How Do You Generate Intercompany Settlements?

To generate intercompany settlements for payroll transactions, the JD Edwards EnterpriseOne Payroll system must be integrated with the JD Edwards EnterpriseOne General Accounting system. You can set up either of these systems to generate intercompany settlements for payroll transactions. You select the method that works best for the environment.

When you use the JD Edwards EnterpriseOne General Accounting system to generate intercompany settlements, the system processes all of the balancing journal entries through a single hub (main) company. The hub company is the same for all employees. You can designate the hub company in the intercompany constants for the JD Edwards EnterpriseOne General Accounting system. If you do not designate a hub company, the post program uses the first company that it encounters as the hub company. Therefore, the hub company might not be the employee's home company.

When you use the JD Edwards EnterpriseOne Payroll system to generate intercompany settlements for payroll transactions, the system creates the balancing entries before posting journal entries to the general ledger. The JD Edwards EnterpriseOne Payroll system ignores the intercompany constants for the JD Edwards EnterpriseOne General Accounting system and designates the employee's home company as the hub (main) company for processing balancing entries.

Note: Intercompany settlements in the JD Edwards EnterpriseOne Payroll system apply to document types T1, T2, T3, T4, and T6. They do not apply to document types T5 and T7.