Intercompany Journals

When you depreciate or restate depreciation for assets with intercompany distribution lines, LN makes additional journal entries to offset part of the transaction to the intercompany accounts. For each depreciation transaction, LN debits the depreciation expense account for each company, credits accumulated depreciation for the parent company, debits the intercompany account for the parent, and credits intercompany for the distribution company.

The accounts used to create the intercompany journals are stored in the asset distribution lines (in the transaction schedule or integration scheme). When journals are created, LN performs validation on the accounts and periods affected to ensure the entry is correct. A journal will not be created if the Suppress Journal Entries check box is selected.