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• Send intercompany transactions to one another for review and approval. The parent company, and those subsidiaries with auto approval privileges, can send transactions that are approved automatically.

• Review and approve intercompany transactions that were sent by the parent or another subsidiary. Optionally, the recipient can reject intercompany transactions.

• Define and generate automatically recurring intercompany transactions.

• Report on all intercompany transactions sent or received.

• Import intercompany transactions directly into General Ledger. Optionally, you can generate a report of intercompany transactions and enter them manually.

• Ensure that both parties to an intercompany transaction are aware of the transaction and have an opportunity to review the transaction details.

• Ensure that intercompany journal entries are made in both subsidiary's sets of books, to the correct intercompany accounts.

• Simplify the intercompany reconciliation process by ensuring that transaction amounts made to reciprocal intercompany accounts are the same.

The CENTRA Accounting Cycle

1. Your parent and subsidiaries enter and approve intercompany transactions by using the central CENTRA system. Even those subsidiaries that maintain remote General Ledger systems will log in to the central CENTRA system to enter and approve their intercompany transactions.

2. At the end of your accounting period, your parent runs CENTRA's Intercompany Transfer program. See: Running the Intercompany Transfer Program. This accomplishes two things:

• If the parent's General Ledger is local to the CENTRA system, all approved transactions related to the parent are used to populate the GL_INTERFACE table. Next, the parent can run Journal Import, then post the intercompany transactions.

Additional Information: If your parent's set of books are not local to CENTRA, export the GL_INTERFACE table to a file, then import that file to the parent's local General Ledger system before running Journal Import.

If the parent uses a non-Oracle general ledger system, manually enter the parent's intercompany transactions into the general ledger.

• Transactions that are marked for deletion are removed from the CENTRA database.

3. Your parent runs the Intercompany Transactions Detail report for all subsidiaries. This report list all intercompany transactions. Your parent can use the report to reconcile intercompany accounts.

4. Your parent then runs the Delete Intercompany Transactions program. This removes the old approved transactions that the parent has already downloaded. See: Deleting Approved Intercompany Transactions.

5. Each subsidiary runs the Intercompany Transactions Detail report to review all transactions for which they were the sender or receiver.

6. Each subsidiary runs the Intercompany Transfer program to populate the GL_INTERFACE table with all approved intercompany transactions for which they were the sender or receiver. Next, they run Journal Import, then post the intercompany transactions.

Additional Information: If a subsidiary's set of books are not local to CENTRA, export the GL_INTERFACE table to a file, then import that file to the subsidiary's local General Ledger system before running Journal Import.

If the subsidiary uses a non-Oracle general ledger system, manually enter the subsidiary's intercompany transactions into the general ledger.

7. Each subsidiary creates a period-end report package and sends it to the parent.

Note: General Ledger provides three reports related to intercompany transactions:

• Intercompany Transactions Detail

• Unapproved Intercompany Transactions Listing

• Intercompany Transactions Trial Balance

8. Your parent verifies that the total intercompany balance included in each subsidiary's report package matches tha balance shown on the parent's Intercompany Transactions Detail report.

See Also

Defining Intercompany Transaction Types

Specifying Intercompany Clearing Accounts

Entering Intercompany Transactions

Defining Recurring Intercompany Transactions

Generating Recurring Intercompany Transactions

Reversing Approved Intercompany Transactions

Deleting Approved Intercompany Transactions

Running the Intercompany Transfer Program