Intercompany in GL

What is the purpose of Intercompany in GL? Explain purpose of criteria

Questions by mirunalinimiru   answers by mirunalinimiru

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subapr2002

  • Jun 7th, 2009
 

The purpose is to show the exact accounting transaction on a single company eventhough it lies under any parent (group of companies) Company.

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There are two (2) types:

(1) Inter Company Journals: These Journals are created for the transactions between  the balancing segments of one or more legal entities.

(2) Intra Company Journals: These journals are created between the transactions of one or more balancing segments of same legal entity.


Harikumar

  • Nov 14th, 2010
 

It's basically a FlexField qualifier and we generally assign these qualifiers to the Company Segment to perform Inter company transactions

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narasimhassk

  • Aug 21st, 2012
 

INTRA :- Transactions with in the same legal entity is called Intra Company Transactions

INTER:- Transactions across the legal entity is called Inter company transactions.

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Ìntra Company : If any transactions takes place between the branches with in the legal entity is called as Intracompany

Inter Company: If any transaction takes place between the branches across the legal entity is called as inter company
for this transactions we have to maintain clearing company
Clearing company: If one company purchasing from another company for that one company will be responsible for that transactions (payments) we have to mention which company is clearing company

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