Intercompany Transactions for Multiple Companies Using Multiple Sets of Books
By Jag - August 09, 2012
General Ledger’s Global Intercompany System (GIS) feature helps you manage your intercompany transactions through a highly centralized process. With GIS, your parent and subsidiaries can send intercompany transactions to one another for review and approval, before the transactions are posted in each company’s set of books.
We generally recommend that you use GIS for your intercompany transaction needs. However, if you prefer a decentralized approach where each subsidiary enters intercompany transactions autonomously, you can choose not to use GIS. In this case, each subsidiary enters intercompany transactions directly into their set of books.
To enter intercompany transactions without using GIS:
You must enter separate transactions in each subsidiary set of books to reflect each subsidiary’s portion of a multi–company transaction. For each subsidiary:
1. Choose the subsidiary set of books by selecting a responsibility that has access to the set of books.
2. Enter the subsidiary’s portion of the multi–company transaction, making sure to balance the entry against an intercompany account. Post the transaction when complete.
For example, to record a cash sale from Company A to Company B (subsidiaries of the same parent), you might make the entries shown in the next two tables:
We generally recommend that you use GIS for your intercompany transaction needs. However, if you prefer a decentralized approach where each subsidiary enters intercompany transactions autonomously, you can choose not to use GIS. In this case, each subsidiary enters intercompany transactions directly into their set of books.
To enter intercompany transactions without using GIS:
You must enter separate transactions in each subsidiary set of books to reflect each subsidiary’s portion of a multi–company transaction. For each subsidiary:
1. Choose the subsidiary set of books by selecting a responsibility that has access to the set of books.
2. Enter the subsidiary’s portion of the multi–company transaction, making sure to balance the entry against an intercompany account. Post the transaction when complete.
For example, to record a cash sale from Company A to Company B (subsidiaries of the same parent), you might make the entries shown in the next two tables:
Consolidation Methods
To consolidate multiple companies whose accounting information is maintained in separate sets of books in one Applications instance, use the Global Consolidation System (GCS). You can also use the Global Consolidation System if you maintain multiple sets of books in multiple Applications instances.
To consolidate multiple companies whose accounting information is maintained in separate sets of books in one Applications instance, use the Global Consolidation System (GCS). You can also use the Global Consolidation System if you maintain multiple sets of books in multiple Applications instances.
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