Maintain separately balanced groups of accounts with a single general ledger.
Intercompany Balancing (ICO), an add-on module for Microsoft Dynamics GP, is used to maintain separately balanced groups of accounts within a single general ledger. A single segment in the account structure is identified as the company segment. These values in this segment create a balanced group of accounts and are used to generate separate financial statements within Microsoft Dynamics GP.
Typically, intercompany balancing is used by a company that processes payables and/or payroll on behalf of its subsidiaries. For instance, if a company has several subsidiaries that sell products on their behalf, they could identify themselves as the company segment with the subsidiaries underneath them. The amounts paid by the company segment are then charged to the subsidiaries in the form of Due To and Due From accounts. Whether it’s commissions owed or unpaid inventory, this process can reduce the managing of multiple companies.
ICO is easy to implement and manage. Intercompany transactions are created for all journal entries involving two or more different company accounts during general ledger posting. This includes entries originating from any Microsoft Dynamics GP series: Financial, Sales, Purchasing, Inventory, etc.
Features and Benefits
- Maintains separately balanced groups of accounts within a single General Ledger (GL).
- Intercompany transactions are created for all journal entries involving more than one company account when posting to the GL.
- Minimizes accounting activities.
- Minimizes activities in managing multiple companies.