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Great Plains Intercompany Processing Transactions

This article explains about the Great Plains Intercompany Processing Transactions 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.

Dynamics GP Intercompany Processing allows you to easily create and account for intercompany transactions between different Dynamics GP company databases you have in your system.

Great Plains Intercompany Processing Transactions Steps

The following Great Plains Intercompany Processing Transactions information is discussed:

  • “Multicurrency transactions” explains how multicurrency functionality affects Intercompany Processing.
  • “Intercompany transactions” describes how to enter and void intercompany transactions.
  • “Posting” contains information about posting intercompany transactions.

1. Multicurrency Transactions

If you’re using Multicurrency Management with Intercompany Processing, you can choose the currency to enter on transactions.

This Great Plains Intercompany Processing Transactions information is divided into the following sections:

  • Viewing multiple currencies
  • Exchange rate and document date
  • Multicurrency account distributions

Viewing Multiple Currencies

You can choose whether to view multicurrency transactions in the originating or the functional currency. Select  View >> Currency >> Functional or Originating while entering an inter company transaction.

This option will be saved on a per user, per window basis. You can also utilize the Currency list button in the windows that support changing the currency view.

The first time you open these windows after registering Multi-currency Management, all the transactions will be shown 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.

Exchange Rate and Document Date

If the currency ID for a transaction is not in the functional currency, a rate type and associated exchange rate table are assigned to the transaction. The rate type is based on the rate type you have assigned to the selected vendor. If one isn’t assigned to the vendor, the default rate type specified in the Multicurrency Setup window is used.

The document date assigned to a transaction determines which exchange rate is used, based on the currency ID and associated rate type that’s entered for the transaction. Each time you change the document date on a multicurrency transaction, the system searches for a valid exchange rate.

Multicurrency Account Distributions

For multicurrency transactions, distribution amounts are displayed in both the functional and originating currencies. However, you can change only the originating amounts. When you’re entering a multicurrency transaction, the originating debit and credit amounts must balance.

2. Intercompany Transactions

The Intercompany Processing allows 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 Great Plains Intercompany Processing Transactions 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

Understanding Intercompany Transactions

Intercompany transactions are like any other transactions in the system, with the following exceptions:

  • They contain distributions to more than one company.
  • If you are not using Multicurrency Management, all companies must use the same functional currency.
  • You cannot enter multidimensional analysis codes for destination company distributions, but you can distribute amounts to destination company accounts that have multidimensional analysis codes set up.
  • Multicurrency intercompany transactions must be saved to a batch.
  • 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.

Entering General Ledger Intercompany Transactions

Use the Transaction Entry window in General Ledger to enter intercompany transactions.

In General Ledger, Batch Total Actual amounts for inter company debits and inter company credits are not included in the batch total displayed on the Batch Entry window and also on edit lists and posting journals. The number of journal entries, however, is updated for intercompany transactions.

Reversing intercompany transactions can be used in situations where cash will be paid or received, or an expense will be realized in the following period.

Entering Payables Management Intercompany Transactions

Use the Payables Transaction Entry window and the Payables Transaction Entry Distribution window to enter and distribute intercompany transactions.

The destination company distributions on an inter company transaction must be of the types FNCHG, PURCH, FREIGHT, MISC, or UNIT. Other distribution types are not supported.

Voiding Payables Management Intercompany Transactions

You can void intercompany transactions in Payables Management, but the only entries that are backed out automatically are those in the originating company. You must make adjustments manually in destination companies.

Use the Void Open Payables Transactions window or the Void Historical Payables Transactions window to void the portion of Payables Management intercompany transactions that come from the originating company. You must create manual adjustments in destination companies to account for voided intercompany transactions.

3. Posting

Posting transfers intercompany transactions to permanent records. Until they’re posted, transactions can be changed or deleted. In General Ledger, posting also updates account balances in the chart of accounts for the originating company.

This Great Plains Intercompany Processing Transactions information is divided into the following sections:

  • Posting intercompany transactions
  • Intercompany transaction amounts
  • Intercompany audit trail codes
  • Distributions to unit accounts
  • Transactions with errors

Posting Intercompany Transactions

You can post intercompany batches from the Batch Entry, Series Posting, or Master Posting windows, depending on your access to the system.

When an intercompany transaction is posted, if it is distributed to multiple companies, the information will be posted to the specified destination companies and a General Ledger batch will be created in each company.

Intercompany Transaction Amounts

In General Ledger, Batch Total Actual amounts for intercompany debits and intercompany credits are not included in the batch total shown on the edit lists and posting journals and on the Batch Entry window. The number of journal entries, however, is updated for intercompany transactions.

Intercompany Audit Trail Codes

If you are viewing an intercompany transaction in the General Ledger Transaction Entry window of the destination company, the Batch ID assigned is ICTRX, ICTHS or ICREV, with the next audit trail code number from the originating company appended to it.

Distributions to Unit Accounts

You might make distributions to unit accounts on intercompany transactions, but they will not generate a breakout of due to or due from accounts during the posting process. They are simply passed into the destination companies.

Transactions with Errors

During posting, all errors will be found and printed on the posting journal; 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, you’ll get a message stating that the account is inactive or does not exist.

For more information on Microsoft Dynamics Great Plains Intercompany Processing Transactions, please contact us.

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