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A/R Intercompany Issue

dave_laha

Active Member
Hi List,

Here is a process question! We are live in A/R, A/P, & G/L and do not have
Sales, Distribution, Warehousing etc. We have multiple business units, and
business segments. Often we have one business segment invoicing another for
either finished goods, or raw materials. We are recording this transaction by
invoicing the other BU. However, there is no cash to close these invoices
(since its intercompany) and therefore they remain open!

Is there another procedure within the financial application in Edwards to handle
such intercompany issues better?

Thanks in advance.


Dave
CNC
B7332, SP 11.3
NT / SQL
 
Hi there. Have you tried turning off A/R in the processing options when you
run the R42800 (Sales Order Update), and setting up your AAI's to have your
revenue and A/R Trade (AAI 4230 & 4245) accounts contra one another? Hope
that helps.

Jeanene Pressler
JDE Sr. Applications Consultant
Broughton Systems
 

Mike Dupaix

VIP Member
<BODY text=3D"#000000" link=3D"#0000FF">
<font style=3D"font-family:'Arial';font-size:10pt;">Dave,


You can use an Intercompany JE or use the AR/AP netting functionality. You =
would need to enter an opposing document in AP to offset your AR invoices. The =
simplest method is to create an intercompany JE.

Mike Dupaix

JDE Certified Professional

(630) 904-5373 - Office/Fax

(630) 750-2500 - Cell</font></body>
 

rsvconsulting

VIP Member
For these customers, the default AAI should not be A/R
but and intercompany unbilled account.

Since you have no intention of ever collecting, there
shoud be a standard procedure to CREDIT this account
and DEBIT sales thereby reversing the sale on the
books. This will also reduce any gross receipts taxes
that you may be incurring.

The above could be accomplished by setting this up
through cash receipts and creating a separate document
type to clear the F03B11.


--- dave_laha <dave.laha@pciservices.com> wrote:
http://198.144.193.139/cgi-bin/wwwthreads/showflat.pl?Cat=0&Board=OW&Number=10852


__________________________________________________
 

dave_laha

Active Member
Mike,

Thanks for this input. As I understand this, and as I being informed by
Finance, they do not want to book this via only a JE. Although these are
intercompany sales without cash receipts, we have some business segments whose
50% of the sales volume is due to intercompany sales. And as we currently
invoice out of our A/R system, the summary level invoice is in F03B11 from which
we generate our sales report, and of course subsequently these sales are
reported at the segment P/L statement.

So I am afraid, a JE would not allow these to be recognized as Sales to these
BUs, yet allow us to book the intercompany as we would like it to be.

Thanks.

Dave






Mike_Dupaix <mike_dupaix@smius.com> on 05/15/2001 03:27:30 PM
 

dave_laha

Active Member
Thanks for your input ... ? (didn't get your name). This seems to be closest we
can get to our solution. Would it be possible for you to elaborate this in a
little more detail?

Thank you very much for your assistance.

Dave








rsvconsulting <rsvconsulting@yahoo.com> on 05/15/2001 04:03:14 PM
 

rsvconsulting

VIP Member
Dave.

I would suggest that you set up the cash receipts
piece to be a separate program option with PO and
AAI's that drive as follows:

The doc type could be one that is not an RC but maybe
an R8 for example. This would be tied to a RBxx AAI
that would debit and Interco Sales CONTRA account,
thereby still allowing the BU segment to get credit
for the product/service sale. And the RCxx AAI woudl
be a credit to the Unbilled A/R account thereby
zeroping out this account. [Remember the initial sale
transaction created a CRedit to the Interco sales
account and a DEbit to the Unbilled A/R account.

Hope this helps,

Al Marmero
Palarco Consulting

amarmero@palarco.com


--- dave_laha <dave.laha@pciservices.com> wrote:
http://198.144.193.139/cgi-bin/wwwthreads/showflat.pl?Cat=0&Board=OW&Number=10968


__________________________________________________
 

barryn249

Member
Hi Dave,

Sounds like a issue that we have dealt with before. OW A/R can accomodate
how you want to handle these transactions.

Barry
 

david_mallory

Well Known Member
Dave,

I think Al Marmero has a good approach here. I think Accounting is saying
they want an invoice cut, not just a journal entry to GL, so they have a
normal invoice record in the normal place showing a sale, so the normal
sales summary routine includes these transactions and the seller gets the
sales credit. So you cut an invoice, and use a unique doc type and AAIs to
send the transaction to the accounts you want.

Dave Mallory Denver Water 7332 SP15.1 Oracle 81634 NT 4.0
 

hiroamano

Member
Hi,

We had the same situation and had different issue. We couldn't figure out
how to find un-recognized profit. As soon as a BU invoices to other BU,
profit will be recognized, but our auditor told us that it's not real profit
until the BU received the item sells to customer. We need to reverse that
sales, which is from the intercompany and not sold to customer at the
transferred BU, at the period closing. Does anyone had this kind of
problem? and How did you deal with it? Right now, we are completely stacked
and doing everything manually.

Hiro
 

Mike Dupaix

VIP Member
re[2]: A/R Intercompany Issue

<BODY text=3D"#000000" link=3D"#0000FF">
<font style=3D"font-family:'Arial';font-size:10pt;">Hiro,


You may want to send your interbranch sales to a different revenue account than =
your customer sales. This allows you to isolate and report interbranch sales =
independently of customer sales. These interbranch sales can then be offset =
against each other and thus satisfy the auditor requirement.


To accomplish this, setup a unique document type in the UDC's, AAI's, Order =
Activity rules, menus, etc. for all interbranch sales.


>> Hi,

>> We had the same situation and had different issue. We couldn't =
figure out

>> how to find un-recognized profit. As soon as a BU invoices to other =
>> profit will be recognized, but our auditor told us that it's not =
>> profit

>> until the BU received the item sells to customer. We need to =
reverse that

>> sales, which is from the intercompany and not sold to customer at =
>> transferred BU, at the period closing. Does anyone had this kind =
>> problem? and How did you deal with it? Right now, we are =
>> stacked

>> and doing everything manually.

>> Hiro

>> --------------------------

>>
 
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