In iplicit, intercompany behaviour on an account is controlled by two settings working together - the 'Interco' tick box on the chart of account record and the 'InterCo' attribute on the chart of account rule. The two settings must agree, or postings to that account will error. This article explains each combination and how the settings interact with multico automation on linked journals.

The two settings explained

The 'Interco' tick box sits on the chart of account record, under the 'Usage' tab. It tells iplicit whether the account is intended for intercompany postings.

The 'InterCo' attribute sits on the chart of account rule, under the 'Setup' tab. When the attribute is present in the rule, the 'Req' column controls whether it is mandatory on postings - ticked means required, unticked means optional. Rules show the attribute state in their description, for example TaxBand(R,0) Interco(R) indicates Interco is required.

Which combinations are valid

The tick box on the account and the attribute on the rule must agree. The valid combinations are:

  • Tick box ticked, attribute Required - the account behaves as a standard intercompany account. Use this where the account is an intercompany account default, such as Intercompany Balances
  • Tick box not ticked, attribute Optional - use this on P&L accounts where you want to trigger multico automation. 
  • Tick box not ticked, attribute not in the rule - the account is not used for intercompany postings and no intercompany information is recorded.

Combinations to avoid

Two combinations cause problems:

  • Tick box ticked, attribute not in the rule - this will error on posting. Either remove the tick from the account or add the InterCo attribute to the rule with Req ticked
  • Tick box not ticked, attribute Required - this will also error on posting. Either tick the box on the account or change the rule so the attribute is optional or not present
  • Tick box ticked, attribute Optional - this combination forces the Interco attribute to behave as mandatory on every posting to the account. On a P&L account this stops the multico automation working, because the automation relies on Interco being optional to post unspecified lines to the primary legal entity. Only use this combination if you have a specific reason to make intercompany mandatory on an account that would otherwise be optional

How to change the setting on an account

  1. In the quick launch menu search box, type Chart of accounts and open it
  2. Locate the account and double-click to open it
  3. Select 'Edit'
  4. Open the 'Usage' tab
  5. Tick or untick 'Interco' as required
  6. Select 'Save'.

How to change the attribute on a rule

  1. In the quick launch menu search box, type Chart of account rules and open it
  2. Locate the rule and double-click to open it
  3. Select 'Edit'
  4. Open the 'Setup' tab
  5. Add, remove, or amend the 'InterCo' attribute and the 'Req' tick box as required
  6. Make sure to update/name the description reflecting the set up for easy selection, for example Interco(R) OR Interco (O) 
  7. Select 'Save'.

Changes to a rule affect every account using that rule. If you only want to change behaviour for one account, point that account at a different rule instead.

Troubleshooting an intercompany error on posting

If a journal errors because of an intercompany mismatch:

  1. Open the chart of account record for the account on the failing journal line and check the 'Interco' tick box on the 'Usage' tab
  2. Open the chart of account rule assigned to that account and check whether the 'InterCo' attribute is present and whether 'Req' is ticked
  3. Compare the two against the valid combinations above and decide which setting is wrong for your intended behaviour
  4. Amend either the account or the rule to bring the two into agreement.

If the error continues after the settings agree, check that:

  • the legal entity referenced in the journal is active and you have permission to post to it
  • no other account on the same journal has a conflicting intercompany setting
  • the period is open for posting

If the error persists after these checks, contact iplicit support.