Inter Company Processing
Inter Company Processing
Intercompany Processing
Copyright
Copyright 2007 Microsoft Corporation. All rights reserved. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Notwithstanding the foregoing, the licensee of the software with which this document was provided may make a reasonable number of copies of this document solely for internal use.
Trademarks
Microsoft, Dexterity, Excel, FRx, MapPoint, Microsoft Dynamics, Outlook, SharePoint, Visual Studio, Windows, and Windows Server are either registered trademarks or trademarks of Microsoft Corporation or FRx Software Corporation or their affiliates in the United States and/or other countries. FRx Software Corporation is a subsidiary of Microsoft Corporation. FairCom and c-tree Plus are trademarks of FairCom Corporation and are registered in the United States and other countries. The names of actual companies and products mentioned herein may be trademarks or registered marks - in the United States and/or other countries - of their respective owners. Unless otherwise noted, the example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious. No association with any real company, organization, product, domain name, e-mail address, logo, person, place, or event is intended or should be inferred.
Intellectual property
Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property. Microsoft Corporation disclaims any warranty regarding the sample code contained in this documentation, including the warranties of merchantability and fitness for a particular purpose. The content of this document is furnished for informational use only, is subject to change without notice, and should not be construed as a commitment by Microsoft Corporation. Microsoft Corporation assumes no responsibility or liability for any errors or inaccuracies that may appear in this manual. Neither Microsoft Corporation nor anyone else who has been involved in the creation, production or delivery of this documentation shall be liable for any indirect, incidental, special, exemplary or consequential damages, including but not limited to any loss of anticipated profit or benefits, resulting from the use of this documentation or sample code. Use of this product is covered by a license agreement provided with the software product. If you have any questions, please call the Microsoft Dynamics GP Customer Assistance Department at 800-456-0025 (in the U.S. or Canada) or +1-701-281-6500.
Warranty disclaimer
Limitation of liability
License agreement
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
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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: Whats in this manual Symbols and conventions Resources available from the Help menu Send us your documentation comments
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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
Creating a batch File >> Print or File > Print
Description
Italicized type indicates the name of a section or procedure. The (>>) or (>) symbol indicates a sequence of actions, such as selecting items from a menu or toolbar, or pressing buttons in a window. This example directs you to go to the File menu and choose Print. All capital letters indicate a key or a key sequence.
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.
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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.
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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: Chapter 1, Intercompany Processing setup, describes what to do before you set up Intercompany Processing and provides steps to set up an intercompany relationship.
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Chapter 1:
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Enter or select an Originating Company ID. When you select an originating company ID, other companies you have access to appear in the Destination Company Name list. Once you've chosen an originating company ID, that field is locked; that is, you must save or clear the intercompany relationship before you can enter another originating company ID.
3.
Select a Destination Company Name. This is the company you establish an intercompany relationship with. The Company ID for the company you select appears below the list box. 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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The Originating and Destination Due To/Due From accounts cannot be inactive accounts, unit accounts, or unit allocation accounts. 5. 6. Enter or select Destination Company Due To/Due From accounts. Mark the Enter Corresponding Company ID option if you enter Corresponding Company IDs when you enter intercompany transactions. Choose Save. 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.
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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: Chapter 2, Multicurrency transactions, explains how multicurrency functionality affects Intercompany Processing. Chapter 3, Intercompany transactions, describes how to enter and void intercompany transactions. Chapter 4, Posting, contains information about posting intercompany transactions.
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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: Viewing multiple currencies Exchange rate and document date Multicurrency account distributions
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: Transaction Entry windows Journal Entry Inquiry 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.
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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.
US Dollars credit
Accounts Payable 28,755.42 EUR Trade Discount Discount Available Accrued Purchases Totals Rounding Difference Totals 586.84 EUR 1544.33 EUR
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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: Understanding intercompany transactions Entering General Ledger intercompany transactions Entering Payables Management intercompany transactions Voiding Payables Management intercompany transactions
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.
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Enter or select a journal entry number. Mark the Intercompany option. You can unmark this option only if you havent entered distributions to companies other than the originating company; that is, the one in which you are entering the transactions.
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Enter or select a batch. All intercompany transactions must be saved in a batch. Select a transaction type. Enter audit trail code information, such as the Transaction Date or Reversing Date, the Source Document and Reference information, and the Currency ID. Enter company IDs, accounts, transaction amounts, distribution reference, and corresponding company ID. Youll be able to enter a corresponding company ID only if the Enter Corresponding Company ID option is marked in the Intercompany Setup window. Intercompany transactions will not be included in the batch total. Total debit and credit amounts will appear only when viewing the originating currency.
7.
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Verify the transaction by printing a General Transaction Edit List. Choose Save to save the batch.
10. Use any batch-level posting method to post intercompany batches. See Chapter 4, Posting, for more information.
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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. Select the document type and enter a description. Enter or select a batch. All intercompany transactions must be saved in a batch. Enter transaction information including document date, vendor ID, document number, and purchase amounts. Enter or select a currency ID.
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Choose the Distributions button to open the Payables Transaction Entry Distribution window.
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. Modify company IDs, accounts, transaction amounts, distribution reference, and corresponding company IDs of the existing distributions, if necessary. Intercompany transactions must be distributed to Type PURCH, FNCHG, FREIGHT, MISC, or UNIT. Youll be able to modify a corresponding company ID only if the Enter Corresponding Company ID option is marked in the Intercompany Setup window. All intercompany distributions must be entered in the originating currency; that is, the currency specified in the Payables Transaction Entry window. In addition, if Multicurrency Management is not registered, all originating and destination companies must have the same functional currency. 9. Continue entering distribution accounts until your transaction is fully distributed, and choose OK. If youve entered several distributions to one particular distribution type, you can choose Redisplay to sort the accounts in the scrolling window by distribution type. 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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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: Posting intercompany transactions Intercompany transaction amounts Intercompany audit trail codes Distributions to unit accounts Transactions with errors
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code. (The unique intercompany audit trail code gives you the ability to print reports for all intercompany-generated transactions.)
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: About reporting currency Viewing transactions for a posted General Ledger journal entry Viewing intercompany information for a transaction in a destination company Viewing exchange rate information for an intercompany multicurrency voucher Viewing exchange rate information for all destination companies on a voucher
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Enter or select the journal entry number to view. You can view any posted journal entry number that has not been moved to history with distributions for the company youre logged into. Audit trail code, transaction date, source document, batch ID, reference, currency ID, account, debit, credit, distribution reference, and difference information are displayed.
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Enter or select the journal entry number to view. If the journal entry is an intercompany-generated transaction, the Intercompany button will be enabled.
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.
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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: Intercompany Processing report summary Creating a report option
Report
Intercompany Setup List
Printing method
Choose File >> Print in the setup window or create report options in the General System Reports window. Choose File >> Print in the General Ledger Transaction Entry window or the Payables Transaction Entry window or choose File >> Print in the Payables Batch Entry window or the General Ledger Batch Entry window.
Edit lists
Transaction Edit List (intercompany information added)* or Payables Transaction Edit List (intercompany information added)*
* Indicates reports that can be printed with multicurrency information displayed. Indicates reports that can be assigned to named printers. See Printers in the System Administrators Guide (Help >> Contents >> select System Administration) for more information.
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Report type
Posting reports
Report
Transaction Posting Journal* (intercompany information added) Intercompany Distribution Detail (replaces Distribution Breakdown Register) Intercompany Distribution Breakdown Register Detail* (replaces Payables Distribution Breakdown Register Detail) Intercompany Distribution Summary (replaces GL Distribution Summary) Intercompany Distribution Breakdown Register Summary* (replaces Payables Distribution Breakdown Register - Summary) Intercompany Distribution Detail Reprint (replaces Payables Distribution Detail Reprint) Transaction Reprint Journal (intercompany information added)
Printing method
Choose File >> Print in the window you use to complete the procedure or some will be printed automatically when you complete the procedure.
Reprint Journals
* Indicates reports that can be printed with multicurrency information displayed. Indicates reports that can be assigned to named printers. See Printers in the System Administrators Guide (Help >> Contents >> select System Administration) for more information.
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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.
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Choose Insert to insert the range in the Restrictions List. To remove an existing range from the list, select the range and choose Remove. Choose Destination to select a printing destination. Reports can be printed to the screen, to the printer, to a file, or to any combination of these options. If you select Ask Each Time, you can select printing options each time you print this report option. 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.
History
Transaction activity from a previous year. Maintaining history files enables users to print detailed reports, comparing currentyear activity to activity in a previous year.
Posting journal
A report printed following the posting process that shows the detail for each transaction that has been posted. Posting journals also include the audit trail code, which is a precise record of where each transaction has been posted within Microsoft Dynamics GP.
Inquiry
A feature that enables users to view openyear and historical information.
Intercompany transaction
Any transaction that contains distributions to another company.
Recurring batch
A batch that will be posted repeatedly, according to the selected frequency. An example of a recurring batch would be one to record monthly rent expense. In Australia and New Zealand, transactions entered in a recurring batch are referred to as standing transactions.
Intercompany-generated transaction
Any transaction that originated in another company.
Background processing
Background processing enables users to continue working while transactions are being posted or reports are being printed.
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 option
A collection of entries that specify the amount of information or the type of information that will appear on a report. Multiple report options can be created.
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.
Journal entry
A transaction recorded in a formalized manner by entering an account and the amounts to be debited and credited.
Report Writer
A Microsoft application that can be used to create customized reports.
Series posting
A posting process in which marked batches from the same series can be posted simultaneously.
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.
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.
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.
Originating company
The company in which you initiate (or originate) an intercompany transaction.
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.
Destination company
A company that will be the recipient of 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.
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
documentation, symbols and conventions 2 DPS Setup window, selecting reports to process remotely 31
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
Payables Transaction Entry Distribution window displaying 20 distributing intercompany transactions 19 Payables Transaction Entry window displaying 19 entering intercompany transactions 19 printing Payables Transaction Edit List 31 posting in Intercompany Processing batch total amounts 23 errors 24 intercompany batches 23 overview 23 viewing posted journal entries 27
R
reports samples of customized reports 31 samples of reports 31 samples with technical names 31 required fields, described 3 resources, documentation 3
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
S
setup in Intercompany Processing before you begin 9 intercompany relationships 10 overview 9 symbols, used in manual 2
T
Transaction Entry window displaying 18 entering intercompany transactions 17 transactions in General Ledger, intercompany transactions 17 transactions in Intercompany Processing audit trail codes 24 batch total amounts 23 distributing to unit accounts 24 exchange rate inquiries 29 overview 17 posting errors 24 posting intercompany transactions 23 viewing for destination companies 28 viewing posted journal entries 27 transactions in Payables Management intercompany transactions 19 voiding intercompany transactions 21 tutorial, accessing 4
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
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
N
navigation, symbols used for 2 new features, information about 4
O
Orientation training, accessing 4 originating company, described 9
U
upgrade information, accessing on the Web 4
P
Payables Transaction Edit List, printing 20
V
vendors in Intercompany Processing, exchange rates 15
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Void Historical Payables Transactions window, voiding originating companys portion of transaction 21 Void Open Payables Transactions window, voiding originating companys portion of transaction 21
W
whats new, accessing 4
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