12 Correct Intercompany Account Imbalances
This chapter contains these topics:
12.1 Correcting Intercompany Account Imbalances
From General Accounting (G09), choose Integrity Reports and Updates
From Integrity Reports and Updates (G0922), choose Intercompany Accounts in Balance
If you have multiple companies set up for either hub or detail intercompany settlements, you can verify that all intercompany accounts are in balance by running the Intercompany Accounts in Balance report.
After you run the report and correct any discrepancies, you can prevent future out-of-balance conditions by:
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Assigning a posting edit code of M to intercompany accounts to allow only machine-generated transactions
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Submitting posting jobs to only one, single-threaded job queue
12.1.1 Before You Begin
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Run the Companies in Balance integrity report. See Chapter 11, "Correct Company Imbalances".
12.2 Running the Report
From General Accounting (G09), choose Integrity Reports and Updates
From Integrity Reports and Updates (G0922), choose Intercompany Accounts in Balance
The Intercompany Accounts in Balance report is a DREAM Writer.
The Intercompany Accounts in Balance report:
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Compares the balances among the company's various intercompany settlement accounts.
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Determines if your automatic accounting instructions (AAIs) and the associated intercompany accounts are set up correctly.
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Includes period postings for all years and the current year's APYC plus all period postings for the current and future years. It is not based on a financial period.
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Uses information from the Account Balances table (F0902).
The intercompany accounts for these companies should be in balance (that is, they should net to zero). If they do not, the report lists the intercompany accounts, their balances, and the amount required to balance each account.
A message prints on the report only if:
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All intercompany accounts are in balance
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The intercompany accounts are not set up in the AAIs
The following report shows a designated hub company. The intercompany accounts used by the hub company (or designated hub company, if you use the detail intercompany settlements method) are on the left side of the report under Hub Company Balances. The associated settlement accounts used by the participating companies are on the right side under Subsidiary Company Balances.
Figure 12-1 Intercompany Out of Balance report
Description of "Figure 12-1 Intercompany Out of Balance report"
12.3 Locating Out-of-Balance Conditions
After reviewing the report, choose any of the following methods to locate out-of-balance conditions:
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Run the Batch to Detail and Post Out of Balance integrity report.
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Run the Company by Batch Out of Balance integrity report
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Review batches or batch types on General Journal Review.
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Run the Monthly Spreadsheet or Trial Balance by Object to help determine which period is out of balance.
12.4 Correcting Discrepancies
After running the Intercompany Accounts in Balance integrity report, you should correct any discrepancies the system detects. A typical discrepancy, the reason for occurring, and possible resolutions follows:
| Discrepancy | Reason/Resolution |
|---|---|
| Intercompany accounts do not balance | Reasons:
Resolutions:
|