Intercompany Transactions

A check amount recorded on the books of the cash receiving company/location can be used to reduce an accounts receivable amount on the books of the invoicing company/location.

The Payment Entry and Application Conversation (AR120E) authorizes each combination of cash-receiving company/location and invoicing company/location by validating each combination with the Reference File account number assignment record (category 302).  For every payment transaction in which the cash-receiving company/location and the invoicing company/location are different, the program creates an intercompany payable on the books of the cash-receiving company/location.  The program also assigns the intercompany payable and receivable account numbers by referring to the account number assignment records.