Infor SunSystems 6.4 has introduced a new intercompany functionality to enable direct posting of intercompany transactions across business units and business unit groups. Postings are driven from Ledger Entry or Ledger Import function using an Intercompany journal type.
Some example Intercompany Posting scenarios include:
- Recharging expenses.
- Selling goods and services.
- Cash payments.
- Intercompany loans.
- Automatic cash receipt and matching in a shared service centre type operation.
A typical example of how intercompany posting can be achieved is with a parent company making payment on behalf of a subsidiary company using this new functionality:
1. Define a direct account mapping of source and target business unit. For example:
|Source Account Code||Target Account Code|
2. Post a journal source business unit with Intercompany type journal type.
3. Depending on configuration, the intercompany journal posting to target business unit can be generated at the same time when the journal is posted in the source business unit. In this case, you will get 2 journal numbers returned at the time of posting in the source business unit: one for source business unit and one for target business unit. See below:
A note to this functionality, as you can see from the example above, is catered for simple intercompany transactions that you can define the direct mapping of account codes between source and target business unit.
For more complex intercompany scenarios that require dynamic accounts posting—such as the trigger of a mapped Intercompany account code and balancing account in target business unit based on source intercompany account posting—the PA Intercompany module is perhaps a more suitable solution that meets your requirements.
If you would like further information regarding Intercompany functionality in SunSystems 6.4 or the PA Intercompany module, please reach out and speak with our expert team.