Intercompany Transactions process flows

GOAL

This Document gives an overview on Intercompany process flows

FIX

There are two distinct flows for the Intercompany transactions entry and processing: an
outbound transaction flow, and an inbound transaction flow.

1. The Manage Intercompany Outbound Transactions provides all the functions an

initiator of an intercompany transaction can perform.

2. The Manage Intercompany Inbound Transactions provides all the functions a

recipient of the transaction can perform.

Manage Intercompany Outbound Transactions:

Use the Outbound Batches page to create intercompany transactions in batch mode,
submit them to the recipients for approval.

Reversing Batches and Transactions

Use the Outbound Batches page to reverse a batch. To reverse a batch, query the
batch and click Reverse. To reverse individual transactions in a batch, click Update
against the transaction and select the Reverse option from the Action list.
You can reverse a batch or a transaction that is approved or complete.
When you reverse a transaction you must select the appropriate reversal method:
Switch Debit/Credit or Change Sign.
Manage Intercompany Inbound Transactions

Use the Inbound Transactions page to search, personalize views, update, and view the
transactions that you received. You can Approve or Reject the Inbound Transactions.

Create Transactions

Creating a Transaction is a Three-step process:

1. Enter the batch header.
2. Enter the Transaction Details.
3. Enter the Transaction Distribution.
Transferring Transactions to General Ledger

Intercompany transactions that do not need invoices are directly transferred to General
Ledger once approved.

Before you transfer the transactions, ensure the following:

 The corresponding period is open.

 The transaction status is approved.
 The exchange rate exists between the intercompany and general ledger
currency if they are different.
 The transaction date is specified for calculating the exchange rate.

Transferring Transactions to Receivables and Payables.

The initiator workflow transfers the intercompany transactions to Receivables to create

invoices as required by legal or business requirements. After creating the invoices,
Receivables updates the intercompany transactions with the invoice numbers and
passes the number to the recipient workflow, which updates and transfers the
transaction to Payables.
 Fusion Applications: Intercompany Transactions Troubleshooting Guide To
(Doc ID 1587957.1) Bottom

PURPOSE

This document describes troubleshooting tips for the intercompany transactions flow.

Problem Catalog:

1. Intercompany receivables and intercompany payables accounts not being generated.

2. Payables Invoice Import of an intercompany transaction fails due to invalid liability account.
3. The primary supplier site for the supplier assigned to legal entity {LE Name} is inactive.
4. The primary customer site for the customer assigned to legal entity {LE Name} is inactive.
5. Invalid intercompany period error.
6. Approve and Reject buttons are disabled for an intercompany transaction.
7. Transaction remains in Received status.
8. Transaction Account Definition does not generate the distribution accounts.
9. Transfer to Payables process does not pick up intercompany transaction.

TROUBLESHOOTING STEPS

Problems and Solutions

1. Intercompany receivables and intercompany payables accounts not being generated.

Problem:

Intercompany is not able to generate the intercompany receivables and intercompany payables
accounts for a transaction.

Solution:

The intercompany account must pass the following validations.

1. Must be available in GL_CODE_COMBINATIONS table or dynamic inserts must be turned
on.
2. Must be enabled
3. Detail posting flag should be enabled
4. Summary flag should be disabled
5. It should be valid between current date and the accounting date for the transaction
6. Journal Entry posting must be allowed
Check that the segment values of the intercompany account to be built will pass all of the above
validation.

2. Payables Invoice Import of an intercompany transaction fails due to invalid liability account.

Problem:

Payables invoice import fails because the liability account passed to Payables is not valid.

Solution:

If you want to have the same account for both the intercompany receivables and intercompany
payables and you are going to create transactions that will be transferred to Receivables and
Payables, make sure the account specified in the intercompany balancing rules has an account
type of ‘Liability’.

3. The primary supplier site for the supplier assigned to legal entity {LE Name} is inactive.

Problem:

An error is displayed when submitting an intercompany batch indicating the primary supplier site
is inactive.

Solution:

Navigate to Procurement Supplier set up and check the Primary Pay flag for the supplier site.

4. The primary customer site for the customer assigned to legal entity {LE Name} is inactive.

Problem:

An error is displayed when submitting an intercompany batch indicating the primary customer
site is inactive.

Solution:

a) Navigate to Receivables Customer set up and check the Primary flag for a Bill-To site for the
customer.
b) Navigate to the Manage Set Assignments UI of the business unit to be used to generate the
receivables invoice (i.e. initiating BU) and check the set assigned to the reference data object
‘Customer Account Site’.
The customer must have a site that is associated with the set for the business unit being used to
generate the receivables invoice.
c) Ensure that the set assigned to the ‘Customer Account Site’ reference data object for the
business unit initiating the transaction is not COMMON.
5. Invalid intercompany period error.

Problem:

An error is displayed when submitting an intercompany batch indicating the intercompany period
is invalid.

Solution:

Check the intercompany calendar and ensure that any new periods created in the General Ledger
calendar have been copied to the intercompany calendar. Select the Copy GL Periods option
from the Actions menu on the Manage Intercompany Period Status page to copy periods.
Similarly, if a new transaction type has been created, you will need to run Copy GL Periods to
generate intercompany periods for the new transaction type.

Validation (if applicable):

You should be able to view the periods created in the intercompany calendar for the relevant
transaction types.

6. Approve and Reject buttons are disabled for an intercompany transaction.

Problem:

You are unable to approve or reject a transaction that is in status Received.

Solution:

Check the following.

a) Transaction type should require manual approval
b) Receiver distributions must have been entered
c) SOA server must be up and running
d) User must be assigned to the intercompany approval group
e) Approval rules must have been configured correctly
f) Navigate to the BPM Worklist and Approve/Reject there

7. Transaction remains in Received status.

Problem:

Transaction remains in received status despite the receiver distributions being entered and
submitted.

Solution:

This is a known bug (Bug 15980240) and occurs when the transaction type does not require
manual approval and the receiver distributions have not been entered before submitting the
batch.
The transaction status is set to Received but since no manual approval is required, even after
entering the receiver distributions on the inbound page and submitting, the transaction
does not get set to Approved.
The recommended work around is to have all transaction types set to require manual approval
before creating batches.
Alternatively use Transaction Account Definition to default receiver distributions.

To see a list of all possible intercompany transaction statuses and actions please see note
2152493.1 What Is The List of Intercompany Transactions Statuses and Actions Available in
Each Status

8. Transaction Account Definition does not generate the distribution accounts.

Problem:

Transaction Account Definition does not generate the accounts for the transaction distribution.

Solution:

Check the following:

a) A Transaction Account Definition must be assigned to the Financials Common Module
Subledger Accounting Options
b) The Transaction Account Types must have account derivation rules assigned
c) The account derivation rules must be valid and active
d) There is a known issue in bug 9837683 where the status of the Transaction Account
Definition does not get reset to Incomplete when an Account Rule’s Condition is modified.
The Transaction Account Definition will need to be re-activated in order for the account rule
changes to apply. A workaround for this is to make a minor change to the account rule
description (e.g. adding a period or a space), and save the change. This will set the Transaction
Account Definition status to Incomplete. You can then navigate to the
Transaction Account Definitions UI and change the status to Activate.

9. Transfer to Payables process does not pick up intercompany transaction.

Problem:

You have submitted the transfer to payables process but it does not find your transaction to be
processed.

Solution:

Check the following:

a) The receivables invoice must have been successfully created
b) The user submitting the process must have access to the receiver intercompany organization