1. Using General Ledger
  2. Assign Beneficiary in Intercompany Document Preparation

Assign Beneficiary in Intercompany Document Preparation

Intercompany Document Preparation centralizes intercompany activities and allows intercompany users to perform these tasks:

  • Review source information
  • Assign beneficiary
  • Update intercompany cross charge information
  • Create intercompany transfer authorization

In Document Preparation, each line corresponds to a Payables distribution line. Source document, along with the corresponding intercompany data, is organized and displayed in a grid layout, with bottom and side drawers for more details. The search functionality allows you to filter the information for viewing. You can search by various criteria including processing status, agreement number, document number, and date. You can review source information and determine whether to process for intercompany cross charge or to mark them inactive when no intercompany processing is required.

To process intercompany cross charge, you must assign the beneficiary to the source transaction and initiate the create transfer authorization process. Optionally, you can edit the corresponding intercompany data prior to initiating the process. When create transfer authorization process successfully completes, the transfer authorization number hyperlink is enabled. When intercompany processing is not required for a line, it can be marked as inactive.

After a cross charge invoice is transferred to Document preparation, any changes to invoice such as cancellation, line addition, and line update will be transferred as either reversals or new distributions to Document Preparation. The reversal distributions will reference the original transfer authorization to show them as a reduction against the original transfer authorization.

Review Source Information

The source information is available in Document Preparation and is view only, it can’t be updated.

On the Document Preparation page, this is how the source information is displayed:

  • Source Document section displays key information such as Document Number, Transaction Date, and Amount.
  • Bottom drawer displays additional information including original or reversal distribution, distribution account, supplier, business unit, and legal entity. To open the bottom drawer, click a transaction number.
You can also view complete invoice information from the View Invoice page. Click a document number to open the View Invoice page in a separate tab.

Assign Beneficiary

You assign a beneficiary by assigning an intercompany agreement number. An agreement must exist between the paying entity (provider organization) and the beneficiary entity (receiver organization) prior to the beneficiary assignment. See the Multitier Intercompany Operations chapter in the Using General Ledger guide on how to create intercompany agreements.

To assign a beneficiary for a single transaction, follow these steps:

  1. Double click an agreement.
  2. Review the agreements listed on the drop-down and select an agreement associated with the designated beneficiary. The agreements are displayed based on these criteria:
    • Agreements associated with the paying entities must be active.
    • Agreement transaction currency is the same as the invoice currency.
    • User must have access to the provider intercompany organizations.
  3. If there are no agreement for the paying entity or the designated beneficiary, you must first create an agreement from the Agreement tab and then follow step 1 and step 2.

Alternatively, you can follow these steps:

  1. Double click an agreement.
  2. Type any letter such as B and click More Search Options.
  3. Select or search an agreement.
  4. Click Save.

To assign a beneficiary to multiple transactions, follow these steps:

  1. Select multiple transactions on the Data Preparation page.
  2. Click Add Agreement.
  3. Select an agreement.
  4. Click Save.

When you assign a beneficiary, you can either update the intercompany cross charge data or mark them ready for processing by clicking Mark as Ready.

Note for reversal transactions: If an agreement is already assigned to the original transaction, the same beneficiary is automatically assigned to the reversal transaction in Data Preparation.

Update Intercompany Cross Charge Data

The intercompany cross charge data is defaulted from the Payables invoices. You can review the intercompany cross charge data displayed in the Intercompany Transfer Authorization section, and optionally update them. You can update these attributes:

  • Reference
  • Number
  • Description
  • Transaction Date
  • Transaction Amount
  • Amount Type
  • Note
  • Additional Information
  • Attachment

When you make all the updates, and transactions are ready for further processing, you can mark them ready for processing by clicking Mark as Ready.

Create Intercompany Transfer Authorization

You can initiate the creation of transfer authorization for one, multiple, or all transactions that are in the Ready status.

Follow these steps:

  1. Select one or more transactions and click Create Transfer Authorization.
    • The status of these transactions is set to Processing and you can’t update transactions during the processing stage. When transfer authorizations are generated successfully, the processing status is set to Completed and the transfer authorization number hyperlink is enabled.
    • If an error occurs while processing, the processing status is set to Error. Click the Error link to view the error details and take corrective actions.
  2. Alternatively, click Process All to initiate the creation of transfer authorization for up to 500 transactions that are in the Ready status.

You can review transfer authorization details by clicking the Number hyperlink. This opens the Transfer Authorization page of the Intercompany Agreement guided process where you can review and update the transfer authorization. Transfer Authorization Additional Information displays the source information details including an indication whether the transaction originated from Document Preparation. Continue the process to create the intercompany transactions, preview accounting, and generate GL journals or intercompany invoices[FA1] [JM2] .

Note for reversal transactions:

  • You can create transfer authorization for reversal transactions only after the original transfer authorization has been approved.
  • Reversal transfer authorization refers to the original transfer authorization number in the Related Transfer Authorization field.
Note: The Payables distribution accounts are mapped to transfer authorization provider organization accounts and made available as Subledger Accounting (SLA) source (Source name: Transfer Authorization Provider Account). You can use this SLA source in your Transaction Account Definition (TAD) to derive your intercompany transaction provider account. If TAD is not enabled, the Payables distribution account or the transfer authorization provider account is defaulted to the intercompany transaction provider account.

Mark Transactions as Inactive

If you don’t need to process transactions for intercompany cross charge, then mark those transactions as Inactive.

Follow these steps:

  1. Select the transactions. Ensure they are in the Not Started status.
  2. Select More Actions and click Mark as Inactive.

Transactions in the Inactive status can’t be processed further. If you decide to process them later, you must restore them to the Not Started status. Follow these steps:

  1. Select the inactive transactions.
  2. Click More Actions and click Restore inactive transactions.

The transactions are now reset to the Not Started status.