Reconciling inter company transactions

This page allows you to reconcile inter company account balances available in “Posting” finance books of in two different companies. Tell me more.

Select the “Reconcile Inter Company Transaction” link under the “Inter FB Reconciliation” business component.

The “Reconcile Inter Company Transactions” page appears.

The system displays the following:

Source Company	The code identifying the company in which the login organization unit is available.
Source Business Unit	The code identifying the business unit in which the login organization unit is available.

Enter the following fields:

Source Finance Book

Use the drop-down list box to select the code identifying the “Posting” finance book that you want to reconcile with a “Posting” finance book in another company.

Note: If “Allow Inter FB Recon across Finance Book” has been set to “Yes” in the “Set Function Defaults” activity, all the “Posting” finance books that have been defined for the company will be available for selection in the ascending order. If “Allow Inter FB Recon across Finance Book” has been set to “No”, all the “Posting” finance books that have been mapped to the login organization unit will be available for selection in the ascending order.

Destination Company	Use the drop-down list box to select the company in which the finance book that is to be reconciled is available. All the companies to which the “Inter Company” accounts in the selected “Posting” finance book have been mapped in the “Account Rule Definition” business component will be available for selection in the ascending order.
Destination Business Unit	Use the drop-down list box to select the business unit in which the “Posting” finance book is available. All the business units that have been defined for the selected company will be available for selection in the ascending order.
Destination Finance Book	Use the drop-down list box to select the code identifying the “Posting” finance book that has to be reconciled. All the finance books that have been mapped to the business unit selected in the “Destination Business Unit” field will be available for selection in the ascending order.
Currency	Use the drop-down list box to select the code identifying the currency. All the currencies that have been mapped to the login company as permitted currencies will be available for selection in the ascending order. The system displays the base currency by default at the launch of the page.
Usage	Use the drop-down list box to select inter-posting finance book usage. You can select from ““Supplier”, “Customer” or “Inter Company”.
As on Date	The date on which you want to reconcile the selected finance books (Date Format). Mandatory. The date entered in this field must be a valid date in an “Open” financial year. The system date is displayed by default at the launch of the page.

Click the “Get Accounts” pushbutton to retrieve the account details.

If “Usage” has been selected “Customer” the system retrieves all the account codes that have been mapped to the usage in the “Create Receivables Account Definition” activity of the “Account Rule Definition” business component in the “Source Company Information” group box. The system also retrieves all the account codes that have been mapped to the “Supplier” in the “Destination Company Information” group box.

If “Usage” has been selected as “Supplier” the system retrieves all the account codes that have been mapped to the usage in the “Create Payables Account Definition” activity of the “Account Rule Definition” business component in the “Source Company Information” group box. The system also retrieves all the account codes that have been mapped to the “Customer” in the “Destination Company Information” group box.

If “Usage” has been selected is other than “Supplier” or “Customer”, the system retrieves all the account codes that have been mapped to the selected usage in the “Create Additional Account Definition” activity of the “Account Rule Definition” business component for both the source and the destination company.

Enter the following field in the “Source Company Information” group box:

Account Code

Use the drop-down list box to select the code identifying the account that you want to reconcile. All the account codes that have been retrieved based on the selected usage will be available for selection in the ascending order.

The system displays the following in the “Source Company Information” group box:

Account Balance	The total balance of the account.
Description	The textual description of the account.

The system displays the following in the “Source Company Transactions” multiline:

Transaction Type	The type of the transaction.
Org. Unit	The code identifying the login organization unit
Document No	The code identifying the document that has been created for the transaction.
Transaction Date	The date on which the transaction took place.
Transaction Currency	The currency in which the transaction has taken place.
Transaction Amount	The transaction amount in the transaction currency.
Base Amount	The transaction amount in the base currency of the company.
Dr / Cr	Indicates whether the transaction amount has been debited (“Dr”) or credited (“Cr”) in the account.

Enter the following field in the “Source Company Transactions” multiline:

Tag Group

The code identifying the tag group (Alphanumeric, 6).

Note: This field must not be left blank if documents have not been selected in both the multilines for reconciliation.

Check the box in the “Select” column of the multiline to mark documents for reconciliation.
Enter the following field in the “Destination Company Information” group box:

Account Code

The system displays the following in the “Destination Company Information” group box:

Account Balance	The total balance of the account.
Description	The textual description of the account.

The system displays the following in the “Destination Company Transactions” multiline:

Transaction Type	The type of transaction.
Org. Unit	The code identifying the organization unit.
Document No	The number identifying the document that has been created for the transaction.
Transaction Date	The date on which the transaction took place.
Transaction Currency	The currency in which the transaction has taken place.
Transaction Amount	The transaction amount in the transaction currency.
Base Amount	The transaction amount in the base currency of the company.
Dr / Cr	Indicates whether the transaction amount has been debited (“Dr”) or credited (“Cr”) in the account.

Enter the following field in the “Destination Company Transaction” multiline:

Tag Group

The code identifying the tag group (Alphanumeric, 6).

Note: This field must not be left blank if documents have not been selected in both the multilines for reconciliation.

Check the box in the “Select” column of the multiline to mark documents for reconciliation.

Note: At least two rows must be marked in both the multilines if the “Tag Group” is left blank in both the “Source Company Transaction” and the “Destination Company Transaction” multilines.

You can reconcile documents that have been created in the same currency.

You can reconcile documents for which the debit and credit totals match in the base currency of the company.

Click the “Reconcile” pushbutton to reconcile the selected transactions.

The system generates a unique reference number for the unique tag groups. If tag groups have not been entered, the system generates a unique reference number for all the selected documents.

The system updates the status of transactions in both the finance books as “Reconciled”. The system also saves the reference number along with the corresponding documents.

To proceed, carry out the following

Select the “Create Journal Voucher” link at the bottom of the page to create a journal voucher. (Refer "Tax Book Processing" business component)

Select the “View Inter Company Balance” link at the bottom of the page to view the debit and credit balances of inter company accounts.

Reconciling inter company transactions – An overview

You can select the company and the business unit in which the “Posting” finance book that you want to reconcile with the “Posting” finance book in the login organization exists. You can select the currency of the transactions, which must be the same in both the finance books. You can also select the usage to which the account codes have been mapped. The account codes which must be reconciled must have been defined as “Inter Company” accounts in the “Create Operative Chart of Account” activity of the “Accounting Setup” business component and also must have been attached or copied to the selected finance book. These inter company accounts must transact in the same currency.

All the account codes that are available in both the selected finance books will be retrieved based on the selected usage. You can select the transactions in both the “Posting” finance books for the reconciliation.

This page also allows you to define unique tag groups. Refer Example If you have not selected transactions for reconciliation, the system reconciles transactions in the “Posting” finance books based on the defined tag groups. The status of the transactions after reconciliation is updated as “Reconciled”. The system also generates a unique reference number for the reconciliation. If tag groups have been entered, the reference number is generated for every tag group.

Example

The following are three companies for which inter company accounts must be reconciled.

Company Name	Business Unit Name
Company A	Comp A – BU
Company B	Comp B – BU
Company C	Comp C – BU

Inter company accounts must be defined for the following combination of companies:

Company & Business Unit Name	Company & Business Unit Name
Comp A – BU	Comp B – BU
Comp A – BU	Comp C – BU
Comp B – BU	Comp C – BU

Transaction currencies of the above mentioned inter company accounts could be

Company & Business Unit Name	Transaction Currency
Comp A – BU & Comp B – BU	US Dollar account
Comp A – BU & Comp B – BU	Euro account

Tag groups can be defined for reconciliation of inter company accounts

Transaction for Comp A - BU

Document No	Transaction Currency	Transaction Amount	Tag Group
D12456	USD	10,000	A
D12498	USD	5,000	B
D13201	USD	5,000	C

Transaction for Comp B - BU

Document No	Transaction Currency	Transaction Amount	Tag Group
C1203	USD	5,000	A
C1205	USD	3,000	A
C1299	USD	2,000	A
C1305	USD	5,000	B
C1311	USD	2,500	C
C1320	USD	2,500	C

The system picks the documents from both the companies and reconciles it based on the unique tag group indicated for each document. If tag groups are not specified you must select the transaction amount to be reconciled in both the companies. The system also generates a reference number for every unique tag group.