Create an Intercompany Agreement

This example demonstrates how to create an intercompany agreement and set it to the Active status.

Your company, InFusion Corporation, is a multinational conglomerate and operates in the United States (US), the United Kingdom (UK), Singapore (SG) and Australia (AUS). InFusion Corporation’s headquarters are in the US and has subsidiaries in these countries.

Country of operation	Holding or Subsidiary	Company Name	Name of the intercompany Organization
United states	Parent	InFusion US Inc.	US HQ Operations
United Kingdom	Subsidiary	InFusion UK Capital Services Inc.	UK Capital Services
Australia	Subsidiary	InFusion Australia Financial Services	AU Financial Services
Singapore	Subsidiary	InFusion Singapore Capital	SG Operations

InFusion US Inc. needs to transfer a working capital loan to its subsidiary in Singapore namely InFusion Singapore Capital.

The funds will always be remitted as follows:

United States Headquarters > UK capital Services > AU Financial Services > SG Operations

How to create an intercompany agreement

1. Navigate to the Intercompany Agreements landing page using the Multitier Intercompany operations icon.
2. Click the Create link available on the landing page.
3. Use the Start option on the process guide page to go to Intercompany Agreements page.
4. Complete the fields as shown in this table:

Field	Value
Intercompany agreement Number	Working Capital Loan to SG
Agreement Description	Working Capital Loan to SG
Transaction Currency	USD
Control Amount	1,00,000.00
Transaction Type	Invoicing for Loan
Conversion Rate Type	Corporate
Settlement Currency Basis	Transaction Currency

Route Information

Field	Value
Provider Organization	US HQ Operations
First Clearing Organization	UK Capital Services
Second Clearing Organization	AU Financial Services
Receiver Organization	SG Operations

You can configure descriptive flexfields to capture any additional information as part of the intercompany agreement.

Note: You can save the agreement in the draft or directly in active status. Modify the status to active once you have finalized the details of the agreement. Transfer authorization can be entered only when the status is active.