Setting Up Companies for Intercompany Settlements

For all three intercompany settlement methods, the system uses subledgers with subledger type A (address book) when creating intercompany settlement entries. Therefore, all companies in the F0010 table must be set up in the address book (even those that do not use intercompany settlements). If any companies in the F0010 table are not set up in the address book, the Post General Journal program (R09801) generates an error message and does not post your batch.

It is recommended that when you set up a company using the Address Book Revisions program (P01012), you use the same number that is assigned to the company in the Company Names & Numbers program (P0010). If you are unable to use the same number, you must create a cross-reference between the two different numbers by entering the address book number in the Company Address Number field on the Company Setup form. If you leave this field blank, the system assumes that the address book number is the same as the company number and it uses it as the subledger for the intercompany settlement.

For example, assume that company number 50 has an address book number of 30 and you have not created a cross-reference between the two numbers. One of these situations occurs:

• If address book number 50 exists, the system uses it as the subledger for the intercompany account when you post an intercompany batch, which is not the desired result.

• If address book number 50 does not exist and you attempt to post an intercompany batch, the Post General Journal program generates an error message