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How to net off Intercompany Receivable and Intercompany Payable in source company

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Posted on by NNaumenko

Hello,

I have the intercompany accounting setup in place. The Intercompany Receivable and Intercompany Payable main accounts are automatically affected and do not allow manually entry.

I have the following use case without :

Co1 entered an invoice from external vendor, some expenses coded to Co1 and some of them coded to Co2 (intercompany).
This created a IC Payable on Co2 books and IC Receivable on Co1 books
Co2 transferred cash (in bank)
Co1 and Co2 now have the IC Receivable and IC Payable

How can we net IC Receivable and IC Payable off in Co1 and Co2, not during the consolidation (elimination)?

The reason to net them off is closing balances are growing on these main accounts and they need to sum up balances on IC Receivable and IC Payable in Co2 to see how much they need to repay to Co1.

Any help is greatly appreciated.

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Dynamics 365 Finance

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NNaumenko 12 on at

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How to net off Intercompany Receivable and Intercompany Payable in source company

CA Neeraj Kumar

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CA Neeraj Kumar 4,164 on at

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How to net off Intercompany Receivable and Intercompany Payable in source company

Hi @NNaumenko,

While doing this second entry, is it allowing you to select the Ledger of "Receivable others" on journal lines even it is not allowed for manual entries. Will it be possible for you to share screenshot of second entry that you're performing.

I can understand if you were allowing the manual entries on Inter-Company receivable/payable GLs, then in second entry, you would have directly knocked off Inter-company payable in Co2, and then after transfering the cash to Co1, they would have booked against Initial Intercompany receivable [it seems simple and more logical].

Regards,

Neeraj Kumar

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NNaumenko 12 on at

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How to net off Intercompany Receivable and Intercompany Payable in source company

Hi CA Neeraj Kumar

No sub-ledger on the Receivable Others main account. It is GL based intercompany accounting. These main accounts do not allow manual entry. If I turn it off, I can manually net them off on a monthly basis. But I do not want to allow manual entry on them until I have no other choice.

Thanks.

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CA Neeraj Kumar 4,164 on at

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How to net off Intercompany Receivable and Intercompany Payable in source company

Hi @NNaumenko,

I have a query here,

"Receivable others" - is it the GL selected while doing second entry? or Any customer account as subledger? And is the manual entry allowed for that GL or not?

Basis the answer to the query, i will try to assist you here.

Regards,

Neeraj Kumar

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