An intercompany definition is where you specify the intercompany control accounts and default analysis dimensionsCustom objects that allow you to analyze the activity in your business in additional ways, such as by cost center, project, employee, or any other business entity important to you. that you want to use when posting and generating intercompany documents. An intercompany control account is a type of general ledger accountThe general ledger will normally include general ledger accounts (GLAs) for items such as income, expenses, assets, liabilities, and reserves.. Each companyA self-balancing accounting unit within your organization. in your organizationA deployment of the Salesforce/FinancialForce applications with a defined set of licensed users. Your organization (org) includes all of your data and applications, and is separate from all other orgs. must set up their own intercompany definition records.
So, if you have three companies in your organization (we will call them Company One, Company Two and Company Three), each company would have two intercompany definitions like these:
| Related Company | Accounts Receivable GLA | Accounts Payable GLA |
|---|---|---|
| Company Two | Intercompany Debtor: C2 owes C1 | Intercompany Creditor: C1 owes C2 |
| Company Three | Intercompany Debtor: C3 owes C1 | Intercompany Creditor: C1 owes C3 |
There is a limit of one record for each related company.
| Related Company | Accounts Receivable GLA | Accounts Payable GLA |
|---|---|---|
| Company One | Intercompany Debtor: C1 owes C2 | Intercompany Creditor: C2 owes C1 |
| Company Three | Intercompany Debtor: C3 owes C2 | Intercompany Creditor: C2 owes C3 |
| Related Company | Accounts Receivable GLA | Accounts Payable GLA |
|---|---|---|
| Company One | Intercompany Debtor: C1 owes C3 | Intercompany Creditor: C3 owes C1 |
| Company Two | Intercompany Debtor: C2 owes C3 | Intercompany Creditor: C3 owes C2 |
The accounts receivable GLAs are automatically applied when the accountant posts the intercompany document in the source company.
The accounts payable GLAs are automatically applied when the accountant generates the intercompany documents in the destination company.
See About Intercompany Journals for an example.
See Processing Intercompany Transfers Automatically for information about the Auto-Process option.
Related Concepts
Related Tasks
Creating Intercompany Definitions
Managing Intercompany Definitions
Reference