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Intracompany balancing rules are used for creation of balancing lines on journals between balancing segment
values either within the same legal entity, or where there is no legal entity context.
Intracompany balancing rules are used when more than one balancing segment value exists on a transaction or
journal entry, as long as you have selected the Balance Intracompany Journals option for the ledger. You cannot
post a journal in general ledger when the debit and credit amounts for each balancing segment value do not net to
zero. These journals can be balanced automatically if you setup balancing rules and enable the option to balance
cross-entity journals.
You must define intracompany balancing rules if you want to balance journals automatically. You may define as
many or as few balancing rules as you choose, and each balancing rule may have many accounting rules. Because
balancing is an automated process, there should be at least one balancing rule with at least one accounting rule to
proceed. This default balancing rule should be defined for the journal source Other and journal category Other for
the ledger and legal entity you wish to balance. The default accounting rule on each balancing rule is defined for
the debit balancing segment value All Other and credit balancing segment value All Other.
With intracompany accounting, you can define both a debit (due from) and credit (due to) balancing segment,
which gives you more control over each balancing relationship. You can specify different debit and credit accounts
for each different intracompany trading partner, which is represented by a specific balancing segment value.
All Other is also available as a balancing segment value if you want the balancing segment value to use the same
due to / due from accounts for every intracompany trading relationship that has not been specifically defined.
If you set up a specific debit and credit balancing segment value, then the exact debit and credit accounts are
used. If you use All Other, the appropriate trading partner balancing segment value replaces the balancing segment
of the account combination.
For balancing many-to-many journals there are several balancing segment values with net debits and net credits
on a transaction and it is not possible to determine which balancing segment value is trading with which balancing
segment value. You can decide whether to use a clearing balancing segment value or a default rule to handle these
transactions.
Evaluation Order
Intracompany balancing allows you to define as much flexibility as your business dictates. When there are many
balancing rules defined, the Balancing API uses an evaluation order to pick the appropriate rule. Once the balancing
rule is selected, there may also be several accounting rules that must be evaluated on the balancing rule. The
Balancing API uses the same order for evaluating accounting rules, and understanding this evaluation order will
help you define your balancing rules and your accounting rules.
1. Explicitly defined rules are checked first, and they take precedence over all other rules.
a. For balancing rules, this means a specific combination of journal source and journal category exists for the
ledger and legal entity. For example, a balancing rule for the journal source Adjustment and the journal category
Assets.
b. For accounting rules, this means a specific combination of debit balancing segment value and credit balancing
segment value. For example, debit balancing value 01 and credit balancing segment value 02.
2. If the Balancing API finds no explicit match, then it next searches for a rule with explicitly defined combined with
a default value.
a. For balancing rules, this means a combination of a specific journal source and the default journal category for
the ledger and legal entity. For example, a balancing rule for the journal source Adjustment and the journal
category Other.
b. For accounting rules, this means a combination of a specific debit balancing segment value and the default credit
balancing segment value. For example, debit balancing value 01 and credit balancing segment value All Other.
3. If the Balancing API finds no match, then it next searches for a rule with a default value combined with an
explicitly defined value.
a. For balancing rules, this means a combination of the default journal source and a specific journal category for
the ledger and legal entity. For example, a balancing rule for the journal source Other and the journal category
Assets.
b. For accounting rules, this means a combination of the default debit balancing segment value and a specific credit
balancing segment value. For example, debit balancing value All Other and credit balancing segment value 02.
4. Finally, if the Balancing API finds no match after checking for all three previous steps, then the default value
should be used.
a. For balancing rules, this means a combination of the default journal source and the default journal category for
the ledger and legal entity. For example, a balancing rule for the journal source Other and the journal category
Other.
b. For accounting rules, this means a combination of the default debit balancing segment value and the default
credit balancing segment value. For example, debit balancing value All Other and credit balancing segment value
All Other.
Summary Net and Detail Mode
You determine the level that the Balancing API uses when balancing journals by selecting either Summary Net or
Detail. If you select Detail, each line on the journal is balanced individually and a balancing line is generated for
each line on the journal. If you select Summary Net, the Balancing API summarizes the debits and credits for each
balancing segment value on the journal, determines the overall net debit or net credit for each balancing segment
value, balances using the net amounts for each balancing segment value, and produces a summary balancing line
for each balancing segment value.
When processing in Summary Net mode, the Balancing API retains the differences in exchange rates for lines with
the same balancing segment value. Also note that for lines with negative amounts (debits or credits), if the
Balancing API is set to process in Detail mode, the sign of each original line is retained in the balancing line. If the
Balancing API is set to process in Summary Net mode, negative debits are interpreted as positive credits and
negative credits as positive debits, because each balancing segment value is summarized.
Journal Mode
In order to balance a journal, the journal type must be determined. A journal may be one-to-one, one-to-many,
many-to-one, and many-to-many. The type of journal is determined by netting the debit and credit amounts for
each balancing segment value and examining the trading relationship.
Below are examples of each journal mode.
One to One
In a one-to-one journal, there is only one balancing segment value with a net debit, and only one balancing
segment value with a net credit.
This example uses a chart of accounts with three segments: balancing, natural account, and intercompany. Assume
you define the accounts shown in the table below for a specific legal entity, source, category, and the balancing
level is set to Summary Net.
Dr BSV
All Other
02
Cr BSV
All Other
01
Debit Account
XX-4000-XX
02-4001-01
Credit Account
XX-2000-XX
01-2002-02
You create the following journal, shown in the table below, which the Balancing API must balance:
Line
1
2
3
4
Account
01-5200-00
02-5555-00
01-1122-00
02-1280-00
Dr
6600.00
2300.00
Cr
1000.00
7900.00
The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In
the example shown in the table below, the journal is one-to-one (01 to 02) and 01 is trading with 02.
BSV
01
02
Net Dr
5600.00
Net Cr
5600.00
The Balance By option is set to Summary Net, so the each balancing segment is netted and balanced with one line.
The Balancing API creates the balanced journal shown in the table below:
Line
1
2
3
4
5
6
Account
01-5200-00
02-5555-00
01-1122-00
02-1280-00
01-2002-02
02-4001-01
Dr
6600.00
2300.00
Cr
1000.00
7900.00
5600.00
5600.00
Description
Original line
Original line
Original line
Original line
Net credit 02-01
Net debit 02-01
balancing segment value (the driving segment), and all credit balancing segment values balance with the single
debit balancing segment value.
This example uses a chart of accounts with three segments: balancing, natural account, and intercompany. Assume
you define the accounts shown in the table below for a specific legal entity, source, category, and the balancing
level is set to Summary Net.
Dr BSV
All Other
02
03
Cr BSV
All Other
01
01
Debit Account
XX-4000-XX
02-4001-01
03-4003-01
Credit Account
XX-2000-XX
01-2002-02
01-2003-03
You create the following journal, shown in the table below, that the Balancing API must balance:
Line
1
2
3
4
5
Account
01-5200-00
02-5000-00
01-1111-00
02-1280-00
03-1450-00
Dr
5600.00
1200.00
Cr
1200.00
2400.00
3200.00
The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In
the example shown in the table below, the journal is one-to-many with 01 on the debit side, 02 and 03 on the
credit side, and 01 being the driving segment.
BSV
01
02
03
Net Dr
4400.00
Net Cr
1200.00
3200.00
The Balance By option is set to Summary Net, so each credit balancing segment is netted and balanced with one
line against the single debit balancing segment. The Balancing API creates the balanced journal shown in the table
below:
Line
1
2
3
4
5
Account
01-5200-00
02-5000-00
01-1111-00
02-1280-00
03-1450-00
Dr
5600.00
1200.00
Cr
1200.00
2400.00
3200.00
Description
Original line
Original line
Original line
Original line
Original line
6
7
8
9
02-4001-01
01-2002-02
03-4003-01
01-2003-03
1200.00
Net
Net
Net
Net
1200.00
3200.00
3200.00
debit 02-01
credit 02-01
debit 03-01
credit 03-01
Cr BSV
All Other
03
03
All Other
Debit Account
XX-4000-XX
01-4001-03
02-4002-03
03-4003-XX
Credit Account
XX-2000-XX
03-2001-01
03-2002-02
XX-2003-03
You create the following journal, shown in the table below, which the Balancing API must balance:
Line
1
2
3
4
5
Account
01-5200-00
02-5000-00
01-1111-00
02-1280-00
03-1450-00
Dr
5600.00
3200.00
Cr
3200.00
2400.00
3200.00
The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In
the example shown in the table below, the journal is one-to-many with 01 and 02 on the debit side, and 03 on the
credit side, and 03 being the driving segment.
BSV
01
02
03
Net Dr
2400.00
800.00
Net Cr
3200.00
The Balance By option is set to Detail, so the Balancing API begins processing with the first line and skips all the
lines of the driving segment (03). The Balancing API creates the balanced journal shown in the table below:
Line
1
2
3
4
5
6
7
8
9
10
11
12
13
Account
01-5200-00
02-5000-00
01-1111-00
02-1280-00
03-1450-00
01-2003-03
03-4003-01
02-2003-03
03-4003-02
01-4001-03
03-2001-01
02-4002-03
03-2002-02
Dr
5600.00
3200.00
Cr
3200.00
2400.00
3200.00
3600.00
5600.00
3200.00
3200.00
3200.00
3200.00
2400.00
2400.00
Description
Original line
Original line
Original line
Original line
Original line
Net credit 03-01
Net debit 03-01
Net credit 03-02
Net debit 03-02
Net debit 01-03
Net credit 01-03
Net debit 02-03
Net credit 02-03
Dr BSV
All Other
02
Cr BSV
All Other
99
Debit Account
XX-4000-XX
02-4099-99
Credit Account
XX-2000-XX
99-2002-02
04
99
99
99
01
03
04-4099-99
99-4001-01
99-4003-03
99-2004-04
01-2099-99
03-2099-99
You create the following journal, shown in the table below, which the Balancing API must balance:
Line
1
2
3
4
5
6
7
8
Account
01-5200-00
02-5000-00
03-1220-00
04-1870-00
01-1111-00
02-1280-00
03-1450-00
04-1110-00
Dr
1800.00
1200.00
4700.00
1000.00
Cr
1200.00
2400.00
3200.00
1900.00
The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In
the example in the table below, the journal is many-to-many with 01 and 03 on the debit side, 02 and 04 on the
credit side.
BSV
01
03
02
04
Net Dr
600.00
1500.00
Net Cr
1200.00
900.00
The Balance By option is set to Summary Net, so each balancing segment is netted and balanced with one line
against the clearing balancing segment value.
Line
1
2
3
4
5
6
7
8
9
10
11
Account
01-5200-00
02-5000-00
03-1220-00
04-1870-00
01-1111-00
02-1280-00
03-1450-00
04-1110-00
03-2099-99
99-4003-03
01-2099-99
Dr
1800.00
1200.00
4700.00
1000.00
Cr
1200.00
2400.00
3200.00
1900.00
1500.00
1500.00
600.00
Description
Original line
Original line
Original line
Original line
Original line
Original line
Original line
Original line
Net credit 99-03
Net debit 99-03
Net credit 99-01
12
13
14
15
16
99-4001-01
04-4099-99
99-2004-04
02-4099-99
99-2002-02
600.00
900.00
900.00
1200.00
1200.00
Net
Net
Net
Net
Net
debit 99-01
debit 04-99
credit 04-99
debit 02-99
credit 02-99
The result is now each balancing segment value balances, as does the clearing balancing segment value.
Balancing API for Intercompany Journals
If each balancing segment value represents a different legal entity, intercompany accounts are used to balance a
journal with these balancing segment values. The intercompany payables and intercompany receivables accounts
are used, rather than intracompany balancing rules.
The Balancing API is used by general ledger and subledger accounting to build accounting lines automatically. The
Balancing API uses Intracompany Balancing Rules for balancing segment values in the same legal entity, or those
with no legal entity context. The Balancing API uses intercompany payables and receivables accounts when each
balancing segment value represents a different legal entity.
If there are both intercompany and intracompany lines in the same transaction, the Balancing API will first perform
intercompany balancing across legal entities, and then intracompany balancing across balancing segment values
within each legal entity. Intercompany balancing results in debits and credits balanced for each legal entity.
Afterwards, intracompany balancing results in debits and credits balanced for each balancing segment within each
legal entity. The Balancing API is called when posting journals in general ledger, or when accounting for
transactions in the subledgers
Intercompany Balancing
Intercompany journals are the journals that involve balancing segment values that map to different legal entities.
These journals are balanced for each legal entity by using their intercompany accounts. The Balancing API uses the
intercompany accounts defined for the relevant effective date range. Since multiple accounts may be defined for
the same date range, Balancing API will pick the accounts flagged with the Use for Balancing indicator (see Set Up
Intercompany Accounting) . The offsetting debit for a legal entity goes into its intercompany receivables account.
The offsetting credit goes into the legal entitys intercompany payables account.
Intercompany accounts may be defined at the legal entity level. That is, each transacting legal entity has different
intercompany accounts defined for different trading partner legal entities regardless of which specific balancing
segment values of those legal entities are used in the journals. The transacting and trading partner balancing
segment values are then not explicitly specified in the definition and are set to All.
Intercompany accounts may be defined at the balancing segment level of the legal entities. In other words, a
transacting legal entity can use different accounts for different transacting balancing segment values depending on
what the trading partner legal entity and trading partner balancing segment value are. In that case, transacting or
trading partner balancing segment values may be explicitly specified in the intercompany account definitions.
There are several types of intercompany journals possible. The Balancing API will first determine the type of the
intercompany journal (one-to-one, one-to-many, many-to-one, or many-to-many) with respect to the legal entities.
For intercompany balancing there is no Clearing Company usage and all legal entities are balanced by summary net
with respect to each other.
The following examples consider these types journals and how they are balanced. Since it is easier to follow the
process when the intercompany accounts are defined at the legal entity level, those scenarios are considered first.
The way the journals are balanced for intercompany account definitions at the balancing segment value level is
explained afterwards. For the scenarios below assume that the ledger is assigned to a Shared accounting
configuration and has a chart of accounts with three segments: balancing, natural account, and intercompany
segments.
Intercompany Accounts at the Legal Entity Level
One Legal Entity to One Legal Entity
Suppose that legal entity LE1 maps to balancing segment values 10 and 11, while LE2 maps to balancing segment
values 20 and 21. Consider the following intercompany account setup:
Transacting
LE
Transacting
BSV
LE1
LE1
LE2
LE2
All
All
All
All
Trading
Partner
LE
LE2
LE2
LE1
LE1
Trading
Partner
BSV
All
All
All
All
Account
Intercompany
Account Type
10-4020-00
10-2020-00
20-4010-00
20-2010-00
Receivables
Payables
Receivables
Payables
Journal 1:
1
2
10-5200-00
20-5000-00
1800.00
1800.00
Since Journal 1 is between two balancing segment values (BSVs) that belong to different legal entities (LEs) then
intercompany accounts will be used to balance it. First the After the balancing entries are added, the journal is
shown below:
Journal 1 Balanced by legal entity:
1
2
3
4
10-5200-00
20-5000-00
10-2020-00
20-4010-00
1800.00
1800.00
1800.00
1800.00
Original
Original
Balancing
Balancing
Next, consider the following journal that contains more balancing segment values:
Journal 2:
1
2
3
4
10-5200-00
11-5200-00
10-5300-00
20-5000-00
1800.00
600.00
600.00
1800.00
This is a one legal entity to one legal entity journal between legal entities LE1 and LE2. After the summary net
balancing entries are added, the journal is shown below:
Journal 2 Balanced by legal entity:
1
2
3
4
5
6
10-5200-00
11-5200-00
10-5300-00
20-5000-00
10-2020-00
20-4010-00
1800.00
600.00
600.00
1800.00
1800.00
1800.00
Original
Original
Original
Original
Balancing
Balancing
Notice that Balancing API adds lines 5 and 6 to make the journal balanced for each legal entity. In other words, the
debits and credits net to zero for both LE1 and LE2. However, notice that for LE1 we still need to perform
intracompany balancing since the entries are not balanced by balancing segment values (10 or 11). Intracompany
balancing within LE1 will be performed using the relevant intracompany balancing rules. Suppose that the relevant
intracompany balancing rule (summary net, no clearing company) is as follows:
Dr BSV
All Other
Cr BSV
All Other
Debit Account
XX-4000-XX
Credit Account
XX-2000-XX
Then intracompany balancing lines 7 and 8 are added to Journal 2. Journal 2 thus shows the results of both
intercompany and then intracompany balancing.
Journal 2 balanced by legal entity and balancing segment value:
1
2
3
4
5
6
7
8
10-5200-00
11-5200-00
10-5300-00
20-5000-00
10-2020-00
20-4010-00
10-4000-11
11-2000-10
1800.00
600.00
600.00
1800.00
1800.00
1800.00
600.00
600.00
Original
Original
Original
Original
Balancing
Balancing
Balancing
Balancing
Many legal entity to One legal entity and One legal entity to Many legal entity types of journals are balanced similar
to the One-to-One type. That is, each legal entity on the Many side is balanced against the legal entity on the
One side.
Many Legal Entities to Many Legal Entities
For Many-to-Many intercompany journal type, it is not possible to determine which legal entity is trading with which
trading partner. The Balancing API uses the intercompany accounts defined for the All Other legal entity trading
partner.
BSV 10 maps to LE 1. BSV 20 maps to LE 2. BSV 30 maps to LE 3. BSV 40 maps to LE 4. Consider the following
intercompany account setup:
Transacting
LE
Transacting
BSV
LE1
LE2
LE3
LE4
All
All
All
All
Trading
Partner
LE
All Other
All Other
All Other
All Other
Trading
Partner
BSV
All
All
All
All
Account
Intercompany
Account Type
10-2001-00
20-4002-00
30-4003-00
40-2004-00
Payables
Receivables
Receivables
Payables
Journal 3:
1
2
3
4
10-5200-00
40-5111-00
20-5000-00
30-1400-00
1600.00
1200.00
1000.00
1800.00
This journal is a Many-to-Many journal since multiple legal entities are present on both the debit and the credit
side. Since the Balancing API cannot determine the explicit trading partners for each legal entity, the intercompany
accounts set up for All Other trading partner legal entity are used:
Journal 3 balanced by legal entity:
1
2
3
4
5
6
7
8
10-5200-00
40-5111-00
20-5000-00
30-1400-00
10-2001-00
40-2004-00
20-4002-00
30-4003-00
1600.00
1200.00
1000.00
1800.00
1600.00
1200.00
1000.00
1800.00
Original
Original
Original
Original
Balancing
Balancing
Balancing
Balancing
Previous examples demonstrated how intercompany accounts can be defined and used at the legal entity level.
Intercompany accounts can also be defined in the context of balancing segment values, or at the balancing
segment value level. So the account definition could explicitly refer to the transacting balancing segment value and
the trading partner balancing segment value. This way, different accounts can be used for the same two trading
legal entities depending on which balancing segment values both entities are using. In general, each combination
of transacting legal entity, transacting balancing segment value, trading partner legal entity, and trading partner
balancing segment value may have its own intercompany account definition.
The journal entries for each legal entity can be composed of several balancing segment values belonging to this
legal entity. The intercompany balancing procedure in case of intercompany accounts defined for various
combinations of transacting and trading partner balancing segment values is very similar to the way the journals
are balanced with account definitions at the legal entity level. Just like in the case of account definitions at the legal
entity level, intracompany balancing may take place after intercompany balancing entries are added for each legal
entity.
Balancing API will proceed according to the steps outlined below for intercompany balancing in the general case
(when some accounts are defined at the balancing segment value level):
1. Group all debits and credits by legal entity. Determine the number of legal entities involved in the journal. There
are 4 possibilities:
2. One legal entity to One legal entity journal: the journal is between two legal entities. For a journal between two
legal entities, determine the balancing segment values involved on the side of each legal entity. There are 4
possibilities:
a. One balancing segment value to One balancing segment value: for each legal entity determine what
intercompany accounts will be used to do intercompany balancing. We will look for and use an intercompany
receivables account to create an offsetting debit. We will look for and use an intercompany payables account to
create an offsetting credit. The Use for Balancing flag in Intercompany Accounts UI tells us which account should
be used in balancing when multiple accounts are defined. The determination of the intercompany accounts is
performed according to the Hierarchy Table below starting with rule 1 (From LE, From balancing segment value, To
LE, To balancing segment value) and stopping when an account is found.
b. One balancing segment value to Many balancing segment values: same as for One balancing segment value to
One balancing segment value case except the Hierarchy Table rules checked are 2, 4, and 5.
c. Many balancing segment value to One balancing segment value: same as for One to One balancing segment
value case except the Hierarchy Table rules checked are 3, 4, and 5.
d. Many balancing segment value to Many balancing segment value: same as for One balancing segment value to
One balancing segment value case except the Hierarchy Table rules checked are 4 and 5.
Rule Number
1
2
3
4
5
Transacting
Transacting
Transacting
Transacting
Transacting
LE,
LE,
LE,
LE,
LE,
4. Many legal entity to One legal entity journal: same as One legal entity to Many legal entity journal.
5. Many legal entity to Many legal entity journal: this journal is balanced for each legal entity by using the
Transacting Legal Entity and Trading Partner All Other Legal Entities accounts.
Consider the following setup. The COA for this example has two segments: balancing, and natural account. Assume
that balancing segment values 10 and 50 map to legal entity LE1, balancing segment values 20 and 60 map to
legal entity LE2, and balancing segment values 30 and 70 map to legal entity LE3. The intercompany accounts are
set up as follows:
Transacting
LE
LE1
LE1
LE1
LE1
LE1
LE1
LE1
LE1
LE1
LE1
Transacting
BSV
All
All
50
50
All
All
All
All
All
All
Trading Partner
LE
LE2
LE2
LE2
LE2
LE2
LE2
LE3
LE3
LE3
LE3
TradingPartner
BSV
20
20
All
All
All
All
30
30
All
All
10-2022
10-4022
50-2025
50-4025
10-2020
10-4020
10-2030
10-4030
10-2044
10-4044
Intercompany Account
Type
Receivables
Payables
Receivables
Payables
Receivables
Payables
Receivables
Payables
Receivables
Payables
LE2
LE2
LE2
LE2
LE2
LE2
20
20
All
All
All
All
LE1
LE1
LE1
LE1
LE3
LE3
All
All
All
All
All
All
20-2010
20-4010
20-2011
20-4011
20-2030
20-4030
Receivables
Payables
Receivables
Payables
Receivables
Payables
LE3
LE3
LE3
LE3
LE3
LE3
LE3
LE3
All
All
30
30
All
All
30
30
LE1
LE1
LE1
LE1
LE2
LE2
LE1
LE1
All
All
All
All
All
All
50
50
30-2050
30-4050
30-2077
30-4077
30-2020
30-4020
30-9977
30-9987
Receivables
Payables
Receivables
Payables
Receivables
Payables
Receivables
Payables
Account
1
2
3
4
10-5200
50-5200
20-5000
60-5000
2800.00
1000.00
500.00
300.00
30-1400
1000.00
1800.00
800.00
1000.00
So this journal is a one legal entity to many legal entity journal. We will only show how INTERCOMPANY balancing
will be performed. Note that INTRACOMPANY balancing within each LE will be performed after the entries are
balanced for each LE.
This journal with respect to legal entities is composed of LE1 on the One side and LE2 and LE3 on the Many
side.
Consider LE1 to LE2 entries. Notice that on the side of LE1 we have two BSVs: 10 and 50. Also note that on the
side of LE2 we have two BSVs: 20 and 60. So our LE1 to LE2 journal is a Many balancing segment value to Many
balancing segment value journal. So the offsetting entry for LE1 is a credit to the Payables account from the rule
Transacting LE=LE1, Trading Partner LE=LE2: 10-4020. The offsetting entry for the LE2 is a debit to the
Receivables account from the rule Transacting LE=LE2, Trading Partner LE=LE1: 20-2011.
Next consider the LE1 to LE3 entries. On the side of LE1 we still have two balancing segment values (10 and 50).
On the side of LE3 we have one balancing segment value (30). For LE1 the offsetting entry is a credit to the
Payables account from the rule
Transacting LE=LE1, Trading Partner LE=LE3, Trading Partner BSV=30: 10-4030. For LE3 the offsetting entry is a
debit to the Receivables account from the rule Transacting LE=LE3, Transacting BSV=30, Trading Partner LE=LE1:
30-2077.
Journal 4 balanced by legal entity:
1
2
3
4
5
6
7
8
9
10-5200
50-5200
20-5000
60-5000
30-1400
20-2011
10-4020
30-2077
10-4030
2800.00
1000.00
500.00
300.00
1000.00
800.00
800.00
1000.00
1000.00
Original
Original
Original
Original
Original
Balancing
Balancing
Balancing
Balancing
Setting Up Balancing
To set up intercompany and intracompany balancing, you must set up legal entities, ledgers, enable the Balance
Intracompany Journals ledger option, and define intercompany accounts and intracompany balancing rules. If the
Balance Intracompany Journals option is not enabled, no intracompany balancing rules can be defined.
coming from subledgers since there is no way to specify a clearing company for them.
iii. use the Default Rule. The Default Rule is the All Other-All Other rule. It can only be used if the
Clearing Balancing Segment Value is used for Many to Many journals.
8. Click Apply to save your changes.
Set up Intercompany Accounting