Interunit Accounting Entries

This section provides examples of interunit accounting entries for payment, maintenance, and transfer groups. The following accounting entries are shown without summarization.

Interunit Accounting Entries for Payment Groups

The following interunit example could apply to payments, prepayments, on-account transactions, overpayments, underpayments, and deductions. You apply a 980.00 USD payment to a 1,000.00 USD item and create a write-off for the underpayment for 20.00 USD.

This table displays accounting entries for the payment application:

GL Unit	Account	Affiliate	Type	Debit Amount	Credit Amount
US003	100003		Cash	1000.00
US001	120000		Receivables (AR)		1000.00
US003	100103	US001	Interunit		1000.00
US001	100105	US003	Interunit	1000.00

This table displays accounting entries for the underpayment adjustment:

GL Unit	Account	Affiliate	Type	Debit Amount	Credit Amount
US001	100003		Cash		20.00
US003	120000		AR	20.00
US001	100105	US003	Interunit	20.00
US003	100103	US001	Interunit		20.00

This table displays accounting entries for the write-off. The write-off entries do not require interunit accounting entries:

GL Unit	Account	Affiliate	Type	Debit Amount	Credit Amount
US001	673000		User-defined (revenue)	20.00
US001	120000		AR		20.00

Interunit Accounting Entries for Maintenance Groups

When you create a maintenance group, you specify the anchor business unit for interunit transactions.

The following example shows the accounting entries for offsetting items. You offset a 1,000.00 USD debit memo with two credit memos. one for 400.00 USD and one for 600.00 USD. The anchor business unit for the maintenance group is US001:

GL Unit	Account	Affiliate	Type	Debit Amount	Credit Amount
US001	120000		AR		1000.00
US001	125000		Offset	1000.00
US002	110000		AR	400.00
US001	125000		Offset		400.00
US003	115000		AR	600.00
US001	125000		Offset		600.00
US002	100103	US001	Interunit		400.00
US001	100105	US002	Interunit	400.00
US003	100103	US001	Interunit		600.00
US001	100105	US003	Interunit	600.00

Interunit Accounting Entries for Transfer Groups

The following example shows the accounting lines that would be generated if you transferred an item from the US001 business unit and customer USA01 to the US003 business unit and customer USA01:

GL Unit	Account	Affiliate	Type	Debit Amount	Credit Amount
US001	120006		AR		1000.00
US001	100100	US003	Interunit	1000.00
US003	120006		AR	1000.00
US003	200200	US001	Interunit		1000.00

Note:

Because the interunit entries balance the transaction, no offset entries are necessary.