Automated Accounting Part 4, Intercompany Ledger Journals

Today will focus on automating Intercompany Ledger Journals.

We want D365 to automatically fill in the related Intercompany Receivable and Payables accounts and post the complimentary journal in the other company(ies).

This example assumes your Legal Entities are names US01 and US02

1. Chart of Accounts

General ledger > Setup > Chart of accounts > Main accounts

Create the following accounts.

2. Journal names

General ledger > Journal setup > Journal names

Create a new Journal Name as exhibited.

Create the exact same journal name in all applicable companies (both US01 and US02)

Note: Journal type "Daily" will appear in General ledger > Journal entries > General journals

3. Setup Ledger Posting Profiles

General ledger > Posting setup > iIntercompany accounting

Create a new record, fill out as exhibited.

Note: The Intercompany Main Accounts assigned to company US01 are named US02.

Note: The Intercompany Main Accounts assigned to company US02 are named US01.

Note: Make sure to assign journal name exactly as spelled in step 2 above.

4. General Journal

General ledger > Journal entries > General journals

When you create a Interco journal like exhibited, the system will automatically populate the corresponding proper Intercompany Receivable and Intercompany Payable accounts and Post the related entry in the second company.

The example is moving $1,000.00 USD from Petty Cash in company US01 to Petty Cash in company US02.

Journal Header

Journal Lines

On a subsequent post we will dive into automating Intercompany Purchase and Sales Orders.