Inter-Company Posting

What is Inter-Company Posting?

“Intercompany postings (also called as cross-company transactions) occur in the system when a single transaction is posted to other company. These are the transactions occurs between two different companies.

To Do an Inter-Company Posting we need:

1) Two Different Companies with all the basic setups done in our System.
2) Intercompany Partners.
3) Configure IC Partner in Company Information.
4) Intercompany Vendors/Customers.
5) Cross-References for Items.

Intercompany Partners:
To do an Intercompany posting/transaction we need Intercompany Partner (IC Partner). This IC Partner will be responsible for that particular transaction.
To create an IC Partner simply Navigate to: –
Home/Departments/Financial Management/Setup/Intercompany Postings/ IC Partners
or Simply search for IC Partners in search bar.
Then IC Partners list will be displayed, where you can create a new IC Partner.

Configure IC Partner in Company Information:
To Configure IC Partner in Company Information. Go to the Company Information Card and fill the IC Partner Code in that Communication tab. And Select the IC Inbox Type.

Intercompany Vendors/Customers:
To Configure Intercompany Vendors/Customers, simply open that particular Vendors/Customers card and fill the IC Partner Code in Communication Tab. So that the Vendor/Customer will be configured as Intercompany Vendor/Customer.

Cross-References for Items:
Cross-References can be used to match the items no’s between the companies through IC Partner Code.

Inter-Company Posting:
Here I have creating an intercompany Posting by posting a Sales order which in-turn a Purchase order for other company.
While Creating a Sales order with IC Customer, it automatically shows the IC Partner Code in the Sales Header.

After Posting the Sales Order, we have to send this order for IC Company. For this navigate to: –
Home/Departments/Financial Management/General Ledger/Intercompany Postings
And Click on IC Outbox Transactions for Outbound transactions and Vice-Versa. There you can see your transaction lines.

Two Action Buttons:
Set Line Action: – Sets the selected action to that transaction line.
Complete Line Action: – will complete the action for line which is previous selected.
Note: – Send to IC Partner will sends the transaction to the other company. Which has to be accepted in the intercompany.
All the processed/handled Intercompany transactions can be viewed in Handled IC Inbox/Outbox Transactions. For this navigate to
Home/Departments/Financial Management/General Ledger/Intercompany Postings.

To view a transaction, click on Details action button from Navigate tab.
Posting of IC General Journal: –
To post a General Journal between two companies, Navigate to
Home/Departments/Financial Management/General Ledger/Intercompany Postings
And click on IC General Journal.

Here you have mention Balance Account type as IC Partner and give the IC partner G/L account No and post this document.
From here the same process is repeated and then post these journal lines in IC General Journal in other company.

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