Oracle Finance Partner Lab - Paris

Intercompany Transactions
Processing and Reconciliation
 Table of Contents

Contents
Table of Contents.............................................................................................................................................. i

Intercompany Transaction Processing...........................................................................................................1

Objective........................................................................................................................................................ 1
Demonstration Flow A – Intercompany Transaction Processing.............................................................1
Demonstration Flow B – Create Intercompany Transactions...................................................................7
Demonstration Flow C – Details of Intercompany Transactions region..................................................9

Intercompany Reconciliation...........................................................................................................................10
Objective........................................................................................................................................................ 10
Pre-demo Preparation Steps........................................................................................................................10
Demonstration Flow...................................................................................................................................... 14

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Intercompany Transaction Processing

Objective
To show how easily a line manager handles intercompany transactions with real time visibility of pending
activity and native collaboration for resolving disputes.

Demonstration Flow A – Intercompany Transaction Processing

1. Pre Requisites for Demonstration Flow – Make sure there are intercompany transactions
available for approval (step 3) and transactions pending approval from other (step 4). If there are
no transactions available, use the Duplicate feature in Manage Outbound Transactions to make
copies of existing intercompany transactions (with transaction type ‘I/C Additions’ that has been
seeded to require approval) and submit them to obtain the approval status required for the demo.

2. Intercompany Accountant/Line manager logs into the application (casey.brown/<weekly

password>) and navigates to the Intercompany Transactions Processing work area.
(Navigator>Intercompany Accounting >Transactions)

3. He sees there are some transactions awaiting his approval. He recognizes one of them and
highlights the row and clicks on the Approve button at the top of the table. Note: you have to click
on a transaction row to get Approve and Reject buttons to become active. He selects one that is
unfamiliar and drills into the View Intercompany Transaction page to review the details. He
decides on work on this one later, so he clicks on the Cancel button at the top.

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4. He returns to the work area and selects the “Pending Approval From Others” tab. He selects one
transaction that has been outstanding for weeks and uses contextual actions to contact the
approver to inquire about the delay. He clicks on the name of the Receiver for the transaction. A
window opens up that shows the Intercompany Organization Information. In the row for Default
Organization Contact, there is a person’s name. (Note: Please skip clicking on the orange
square to the left of name, as it’s not working in current release).

5. To enter a new intercompany transaction, he clicks on the ‘Single Batch Spreadsheet Entry’ link in
the Tasks pane on the left. [Select to open file in Excel and Yes to connect to server. A log in
window pops up in ADFdi and you need to log in as casey.brown/<weekly password> to perform
this step. Please allow to enable macros if requested]. This opens up a spreadsheet template for
him to enter a transaction. Note: Transaction type Default in screen shot below will not require
approval. GSE seeded transaction types are as follows:

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 After entering the transaction, he clicks on the Save button and in the spreadsheet to upload it
(you need to save, don’t click submit button).

6. He can view the uploaded transaction in the Incomplete tab in the Intercompany Transactions
Work Area. Click on the Batch Amount of the transaction he just loaded to view the transaction in
the Edit Intercompany Batch page. Make any necessary edits and click on the Submit button to
submit the transaction for approval (even if transaction type does not require approval). [Note:
Depending on the intercompany transaction type you use, the transaction might not require
approval. If approval is required all members in the approval group for Intercompany can approve

the transaction ]

7. After transactions are approved, they can be transferred to General Ledger, or routed to
Receivables and Payables if intercompany invoices are required.

Navigate to Navigator>Intercompany Accounting>Transactions>Transfer to General Ledger. Enter

the desired information in the Transfer to General Ledger window and click Submit.

To view a GL journal created from an intercompany transaction, navigate to Manage Journals

(Navigator>General Accounting>Journals>Manage Journals). Query on the Journal Batch Name
“2019 Global Intercompany A 19869 19871”.

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8. Drill from the GL journal to View Intercompany Transaction by clicking on the debit or credit
amount for any of the journal lines.

9. When intercompany AR/AP invoices are required, an intercompany transaction is transferred to

Receivables and Payables. Search and view the Intercompany Batch transferred by navigating
(N) Navigator > Intercompany Accounting > Transactions. Select task (L) Manage Intercompany
Outbound Transactions. Search for Batch Number that Equals 2010 > (B) Search. In Search
Result click on batch 2010.

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Navigate to Billing (Navigator>Receivables>Billing>Manage Transactions) Query by the Transaction
Source ‘Global Intercompany’. Select Transaction Number ‘10000’.

Navigate to AP Invoices (Navigator>Payables>Invoices>Manage Invoices) Query by Invoice Number

‘10000’.

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Demonstration Flow B – Create Intercompany Transactions
Step 1 Create Transaction (US1 IC org)

Save and Submit (2023)

1. Transfer to General Ledger (wait until the end of request to do step 2)
2. Transfer to Receivables (wait until the end of request to do step 3)
3. Transfer to Payables

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Step 2 : Go to “Manage Intercompany Outbound transactions” to note the invoice number
generated

Step 3 : Navigator > Receivables > Billing > Manage Tansactions

Search for Invoice 10023

You can review and post the invoice

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Demonstration Flow C – Details of Intercompany Transactions region
1. Pre Requisites for Demonstration Flow – Make sure there are intercompany transactions
available for approval, editing, and completion from the dashboard. If there are no transactions
available, use the Duplicate feature in Manage Outbound Transactions to make copies of existing
intercompany transactions and submit them to obtain the approval status required for the demo.

2. The demonstrator logs into the application and navigates to the Intercompany Transactions
Processing work area. (Navigator>Intercompany Accounting >Transactions). Highlight the
following:

a. Review transactions that require attention, require approval, pending approval, and/or
incomplete. Also review import errors. Take action from the dashboard, such as approve
or reject transactions.

b. Highlight UI features – change column order, change column size, change columns
viewed, sort, detach, export to Excel, query by example, freeze, wrap, collapse/display
Task pane on the left, contextual actions

c. Highlight Personalization features – set preferences, re-order regions, hide regions, add
content.

d. Drill down on a transaction from the dashboard to view transaction details.

e. Information on Intercompany Transactions Processing work area is also available on

General Accounting Dashboard.

f. Automatic Accounting using SLA Transaction Account Builder (setup not available in the
current InFusion demo environment)

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 g.

Intercompany Reconciliation

Objective
To show how an Intercompany Accountant reconciles intercompany account balances at the end of an
accounting period.

Pre-demo Preparation Steps

1. In the current release of the InFusion demo environment, we are only able to demo intercompany
transactions between two legal entities (InFusion IC USA1 and InFusion IC USA2) in the same
ledger (InFusion USA PL). When an intercompany transaction is entered for a provider and a
receiver that belong to the same ledger, and when the transaction is transferred to General
Ledger, both the provider and receiver sides of the transaction are combined into a single journal
entry in General Ledger. When the journal entry is posted in General Ledger, the Intercompany
Reconciliation report shows that both the provider intercompany receivable balance and the
receiver intercompany payable balance are in balance, and there are no reconciliation
differences. Therefore, in the current release of the InFusion demo environment, the only
difference that can be displayed in the Intercompany Reconciliation report is posting of journal
entries to the intercompany receivable or payable accounts that come from a journal source other
than Global Intercompany. The following steps guide you to determine if this data entry has been
done, and what to do if it hasn’t been done.
2. Login as casey.brown/<weekly password>.
3. Navigate>General Accounting>Journals>Manager Journals. Query on journal batch name ‘2003
Global Intercompany A 72435 72437’. If this journal batch is unposted, post the batch. The
Intercompany Reconciliation report only displays balances for intercompany accounts that have
posted journals. If this journal batch has already been posted, then proceed to the next step.
4. Navigate>Intercompany Accounting>Reconciliation. Click on the link ‘Intercompany
Reconciliation’ in the Tasks panel on the left.
5. Click on the ‘Schedule New Process’ button in the Search Results table.
6. Select the process name ‘Extract Intercompany Reconciliation Data’
‘IntercoReconciliationDataExtract’. Click OK.
7. Select the Provider Ledger ‘InFusion USA PL’. Select Accounting Period ’01-12’. Click the
Submit button. Remember the request number and click OK in the window that tells you the
submission was successful.
8. In the Search Results table, refresh the results to see if the request has completed (status should
be ‘Succeeded’). When it is completed, go to the top of the page (in the BI Publishing Options
region) and select the Request # in the Choose Request field. This can be done by navigating to
Navigator>Intercompany Accounting>Reconciliation>Intercompany Reconciliation.
If you do not see the request number in the list of values, that is due to a page refresh issue that
is known. Navigate to another page and return to the Intercompany Reconciliation page and you
will then see the request number in the LOV for Choose Request field. Click on the View Report
button after selecting your request number.
9. If the report is balanced without any reconciliation differences like in the ‘Balanced’ screenshot,
then proceed to step 10. If the report is not balanced like in the ‘Unbalanced’ screenshot, then
you are ready to execute the demo flow.

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Balanced:

Unbalanced:

10. Navigate>General Accounting>Journals>Create Journal. We will enter a manual journal to create

a difference in the Intercompany Reconciliation report. Enter the journal entry below and make
sure distributions are entered exactly as shown below. Post the journal.

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11. If the journal is sent to an approver, log in as anita.kennedy/<weekly password> and approve the
journal. After login, on the Home Page Welcome Tab, in the Worklist: Notification and Approvals
portlet select the row ‘Journal Batch Expense Adjustment for Casey Brown’ and then (M) Actions>
Approve. In the information window that your request was processed successfully click (B) Ok.
In this environment the journal was not sent to an approver.

12. Sign out and log back in as casey.brown/<weekly password>. Query the Expense Adjustment
journal (Navigator>General Accounting>Journals>Manage Journals) and post it, if not already
posted.

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13. Run the Intercompany Reconciliation report again as in steps 4-10. The report should now look
like this.

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Demonstration Flow
1. It is the end of the accounting period, and the Intercompany Account needs to reconcile
intercompany balances and make sure all intercompany transactions are booked to their
respective ledgers in the correct amount. He had scheduled the Intercompany Reconciliation
Extraction Program to run overnight and now he is ready to view the results. He logs into the
application and navigates to the Intercompany Reconciliation work area and queries up the
request that he ran. (Navigator>Intercompany Accounting >Reconciliation. Select the request
that you ran in the Pre-demo preparation steps.)

2. He had run the reconciliation report for all legal entities in the InFusion USA PL ledger, so the
report displays all pairs of transacting parties within the ledger and their intercompany receivable
and payable balances. He notices a discrepancy reported for intercompany activity between
legal entity InFusion Corp USA1 and legal entity InFusion Corp USA2. To view what might be
causing the discrepancy, he clicks on the amount in the Difference column to the right. It drills
down to a page that shows the account balances broken down by journal source.

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3. He sees that a manual journal has been posted to the intercompany payables account which is
causing the difference. He clicks on the amount for the manual journal source to view the journal
and determines that it was erroneously posted to this account.

4. If desired, the demonstrator can fix the problem by reversing the manual journal, and re-running
the reconciliation to demonstrate the two entities balance.

5. The demonstrator can also highlight the following:

a. You can export the report to Excel at any level – account balance, journal lines, subledger
lines

b. You can change the layout of the intercompany reconciliation report using BI Publisher -
sort columns, change column order, hide/show regions, etc.

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