Configured Hub Method

Your organization might need to settle transactions across companies in a manner that does not conform to the detail method or the hub method of intercompany settlements. For example, you might have two hub companies in the same environment at the same time. Each hub company would have its own set of companies within its hub. Or, you might need to designate one hub company for certain intercompany settlements and a different hub company for other settlements.

Configured hubs are groups of companies that you can define, or configure, to accommodate intercompany settlements. When you configure a hub, you define the relationships between the companies in the hub. You also designate which company in the hub can settle transactions with other hubs. The designated hub company is the only company that can make intercompany settlements with other hub companies. The system uses your configured hub definitions to ensure that only authorized intercompany settlements occur.

The two methods of settlement within the relationship for a configured hub are:

• Modified Hub.

  All companies in the hub settle only through a single company (designated as the hub company) in the hub

• Modified Detail.

  All companies in the hub settle through any other company in the hub. A hub company is not designated in this method.

When you use the configured hub method for intercompany settlements, the system validates the user defined intercompany settlement relationships at the document level. The system maintains configured hub information in the Inter/Intra Company Account Relationships table (F09190).