Intercompany Transactions

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In Acumatica ERP, Intercompany Transactions allow you to manage business operations between multiple companies (subsidiaries) within the same Acumatica instance. This feature is essential for organizations with multiple entities that need to transact with each other, such as transferring inventory, sharing expenses, or consolidating financial data.

Here’s a detailed guide on how to set up and manage InterCompany Transactions in Acumatica ERP:

1. Enable Multi-Company and Intercompany Features

1. Enable Multi-Company Mode:

   • Go to Configuration > Enable/Disable Features.

   • Enable the Multi-Company feature.

2. Enable Intercompany Transactions:

   • In the same Enable/Disable Features screen, ensure that the Intercompany Transactions feature is enabled.

2. Configure Companies for Intercompany Transactions

1. Create or Configure Companies:

   • Go to Configuration > Organization Structure > Companies.

   • Create or configure the companies involved in intercompany transactions.

   • Ensure each company has its own:

     • Chart of Accounts

     • Warehouses

     • Taxes

     • Payment Terms

2. Assign Base Currency:

   • Assign a base currency to each company. If the companies use different currencies, Acumatica will handle currency conversion during intercompany transactions.

3. Set Up Intercompany Accounts

1. Configure Intercompany Accounts:

   • Go to Configuration > Finance > Accounts.

   • Create specific accounts for intercompany transactions (e.g., "Intercompany Receivables" and "Intercompany Payables").

2. Assign Intercompany Accounts to Companies:

   • Go to Configuration > Organization Structure > Companies.

   • Assign the intercompany accounts to each company.

4. Configure Intercompany Settings

1. Define Intercompany Mappings:

   • Go to Configuration > Finance > Intercompany Settings.

   • Define the mappings between companies for intercompany transactions.

   • Specify the default accounts for intercompany receivables and payables.

2. Set Up Intercompany Journals:

   • Go to Configuration > Finance > Journals.

   • Create specific journals for intercompany transactions (e.g., "Intercompany Transfer").

5. Automate Intercompany Transactions

Acumatica can automatically create corresponding documents in the linked company when a transaction is initiated in one company.

Example: Intercompany Sales and Purchases

1. Create a Sales Order in Company A:

   • Go to Sales Orders > Sales Orders and create a sales order in Company A.

2. Confirm the Sales Order:

   • When you confirm the sales order in Company A, Acumatica will automatically create a purchase order in Company B (the linked company).

3. Review the Purchase Order in Company B:

   • Go to Purchase Orders > Purchase Orders in Company B to view the automatically generated purchase order.

4. Confirm the Purchase Order:

   • Confirm the purchase order in Company B to complete the intercompany transaction.

6. Intercompany Invoicing

Acumatica can also automate the creation of intercompany invoices.

1. Create an Invoice in Company A:

   • When you create and release an invoice in Company A, Acumatica will automatically create a corresponding invoice in Company B.

2. Reconcile Intercompany Invoices:

   • Use the Reconciliation feature in the Accounts Payable and Accounts Receivable modules to match and reconcile intercompany invoices.

7. Intercompany Inventory Transfers

Acumatica supports intercompany inventory transfers between warehouses of different companies.

1. Create an Inventory Transfer in Company A:

   • Go to Inventory > Inventory Transfers and create a transfer from a warehouse in Company A to a warehouse in Company B.

2. Process the Transfer:

   • Acumatica will automatically create corresponding inventory adjustments and financial entries in both companies.

8. Advanced Configuration

For more complex setups, you can customize intercompany rules and workflows.

1. Customize Intercompany Rules:

   • Use Acumatica’s Customization Tools to modify intercompany rules (e.g., specific conditions for triggering intercompany transactions).

2. Use Project Accounting:

   • Enable Project Accounting to track intercompany transactions by project or cost center.

3. Monitor Intercompany Transactions:

   • Use Acumatica’s reporting tools (e.g., Generic Inquiries, Dashboards) to monitor and analyze intercompany transactions.

9. Troubleshooting Intercompany Transactions

• Check User Permissions:
  Ensure that users have the necessary permissions in both companies.

• Verify Account and Journal Configuration:
  Ensure that the intercompany accounts and journals are properly configured and assigned to the companies.

• Review Logs:
  Use the System > Logs menu to debug any issues with intercompany transactions.

10. Example Use Case

Scenario:

• Company A sells products to Company B.

• When a sales order is confirmed in Company A, a purchase order is automatically created in Company B.

• Invoices are generated in both companies and reconciled.

Steps:

1. Confirm a sales order in Company A.

2. Acumatica automatically creates a purchase order in Company B.

3. Confirm the purchase order in Company B.

4. Invoices are generated in both companies and reconciled in the Accounts Payable and Accounts Receivable modules.

By setting up Intercompany Transactions in Acumatica ERP, you can streamline business processes between multiple companies, reduce manual effort, and ensure accurate financial tracking.