Share
Report
57Hi All,
We have 200+ legal entities where intercompany transactions are happen between these legal entities. There are 2 issues:
1. Intercompany accounting utilizes one single account for both debits and credits. How does the system know which intercompany transactions to pull for elimination between specific pairs of legal entities? If company A & B buy/sell to each other. C & D buy/sell with each other. How does the system know to pull the intercompany transactions for specific pairs of legal entity if the interco/R and interco/P are unique from pair to pair? The advantage of using the same account for interco/R and Interco/P is that I don't need to create multiple Elimination column, but that leads to issue #2.
2. If I were to create separate general ledger accounts, such as Interco/R and Interco/P, for each pair of legal entities involved in intercompany transactions, it would provide greater clarity. However, with over 200 legal entities, creating a column for eliminations, as seen in columns G, H, and I, would be nearly impossible to manage.
Does anyone have suggestions on how to handle this situation? The column definitions aren't limited to just A to B or B to C; they can also include combinations like A to C, A to D, A to F, and so on. As you can see, it can quickly become overwhelming. I would appreciate any feedback on how to simplify this complexity.
Does anyone have suggestions on how to handle this situation? The column definitions aren't limited to just A to B or B to C; they can also include combinations like A to C, A to D, A to F, and so on. As you can see, it can quickly become overwhelming. I would appreciate any feedback on how to simplify this complexity.
Categories:
I have the same question (0)
All responses (
Answers (
