How to create a Multi-Co journal?

This article covers creating a Multi-Co journal in iplicit, once your environment is configured for it – see 'How to configure iplicit for Multi-Co journal postings' if you haven't completed that setup yet. A Multi-Co journal lets you post to multiple legal entities from a single manual journal, using the 'InterCo' field on each line.

Creating the journal header

1. Search for 'Manual journals' and select 'New'
2. In the 'Create document' list, select 'Multi-Co Journal', then select 'Create'
3. In the header, select the primary legal entity that will initiate the Multi-Co journal.

Entering journal lines on a Multi-Co journal

Each line on a Multi-Co journal needs:

• Account – a mandatory field, the Chart of Accounts code the line posts to
• Description – a mandatory field, pre-populated from the account record but editable
• Debit or credit – the value for that line.

Because this is a Multi-Co journal, an 'InterCo' field also shows underneath each line. Leaving it blank posts that line to the primary legal entity entered in the header. Selecting a different legal entity here posts that line's account movement to that entity instead.

Example: a Multi-Co journal across three legal entities

With the primary legal entity set to Legal Entity A, a journal is entered with:

• One debit line to a General Ledger expense account
• Two credit lines to a second General Ledger account, each for the same value, one tagged Interco to Legal Entity B and the other to Legal Entity C.

The journals generated by the Multi-Co automation

With the Multi-Co automation enabled, submitting this journal automatically generates one further journal for each legal entity involved – three in total.

• On the origin entity, Legal Entity A, the generated journal converts the tagged amounts into a movement through the Intercompany Balances account – crediting the second General Ledger account and debiting Intercompany Balances for each destination entity
• On each destination entity, the generated journal posts the real movement – debiting the second General Ledger account and crediting Intercompany Balances, tagged with Interco back to Legal Entity A.