Multifinance intercompany transactions

Intercompany transactions are financial transactions that LN automatically creates between financial companies that belong to the same financial group. The transactions are posted to intercompany ledger accounts. For details, refer to Example of intercompany transactions.

You can set up intercompany transactions as described in To set up intercompany transactions.

Purely financial intercompany transactions are:

  • Single line journal vouchers
  • Cash transactions (direct debits)
  • Manually entered cost invoices in Accounts Payable
  • Manually entered cost invoices in Accounts Receivable

To generate these types of financial intercompany transactions, you must define the intercompany relations between the financial companies. You do not need to define the companies as business partners.

Financial intercompany transactions can also result from these logistic transactions:

  • WIP transfer
  • Inventory transfer

For WIP transfers and inventory transfers, you must define the entities as internal business partners. Sales/purchase transactions between such business partners result in intercompany transactions if all of these conditions are met:

  • The entities are linked to different financial companies.
  • You set up intercompany relations between the financial companies involved.
  • You do not set up intercompany settlements for the entities involved.
Note

If you have set up intercompany transactions, LN automatically creates the intercompany transactions when you finalize the transactions. You do not need to run any additional sessions.

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