You can perform accounting for multiple companies for each of your sets of books. When you post your journal entries, if a journal entry for a particular company is out of balance, Oracle General Ledger posts any difference to the appropriate intercompany account for that company.
Setting Up Intercompany Accounting
Your general ledger department usually sets up intercompany accounting for you. For your information, the following are the setup steps for intercompany accounting:
To define Intercompany Accounts:
1. Define your accounts so that one of the segments is a company segment. Specify that the company segment is a balancing segment. See: Defining Intercompany Accounts.
2. Define multiple companies by defining values for your company segment.
3. Define Your Set of Books, and specify one intercompany account for the set of books. See: Defining Sets of Books.
4. In the Intercompany Accounts window in Oracle General Ledger, specify the journal entry source (Payables), a journal entry category (invoice or payment), whether the balancing entry is a debit or credit, and the account to which Oracle General Ledger should post the balancing amount. You do not need to define accounts for every company because Oracle General Ledger substitutes the appropriate company when it creates balancing entries.
Performing Multi-Company Accounting in General Ledger
Intercompany Accounting When You Use Oracle General Ledger