Define Transaction Type for Multitier Flow

Intercompany transaction types determine the onward processing of intercompany transactions in the downstream applications.

A transaction type that is enabled for invoicing will determine that transaction will require invoicing in Receivables and Payables and a transaction type that isn’t enabled for invoicing will require transactions are transferred directly to General Ledger.

A transaction type must be enabled for multitier so that it can be used for multitier flow. A transaction type will then be selected and defined at the intercompany agreement level and will determine the processing of transactions for that agreement.

Note: A transaction type that is enabled for multitier flow will not be available for use in the standard intercompany flow.

How to Create an Intercompany Transaction Type

1. Navigate to Setup and Maintenance work area and select Financials.
2. Select General Ledger and then Intercompany as the functional area.
3. Navigate to the Manage Intercompany Transaction Types task.
4. Complete the fields as shown in this table:

   Field	Value
   Code	WCLOAN_INV
   Transactional Type Name	Working Capital Loan Invoicing
   Description	Working Capital Loan for Invoicing flow
   Invoicing	Enable, if invoicing is required.
   Manual Approval	This will be blank and not editable.
   Multitier	Enable

Credit Memo Processing for Reversals

For invoicing-enabled intercompany transaction types, reversal processing can generate either standard credit memos or on-account credit memos.

The default credit memo behavior is derived from Intercompany Receivables Assignments.

For multitier reversals, users can override the default behavior at the Transfer Authorization level.

When a Transfer Authorization generates multiple intercompany transaction legs, the selected credit memo behavior is applied consistently to all eligible reversal transactions generated from that authorization.