Reconciling intra company transactions

This page allows you to reconcile inter finance book account balances of “Posting” finance books within a company. Tell me more.

Select the “Reconcile Intra Company Transactions” link under the “Inter FB Reconciliation” business component.

The “Reconcile Intra Company Transactions” page appears.

Enter the following fields:

Source Finance Book

Use the drop-down list box to select the code identifying the “Posting” finance book that you want to reconcile with a “Posting” finance book available in the same company.

Note: If “Allow Inter FB Recon across Finance Book” has been set to “Yes” in the “Set Function Defaults” activity, all the “Posting” finance books that have been defined for the company will be available for selection in the ascending order. If “Allow Inter FB Recon across Finance Book” has been set to “No”, all the “Posting” finance books that have been mapped to the login organization unit will be available for selection in the ascending order.

Destination Finance Book

Use the drop-down list box to select the code identifying the finance book that has to be reconciled with the finance book selected in the “Source Finance Book” field. All the “Posting” finance books defined for the company will be available for selection in the ascending order.

Note: The finance book that has been selected in the “Source Finance Book” field will not be available for selection.

Currency	Use the drop-down list box to select the code identifying the currency. All the currencies that have been mapped to the login company as permitted currencies will be available for selection in the ascending order. The system displays the base currency by default at the launch of the page.
Usage	Use the drop-down list box to select the inter-finance book usage. You can select from “General”, “Stock”, “Capital”, “Fund”, “Supplier” or “Customer”.
As on Date	The date on which you want to reconcile the selected “Posting” finance books (Date Format). Mandatory. The date entered in this field must be a valid date in an “Open” financial year. The system date is displayed by default at the launch of the page.

Click the “Get Accounts” pushbutton to retrieve the account details.

If “Usage” has been selected “Customer” the system retrieves all the account codes that have been mapped to the usage in the “Create Receivables Account Definition” activity of the “Account Rule Definition” business component in the “Source Finance Book Information” group box. The system also retrieves all the account codes that have been mapped to the “Supplier” in the “Destination Finance Book Information” group box.

If “Usage” has been selected as “Supplier” the system retrieves all the account codes that have been mapped to the usage in the “Create Payables Account Definition” activity of the “Account Rule Definition” business component in the “Source Finance Book Information” group box. The system also retrieves all the account codes that have been mapped to the “Customer” in the “Destination Finance Book Information” group box.

If “Usage” has been selected is other than “Supplier” or “Customer”, the system retrieves all the account codes that have been mapped to the selected usage in the “Create Additional Account Definition” activity of the “Account Rule Definition” business component for both the source and the destination “Posting” finance books.

Enter the following field in the “Source Finance Book Information” group box:

Account Code

Use the drop-down list box to select the code identifying the account that you want to reconcile. All the account codes that have been retrieved based on the selected usage will be available for selection in the ascending order.

The system displays the following in the “Source Finance Book Information” group box:

Account Balance	The total balance of the account.
Desc.	The textual description of the account.

The system displays the following in the “Source Finance Book Transactions” multiline:

Transaction Type	The type of the transaction.
Org. Unit	The code identifying the login organization unit
Doc. No.	The code identifying the document that has been created for the transaction.
Transaction Date	The date on which the transaction took place.
Transaction Currency	The currency in which the transaction has taken place.
Transaction Amount	The transaction amount in the transaction currency.
Base Amount	The transaction amount in the base currency of the company.
Dr. / Cr.	Indicates whether the transaction amount has been debited (“Dr”) or credited (“Cr”) in the account.

Enter the following field in the “Source Finance Book Transactions” multiline:

Tag Group

The code identifying the tag group (Alphanumeric, 6).

Note: This field must not be left blank if documents have not been selected in both the multilines for reconciliation.

Check the box in the “Select” column of the multiline to mark documents for reconciliation.
Enter the following field in the “Destination Finance Book Information” group box:

Account Code

The system displays the following in the “Destination Finance Book Information” group box:

Account Balance	The total balance of the account.
Desc.	The textual description of the account.

The system displays the following in the “Destination Finance Book Transactions” group box:

Transaction Type	The type of transaction.
Org. Unit	The code identifying the organization unit.
Doc. No.	The number identifying the document that has been created for the transaction.
Transaction Date	The date on which the transaction took place.
Transaction Currency	The currency in which the transaction has taken place.
Transaction Amount	The transaction amount in the transaction currency.
Base Amount	The transaction amount in the base currency of the company.
Dr. / Cr.	Indicates whether the transaction amount has been debited (“Dr”) or credited (“Cr”) in the account.

Enter the following field in the “Destination Finance Book Transactions” multiline:

Tag Group

The code identifying the tag group (Alphanumeric, 6).

Note: This field must not be left blank if documents have not been selected in both the multilines for reconciliation.

Check the box in the “Select” column of the multiline to mark the documents for reconciliation.

Note: At least two rows must be marked in both the multilines if the “Tag Group” is left blank in both the “Source Finance Book Transaction” and the “Destination Finance Book Transaction” multilines.

You can reconcile documents that have been created in the same currency.

You can reconcile documents for which the debit and credit totals in the base currency of the company match.

Click the “Reconcile” pushbutton to reconcile the selected transactions.

The system generates a unique reference number for the unique tag groups. If tag groups have not been entered, the system generates a unique reference number for all the selected documents.

The system updates the status of transactions in both the “Posting” finance books as “Reconciled”. The system also saves the reference number along with the corresponding documents.

To proceed, carry out the following

Select the “Create Journal Voucher” link at the bottom of the page to create a journal voucher. (Refer "Tax Book Processing" business component)

Select the “View Intra Company Balance” link at the bottom of the page to view the debit and credit balances of inter finance book accounts.

Reconciling intra company transactions – An overview

You can select the code identifying the “Posting” finance books that you want to reconcile. You can select the currency of the transactions, which must be the same in both the “Posting” finance books. You can also select the usage to which the account codes have been mapped. The account codes which must be reconciled must have been defined as “Inter Company” accounts in the “Create Operative Chart of Account” activity of the “Accounting Setup” business component and must have been attached or copied to the selected finance book Refer Example. These inter company accounts must transact in the same currency and must be of a unique transaction type.

All the inter finance book account codes that are available in both the selected “Posting” finance books will be retrieved based on the selected usage. You can select the transactions in both the “Posting” finance books for the reconciliation.

This page also allows you to define unique tag groups. If you have not selected transactions for reconciliation, the system reconciles the transactions in the “Posting” finance books based on the defined tag groups. The status of the transactions after reconciliation is updated as “Reconciled”. The system also generates a unique reference number for the reconciliation. If tag groups have been entered, the reference number is generated for every tag group.

Example

The company has three finance books FB001, FB002 and FB003 that contain inter company accounts, which must be reconciled.

Inter Company accounts must be created for the following combination of finance books	Account Type
FB001 – FB002	Stock
FB001 – FB002	Funds
FB001 – FB002	General
FB002 – FB003	Stock
FB002 – FB003	Funds
FB002 – FB003	General