What Is An Intercompany Relationship?

Intercompany Relationships are used to establish a relationship between companies. This relationship enables the creation of journal entries between companies. An Intercompany Relationship must exist to create a National Account relationship between companies.

An Intercompany relationship lets a customer of one accounts receivable company receive payments for invoices that belong to a customer assigned to a different accounts receivable company. Intercompany relationships also let you transfer the distribution offsets of invoices, debit memos, credit memos, and non-accounts receivable payments to another company.