Intercompany Postings is designed for users who control more than one legal business entity and have set up multiple companies to separate the accounting functions of each of these entities. This broad description applies to many users, especially those operating in international markets or regions with widely disparate business cultures and regulatory environments.
Your organization may consist of several companies, but might not have the equivalent number of accounting and administrative teams. Intercompany Postings lets you simplify and streamline business processes and transactions between all of these entities.
Once you implement Intercompany Postings, doing business with your subsidiary and internal partner organizations becomes as simple as engaging with your external vendors and customers. You enter intercompany transaction information only once in the appropriate documents. You can use the functionality you are already familiar with, such as receivables and payables management. Mapping facilities for the chart of accounts and dimensions help ensure that information appears in the right places.
There are four main benefits to Intercompany Postings:
- Increased productivity as a result of time saved and simplified transactions
- Minimized error potential with one-time entry of information and system-wide, automated updates
- Complete audit trail and full visibility into business activities and transaction histories
- Efficient, cost-effective transactions with affiliate and subsidiary companies
Other info about setup:
