This article explains how Intercompany prepayments should behave in iplicit and outlines the steps to correct postings if they have not been generated as expected.

When a purchase invoice includes a prepayment line and involves Intercompany, the system generates multi‑company journals to ensure the prepayment is recorded correctly across the relevant entities.

Expected Posting Behaviour

1. At the time of posting the purchase invoice:

Entity A: Credit the Prepayment account 

Entity B: Debit the Intercompany account 

2. Reverse journal automatically created:

Entity A: Credit the Intercompany account 

Entity B: Debit the Prepayment account

3. Future prepayment allocations:

Entity B: Credit the Prepayment account

Debit the relevant expense account within the correct entity

This ensures that prepayments are recognised in the correct legal entity and that the Intercompany accounts remain balanced.

Why Incorrect Postings May Occur

If the expected Intercompany postings do not appear, this is typically due to:

  • Incorrect or incomplete Intercompany configuration
  • Changes made to Intercompany settings after the invoice was originally posted
  • Missing or incorrect mappings between entities

If the configuration was not correct at the time of posting, the system may not generate the required multi‑company journals.

How to Correct Incorrect Intercompany Prepayment Postings

If a purchase invoice has been posted incorrectly, the following steps will correct the general ledger impact:

1. Unallocate the Payment

Unallocate any payments that have been applied to the invoice.

2. Reverse the Invoice

Reverse the original invoice into the current period.

  • This will also reverse all associated multi‑company and prepayment journals.
  • Each reversal will post into the corresponding period of the original transactions.

3. Copy and Re‑post the Invoice

  • Use the Copy function to recreate the invoice.
  • Re‑post it into the same financial period as the original.
  • This will generate the correct Intercompany postings based on the current configuration.

4. Re‑allocate the Payment

Re‑allocate the original payment to the newly posted invoice.

This process ensures:

  • No outstanding balance remains on the aged creditors
  • The general ledger impact nets to zero
  • The corrected invoice reflects the correct Intercompany prepayment behaviour

Summary

Correct Intercompany prepayment behaviour relies on accurate configuration at the time of posting. If an invoice was posted before the configuration was correct, reversing and re‑posting the document is the most reliable way to ensure the general ledger reflects the correct Intercompany entries.


Customer search terms

How do I do a intercompany prepayment?

Prepayments for intercompany setup

Prepayment posting for intercompany

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