Intercompany Accounting and Multi-Ledger Processing
This domain tests how a single journal stays balanced per company when it crosses balancing segments, and how ledger families and ledger sets support multi-ledger operations.
Intercompany mechanics
The balancing segment identifies the company; the intercompany segment tracks due-to and due-from per company. When debits and credits land in different balancing segment values, intercompany balancing rules derive due-from and due-to accounts from provider, receiver and rule assignment. Intercompany reconciliation reports then match the reciprocal balances.
Multi-ledger processing
A primary ledger plus secondary ledgers at a chosen conversion level plus reporting currency ledgers form the ledger family. A ledger set groups ledgers that share chart of accounts, calendar and currency or reporting currency, so journals and reports can run across them; a data access set controls who may use the set.
Worked example
A journal debits 100-6100 for 1,000 and credits 200-6100 for 1,000, with no intercompany lines entered. Reasoning: because the balancing segment differs, the system generates due-from 100 and due-to 200 from the intercompany rules, so each company balances on its own. If the intercompany segment is not enabled or left blank, the ledger still balances but reconciliation reports cannot match the two sides.
Traps
Assuming intercompany lines can be omitted when companies differ; expecting secondary ledger adjustments to flow back to the primary; building a ledger set across different charts of accounts or calendars; ignoring conversion level when planning adjustments.