You can use Microsoft Dynamics GP Intercompany Processing Setup to 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 article is designed to give you an understanding of how to use the features of Intercompany Processing, and how it integrates with the Microsoft Dynamics GP system.
To make best use of Intercompany Processing, you should be familiar with system wide features described in the System User’s Guide, the System Setup Guide, and the System Administrator’s Guide.
Some features described in the documentation are optional and can be purchased through your Microsoft Dynamics GP partner.
Microsoft Dynamics GP Intercompany Processing Setup Steps
Use this part of the documentation to familiarize yourself with Intercompany Processing terms and set up intercompany relationships.
The following information is discussed:
- “Intercompany Processing setup” describes what to do before you set up Intercompany Processing and provides steps to set up an intercompany relationship.
Intercompany Processing Setup
Before you can begin entering intercompany transactions, you must set up the relationships between companies. You can also utilize the setup procedures whenever you add Intercompany Processing relationships.
This information is divided into the following sections:
- Dynamics GP Intercompany Processing Setup Terms
- Before you Set Up Intercompany Processing
- Setting Up Intercompany Relationships
1. Dynamics GP Intercompany Processing Setup Terms
Intercompany Processing uses terms not used elsewhere in Microsoft Dynamics GP. They are defined here and used throughout Intercompany Processing documentation.
- Destination company A company that will be the recipient of an intercompany transaction.
- Due to/due from accounts General Ledger accounts used by Microsoft Dynamics GP to track amounts to be paid or to be collected among companies.
The due to/due from accounts are often called Intercompany Payable and Intercompany Receivable in the chart of accounts.
- Breakout of due to/due from accounts Detail created by Dynamics GP showing the distribution account you enter and the offsetting due to account or due from account for each intercompany distribution.
This breakout prints only on edit lists (in Payables Management) and posting journals (in General Ledger and Payables Management).
- Intercompany transaction Any transaction that contains distributions to another company.
- Originating company The company in which you initiate an intercompany transaction.
2. Before you Set Up Intercompany Processing
Before you begin setting up Intercompany Processing, be sure you’ve completed the setup procedures for System Manager, General Ledger, and Payables Management.
When you’ve completed setting up those modules and the Intercompany Processing setup tasks, you’ll be ready to begin performing the tasks.
3. Setting up Intercompany Relationships
Use the Intercompany Setup window to define relationships between companies that can have intercompany transaction interaction. Setting up an intercompany relationship allows you to record transactions in General Ledger or Payables Management for the originating company that will create transactions in the General Ledger for the destination company.
To Set Up an Intercompany Relationship:
- Open the Intercompany Setup window. (Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Intercompany)
- 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.
- Select a Destination Company Name. This company is the one 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.
The Originating and Destination Due To/Due From accounts cannot be inactive accounts, unit accounts, or unit allocation accounts.
- 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 Inter company Setup List for all the inter company relationships for this originating company, enter or select the same Originating Company ID and choose File >> Print.
You can also display the Inter company Setup List in the General System Reports window by selecting the Reports >> System >> General >> select Inter company Setup from the Reports drop down list.
All inter company relationships for the selected range of companies will print on the Intercompany Setup List when you print the report from this window. For more information on Microsoft Dynamics GP Intercompany Processing Setup, please contact us.