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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Intercompany settlements
Microsoft Dynamics AX (Archived)

Intercompany settlements

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Posted on by Kimberly E 5

Good morning.  We have 2 companies linked via intercompany.  There are several transactions I've made into the due to/due from accounts.  Now i'd like to do a month end settlement.   1 company owes the other company $.  Is there a simple way to create a payable out of the company that owes that I can also clear out all of the due to/due from accounts.

I have both receivable due to and payable due from items I need to reconcile to 1 payment to the due to company from the other.

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  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    Can you elaborate a bit on your issue and possibly provide a simplified example of your accounts, amounts and the postings you want to create?

    Many thanks,

    Ludwig

  • Kimberly E Profile Picture
    Kimberly E 5 on at

    Sure,

    Intercompany Payable for:

    Company1     Dr. Expense    $500

    Company2      Cr. A/P               $500

    Resulting in a Due to Company2 for $500 and a due from Company1  - both show up in their respective companies.

    Intercompany Journal Entry transactions

    Company2     Dr. Clearing       $600

    Company1     Cr. Receivable         $600

    Resulting in a Due to Company1 for $600 and a due from Company2  - both show up in their respective companies    

    End result is thsi:

    Company1  Due to Company2   $600

    Company1 Due from Company2 $500

    So Company1 needs to pay Company2 $100.00

    How do I clear out the due to and due froms on both companies?  

    I assumed I'd create a payable to Company2 for the amount owed by Company1 for the settlement.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Kimberly E,

    If I calculated things correctly then

    - Company 1 has

     AR: +600

     AP: -500

    - Company 2 has

     AR: +500

     AP: -600

    Can you imagine to setup an AP payment method in both companies for your intercompany vendor accounts that has your intercompany customer account - and not a bank or cash account - as the offset account setup?

    If you would run AP payment runs in company 1 you would clear the AP balance and create a remaining balance on your IC-AR account of +100. That is,

    - Company 1 has

     AR: +100

     AP: 0

    If you are doing the same in company 2 you would get:

    - Company 2

     AR: -100

     AP: 0

    If you post a manual journal for the IC-customers against each of the customer accounts, all balances on the IC-vendor and IC-customer accounts would be cleared.

    Would that be a 'thinkable' process for you or does it involve too many (3) steps?

    Best regards,

    Ludwig

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