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Document Splitting for Intercompany Clearing Accounts

We are on New GL, document splitting active (profit center and segment zero balancing). When entering cross company code vendor invoices, we are losing traceability of the intercompany receivable because the intercompany clearing account is being posted to the same profit center with both a debit and a credit. This is effectively netting out the receivable. The scenario works correctly when doing a basic cross company code journal entry so my assumption is that the incorrect splitting is caused by the A/P being split to multiple profit centers. Example given below:

Entry View:

DB Acct 5xxxxx, Cost Center A (Profit Center A), Company Code A - $500

DB Acct 5xxxxx, Cost Center B (Profit Center B), Company Code B - $500

CR Vendor - $1000

GL View:

Company Code A:

CR Vendor, Profit Center A - $500

CR Vendor, Profit Center B - $500

DB Acct 5xxxxx, Profit Center A - $500

DB Interco Clearing, Profit Center B - $500 <-----This is the entry in question. The debit to profit center B will net out with the entry on the other company code A.

Company Code B:

DB Acct 5xxxxx, Profit Center B - $500

CR Interco Clearing, Profit Center B - $500.<------interco clearing account is hit twice with the same profit center.

My thought was that if I could prevent the splitting of the A/P, this would resolve the issue but I have yet to get that to work and also am not sure that it's the correct solution.Has anyone faced a similar issue, and if so, what did you do to resolve?

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  • Posted on Jul 13, 2016 at 04:21 PM

    Update: I was able to make this work somewhat by putting in a default profit center for the interco clearing account in FAGL3KEH. I am not sure this is the best solution but it will work temporarily.

    I would still like to know if there is any possibility of not splitting the A/P between all the profit centers. I can't use the default profit center for the A/P account because we do need the A/P to be on various profit centers when the invoice is not cross company code.

    If anyone has experience with changing the document splitting configuration to not split the A/P during intercompany vendor invoice, I would be interested to hear how you addressed this.

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