This chapter covers the following topics:
Use the Intercompany Home and Transaction pages to receive, respond to, and initiate intercompany transactions for multiple recipients. The transactions that you receive are inbound transactions and the transactions that you initiate are outbound transactions.
The Intercompany Home displays the most recent transactions that require your intervention. This page displays a summary of your open notifications, and a list of five most recently received transactions.
On the Home page, you can search transactions by Inbound or Outbound Batch Number, or navigate to the Create Batch page to create an intercompany transaction.
The Intercompany Transaction pages enables you to enter transactions addressed to multiple recipients thereby speeding up data entry and simplifying management of intercompany allocations.
There are two distinct flows for the Intercompany transaction entry and processing: an outbound transaction flow, and an inbound transaction flow. These flows are implemented in the Transactions pages as tabs: Outbound and Inbound. The Outbound tab provides all the functions an initiator of an intercompany transaction can perform. The inbound tab provides all the functions a recipient of the transaction can perform.
Use the Outbound Batches page to create intercompany transactions in batch mode, submit them to the recipients for approval. Additionally, you can search, personalize views, create, and update batches. You can personalize and create new views.
You can create a batch for organizations you can access and include any number of recipients in the batch.
Creating a batch is a two-step process:
Enter the batch header and transactions.
Enter the batch expense or revenue distributions.
Use the Create Batch: Header and Transactions page to enter the details listed in the following table:
| Field | Description |
|---|---|
| Batch Number | You can edit this field if you set the batch numbering to Manual in the System Options tab. |
| Initiator | The list of values includes organizations you can access. |
| GL Date | Defaults to the system date. |
| Reversal Reference | Displays the new or original batch number when a batch is reversed. |
| Control Amount | Sum of all the recipient debits and credits. |
| Actual Amount | Sum of all the recipient transaction amounts. |
| Recalculate Amounts | Calculates the total amount of all transactions and updates the Batch Actual Amount and Amount Difference. It also recalculates the total debit and credit transaction amounts. |
Use the Create Batch: Distributions page to enter distributions lines for the Intercompany transaction details that you created. The distribution lines are entered depending on the option selected for Distribution mode in the previous page.
If you selected the Automatic distribution mode while entering the batch header and transactions, then the distributions that you enter are prorated later across all transactions. When submitting the batch, these distributions are prorated based on the number of recipient transactions.
Note: The amounts are prorated across transactions and not across recipients because a batch can contain many transactions for the same recipient.
If Manual distribution mode is selected, then the initiator can enter the distributions manually using the Initiator Accounting tab. Optionally, using the Recipient Account tab, the initiator can enter recipient accounting regardless of the access privileges to the recipient. The recipient accounting need not balance since the recipients may make adjustments.
The Transaction Account Builder in Subledger Accounting is called to default initiator and recipient distribution accounts for each transaction. You can enter the distribution accounts manually in the Outbound Distribution page if these rules are not been set up in Subledger Accounting.
The initiator receivables account and the recipient payables account are generated automatically after the transaction has been approved.
Use the Outbound Batches page to recall a batch and update the transactions. To recall a batch and all its transactions, query the batch and click Recall. To recall individual transactions in a batch, click Update against the transaction and select the Recall option from the Action list in the Update Batch: <batch number> page.
You can only recall a batch or transaction that you submitted to the recipient for approval.
Use the Outbound Batches page to reverse a batch. To reverse a batch, query the batch and click Reverse. To reverse individual transactions in a batch, click Update against the transaction and select the Reverse option from the Action list in the Update Batch: <batch number> page.
You can reverse a batch or a transaction that is approved or complete.
When you reverse a transaction you must select the appropriate reversal method: Switch Debit/Credit or Change Sign.
Related Topics
Default Accounts Rules Setup In Subledger Accounting for Intercompany
Use the Inbound Transactions page to search, personalize views, update, and view the transactions that you received.
Use the Update Transactions page to enter transaction descriptions, enter rejection reasons, update recipient distributions if autoaccounting rules are not defined, and approve and reject transactions. The transaction cannot be rejected if the Allow Recipient to Reject Transactions? option is set to No in the Intercompany System Options page of the Intercompany Setup tab .
Note: The updates can be carried out only when the transaction is in Received status. A user must be set up as a contact for the recipient organization to approve and reject transactions.
Intercompany batch number is a unique control number for intercompany batches that are controlled by a numbering mechanism as selected in the Intercompany System Options page of the Intercompany Setup tab.
You select the numbering mechanism in the System Options page of the Intercompany Setup tab. If you select System Generated, then the application generates a batch number while creating a batch. If you select Manual, then you maintain a series of numbers and manually record the batch number when creating a batch. The initial sequence number is one.
The batch number type is database sequence. Database sequence is a sequence version associated with the batch numbering. Database sequence ensures that the system-generated batch number is unique and, thus, not validated. Manual batch numbers are validated for uniqueness in the context of the database instance, and initiator combination when creating the transaction.
Related Topics
Accounting and Reporting Sequencing, Oracle Financials Implementation Guide
The initiator and recipient workflow automate transaction processing by performing validations and notifying the status of the transactions at intervals to the initiator and the recipient.
When transactions do not pass the validations in the initiator and recipient workflow, the application sends notifications to the appropriate users. You respond to the notification in the Notification Details page.
A user must be set up as a contact of the Initiator or Recipient organization to receive notifications.
Related Topics
Intercompany transactions that do not need invoices are directly transferred to General Ledger once approved.
Before you transfer the transactions, ensure the following:
The transfer options are set in the Setup tab
The corresponding period in general ledger is open
The transaction status is approved
The exchange rate exists between the intercompany and general ledger currency if they are different
The transaction date is specified for calculating the exchange rate
The workflow process transfers the intercompany transactions depending on the options set in the System Options page of the Intercompany Setup tab. If you select Online mode, then no intervention is necessary, the initiator and recipient workflow transfers transactions on approval. If you select Batch mode, then you must run the concurrent request to transfer the transactions or schedule the concurrent request.
Note: On successful transfer, the transaction status changes to Transferred to Initiator GL or Transferred to Recipient GL respectively for the initiator and recipient workflows. The Batch and Transaction status is set to Complete once the transactions are transferred to both initiator and recipient ledgers.
Intercompany only populates an interface table in General Ledger for intercompany transactions. After Intercompany transfers the transactions to the GL Interface tables, you must run or schedule the GL Journal Import concurrent program to import these journals into General Ledger for both the Online and Batch mode. The actual posting of the transactions into the appropriate General Ledger accounting tables is performed separately by the GL Posting process after the journals are imported into General Ledger.
Use the Transfer Intercompany Transactions To General Ledger program in the Schedule Request page to transfer or schedule and transfer the transactions to General Ledger in batch mode. The following table explains the parameters for this program.
Note: The program transfers all transactions irrespective of the intercompany organizations assigned to the user who schedules the request.
| Parameter | Description |
|---|---|
| GL Date From | Specify the General Ledger start date of the transactions. |
| GL Date To | Specify the General Ledger end date of the transactions. |
| Ledger From | Select the starting ledger from the list of values. |
| Ledger To | Select the closing ledger from the list of values. |
| Legal Entity From | Select the top legal entity from the list of values. |
| Legal Entity To | Enter the bottom legal entity from the list of values. |
| Intercompany Organization From | Enter the top Intercompany organization from the list of values. |
| Intercompany Organization To | Enter the bottom Intercompany organization from the list of values. |
| Run Journal Import | Select Yes to run the GL Journal Import process. |
| Create Summary Journals | Select this option if you want to create the journal entries in summary format in general ledger. |
After transferring the transactions, the application generates a report displaying the transactions that were transferred General Ledger and their status.
Related Topics
Opening and Closing Accounting Periods, Oracle General Ledger Implementation Guide
Running Reports and Programs, Oracle Applications User's Guide
The initiator workflow transfers the intercompany transactions to Receivables to create invoices as required by legal or business requirements. After creating the invoices, Receivables updates the intercompany transactions with the invoice numbers and passes the number to the recipient workflow, which updates and transfers the transaction to Payables.
Before you transfer the transactions, ensure the following:
Transfer options are set in the System Options page of the Intercompany Setup tab.
Receivables Transaction Type, Receivables Memo Line are mapped to intercompany transactions in the Invoicing Options subtab.
Customer and supplier associations are defined in the Invoicing Options subtab.
Transaction status is approved.
Transaction date is specified for calculating the exchange rate.
The application transfers the transactions to Receivables and Payables depending on the options set in the System Options page of the Intercompany Setup tab.
Execute the following steps to transfer the transactions in Online and Batch modes.
To transfer the transactions in Online mode:
The user must approve the transaction.
The initiator workflow transfers the intercompany transaction details to the Receivables Interface tables and the transaction status changes to Transferred to Receivables.
Run the Receivables AutoInvoice Program or schedule it to run at regular intervals.
On successful completion of the Receivables AutoInvoice Program, the invoice number is updated on the Intercompany transaction and the recipient workflow transfers the intercompany transaction details to Payables Interface tables and the transaction status changes to Complete.
Run the Payables Open Interface Program or schedule it to run at regular intervals.
To transfer the transactions in Batch mode:
The user must approve the transaction.
Run the Transfer Intercompany Transactions to Receivables or schedule it to run at regular intervals.
The transaction status changes to Transferred to Receivables.
Run the Receivables AutoInvoice Program or schedule it to run at regular intervals.
On successful completion of the Receivables AutoInvoice Program, the invoice number is updated on the intercompany transaction.
Run the Transfer Intercompany Transactions to Payables or schedule it to run at regular intervals.
The transaction status changes to Complete.
Run the Payables Open Interface Program or schedule it to run at regular intervals.
Use the Transfer Intercompany Transactions To Receivables and Transfer Intercompany Transactions To Payables programs in the Schedule Request page to transfer or schedule and transfer the transactions in batch mode.
Note: The program transfers all transactions irrespective of the intercompany organizations assigned to the user who schedules the request.
For each option in the Schedule Request page, if a value is not supplied, the request runs for all the values for that option.
The value Yes in the Submit AR Auto Invoice and the Submit Payables Import automatically runs the respective import processes.
After transferring the transactions, the application generates a report displaying the transactions that were transferred to Receivables and Payables and their status.
Related Topics
Entering Transactions, Oracle Receivables User Guide
Running AutoInvoice, Oracle Receivables User Guide
Payables Open Interface Import Program, Oracle Payables User's Guide
Running Reports and Programs, Oracle Applications User's Guide