Inter entity netting examples

Example 1

The Approval Required check box was selected. The journal should go through approval even if the accounting entity has not been enabled for approval.

Accounting Entity: 100

System account for inter-entity Receivables: 108010

System account for inter-entity Payables: 211010

Enabled inter-entity dimension: Sub Account

Totals:

Table 1. Accounting entity 100

Account	Functional amount	Journal amount	New functional amount
108010-105	18000	(13000)	5000
211010-105	(13000)	13000	0

The inter-entity netting process is run for accounting entity 100 with a Period and Approval Code specified. A journal is created in a Pending Approval state with the updated inter-entity Payables amount. The Post Date should be the month end date and the Transaction Date should be the date that the inter-entity netting process was run. After the balancing journal is approved, the status is Released. You can post the released journal and the status is Posted.

Example 2

The Approval Required check box was cleared and no sub account was selected. The journal should not go through approval even if the accounting entity has been enabled or approved.

Accounting Entity: 101

System account for inter-entity Receivables: 100-009

System account for inter-entity Payables: 100-0010

Totals:

Table 2. Accounting entity 101

Account	Functional amount	Journal amount	New functional amount
100-009	3041.72	(2100)	941.72
100-0010	(2100)	2100	0

The inter-entity netting process is run for accounting entity 101 with the Period field specified. A journal is created in a Released status with the updated inter-entity Payables amount.

Example 3

The Approval Required check box was selected, but the journal amount was within the approval limit. The journal should not go through the approval process and be created with a status of Released.

Accounting Entity: 105

System account for inter-entity Receivables: 108010

System account for inter-entity Payables: 211010

Enabled inter-entity dimension: Sub Account

Totals:

Table 3. Accounting entity 105

Account	Functional amount	Journal amount	New functional amount
108010-100	28000	(18000)	10000
211010-100	(18000)	18000	0

The inter-entity netting process is run for accounting entity 105 with a Period and Approval Code specified. A journal is created with a Released status using the updated inter-entity Payables amount because the amount was within the approval limit.