Overview

This document is a quick reference guide explaining typical scenarios with regards to Intercompany transactions.

Intercompany

The aim of the Intercompany functionality is to help users to transfer transactions between two companies in the same organisation.

Scenario 1: Bank Account in Company BE receiving a payment of EUR 10,500 from Customer FC to cover invoices outputted from Company NL.

• In NAV, select Company BE and go to the Intercompany General Journal

• Change/Select the Batch Name other than Default e.g. ICO-FA-A

• Record the transaction by populating the following fields:

  • Posting Date

  • Document Type – set as Payment

    

  • Document No. – this should load automatically. If not, please click on the button “Renumber Document Numbers”

  • Account Type – must be equal to IC Partner

  • Account No. – select the Company that you wish to transfer the amount to, in this case it’s 201 NL Netherlands. The IC Partner Code column should automatically populate with the same value. If this does not happen, please raise an issue with support.

  • Description – please include a meaningful Description that allows other users to understand the transactions. In most cases, this should match the description from the bank statement.

  • Currency Code – in this scenario we are using EUR

  • Amount – enter the actual amount to be transferred as a negative value

  • Bal. Account Type – select Bank Account

  • Bal. Account No. – select the Bank Account in BE, in this case it’s BBE15

  • IC Partner G/L Account No. – select the Trade Receivables control account 10810

  • Country Dimension – Please select a value if required

  • Division Dimension – Please select a value if required

  • Customer Group Dimension – Please select a value if required

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• If the client has also provided a Remittance, then you can also apply the payment to the corresponding ledger entries for the customer from within the journal, before posting the actual payment. In this case, please use the Apply Entries button:

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Scenario 2: Transferring a Customer transaction in Company BE of EUR 5,600 to another Customer account in Company NL

In this case, the funds were already posted into the Customer account in BE, thus the main difference from scenario 1 is that we are transferring the value from a customer account instead of a bank account.

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• If the client has also provided a Remittance, then you can also apply the payment to the corresponding ledger entries for the customer from within the journal, before posting the actual payment. In this case, please use the Apply Entries button.

• Post the entries and verify that the correct result has been achieved.

Scenario 3: Bank Account inCompany BE receiving a payment of EUR 8,200 from Customer FC to cover invoices outputted from Company NL. This transaction has yielded a bank charge of EUR 8.05. In summary, the Statement Amount shows as EUR 8,191.95, Bank Charge is EUR 8.05 and Customer Payment Amount is EUR 8,200.

This example is the same as Scenario 1, having said that it will involve an additional transaction due to the Bank Charge incurred.

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