Intercompany Settlements

If the organization consists of multiple companies and employees sometimes work in companies other than their home companies, intercompany settlements enable you to expense labor to one company and the associated liabilities to the home company.

Intercompany settlements keep the payroll journal entries for each company in balance by document type. These journal entries ensure that each company's net balance equals zero or that the debits equal the credits.

Before you can set up AAIs for intercompany settlements, you should verify that the chart of accounts contains intercompany settlement accounts. After verifying the chart of accounts, you set up AAIs for intercompany settlements. After you set up AAIs for intercompany settlements, you should create a payroll ID that generates intercompany settlements in the JD Edwards EnterpriseOne Payroll system rather than in the JD Edwards EnterpriseOne General Accounting system.