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Former Member
May 08, 2009 at 10:21 AM

Seller Rule

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Hi

Does anyone understand how the Seller Rule for booking of differences from intercompany eliminations work? I read the guide "Intercompany Booking in Business Rules" but I don't quite get what it is saying.

On page 10, it reads "Seller Rule: Calculate the differences between Receivable and Payable and make corrections to the Buyer side". How about differences between intercompany Income and Expenses, does it work the same way? Is the entity that declares the income considered the seller and the entity that declares the expenses considered the buyer in this case?

On page 11, the last paragraph reads: "In this case, SPICBOOKING for DEBIT and CREDIT of CGI (Buyer) on the Selleru2019s rule generates two journal entries in DEBIT and CREDIT of CGI ... "

My question is, why 2 journal entries? I don't get the rationale for the 2 journal entries by studying the example given on Page 12. I mean, if the Seller Rule works by adjusting the amounts declared by the buyer to match the amounts declared by the seller, then 1 journal entry (e.g. DR. Expense and CR. AP) will suffice.

Finally, what entries will be automatically generated by BPC to offset the intercompany balances and transactions declared by the seller with those declared by the buyer?

Thanks.