allow intercompany allocations of receipts and payments · allow intercompany allocations of...

©2013 Construction Industry Solutions

FI-HT001

HOW TO...

Allow Intercompany Allocations of Receipts and Payments

Date: 13 Mar 2013

Document Version: 0.1

Earliest available version of COINS: COINS OA 10.26

These notes are published as guidelines only.

This “How to…” Guide may contain recommendations about configuration changes. Your configuration will almost certainly vary from the examples given in this document. Any configuration changes should always be applied to a separate non-live environment first and tested to prove that the features work as you require. Should you have any difficulties with this please contact the COINS Support Center or

your account representative to arrange for some COINS consultancy.

Please note that you should not expect the Support team to conduct configuration changes for you.

HOW TO... Allow Intercompany Allocations of Receipts and Payments

©Construction Industry Solutions, 13 Mar 2013 of 21

Contents 1 Introduction .......................................................................................................................... 3

2 Parameters ........................................................................................................................... 4

3 Screen and Function Changes ................................................................................................ 6

3.1 Cash Manager Bank Accounts .......................................................................................................... 6

3.2 Cash Manager Transaction Entry ..................................................................................................... 7

3.2.1 Add Batch ............................................................................................................................ 7

3.2.2 Check Details - Analysis Lines .............................................................................................. 7

3.2.3 SL Check ............................................................................................................................... 11

3.3 Cash Manager Allocate Cash ............................................................................................................ 13

3.3.1 Add Batch ............................................................................................................................ 13

3.3.2 Check Details – Analysis Lines ............................................................................................. 13

3.4 Post Intercompany CBTR/CBALL Batches ......................................................................................... 14

3.4.1 Intercompany Postings ........................................................................................................ 14

3.4.2 Inter-Company Batches screen ........................................................................................... 15

3.4.3 CB Posting Reports .............................................................................................................. 16

3.5 Sector Processing ............................................................................................................................. 16

3.5.1 Sectorized Ledgers .............................................................................................................. 16

3.5.2 Sectorized Balance Sheets ................................................................................................... 17

3.5.3 Sectorized Intercompany Postings ...................................................................................... 18

3.6 Remittances for Intercompany Payments ........................................................................................ 19

3.7 Void Cash/Checks ............................................................................................................................. 19

3.7.1 Void Cash or Payment in Source Ledgers ............................................................................ 19

3.7.2 Void Checks ......................................................................................................................... 19

3.8 Inter-Company Batches Tab ............................................................................................................. 21



1 Introduction COINS OA can now allow intercompany allocations of receipts to Accounts Receivable invoices/Job Receivables certificates and payments to Accounts Payable invoices. The allocations are carried out in a company that controls the bank account used for the entry of the receipts and payments.

All intercompany allocations of receipts and payments are done through the Cash Manager module only in the controlling company. Accounts Payable remittances for intercompany payments are also printed through Cash Manager in the controlling company.

This processing is specifically for intercompany transactions for Accounts Receivable (SL), Job Receivables (CS), and Accounts Payable (PL) ledgers.

• The allocations are carried out in a company that controls the bank account, giving centralized control of allocations.

• All intercompany allocations of receipts and payments are done through Cash Manager (CB) only in the controlling company.

• A receipt or payment can be allocated across multiple companies. • The functionality works for both sectorized and non-sectorized companies. • Accounts Payable remittances for intercompany payments can be printed through Cash Manager in

the controlling company.

This document describes how to use intercompany allocations within COINS OA.



2 Parameters The parameters listed below are found in the Cash Manager (CB) module and are important for intercompany processing.

CB/INTERCO Whether to enable or disable intercompany allocations of payments and receipts. Set this to Y if you wish to use intercompany processing within OA.

CB/INTSECT Whether intercompany sectors should be the same in both companies.

Other parameters that are relevant to intercompany processing are listed in the table below.

CB/SECTBANK Whether bank account postings should be sectorized. This is only applicable if you are using sectorized balance sheets.

CO/SECTBS Whether to produce a sectorized balance sheet. (This is an optional feature of sectors.) The control accounts for Accounts Payable, Subcontract Ledger, etc. are split into the different sectors (based on the sector) allocated to the job/department in the invoice header, for example).

NOTE:

Accounts Receivable has its own parameter (SL/SECTBS) which overrides the CO/SECTBS parameter setting for that ledger.

GL/SECTICO Set this to Y to sectorize intercompany control account postings. This ensures that the correct sector (business unit) is used for the intercompany account.

GL/SECTOR Whether to use sectors. Job Receivables (CS) does not use sectorized ledgers, but if this GL parameter is set to Y, the sector on the CS payment record is always assigned from the contract of the payment.

PL/SECTLED If set to Y, this allows the Accounts Payable ledger to run on a sector basis. Running a sector-based ledger means you will be selecting invoices by sector. So in Accounts Payable (PL), you will create one check batch per sector and in Accounts Receivable (SL), you will create one receipt batch per sector. Payments/Receipts are not mixed across sectors in the same batch. In order to use this parameter, the GL/SECTOR parameter must be set to Y.



SL/SECTBS If set to Y, this allows sectorized balance sheets to be used in Accounts Receivable. When this is not blank, it overrides any CO/SECTBS setting. This allows the sales control accounts to be split into the separate sectors, while one sector (head office) runs Accounts Payable, etc. on behalf of all the other sectors.

SL/SECTLED If set to Y, this allows the Accounts Receivable ledger to run on a sector basis. Running a sector-based ledger means you will be selecting invoices by sector. So in Accounts Payable (PL), you will create one check batch per sector and in Accounts Receivable (SL), you will create one receipt batch per sector. Payments/Receipts are not mixed across sectors in the same batch. In order to use this parameter, the GL/SECTOR parameter must be set to Y.



3 Screen and Function Changes 3.1 Cash Manager Bank Accounts A Linked to Company field is found in the Bank Accounts function in Cash Manager, as shown in Figure 1.

NOTE:

This field is only available when the CB/INTERCO parameter is set to Y.

Enter the company from which the intercompany posting of receipts and payments may be allowed to the current company.

Figure 1: Bank Accounts screen

Whenever the Linked to Company field is entered or updated:

• The linked company must be a valid company. • The same bank code must exist in the linked company and is blank. • The bank code must not be set up as a default configuration bank in the PL (Accounts Payable),

SL (Accounts Receivable), and CS (Job Receivables) ledgers of the linked company. • The linked company must not be the same as the current company. • The linked company and current company must both have the same base currency. • The linked company and the current company must be set up for intercompany transactions.



• There are no unposted CBTR (Cash Batch) or CBALL (Cash Allocation) batches for the bank code in the linked company. Also see Section 3.4 on page 14 for more details about posting these batches.

NOTE:

Any bank code with the Linked to Company field assigned and parameter CB/INTERCO set to Y is not available for selection in a subordinate company for any manual process.

3.2 Cash Manager Transaction Entry

3.2.1 Add Batch

Intercompany allocations of payments and receipts are done through Cash Manager only in the controlling company. To support this, you may select a field labeled Inter-company on the CB Transaction Entry – Add Batch screen, as shown in Figure 2.

NOTE:

This field appears when parameter CB/INTERCO is set to Y. It cannot be updated until you check the Allocate field.

Figure 2: CB Transaction Entry – Add Batch screen

3.2.2 Check Details - Analysis Lines

There is a Post to Company field on the Analysis Lines screen in CB Transaction Entry > Check Details (as shown in Figure 3) that accepts an intercompany number. This helps to facilitate the allocation of receipts and payments to Accounts Receivable (SL) invoices/Job Receivables (CS) certificates and Accounts Payable (PL) invoices in different companies.



Figure 3: CB Transaction Entry - Analysis Lines screen

Field Definitions

Post to Company

This field allows intercompany numbers. It is available under the following conditions:

• The Allocate and Inter-company fields on the Batch header screen are checked. • The Bank Code entered on the Batch header screen exists in other companies, and at least

one Bank Code has the Linked to Company as the current company. • The check entered has a Ledger type of PL (Accounts Payable), CS (Job Receivables), or SL

(Accounts Receivable). • If the check was entered as CC (Customer Cash), this field does not display; it is displayed if

you select either SL or CS from the Ledger dropdown.

If the Ledger field on the analysis line is not PL, CS, or SL, the Post to Company field defaults to zero and is not updateable.

The Post to Company field shows only companies that meet the following valid criteria:

• The Bank Code entered on the batch header exists in other companies and at least one Bank Code has the Linked to Company as the current company.

• You (the user) have access to these companies.



• Companies have the same base currency as the current company.

Analysis

The Analysis field defaults from the check header, but you can change it.

If you enter an intercompany transaction and the supplier or customer is not the same in the two companies (even though they have the same account code), and an intercompany receipt or payment has been entered, the following occurs when updating the Analysis field:

• Upon entry of an SL (Accounts Receivable) customer code, it is determined whether that customer code exists in the Post to Company and the customer name is identical in both the current company and Post to Company. If they are different, a warning message is displayed.

• Upon entry of a PL (Accounts Payable) supplier code, it is determined whether the supplier code exists in the Post to Company and the supplier name is identical in both the current company and Post to Company. If they are different, a warning message is displayed.

If an SL or PL transaction is entered and sector-based ledgers exist in the Post to Company, a sector code must be entered on the Body Update. The sector code is used to find any SL (Accounts Receivable) or PL (Accounts Payable) unpaid invoices available for that sector in the allocation browser. The sector lookup shows all sectors available in the Post to Company.

An error message displays if any of the following conditions exist for the selected sector:

• The sector does not exist in the controlling company, and the parameter CB/INTSECT = Y. • The sector code entered does not exist in the subordinate company. • You do not have GL security access to the sector.



Figure 4: CB Transaction Entry - Check Details screen

After you enter and save an intercompany check Analysis line, a check record is created in Post to Company.

All check details are the same except that the company number of the check is set to Post to Company, and the check batch number is the next generated CBTR batch number in Post to Company.

• On the Post to Company check record, the current company number and CBTR batch number are stored in two fields.

• On the check Analysis line record, Post to Company is also saved. • These fields provide links between the CB Analysis line transaction in the current company

and the check transaction in Post to Company.

Check Reference

Click the link in the Check Reference field to go to the check allocation screens in the Post to Company.

The check reference number is generated for Post to Company and is also assigned to the CB check Analysis line.



3.2.3 SL Check

The Check header screen displays the Post to Company number and Customer Name (from the customer record in Post to Company) only if the customer name differs from the name displayed in the Context section of the screen.

NOTE:

For a Job Receivables (CS) receipt and an Accounts Payable (PL) payment, the Job name and Supplier name are displayed.

Figure 5: SL Check screen

This Check screen contains a number of tabs, which are explained below.

Payment tab

The Payment tab (see Figure 5) can:

• Find the check details in Post to Company. • Carry out allocations in the subordinate company.

Allocating the payment amount creates individual payment records for the check in Post to Company for each invoice selected for payment.

Once the payment amount has been allocated, click the Next button to return to the CB Analysis Lines screen.

For sector-based ledgers (SL and PL), you can leave an amount unallocated (fully or partially) and assign it to a contract or department on the Payment tab. This is allowed for intercompany transactions.

The unallocated cash can then be used in the Apply Unallocated Cash function in the subordinate company.



To Allocate tab

The To Allocate tab displays any invoices available for payment and invoices selected for payment in Post to Company. Click the Internal Reference link on this screen for further details.

Figure 6: To Allocate tab

Auto Allocation tab

The Auto Allocation tab for Accounts Receivable (SL) cash payments, Job Receivables (CS) receipts, and Accounts Payable (PL) payments carries out allocations in the subordinate company.

If you allocate the payment amount, individual payment records are created for the check in Post to Company for each invoice selected for payment.

Once the payment amount has been allocated, click the Next button to return to the CB Analysis Lines screen.

Debit Notes tab

The Debit Notes tab shows any existing debit notes entered in the Post to Company. You may enter a debit note for an intercompany transaction on this screen. This is an Accounts Receivable (SL) function only.

Allocated tab

The Allocated tab displays any invoices available for payment and invoices selected for payment in Post to Company.



3.3 Cash Manager Allocate Cash

3.3.1 Add Batch

Select the Inter-company field on the CB Allocate Customer Cash function to allow intercompany allocations of customer cash (CC) to be done through Cash Manager.

Figure 7: CB Allocate Cash – Add Batch screen

3.3.2 Check Details – Analysis Lines

The entry of an SL (Accounts Receivable) or CS (Job Receivables) transaction analysis line is the same as that described in Section 3.2 Cash Manager Transaction Entry. You may refer to that section for more information.

Figure 8: CB Allocate Cash – Analysis Lines screen



If the CC amount should not be fully allocated, the unallocated portion must be left unallocated as CC in the controlling company.

For example:

Customer cash of $1000 selected and $400 entered as an SL intercompany allocation. The remaining $600 can be left unallocated as CC in the controlling company.

3.4 Post Intercompany CBTR/CBALL Batches Intercompany CBTR (Cash Batch) and CBALL (Cash Allocation) batches can contain a mixture of intercompany and non-intercompany transactions. When you post intercompany transactions, it results in the creation of an SLCASH batch for SL (Accounts Receivable) transactions, a CSCASH batch for CS (Job Receivables) transactions, and a PLMAN batch for PL (Accounts Payable) transactions in each Post to Company.

• For each SLCASH/CSCASH/PLMAN batch created, the batch number is assigned from the first unposted SL/CS/PL intercompany check which has already been assigned with the next CBTR number from the Post to Company.

• Posting is prevented if the CBTR/CBALL batch fiscal period in the controlling company is not also an open period in the GL of the Post to Company.

3.4.1 Intercompany Postings

Intercompany postings can be summarized as follows:

1. For each intercompany transaction contained in the CBTR or CBALL batch, a manual cash batch is created in the company that was entered as the Post to Company on the transaction. If intercompany transactions are for multiple companies, manual cash batches are created in those companies. Only one manual cash batch is created for each ledger type in each company. For example, if there are two SL (Accounts Receivable) intercompany transactions for the same Post to Company, one SLCASH batch is created that contains two checks in the Post to Company.

2. When the manual cash batch is posted, a GLJOUR batch is created and posted in the same company. The GLJOUR batch credits or debits the appropriate sales or purchase ledger control account. Also created is an intercompany debit (receipt batch) or credit (payment batch) of the controlling company bank GL account (if a CBTR batch is posted) or of a new unallocated customer cash intercompany suspense account (if a CBALL batch is posted).

3. If sectorized balance sheets (parameter CO/SECTBS) are used in the Post to Company, the control accounts for Accounts Payable, etc. are split into the different sectors (based on the sector) allocated to the job/department in the invoice header, for example).



NOTE:


4. If sectorized balance sheets are used in the controlling company, the GL bank account posting (CBTR only) is masked with the payment sector code if parameter CB/SECTBANK = Y. If the payment sector code does not exist in the controlling company (possible when parameter CB/INTSECT is set to N from the controlling company), the sector code from the default GL account code set up for the bank in the controlling company is used.

5. The posting of the GLJOUR batch in the Post to Company results in the creation of a GLJOUR batch in the controlling company. The batch contains a debit or credit (depending on whether this is a receipt or payment) of the bank GL account (CBTR) or the unallocated cash intercompany suspense account. There is also a credit (for receipt) or debit (for payment) of the controlling company’s intercompany control account in the GLJOUR batch.

NOTE:

Each posting of a GLJOUR batch in a Post to Company creates a separate GLJOUR in the controlling company. So if you have multiple cash batches in one or more Post to Companies, in the controlling company multiple GLJOUR batches are created from the interdivisional postings.

3.4.2 Inter-Company Batches screen

For each manual cash batch posted, a record containing details of the CBTR/CBALL batch and the manual cash batch is displayed on the Inter-Company Batches tab on the CBTR/CBALL Update Batch page.

Figure 9: Inter-Company Batches screen

Click the Batch Number link to drill down to the cash batch in the Post to Company and, from there, to the GLJOUR batch.



3.4.3 CB Posting Reports

If you use intercompany processing, the Transactions and Cash Allocation posting reports in Cash Manager show the Post to Company number for each check analysis line.

3.5 Sector Processing

3.5.1 Sectorized Ledgers

A sector is a subdivision of a company, such as a division or business unit, identified by a General Ledger element. Certain ledgers can be run on a sector basis, including SL (Accounts Receivable) and PL (Accounts Payable). This gives you access to control any information you are allowed to work with.

If you set the SECTLED parameter to Y in either the SL or PL ledger, sectorized ledgers are enabled for that ledger.

NOTE:

Job Receivables (CS) does not use sectorized ledgers. However, if parameter GL/SECTOR = Y, the sector on the CS payment record is always assigned from the contract of the payment.

Table 1: Sectorized Ledgers

Controlling Company Sectorized Ledgers?

Subordinate Company Sectorized

Ledgers?

Notes

No No No sector selection is available when entering a check analysis line for both intercompany and non-intercompany transactions.

No Yes No sector selection is available when entering a non-intercompany check analysis line.

Sector selection is available for an intercompany check analysis line. Sector is assigned to a subordinate company payment record. Only invoices for the selected sector are available for payment in the subordinate company.



Controlling Company Sectorized Ledgers?

Subordinate Company Sectorized

Ledgers?

Notes

Yes No Sector selection is available for a non-intercompany check analysis line. A sector is assigned to a controlling company payment record. Only invoices for the selected sector are available for payment in the controlling company.

No sector selection is available when entering an intercompany check analysis line.

Yes Yes Sector selection is available for a non-intercompany check analysis line. A sector is assigned to a controlling company payment record. Only invoices for the selected sector are available for payment in the controlling company.

Sector selection is also available for an intercompany check analysis line. A sector is assigned to a subordinate company payment record. Only invoices for the selected sector are available for payment in the subordinate company.

3.5.2 Sectorized Balance Sheets

Sectorized balance sheets are controlled by parameter CO/SECTBS. They are an optional feature of sectors. The control accounts for Accounts Payable, etc. are split into the different sectors (based on the sector) allocated to the job/department in the invoice header, for example).

NOTE:


Sectorized balance sheets rely on a sector being assigned on the payment record (see Section 3.5.1 Sectorized Ledgers). However, if no sector exists on the payment record, then for the bank and control account postings, the default sectors on the bank code GL account and SL configuration GL account are used.



If sectorized balance sheets are used, the scenarios outlined in Table 2 need to be taken into account in the payment posting programs. Using SL as an example in Table 2 below, let us say that Co 1 is the controlling company and Co 2 is the subordinate company.

Table 2: Sectorized Balance Sheets

Controlling Company Sectorized

Balance Sheet?

Subordinate Company

Sectorized Balance Sheet?

Notes

No No No sectorization is required.

No Yes The SL control account in Co 2 is sectorized using the sector from the payment in Co 2. The bank account in Co 1 is not sectorized.

Yes No The SL control account in Co 2 is not sectorized and therefore uses the sector of the SL configuration GL account. Because no sectors are generated from Co 2, the Bank account in Co 1 uses the sector of the GL account defined within bank maintenance in Co 1.

Yes Yes The SL control account in Co 2 is sectorized using the sector from the payment in Co 2.

If in Co 1 CB parameters INTSECT <> N and SECTBANK = Y, the Bank account in Co 1 is sectorized using the sector from the payment in Co 2.

If in Co 1 CB parameters INTSECT = N or SECTBANK = N, the Bank account in Co 1 uses the sector of the GL account defined within bank maintenance in Co 1.

3.5.3 Sectorized Intercompany Postings

If parameter GL/SECTICO is set to Y, the intercompany control account postings are sectorized. This ensures that the correct sector (business unit) is used for the intercompany account.



3.6 Remittances for Intercompany Payments Remittances for intercompany PL (Accounts Payable) payments are printed through the CB Print Remittances and CB Print Checks/Remittances functions. These functions have been enhanced so that, for an intercompany check, the details of the invoices paid in the Post to Company are made available on the remittance.

The Post to Company from the check analysis line is now available to be printed on the remittance within the Document Designer for forms of type Check/Remittances (CB).

3.7 Void Cash/Checks

3.7.1 Void Cash or Payment in Source Ledgers

For intercompany SL (Accounts Receivable), CS (Job Receivables), and PL (Accounts Payable) transactions, you cannot void cash or a payment in the source ledger in the Post to Company. Therefore, the voiding of an intercompany receipt or payment is not allowed in the following functions:

• SL Void Posted Cash • CS Void Cash • PL Void Payment

Instead, the voiding of an intercompany receipt or payment must be done through the Cash Manager Void Checks function in the controlling company.

3.7.2 Void Checks

On the Transactions screen of the CBCAN batch, select the check that contains the intercompany analysis line(s) to be voided. The entire check must be voided.

Figure 10: Void Checks – Transactions screen

The Analysis Lines browse screen now shows the Post to Company if there are any intercompany transactions belonging to the check.



Figure 11: Cash Manager Check

Posting is prevented if the CBCAN batch financial period in the controlling company is not also an open period in the GL of the Post to Company.

When the Void Checks batch is posted, each intercompany transaction is voided in the Post to Company and the GL postings are reversed. In Cash Manager, an equal and opposite check is created to reverse the original check, and both checks are set to be manually reconciled.



3.8 Inter-Company Batches Tab For each intercompany cash batch created, a record containing details of the CBTR or CBALL batch and the cash batch is displayed on the Inter-company Batches tab on the CBTR/CBALL Update Batch page.

NOTE:

This tab always displays where there is an intercompany batch.

Figure 12: Inter-Company Batches screen

For each intercompany void cash batch created, a record containing details of the CBCAN batch and the void batch (such as SLCANCSH) is displayed on the Inter-company Batches tab.

allow intercompany allocations of receipts and payments · allow intercompany allocations of...

Documents