Intercompany Invoices
Create and Manage Intercompany transaction by automatically creating of payables and receivables invoices for the provider and recipient entities using Oracle Cloud. This guide involves a series of actions to smoothly complete the intercompany transaction between entities.
On the home page navigate to Intercompany Accounting menu and select Transactions submenu.
On the Intercompany Transactions landing page expand Tasks list and select the ‘Manage Intercompany Outbound Transactions’ from the list available.
To create a new Intercompany Transaction click on ‘Plus’ icon.
Enter the Intercompany Batch details. An intercompany batch has one or more intercompany transactions. Enter following details
Provider: It is the entity initiating intercompany transaction.
Transaction Type Name: Select the value defined for IC purchasing and sales. For Demo value ‘I/C Sales’ is selected.
Batch Date: The date for which the batch is to be created. Accounting Date: the date on which the transactions are to be accounted.
Currency: select the currency in which transaction is taking place.
Conversion Rate type: Select the appropriate Conversion Rate Type.
To add Transactions details click on ‘Plus’ Icon. A row would be added, enter the Receiver entity. Receiver is the entity with which the IC transaction is being entered with. Enter the amount. If the recipient is to be debited the enter amount in Debit. If the recipient is to be credited then enter amount in Credit.
Scroll Down to Distribution section. Enter the Expense or Income distribution combination for the IC transaction initiator i.e. provider.
Go to Receiver’s Tab and enter the Expense or Income distribution combination as applicable to recipient entity
After all the details are entered click on Submit.
A Confirmation pop-up would appear for the submission of Batch. Click on OK. Click on the Batch number hyperlink to review the transaction.
The Batch status will be Submitted.
Review the Distribution section. The Intercompany line would be generated for both the Provider and Receiver entity.
Intercompany Line will be generated for Receiver too.
This is the Receivable Transaction created in the name of Receiver Organization, and the source of the Transaction is Global Intercompany.
Invoice line distribution is transferred from the Intercompany to the Receivables module.
Click on the Post to Ledger under the Actions tab to generate the Accounting Entry.
To see the Accounting entry, click on the View Accounting tab.
This is the accounting entry generated for recording the Intercompany receivable and revenue account combinations.
This is the payables invoice generated in the name of provider organization, and in which Invoice number is same as the Receivable Transaction number.
After validation and Post to Ledger, the following accounting entry is generated for recording the Intercompany payables Invoice.
