Selecting an Approach to Intercompany and Intracompany Transactions

You can record activity between business units with the use of the Affiliate ChartField or with separate accounts. The Affiliate ChartField maps transactions between business units while using a single intercompany account. Alternatively, you can use different ChartField values, typically different accounts, for intercompany transactions.

If the consolidation is on business unit, the consolidation process assumes that it is an intercompany consolidation, and the affiliate is the Affiliate field name.

If the consolidation is on anything other than business unit, the process assumes that it is an intracompany consolidation within a single business unit. For intracompany elimination when the Affiliate method is used or where the Affiliate field is required for querying the ledger data, the field name is the associated affiliate field for that ChartField, as defined on the Standard ChartField Configuration page.