As part of the base product, MAS 500 has features that allows for intercompany transactions. The intercompany feature is a time saving feature in environments where multiple companies are used. Instead of having to switch companies to make journal entries, MAS 500 gives us the ability to record this in one entry.
Here are the main entry screens that allow for intercompany transactions:
- General Journal transactions (GL)
- Recurring journal transactions (GL)
- Allocation entries and transactions (GL)
- Process Vouchers (AP)
- Recurring Vouchers (AP)
- Enter Purchase Order (PO)
All of these entry screens open up a company ID drop down on the lines screen of the transaction.
An intercompany transaction in Accounts Payable may look like this:
An invoice is entered in AP for $1500. The invoice is for an advertising expense. You want the amount distributed so $500 posts as an expense in company code SOA while $1000 posts as an expense in company Code COA.
The following tables show how MAS 500 would book this voucher.
Entry posted in Source (Company SOA)
|2010-00-00 Accounts Payable||1500.00|
|7800-00-00 Adv. Expense||500.00|
|1015-00-00 Due from COA||1000.00|
Entry posted in Target (Company COA)
|7800-00-00 Adv. Expense||1000.00|
|2035-00-00 Due to SOA||1000.00|
When looking at this entry, you may ask where it picked up the due to and due from accounts. These are defined in the General Ledger in maintain target companies.
The main function of Maintain Target Companies is as follows:
- Defines the target companies the source company can post to. There is no limit to the number of target companies.
- Identifies the GL accounts (due to, due from) for the different types of transactions. Eg.. vouchers, GL journal transactions and GL allocations. You do not have to have the same chart of account between source and target companies.
- Maintain Target Companies must be completed first before intercompany transactions can take place.
By Jeff Steel, a Sage software consultant in Ohio