Intercompany Posting Workflow Example

In this scenario a Parent Company makes a payment on behalf of a Subsidiary Company. The Parent Company is designated as source business unit SU1. The Subsidiary Company is designated as target business unit TU1.

  1. In the Subsidiary Company target business unit TU1, select Ledger Interface Account Recognition Codes (LIA) from the SunSystems menu.
  2. Create an Account Recognition Code A01.
  3. Select the Business Account Code for the Account Recognition Type.
  4. In Business Account Codes (BAC) create the details for the Account Recognition Code A01.
  5. In the Misc Analysis Code field enter the source account code.
  6. In the Account Code Analysis field enter the target account code.
    Misc Analysis Code (source account code) Account Code Analysis (target account code)
    SAC01 TAC01
    SCASH TAR
  7. In the Subsidiary Company target business unit TU1, select Ledger Interface (LIS) from the SunSystems menu,
  8. Create a Ledger Interface Defn Code INCO.
  9. Set the Module to Intercompany.
  10. In the Batch or Online Posting field select Online.
  11. In the Target Ledger field select A.
  12. Ensure the Journal TypeBatch field contains a journal that is not an Intercompany Journal Type, for example FGJ.
  13. Select External/Business Line Import Values as the Ledger Interface Value Type.
  14. Click Line Details.
  15. Setup one detail line to credit the Account Recognition Code A01.
    Table 1.
    Line Account Recognition Code Debit/Credit
    1 A01 Credit
    Note: A debit transaction line in the source business unit creates a credit transaction line in the target business unit. Similarly, a credit transaction line in the source business unit creates a debit transaction line in the target business unit.
    Note: When setting up the Ledger Interface you must ensure that the resulting journals balance by specifying the correct values for the credits and debits.
  16. Match the Value with the corresponding Business Line Import Value.
  17. Select the Business Line Import tab.
  18. Select the Value tab.
  19. Select Business Line Import Value 2 from the Transaction drop down list.
    Note: The import value is directly inserted into the target value. Ensure that the source value has the same currency as the target value. Alternatively map the transaction value from the source transaction value to insert the transaction currency code.
    Table 2.
    Value Txn
    Business Line Import Value 2
  20. If required set the Analysis Suppression or Transfer Data Codes.
  21. In the Parent Company source business unit SU1, select Journal Type (JNT) from the SunSystems menu.
  22. Create an Intercompany Posting Journal Type INTER.
  23. From the Intercompany Type tab select the Intercompany Type checkbox.
  24. Enter TU1 as the Target Business Unit Code.
  25. Select the Target Ldg Interface Defn Code INCO.
  26. Tick the Intercompany Automatic Posting checkbox to automatically post intercompany journals from the source business unit to the target business unit.
  27. In the Parent Company business unit SU1, select Ledger Entry (LEN) from the SunSystems menu.
  28. Enter and post a journal using the Intercompany Posting Journal Type INTER.
    Table 3.
    Journal Line No. Journal Type Transaction Ref Account Code Transaction Currency Code Base Amount Debit/Credit
    1 INTER ICO1 SAC01 GBP 100 Credit
    2 INTER ICO1 SCASH GBP 100 Debit
  29. If you have selected Intercompany Automatic Posting in the source business unit Journal Type (JNT), the journal is automatically posted to the target business unit.
    Table 4.
    Journal Line No. Journal Type Transaction Ref Account Code Transaction Currency Code Base Amount Debit/Credit
    1 FGJ ICO1 TAC01 GBP 100 Debit
    2 FGJ ICO1 TAR GBP 100 Credit
  30. If you have not selected Intercompany Automatic Posting in the source business unit Journal Type (JNT), when the journal is posted, the data is automatically inserted into the Business Line Import tables and the Intercompany Posting Status is updated to Awaiting Posting.
  31. To post the Intercompany Posting transactions to the Subsidiary Company target business unit TU1, select Intercompany Awaiting Posting Inquiry.
  32. Enter the journal number(s) and click OK to display the Intercompany Posting transactions that have a status of Awaiting Posting.
  33. Select Review or Review All.
  34. From the Report Process field select Intercompany Posting.
  35. Click OK.
    The Intercompany Posting journals are hard posted to the Subsidiary Company target business unit TU1.
  36. Use Ledger Interface Line Details to post multiple intercompany journal lines to the target business unit.
  37. Setup multiple lines with a credit line to the intercompany account and a debit line to the contra accounts.
    Table 5.
    Journal Line No. Account Code Debit/Credit
    1 TAC01 (target intercompany account) Credit
    2 TAR Debit
  38. In this example a debit journal line posted to the intercompany account in the source business unit posts a credit journal line to the corresponding intercompany account in the target business unit and vice versa.
    You can use a fixed account code or an account recognition code.
  39. In the source business unit select Ledger Entry (LEN) from the qu menu.
  40. Create the intercompany entries:
    Table 6.
    Journal Line No. Journal Type Transaction Ref Account Code Transaction Currency Code Base Amount Debit/Credit
    1 INTER ICO1 SAC01 GBP 100 Credit
    2 INTER ICO1 SCASH GBP 100 Debit
  41. Extract the journal through Intercompany Awaiting Posting and select only the intercompany account line (SAC01 100 Credit) to run intercompany posting.
    An intercompany journal is generated in the target business unit per the eline details specified in the target ledger interface.
    Table 7.
    Journal Line No. Journal Type Transaction Ref Account Code Transaction Currency Code Base Amount Debit/Credit
    1 FGJ ICO1 TAC01 GBP 100 Debit
    2 FGJ ICO1 TAR GBP 100 Credit.
    Note: If you are using automatic intercompany posting you can only post the full journal, not selected journal lines.