Creating accounting entity relations

You must create relations between accounting entities if:

  • You have multiple accounting entities in your finance enterprise group, and
  • You want to post transactions from one accounting entity to another
  1. Select Financials > Global Ledger > Setup > Finance Enterprise Group > Maintenance.
  2. Open the finance enterprise group and click the Accounting Entity Relation tab.
    Note: On this tab, Accounting Entity is replaced by the label that is assigned to Accounting Entity on the finance enterprise group.
  3. Click Create.
  4. Specify this information:
    From
    Select the From accounting entity. To facilitate inter entity payables and receivables analysis, select My Reports > Inter Entity Payables and Receivables. Select the Use Sub Accounts option on the finance enterprise group. You can define a sub account that is meaningful for inter entity analysis. The sub account should be something that easily identifies the From accounting entity. For example:
    • Accounting entity: 1000
    • Sub account: 1000
    • Sub account description: Entity 1000
    To
    Select the To accounting entity. To facilitate inter entity payables and receivables analysis select My Reports > Inter Entity Payables and Receivables. Select the Use Sub Accounts option on the finance enterprise group. You can then define a sub account that is meaningful for inter entity analysis. The sub account should be something that easily identifies the To accounting entity. For example:
    • Accounting entity: 2000
    • Sub account: 2000
    • Sub account description: Entity 2000
    Valid Systems
    Specify a custom group for system codes to be used for this inter entity relationship.
    Elimination Ledger
    Specify the elimination ledger for which a corresponding transaction is created. Elimination transactions are created for inter-entity journals that are selected for elimination when the journals are released. This check box is available only if the Enable Related Party Elimination check box is selected on the Options tab.
    Effective Date
    You can specify the date on which the inter entity relation will take effect. If you leave this field blank, the current date is used.
    Create Reverse Relation
    Select this check box to automatically create the reverse relation and post transactions between both accounting entities.
  5. Click Save.