AR Intra Company Accounting

ICA processing lets the system, based upon set-up parameters, generate journal lines to keep a single transaction balanced for each set of books represented by a user's data entry.

You must designate one of your account segments as the balancing segment for a transaction. For example, if your account definition is Div-Acct-Centre, you may specify that when a transaction crosses divisions, the system should generate lines to keep each division balanced. You can also specify that when a transaction crosses management codes, the system should generate transaction to keep each management code balanced. Otherwise, you can specify that when a transaction crosses cost centres, the system should generate transactions to keep each centre balanced.

ICA Processing within Accounts Receivable

ICA processing lets you enter and pay an invoice with lines that cross many BTZ elements. You can restrict customers to specified BTZ elements and track balances and turnover by BTZ element.

When ICA is active, you can generate postings for a specific BTZ element or for a higher position.

When a transaction crosses BTZ elements, the system generates the appropriate intra company postings, as explained on the previous pages. See Accounts Receivable Postings for more information. If a payment or invoice crosses BTZ elements, the system also generates the appropriate postings to keep the elements in balance.

To use ICA within Accounts Receivable, Inter Company must be Y on format 7 of the Customer Controls screen MBCD and you must set up the GL company as an ICA company.

Customer Maintenance

You can structure the customer file to control which customers trade with the various BTZ elements by specifying the BTZ elements for each customer on the Customer Elements screen MBCE. You can enter and pay customer invoices only for the BTZ elements that are set up for the customer. You also determine whether the system tracks balances and turnover for each element. You can access that information through enquiries.

You can view a customer's transactions for the company as a whole or for each BTZ element. See Enquiries for more information on viewing customer transactions. You can also view the customer's turnover for the company as a whole or for each BTZ element that is set up to maintain separate turnover statistics.

You specify control accounts differently for an ICA company than for a non-ICA company. In a non-ICA company, you can specify control accounts for customers that override the control account set up for the AR Company. In an ICA company, you cannot specify control accounts for customers. Rather, you specify control accounts for BTZ elements and then specify the BTZ elements that are valid for each customer. When you enter and pay an invoice for a BTZ element, the system posts to the control account set up for the BTZ element.

Data Entry

When the company is set up for ICA, you must specify a BTZ element on the transaction header. The BTZ element must be linked to the customer on the Customer Elements screen MBCE. When you enter a transaction line, the system uses the management code entered in the ICA segment to find the BTZ element represented for the line, similar to GL data entry. A valid trading relationship must exist on the ICA Relationship screen MAKJ between the header BTZ element and the BTZ element represented by the line level ICA management account. If there is not a specific trading relationship between the two BTZ elements, the system uses the default relationship, ********* to *********. The line level BTZ, represented by the GL account, must also exist as a valid BTZ element for the customer on the Customer Elements screen MBCE.

Transaction Transfers

When you transfer transactions between customers in an ICA company, you must specify a BTZ element in the Transaction Transfers selection window MBJF. The only transactions the system displays for you to transfer are those with a header BTZ element equal to the BTZ element you entered in the selection window. Also, you must set up both customers to trade with the BTZ element.

Payment Processing

If you are using ICA, you can designate a BTZ element for a payment schedule. The only transactions that can be paid are those with a header BTZ element, in the ICA structure, which is equal to, or higher than, the payment BTZ element. If you leave the payment element blank, the system can pay any transaction, regardless of the BTZ element.

If you are using automatic payment schedules, you can specify a BTZ element on the Payment Schedule screen MBNQ to restrict the invoices that will be paid. Refer to Schedule Processing for more information on adding payment codes.