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InHouse cash Centralized payments

Former Member
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Hi experts,

We have a common scenario where there is group of 5 affiliate companies and a centralized company (head quarters).

Now one of those 5 affiliates is a centralized company(example CCode: 1000). When i make payments for centralized company 1000 on behalf of Affiliate company 1000 itself, I see an intercompany entry in the books of 1000 for ICC1000 only.

Is this weird or this is only the structure we need to follow.

Please advise.

P:S: We only want to go through IHC for all payments.

Regards,

Manish

Accepted Solutions (1)

Accepted Solutions (1)

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Hi Manish,

The way I've handled this scenario is that for CC 1000's IHC account, I've assigned a different g/l group than the normal participants. This g/l group is configured to not post to the g/l account where you are tracking the balances. It's only posting to the technical clearing accounts.

The other option you can do, is to not configure the payment methods for cc 1000 to flow through IHC.

Hope that helps.

-Anya

Former Member
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Hi Anya,

A smart thing to do!!

So you mean the variant assigned to Affiliate 1000 current account in IHC doesnot post to an intercompany account. instead it will post to a clearing account.?

Regards,

Manish

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Yes. CoCd 1000 will have two types of IHC accounts. One to record it's own outgoing payments and one to record all the payments that it's processing on-behalf of (including it's own). On both accounts I assign the same GL group that way it nets to zero in the clearing accounts.

-Anya

Former Member
0 Kudos

Perfect!!

A great help.

Answers (0)