This enhancement supports Intercompany Processing at the GL level via automated ‘Due To’ and ‘Due From’ transactions any time costs or revenue is incurred/earned by one company on behalf of another company. Anytime the system sees a difference between the company that a balance sheet G/L Entity belongs to and the company that the Income Statement G/L Entity belongs to, the automated 'Due To' and 'Due From' transactions will be made.
For example, if monies are received in the AR Cash Receipts by Company A for work billed by Company B, the system would make the usual debit to the AR account and credit to the bank account. In addition, the Due From account in Company A would be debited, and the Due To account in Company B would be credited: this processing keeps the balance sheet accounts in balance.
Alternately if monies are received in the AR Cash Receipts by Company A for work billed by Company A, the system would only make the usual debit to the AR account and credit to the bank account: the automated intercompany transactions would not be needed.
Currently, Intercompany Processing does NOT support one company’s ‘profiting’ from work performed for another company. All restitutions are made via the Bank Transfer function.
Currently, all Companies within the database must use the same Fiscal calendar as defined in the GL Reporting Period record.
See Registry Intercompany Processing for the global setting entry required to implement this functionality.
Ideally, Intercompany Processing would be implemented when first starting to use SAM Pro. If there is any possibility of a new company being acquired in the future, new ‘one company’ firms can be set up for Intercompany Processing; if and when a new company is acquired, it can be more easily integrated into the database.
Important Note: Firms currently running SAM Pro without Intercompany Processing should consult their support representative if they are thinking about implementing this functionality: a significant amount of work will be required to convert an existing system.
The existing GL Entity and Security records and the new Company record are at the heart of Intercompany Processing.
Company: The Company record defines the Security Id, GL Entity (for balance sheet transactions), and ‘Due To’ and ‘Due’ From GL Accounts.
Security: A Security record must be created /related to each Company.
GL Entity: Each GL Entity must specify a specific Company. In addition to the GL Entities designated for the various profit centers within a company, a ‘balance sheet’ Entity will be created for use with Intercompany postings.
GL Account: A ‘Due To’ asset account and a ‘Due From’ Liability account should be created for each company. A good technique for the Due to and Due From GL accounts is to create a root account with the company extension (i.e. DUE TO 1200-A for company A and 1200-B for company B …)
Location: complete the GL Entity field added to the Status tab.
AP Journal Main Tab:
Changed Field: GL Entity:
If Intercompany Processing is implemented and if this Entity does not match the GL Entities referenced in the child tabs, the appropriate Intercompany postings to GL History will be made when this transaction is saved.
AR Cash Receipts Main Tab:
Changed Field: GL Entity:
If Intercompany Processing is implemented (the sys-ffv-global-settings registry’s IntercompanyEnabled option is set to true) and if this Entity does not match the GL Entities referenced in the child tabs, the appropriate Intercompany postings to GL History will be made when this transaction is saved.
Job Record:
Changed Field: Job GL Entity Id
When Intercompany Processing is enabled, the GL Entities specified in the Job record MUST reference the same Company as the GL Entities specified in its Cost Codes. Validation will not allow the GL Entity to be changed to one referencing a different Company.
Job Cost Code Record:
Changed Field: GL Entity Id
When Intercompany Processing is enabled, the GL Entities specified in the Job record MUST reference the same Company as the GL Entities specified in its Cost Codes. Validation will not allow the GL Entity to be changed to one referencing a different Company.
Purchase Order Record:
Status Tab: GL Entity Id
This field defaults from the Location record. It is required if Intercompany Processing is enabled.
New Call and Create PM Work Orders:
When Intercompany Processing is enabled, the Job GL Entity specified in the selected Job will determine the Work Order’s Company/Security.
Compute PR:
When Intercompany Processing is enabled, the GL Entity specified in the Employee record provided the override for the Company/Security of the post.
Report PR Checks:
When intercompany is enabled, the Security Id is set in the Check record when Checks are posted or voided.
Report PR Misc Deductions Checks:
When intercompany is enabled, the Security Id is set in the Check record when Checks are posted or voided.
Bank Transfer Journal:
When Intercompany Processing is enabled, the Bank Entity is required: it decides which Company/Service the transfer belongs to. The Transfer From Entity is also required for Intercompany Processing.
Bank Deposit Journal:
When Intercompany Processing is enabled, the Bank and Sweep Entities are both required. The Bank Entity controls what Company/Security the deposit is applied to. The Sweep Entity defines the Company/Security the deposit is from. If the Bank and Sweep Entities are different, an automatic Intercompany Processing GL transaction will be generated.
Bank Reconciliation Journal:
1. GL Entity Ids are required for Interco customizations.
2. All entities must reference the same Company when intercompany is ON.
3. The system posts Company Security Rn to GLH Security Rn when intercompany is ON.
Record Billing Adjustments/ Progress Billing:
When intercompany processing is enabled, the Company/Security is now correctly set for the AR Sales Journal and resulting history records when Progress Invoices are posted.
The A/R Control GL Entity is now displayed on the Progress Billing Post Report. Although the GL Entities for the Sale Tax entries do not appear on this report, they are written to history correctly.
Job Cost EOM Processing:
When intercompany processing is enabled, the Company/Security is recorded in General Ledger History when this function is run.
Voiding Checks:
When intercompany processing is enabled, the Company/Security is set in history when running this function.
Inventory Adjustment Journal:
The system validates that the GL Entity not blank when intercompany is enabled. When an Inventory Adjustment is created, the system generates Intercompany GLH when appropriate. This does NOT apply to Adjustment-type entries. No Intercompany GLH is generated when From/To entities belong to the same company.
The full screen view now shows To/From Company Ids.
Start Fill Backorders: (for Materials Requisitioning)
Start Material Requisitioning:
If Intercompany is enabled, the system will check for company security level registry settings when running this function; an error will be displayed if these registries (sys-viewer-vshpordr-securityid) are not found.
Start Generate Purchase Orders: (PO header now includes GL Entity from Location).
Client Order Processing (COP)
In order to support Intercompany Processing, Client Orders (clntordr) & COP Invoices now posts with the proper Security and Company Security information. This ensures that the COP Orders carry the correct security/company information when the COP Invoices are posted to the AR Sales Journal and carried over into the various history tables (arhstry, glhstry, txhstry, imhstry, invcemstr, etc). In addition, the Start Fill Backorders function now works properly for Client Orders generated in this release when InterCompany is enabled.
If the COP module is set up to default the information from the Client Site’s COP tab instead of the Location (where sys-viewer-vclntordr GLEntityScheme=clntste registry option exists), the system will now use the Client Site’s COP tab's GL Entity for posting the invoices Freight, Dropship Freight and make sure that the COGS posting for dropships uses the same GL Entity for both the debit & credit side of the AR Sales GL journal entry.