When you have multiple companies in GP, which have transactions between them, then Dynamics GP – Inter-Company Processing can be very useful. It will save the step of entering in Company “B”, what you transferred out of Company “A”. In our example below we have 2 companies: “UII” as the originating company and “FD” as the destination company. Our scenario is first to configure the relationships between the 2 companies; then to transfer 3 sales which hit “UII”, but really belong to “FD”.
Set up the Inter-Company Transactions with Due To and Due From Accounts. The Due To should be an A/P Liability Account. The Due From should be an A/R Asset Account. Example: if UII owes FD money, then it is UII’s Payable and FD’s Receivable. When a Sale is transferred from UII to FD (via the GL), then FD gains a Sale and Receivable, while UII loses a Sale and incurs a Payable – it owes FD the cash it received for these sales.
Here is the Setup Screen:
Here is a GL Journal Entry, with 3 sales. Notice the Debit/Credit for each is a reduction in Sales for UII and an increase in Sales for FD.
Before we Post the Journal Entry, we print an Edit List to the Screen:
After it is posted in UII, you can run the GL Cross-Reference Report, with a filter for only Inter-Company Transactions:
Moving to the Destination Company (FD), you see the corresponding entries that were carried from UII:
Setting up Inter-Company Processing avoids potential manual entry errors when trying to enter in Company “B”, the offset of what you entered in Company “A”. It eliminates that last manual entry into Company “B”.