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.