How does Accounts Payable determine when intercompany accounting is needed and which accounts to use?
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Cause
Resolution
[BCB:5:Third-party support:ECB]


The use of intercompany (I/C) accounting in Accounts Payable depends on the settings of the bank account used to print your Accounts Payable checks as follows:

  1. In Cash Management, from the Setup menu, select Bank Accounts.
  2. Select your Accounts Payable bank account.
  3. Click the GL Cash Accounts tab and verify your settings as follows:
    • The Use separate cash accounts per application check box is selected and Base is selected under Accounts Payable cash account - I/C accounting entries are not created when you print Accounts Payable checks with this bank account.

      Note: When you print checks, the full cash account that is credited in General Ledger is determined by the combination of the base account specified under Accounts Payable cash account (Setup, Bank Accounts, GL Cash Accounts) and the prefix from the payable account of the invoice.

    • The Use separate cash accounts per application check box is cleared, or the check box is selected but Full is selected under Accounts Payable cash account.

      I/C accounting entries are created if the prefix from the payable account of the invoice differs from the prefix of the cash account specified on the bank account (Setup, Bank Accounts - GL Cash Accounts). I/C accounting entries are not created if the prefixes are the same.

Note: The I/C payable and receivable account transactions are retrieved as follows:

I/C Payable:
Prefix: From the prefix for the payable account on the invoice
Base: The I/C Payable base account, for the paying prefix.

I/C Receivable:
Prefix: From the prefix for the cash account on the check
Base: The I/C Receivable base account, from the prefix for the payable account on the invoice.

If the prefix does not have an I/C base account specified, then Accounts Payable uses the I/C base account specified in AP Settings.



[BCB:156:Chat 300 CRE US:ECB]

Steps to duplicate
Related Solutions

How do I set up and use intercompany entries?
General Ledger accounts used for Invoices in Accounts Payable