Overview

Automated Intercompany Cross Charge of Payables Invoices automates the creation of intercompany cross charge directly from Payables invoices, allocating costs to one or more beneficiary entities across countries.

The automation allows the processing of Payables invoices without delay as the beneficiary assignment task is shifted to the intercompany activity for data preparation. It significantly streamlines the overall workflow, improves efficiency, and reduces manual effort.

This is applicable for Payment on Behalf of (POB) expenses, expense sharing, or other expenses that involve recharge from paying entity to one or multiple beneficiary entities, resulting in intercompany transactions. The feature lets you automate the processing flow, starting from the Payables invoice to automatic creation of intercompany transactions, based on the specified intercompany agreements. First, the invoice data is automatically transferred from Payables to Intercompany Document Preparation, where users can assign the beneficiary entity, as well as initiate the creation of intercompany transfer authorization. After the transfer authorization is created, users can review and approve the transfer authorization using the Intercompany Agreement guided process in Multitier Intercompany Operations. For more information, see the Multitier Intercompany Operations section in the Using General Ledger.

Transactions are created with a default Manual approval flow, allowing you to review and approve transactions using the existing process. You can update the approval flow as needed. When the approval flow is set to autoapproval, the application automatically creates transfer authorizations, intercompany transactions, and generates intercompany journal entries or receivables and payables invoices, without requiring manual approval.

Note:

Intercompany payables invoice creation remains manual by default to allow review and adjustment of intercompany receivables invoices. You can optionally enable automatic creation of intercompany payables invoices.