Best Practices to Stop Inter Company Settlement in JDE 8.12

[Rauf]

I am aware of that inter company settlement is core to JDE Financial module.

But my Company need to stop/block all the inter compnay settlement from 2016 onwards.
I hope I can do this from P0000 -> General Constants, then set Inter company Settlement to 'N'.

As I am having only basic knowledge regarding inter compnay settlement, please advice the best scenario to manage this inter compnay settlement ?
If I stop it, what will be the consequences ?

 

[rsvconsulting]

Hi. Yes you can disable inter-company as you described. But keep in mind, you will be disabling one of the most powerful JDE features! Having said that I must tell you I did if before for a multi-national who needed to maintain arms length relationship with a group of entities. One outcome is that you will need to book manual JE to avoid interacting companies out of balance.

I suggest the following approach. Refresh your PY or otherwise test environment from PD. List out all of the detailed scenarios exist and that are affected by inter-company functionality. Then document each on in current PD, and then test the exact same transactions in PY and document the outcome. Perform all of the inquiries, run reports and integrities and then you will be in a position to report to leadership any of the business process and system changes that are required to support the 2016 new operating plan.

 

[Rauf]

Great !

I forgot to specify one thing: I need to stop it for only some companies
For example,
I need to stop intercompany settlement for Companies 00010, 00005, 00019, 00020, 00023.
Is it possible, as the Intercompany Settlement flag is in General Constants table ?

 

[rsvconsulting]

Yes you can set inter-company settlements to active, but only set the Interco AAIs (ICCC) for the companies that you will allow inter-company transaction processing.

 

[Rauf]

1. It is a good idea. But if I delete ICCC AAIs set for those companies (00010, 00005, 00019, 00020, 00023), won't it take default company's(00000) AAIs ? So we need to delete ICCC AAIs for company 00000, and then set only for the required companies. Am I right ?

2. So if the ICCC AAIs do not exist, when will the user get error message ? While doing the journal entry? Or while approving the batch ? Or while posting the batch.
We would like to get error message while doing journal entry.

 

[rsvconsulting]

The best and actual scenario is that you will need to manage inter-company transactions manually. You will need to create a separate inter-company account on each balance sheet of the companies that will be manually tracked. Then you will need to make sure that the users in each of these companies communicate with each other to list all inter-company transactions that they will need to book and reconcile each month. This is the method that you would if you did not use JDE, or that you would employ if these companies were not using the same system.