CREATE/DELETE INTERCOMPANY RECEIVABLES

Use the Create/Delete Intercompany Receivables screen to create or delete Intercompany Receivable journal entries, which facilitate the intercompany transfer process. This process automatically creates "Due To" and "Due From" entries that correct an out-of-balance condition within an organization. Such an out-of-balance condition results from one organization incurring a payable or receivable on behalf of another. This typically occurs during a posting involving control accounts, such as Accounts Payable, in which the expense accounts are debited to the individual organizations incurring the cost but the liability is credited to one top-level organization. If that occurs, it is not possible to print balanced financial statements by organization.

The Create/Delete Intercompany Receivables process generates a journal entry that brings each organization into balance so you can generate financial statements by organization.

The Post Intercompany Receivables process posts down only to the balance sheet level specified on the Manage Organization Structures screen. It does not post to lower levels. If an Intercompany Receivable journal entry is created above the specified balance sheet level, Costpoint ignores the part of the entry that exists above that level. This generates an out-of-balance intercompany receivable entry, and Costpoint displays a warning message that asks you to confirm that you still want to create the entry. Before you create the intercompany receivable entry, review the original entry to see why it is above the balance sheet level. If you try to create an intercompany receivable from a one-sided journal entry at or below the level of the intercompany receivable, you see the same message. Costpoint ignores all entries that are entirely above the balance sheet level at which the intercompany receivable should be created.

After calculating the intercompany receivables journal entry, you can review it before posting. If the journal entry is incorrect, you can delete it in its entirety on the Create/Delete Intercompany Receivables screen and then re-create it. You cannot edit the journal entry at the transaction level because there should be no requirement to remove a specific voucher or timesheet from the calculation. Therefore, you should delete the journal entry and re-create it in its entirety.

For more information, see Intercompany Receivables.

Create intercompany receivable journal entries at the end of an accounting period, after you enter and post all transactions but before you print financial statements. This ensures that the process includes all the transactions for the period and that, after posting, you can generate balanced financial statements by organization. You can create the journal entries at any time, but if you later post any intercompany activity, financial statements printed by organization may not be in balance.

Location

Identification

Use the fields in this block to create a new parameter ID or to retrieve a previously saved parameter ID. A parameter ID represents a set of screen selection parameters. After you have saved a parameter ID and its related parameters, you can retrieve them using Query.

You can use the retrieved parameters to produce reports and run processes more efficiently and with greater consistency. The saved parameters are also useful and necessary when you want to run the process as part of a batch job. Many users save a unique set of parameters for each different way they run a report or process. When you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters automatically display as selection defaults. The page setup and print options are also included in the saved parameter ID if there are any. You can change any of the associated selection defaults as necessary.

Parameter ID

Enter, or click to select, a parameter ID of up to 15 alphanumeric characters. Choose characters for your parameter ID that help identify the type of selections you made in the screen, such as PERIOD or QUARTERLY.

When you save your record, all the selections made in the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.

You can use the parameter to run the process more efficiently because you can select the parameter ID with its previously defined screen selections. After the default selections display in the screen, you can override the defaults.

Description

Enter, or click to select, a parameter description of up to 30 alphanumeric characters.

Selection Ranges

Journals

Option

Use this drop-down list to select the range of source journals to include in the Intercompany Receivable journal entry. Valid options are:

Start/End

Enter, or click to select, the starting and/or ending source journals for the range of source journals to be included in the Intercompany Receivable journal entry. Depending on your selection in Option, one or both of these fields may be inactive.

Source journals are the types of transactions that you posted in the period. Examples of system-defined journals are Accounts Payable, Adjusting Journal Entries, and Cash Disbursements.

Not all journals are included in the Create/Delete Intercompany Receivables process. Some journals (for example, the Units Usage Journal, Billing Journal, and Project Transfer Journal) do not involve intercompany transactions and therefore are not included in the process. If you delete a journal entry, be sure to select the journals used to create the original journal entry.

To be included in the Create/Delete Intercompany Receivables process, journals must be designated open for that fiscal year and period. You can assign journals the Open status for a particular period on the Manage Accounting Periods screen.

Journal Sequence

Option

Use this drop-down list to select the range of journal sequences to include in the Create/Delete Intercompany Receivables process. Valid options are:

Each time you post transaction journals, the process is assigned a sequence number, such as 001, 002, and so on, to differentiate the postings within a source. If you want to create Intercompany Receivable journal entries for specific sources and posting sequences, use the posting journals for reference so that your selection is correct. When you delete a journal entry, be sure to select the journal sequences that were used to create the original journal entry.

Start/End

Enter the starting and/or ending journal sequence number for the range of sequence numbers to be included in the Create/Delete Intercompany Receivables process. Depending on your selection in Option, one or both of these fields may be inactive.

Period to Post

Fiscal Year

Enter, or click to select, the fiscal year for which you are calculating the journal entry. If you are deleting a journal entry, select the fiscal year in which the original entry was created.

Period

Enter, or click to select, the period for which you are calculating the journal entry. Because financial statements are generated only at the period level, a subperiod selection is not available. If you are deleting a journal entry, select the period in which the original entry was created.

Options

Select Process

Create

Select this option to create an Intercompany Receivable journal entry.

Delete

Select this option to delete an Intercompany Receivable journal entry.

Allow Out of Balance Entries

Select this check box to allow out-of-balance entries.

Process Intercompany Receivables

Click Process Intercompany Receivables on the Action menu to begin the creation or deletion process.

At the end of the process, Costpoint displays a message to confirm that it has generated the journal entry. That journal entry is numbered with the next sequential journal entry number. You can then print the journal entry from the Print Intercompany Receivable Edit Report screen.