S I N G
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PART 2: TRANSACTIONS
Part 2: Transactions
Use this part of the documentation to record transactions in the General Ledger or
Payables Management module of one company that will create transactions in the
General Ledger of another company.
The following information is discussed:
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Chapter 2:
Multicurrency transactions
If youre using Multicurrency Management with Intercompany Processing, you can
choose the currency to enter on transactions.
This information is divided into the following sections:
You also can use the Currency list button in the windows that support changing the
currency view. The View menu and Currency list button are available in the
following types of windows:
The first time you open these windows after registering Multicurrency
Management, all the transactions will be displayed in the originating currency. If
you change the currency view, the option you last used will be the default view the
next time you open that window.
You also can enter a multicurrency transaction in the Payables Transaction Entry window,
but the View menu and Currency list button are not available.
I N T E R C O M P A N Y P R O C E S S I N G
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T R A N S A C T I O N S
exist, you can enter an exchange rate using the Exchange Rate Entry window. If
youve entered a General Ledger posting date thats different from the document
date, the exchange rate expiration date must be after the posting date.
Euro debit
Euro credit
US Dollars
debit
$31,406.67
Trade Discount
586.84 EUR
$640.95
Discount
Available
1544.33 EUR
$1686.72
Accrued
Purchases
Totals
30,886.59 EUR
30,886.59 EUR
30,886.59 EUR
$33,734.33
$33,734.34
Rounding
Difference
Totals
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US Dollars
credit
$33,734.33
$0.01
30,886.59 EUR
30,886.59 EUR
$33,734.34
$33,734.34
Chapter 3:
Intercompany transactions
Intercompany Processing enables you to record transactions in the General Ledger
or Payables Management module for one company that will create transactions in
the General Ledger of another company.
This information is divided into the following sections:
If you are not using Multicurrency Management, all companies must use the
same functional currency.
Intercompany distributions entered in transaction entry windows will not show the
due to/due from account breakout; however, this breakout is printed on edit lists
and posting journals.
I N T E R C O M P A N Y P R O C E S S I N G
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T R A N S A C T I O N S
2.
3.
4.
5.
6.
Enter audit trail code information, such as the Transaction Date or Reversing
Date, the Source Document and Reference information, and the Currency ID.
7.
8.
9.
10. Use any batch-level posting method to post intercompany batches. See Chapter
4, Posting, for more information.
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C H A P T E R
I N T E R C O M P A N Y
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2.
Enter a voucher number and mark the Intercompany option. You can unmark
the Intercompany option only if you havent entered distributions to companies
other than the originating company; that is, the one in which you are entering
the transaction.
3.
4.
5.
6.
I N T E R C O M P A N Y P R O C E S S I N G
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7.
By default, the scrolling window displays the distributions that were created
automatically based on the posting accounts assigned to the vendor you chose
in the Payables Transaction Entry window or on posting accounts assigned in
the Posting Accounts Setup window.
8.
9.
10. Print the Payables Transaction Edit List to verify the transactions.
11. Save the batch.
12. Use any batch-level posting method to post intercompany batches. See Chapter
4, Posting, for more information.
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C H A P T E R
I N T E R C O M P A N Y
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Chapter 4:
Posting
Posting transfers intercompany transactions to permanent records. Until theyre
posted, transactions can be changed or deleted. In General Ledger, posting also
updates account balances in the chart of accounts for the originating company.
Posting reports will be printed when you post transactions, either individually or in
batches. For more information about posting reports for Intercompany Processing,
refer to Chapter 6, Reports.
For more information about setting up posting, see the System Setup Guide (Help
>> Contents >> select Setting up the System).
This information is divided into the following sections:
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code. (The unique intercompany audit trail code gives you the ability to print
reports for all intercompany-generated transactions.)
A due to/due from account is not specified in the Intercompany Setup window
for any destination company
The exchange table does not exist, cannot be accessed, or is not active for the
specified Rate ID/Currency ID in any originating or destination company
During posting, all errors will be found and printed on the posting journal;
Microsoft Dynamics GP will continue posting any remaining transactions after
encountering an error.
If the due to or due from accounts for any destination company have been
inactivated or deleted, the batch will still be created in the destination company, but
if you try to post the transaction in the General Ledger of the destination company,
youll get a message stating that the account is inactive or does not exist.
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Chapter 5:
Inquiries
Inquiry features help you analyze intercompany financial information. Analyzing
data contained in your accounting system will let you make reasoned choices about
managing your company resources.
This information is divided into the following sections:
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I N Q U I R IE S
A N D
R E P O R T S
2.
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C H A P T E R
I N Q U I R I E S
2.
3.
Choose the Intercompany button to open the Intercompany Audit Trail Code
Inquiry window, where you can view information from the originating
company. You can view the originating company ID, originating company
name, originating audit trail code, and originating journal entry number.
2.
3.
4.
In the Payables Distribution Zoom window, choose the Co. ID expansion button
to open the Exchange Rate Entry Zoom window to view exchange rate
information.
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I N Q U I R IE S
A N D
R E P O R T S
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IN T E R C O M P A N Y
1.
2.
3.
4.
In the Payables Distribution Zoom window, choose the Rates button to open the
Intercompany Destination Exchange Rate Inquiry window.
P R O C E S S IN G
Chapter 6:
Reports
You can use Intercompany Processing reports to analyze records of your
intercompany transactions in the General Ledger and Payables Management
modules.
This information is divided into the following sections:
Report
Printing method
Setup reports
Edit lists
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I N Q U I R IE S
A N D
R E P O R T S
Report type
Report
Printing method
Posting reports
Reprint Journals
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1.
2.
3.
Choose New to open the report options window. Your selection in step 2
determines which report options window appears.
4.
Name the option and enter information to define the option. The name you
choose for the option wont appear on the report. The selections available for
defining report options vary, depending on the report type youve selected.
P R O C E S S IN G
C H A P T E R
5.
R E P O R T S
Enter range restrictions. The Ranges list shows the available options for each
report. The available ranges vary, depending on the type of report.
You can enter only one restriction for each restriction type. For instance, you can insert
one batch ID restriction (LCM621A to LCM628A) and one audit trail code restriction.
6.
Choose Insert to insert the range in the Restrictions List. To remove an existing
range from the list, select the range and choose Remove.
7.
8.
To print the report option from the report options window, choose Print before
saving it. If you dont want to print the option now, choose Save and close the
window. The report window will be redisplayed.
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Glossary
Audit trail
A series of permanent records used to track a
transaction to the point where it was
originally entered in the accounting system.
The audit trail can be used to verify the
accuracy of financial statements by outside
accountants or auditors.
Background processing
Background processing enables users to
continue working while transactions are
being posted or reports are being printed.
Batch
A group of transactions identified by a
unique name or number. Batches are used in
computerized accounting to conveniently
group transactions, both for identification
purposes and to speed up the posting
process.
Batch-level posting
A posting method that enables transactions
to be saved in batches that can be posted
whenever convenient. There are three types
of batch-level posting: batch posting, series
posting, and master posting.
Destination company
A company that will be the recipient of an
intercompany transaction.
History
Posting journal
Inquiry
A feature that enables users to view openyear and historical information.
Recurring batch
Intercompany transaction
Any transaction that contains distributions
to another company.
Intercompany-generated
transaction
Any transaction that originated in another
company.
Report option
Journal
A chronological list of transactions, in the
form of debits and credits, for a particular
account or group of accounts, such as sales
or cash disbursements.
Report Writer
Journal entry
A transaction recorded in a formalized
manner by entering an account and the
amounts to be debited and credited.
Master posting
A posting process in which marked batches
from different series can be posted
simultaneously.
Origin
A transaction entry window within a specific
Microsoft Dynamics GP module. Certain
options, such as verifying batch controls and
closing fiscal periods can be selected for each
transaction origin. Also, the transaction
origin will appear as part of the audit trail
code on all posting reports in Microsoft
Dynamics GP.
Originating company
The company in which you initiate (or
originate) an intercompany transaction.
Posting
A procedure to make temporary transactions
a part of permanent records or to update
accounts by transaction amounts. In manual
accounting, posting transfers journal entries
to the proper accounts in a general ledger.
Series posting
A posting process in which marked batches
from the same series can be posted
simultaneously.
Tab-delimited format
A tab-separated ASCII character file format
used when exporting a report so that it can
be read by programs that use this format.
Text-only format
A file format that saves reports as text
without formatting. This format is used
when exporting reports to applications that
are unable to read other formats available in
Microsoft Dynamics GP.
Posting account
A financial account that tracks assets,
liabilities, revenue, or expenses. These
accounts will appear on the financial
statements and other reports created in the
financial series.
Expansion button
A button used to open a window where
information for the field next to the button
can be added, changed, or viewed.
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Index
A
accounts in Intercompany Processing
breakout of due from accounts 9
breakout of due to accounts 9
distributing to unit accounts 24
due from accounts 9
due to accounts 9
unit accounts 11
unit allocation accounts 11
audit trail codes
historical years 24
ICREV 24
ICTHS 24
ICTRX 24
inserting restrictions 33
open years 24
B
Batch Entry window
batch total 24
intercompany credits 24
intercompany debits 24
C
changes since last release, information
about 4
currencies in Intercompany Processing
account distributions 16
basis of exchange rate types 15
changing currency view 15
converting 15
document date 15
entering in single-use batches 17
euro triangulation 15
exchange rate inquiry 29
exchange rates 15
how exchange rates are calculated 15
multicurrency transactions 15
reporting currency 27
specifying originating currency 20
viewing functional currency 15
viewing originating currency 15
current upgrade information, accessing on
the Web 4
D
destination companies
definition 9
distribution types 19
viewing posted transactions 28
Distributed Process Server (DPS), using 31
distribution amounts
balancing amounts 16
changing 16
distributing to destination company
accounts 17
rounding differences 16
distribution types, destination companies
19
G
General Ledger Transaction Entry
window, printing Transaction Edit List
31
General Transaction Edit List, printing 18
H
help, displaying 3
Help menu, described 3
I
icons, used in manual 2
Intercompany Audit Trail Code Inquiry
Window
displaying 29
viewing info from originating
company 29
Intercompany Processing reports 31
intercompany relationships
printing a list 11
setting up 10
Intercompany Setup List, printing 11
Intercompany Setup window
displaying 10
specifying due from account 24
specifying due to account 24
intercompany transactions
audit trail codes 24
distributing to unit accounts 24
overview 17
posting errors 24
R
reports
samples of customized reports 31
samples of reports 31
samples with technical names 31
required fields, described 3
resources, documentation 3
S
setup in Intercompany Processing
before you begin 9
intercompany relationships 10
overview 9
symbols, used in manual 2
J
Journal Entry Inquiry window
displaying 28
view transaction detail 27
L
lessons, accessing 4
lookup window, displaying 3
M
Modify Reporting Rate window, changing
default reporting currency exchange
rate 27
multidimensional analysis codes 17
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IN DEX
W
whats new, accessing 4
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