<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000300" xml:lang="en">
   <Header>
      <Title>Intercompany transactions</Title>
      <Keyword type="header" order="d1e1947278">
         <Level1>Transactions</Level1>
         <Level2>intercompany</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1947283">
         <Level1>Intercompany</Level1>
         <Level2>transactions</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>In a multicompany environment, transactions between the logistic
		companies and between financial companies create the need to balance the
		accounts through <Link href="/baanerp/tf/glossary/glossary#InterCompanT_tf" role="glossary">intercompany transactions</Link>.</Paragraph>
   </AimSection>
   <GeneralSection>
      <Paragraph>Intercompany
		transactions occur, for example, if the enterprise units of the sales office
		and the purchase office, work center, or warehouse involved in a logistic
		transaction are linked to different financial companies, or belong to different
		logistic companies.</Paragraph>
      <List>
         <ListIntro>These types of intercompany transactions exist:</ListIntro>
         <ListItemHead>
            <Link href="#multifinance" role="internal">Multifinance intercompany transactions</Link>
         </ListItemHead>
         <ListItem>Intercompany
		  transactions between the financial companies in a multifinance company
		  structure.</ListItem>
         <ListItemHead>
            <Link href="#settlement" role="internal">Intercompany settlement transactions</Link>
         </ListItemHead>
         <ListItem>Settlement transactions
		  between the logistic companies in a multilogistic/single finance company
		  structure.</ListItem>
         <ListItemHead>
            <Link href="#intergroup" role="internal">Intergroup transactions</Link>
         </ListItemHead>
         <ListItem>Financial transaction
		  between financial groups in a multifinance company structure with multiple
		  financial groups.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection ID="multifinance">
      <SectionTitle>Multifinance intercompany transactions</SectionTitle>
      <Paragraph>Intercompany
		transactions are financial transactions that ERP Enterprise automatically creates
		between financial companies that belong to the same financial group. The
		transactions are posted to intercompany ledger accounts. For details, refer to <Link href="/baanerp/tf/onlinemanual/000311" role="manual">Example of intercompany transactions</Link>.</Paragraph>
      <Paragraph>You can set up
		intercompany transactions as described in <Link href="/baanerp/tf/onlinemanual/000314" role="manual">To set up intercompany transactions</Link>.</Paragraph>
      <List>
         <ListIntro>Purely financial intercompany transactions are:</ListIntro>
         <ListItem>Single line journal
		  vouchers</ListItem>
         <ListItem>Cash transactions
		  (direct debits)</ListItem>
         <ListItem>Manually entered cost
		  invoices in <GUIRef href="/baanerp/tf/acp" role="module">Accounts Payable</GUIRef>
         </ListItem>
         <ListItem>Manually entered cost
		  invoices in <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef>
         </ListItem>
      </List>
      <Paragraph>To generate these types
		of financial intercompany transactions, you must define the intercompany
		relations between the financial companies. You do not need to define the
		companies as business partners.</Paragraph>
      <List>
         <ListIntro>Financial intercompany transactions can also result from
		  these logistic transactions:</ListIntro>
         <ListItem>WIP transfer</ListItem>
         <ListItem>Inventory transfer</ListItem>
      </List>
      <List>
         <ListIntro>For WIP transfers and inventory transfers, you must define
		  the entities as internal business partners. Sales/purchase transactions between
		  such business partners result in intercompany transactions if all of these
		  conditions are met:</ListIntro>
         <ListItem>The entities are linked
		  to different financial companies.</ListItem>
         <ListItem>You set up intercompany
		  relations between the financial companies involved.</ListItem>
         <ListItem>You do not set up
		  intercompany settlements for the entities involved.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>If you have set up
		  intercompany transactions, ERP Enterprise automatically creates the intercompany
		  transactions when you finalize the transactions. You do not need to run any
		  additional sessions.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection ID="settlement">
      <SectionTitle>Intercompany settlement transactions</SectionTitle>
      <Paragraph>Intercompany settlement
		transactions are a specific type of intercompany transactions that only applies
		to purchase and sales transactions between logistic companies in a
		multilogistic/single-financial company structure.</Paragraph>
      <Paragraph> 
         <Link href="/baanerp/tc/glossary/glossary#000316" role="glossary">Intercompany settlement transactions</Link> generate less than half the number of postings (10) of a
		regular invoicing procedure (24). Therefore, if no invoces are required, you
		can use intercompany settlement transactions to considerably reduce the number
		of postings in your ledger accounts.</Paragraph>
      <Paragraph>Intercompany settlement
		transactions in a single financial company structure are automatically posted
		financial transactions in one financial company to intercompany accounts.
		Instead of generating open entries for sales transactions and purchase
		transactions between the logistic companies, the amounts are posted to
		intercompany billing accounts and clearing accounts. Such intercompany accounts
		must be of the <GUIRef href="/baanerp/tf/domains/gld.atyp#balance" role="option">Balance Sheet</GUIRef> type, not of
		the <GUIRef href="/baanerp/tf/domains/gld.atyp#intercompany" role="option">Intercompany</GUIRef> type.</Paragraph>
      <GeneralSection>
         <List>
            <ListIntro>The sales and purchase transactions can concern:</ListIntro>
            <ListItem>WIP transfer</ListItem>
            <ListItem>Inventory transfer</ListItem>
         </List>
      </GeneralSection>
      <Paragraph>To create intercompany
		settlement transactions for purchase/sales transactions between logistic
		companies of a multicompany structure, you must define the logistic companies
		as affiliated company business partners.</Paragraph>
      <Paragraph>You can set up
		intercompany settlement as described in <Link href="/baanerp/tf/onlinemanual/000313" role="manual">To set up intercompany settlement transactions</Link>.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>If you have set up
		  intercompany settlement transactions, ERP Enterprise automatically creates the settlement
		  transactions when you finalize the transactions. You do not need to run any
		  additional sessions.</Paragraph>
      </Note>
      <GeneralSection>
         <SectionTitle>Intercompany settlement reconciliation
		  report</SectionTitle>
         <Paragraph>You can use the <GUIRef href="/baanerp/ci/sli/cisli2445m000" role="session">Intercompany Buy / Sell Reconciliation Report (cisli2445m000)</GUIRef> session to generate a
		  report of the intercompany settlement transactions between affiliated
		  companies. ERP Enterprise generates
		  the report based on the sales information in the central invoicing tables. For
		  each sales order line, ERP Enterprise retrieves the corresponding purchase information for the report.</Paragraph>
      </GeneralSection>
   </GeneralSection>
   <GeneralSection ID="intergroup">
      <SectionTitle>Intergroup transactions</SectionTitle>
      <Paragraph>Intergroup transactions
		only occur in a multicompany structure with more than one financial company
		group.</Paragraph>
      <Paragraph>Intergroup transactions
		are financial transactions that ERP Enterprise automatically creates between financial
		companies that belong to different financial groups. The transactions are
		posted to intercompany ledger accounts. For details, refer to <Link href="/baanerp/tf/onlinemanual/000312" role="manual">Example of intergroup transactions</Link>.</Paragraph>
      <Paragraph>You can set up and
		process intergroup transactions as described in <Link href="/baanerp/tf/onlinemanual/000315" role="manual">To set up intergroup transactions</Link>.</Paragraph>
      <Paragraph>Intergroup transactions
		can only be created for single line journal vouchers.</Paragraph>
      <GeneralSection>
         <SectionTitle>Base company</SectionTitle>
         <Paragraph>Intergroup
		  transactions are temporarily stored in one of the group companies. For this
		  purpose, you must assign one of the group companies as the base company. The
		  intergroup transactions posting data is temporarily stored in the base company.</Paragraph>
      </GeneralSection>
      <Paragraph>To create the intergroup
		transactions, you must process the intergroup transactions as described in <Link href="/baanerp/tf/onlinemanual/000315" role="manual">To set up intergroup transactions</Link>.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000313" role="manual">To set up intercompany settlement transactions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000314" role="manual">To set up intercompany transactions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000315" role="manual">To set up intergroup transactions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000311" role="manual">Example of intercompany transactions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000312" role="manual">Example of intergroup transactions</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>