In this video we are going to discuss about the intercompany journal intercompany journal journal approval process. And that's journals. These are the topics we are going to cover in this video. The last video we discuss about the mass allocation, mass allocation means allocating the cost to the department device okay we have a cost then we are going to allocating the cost to them department wise that is nothing but their mass allocation. Now here in this video, we are going to cover intercompany journals. What are the intercompany journals?

Actually intercompany is that I suppose if you want to work on more than one company transactions at a time at Delta this type of transactions are called intercompany Transactions okay. Actually here intercompany intercompany there is a two objects are there one is intercompany second one is intercompany Okay, let us discuss about detail actually not too well we have modified concepts to track the accounts for intercompany intercompany accounts in our table we have intercompany our intercompany accounts also. Okay, so when compared to level nine, the intercompany is a new intercompany not in level nine, okay, so we have a intercompany transactions but there is an article instead of intercompany here we have an intercompany transactions we have intercompany transactions It is a new concept introduced for intercompany art it is a new concept introduced for intercompany artwork. So, let us discuss a port what is the intercompany and what is the intercompany intercompany means the transactions are the transactions are the transactions between the balancing segments between the balancing segments across the legal entity across the legal entities.

So, that type of transactions are called intercompany transactions balancing segment means company right companies are balancing segment okay companies are balancing segment suppose if you have transactions more than in one balancing segments, so that transactions are called intercompany transactions. Okay and the second one is intra company intercompany transactions are transactions between the balance in segments within the same legal entities are same ledger okay the transactions between the balancing segments within the same legal entities are same ledger. So that type of transactions are called intercompany transactions intercompany transactions Okay. So now we are going to see that intercompany transactions okay. So, what is the setup for intercompany intercompany transactions actually here before going to define the setup First there is a one mandatory set of business. So, we define the balance in segment right what is our balancing segment companies the balance in segment right companies the balancing segment already we make it the company as a balancing segment of you In the following if you want to enable the intercompany company also intercompany segment on Okay, first go to log into the GL and we have to make it the company as a intercompany segment.

So assign that qualifier in the intercompany qualify to company segment. Okay, now login to the GL, go to the flexible structure window, setup financials plexuses key segments. Go to query one segment that we're sorry go to query we're structure and the select the title of the lexical is accounting flexible. Now, select your structure name is test accounting structure right Put the cursor in your text accounting structure. So before making the changes in perspective, first you have to unfreeze the structure got to click on unfreeze it okay. So go to put the cursor on the click on the segments okay already company we as company has signed as a balancing segment.

Now, if you want to work on the intercompany transaction first we have to make it the company as intercompany segment also okay can assign to already balancing segment we are assigned. Now we assign the intercompany also. So, put the cursor on the company segment, then go to click on the flexible qualifies and make it it is as a intercompany segment this attribute is used to identify the intercompany segment. Okay, so if you want to enable them if you want to work on that intercompany transaction first you must enter to enable this checkbox This is the qualifier Plexus a qualifier after that go to save it transaction complete to record supplied and sale okay. I then got to say the structure close it and before going to compile the structure, we're first unfreeze it, because whatever changes you made you must ensure recompile the structure before going to recompile and see how to freeze the structure.

After that, go to compile it compiling lexical definition okay. The flexible vice XL successfully combined, then you will get a message transaction complete one record, upload and save. Okay, this is a first step and second step is Gotta enter the intercompany values into the company into that account segment. So, if you want to define the intercompany transactions compulsory we need intercompany accounts right. So already we entered the different account in our account segment right. So for that icon, there is no intercompany accounts only.

Okay, so go to assign that intercompany accounts to our account segment, go to query the account segment, go to the values window and query the account segment. Setup transactions plexuses key values application is vendor ledger. deliver content lexical stuff that is to say content structure segment this, I can't find the cursor and click on the new one go to create a one more account. So, this is a intercompany payables. I see payables I Simmons intercompany. So what is our type of account it is a liability account intercompany payables is a liability.

Okay. condom and interaction intercompany receivables account Sorry intercompany receivable says asset the type of icon this asset okay. So these two icons are mandatory intercompany segment account is mandatory okay now these are the two steps before going to define the intercompany transaction these two steps are mandatory and so the third step is go to define accounting options for the intercompany go to define the accounting options for the intercompany debt is a contact option is there intercompany option is there So you must enable that option at primary ledger level. Okay. So now the third step is go to assign the accounting option for the intercompany accounting options for the intercompany the navigation is setup financial accounting Setup Manager, accountant center setup, financial accounting Setup Manager accounting setup Okay, now go to query over ledger now go to query over ledger your ledger is a test ledger right go to query the ledger so this is our primary ledger go to click on Update accounting Options button go to click on Update accounting Options button Now select the ledger options click on Update button.

This is a first page here there is no intercompany transactions go to next page. In the next page under General processing tab there is a intercompany concept there. There is a intercompany accounts are there in enable intra company balances, enable this checkbox and go to finish it after click the Finish button. Now you will get a confirmation you have just enable intercompany balancing for ledger test ledger. In order to use this feature, you must complete the intercompany balancing rules set up for this ledger in that accounting Options page. Okay, if you want to use the central company but balancing values you must define the balancing rules for this ledger.

Okay? Now go to click on define return accounting options okay after enable the intercompany now here also that our tab is get enabled intercompany balancing rules define intercompany balancing rules to balance entries between balancing segment values within the same legal entity our lead Okay, now select them this time and this process has not started okay. Now go to click on Update buttons to start the process to start the process, okay, then it displays the balancing rules like this as our primary ledger name and this is a context structure name What currency and your calendar Okay, so now this is your legal entity and this is your India wisdom and go to click on the defined roles go to click on that define roles create demo okay. So it displays all these default information and what is the source? legal entity source so if you envy How to use a source of others.

And category also a debit balance in settlement value all others and others and what is a debit account? Select the quarter combination of debit 01 company department visit our department and they go This paypal account debited and take the PayPal account or the intercompany payable account already be created right now go to select that intercompany payable account. So payable is it liability is a debit, right? Oh, users cannot use a distinct color combination because that the segment validation don'ts are get enabled. So, now I'm going to disable the cross validation rules. If you want to disable the cross validation rules, go to the segment, go to the query, query structure and disable that room.

First visit well done Company department an intercompany payable account That is not updated this closet Now go to log into the flexible seconding setup window financials, setup financial accounting Setup Manager accountants go to your ledger then click on update so intercompany segment is not completed So the farm is not updated in the snow so the farm is not updated, so just add another so do one more row here after entering of these two accounts now the setup is completed successfully If the setup is completed now go to rise a journal entry Okay. So now go to Visa Debit account and the credit icon for two companies after that go to create a transaction here when standard program is running after completing a program then the intercompany journals are created in between that two companies. So this type of journals are conda intercompany journal okay. So this is the steps mandatory steps are mandatory before going to create the journal entry First we have predefined that setup and next one is that general approval process.

Actually, the approval is here we are going to create a approval general approval process. So normally this process is created within a hrms module. Okay that that has created by them because if you want a proving anything compulsory we need one position all the positions are created within the hrms model and so, what is the main purpose of the general approval processes? Okay, General thought processes to ensure that journal entries and batches are approved by the appropriate management people before the journals can be passed into that account balances. So, before the general enters possible the account balances first we need to approve the journal entries that are that the approval process is done by that management means any job person any management person means manager, our senior manager, our accounting manager, any manager people are going to approve in this process. So if you want to approving this Janice compulsory we need one position okay the general approval uses Oracle workflow to control and monitor the pro approval process sending notification to general batch preparers and approvers when needed Okay, so, some of the journal approval components can be customized to meet the business organization specifical needs suffer sometimes we are going to customize that process only because that process is created by the financial consultant in hrms model Okay, why because, why because, compulsory, we need a one position person, management position person is a manager, assistant manager, senior manager or a Delivery Manager a call manager.

One particular person is mandated to approving the journals. Okay, firstly, Create a hierarchy of the jobs and how to view the limits also limits support the journalists up to 10 lakh so, that is approved by the manager the general is up to 20 lakhs that is approved by the senior manager the general is one crore that is approved by the See you on composite there is a Mont limit is also mandatory for creating of this approval process okay the process is created by the HR people into the hrms model not in the GL not into the GLM. But here there is a accounting setup is there approval general approval or accounting setup. We must entered unable the setup remaining setups are done by the HR people on so they create a hierarchy job hierarchy and assign the limit They're saying that I won't limit to that particular person only after the signing, then the material for whenever we submit for approval to journal, by default the person are going to approving that journal how they can approve it based on the limits.

Before you use general approval, you must enable general approval for valid just because already there is a counting setup is there for general approving, you must enter to enable that checkbox. Okay, you must insured setup your general sources to use general approver. Finally, you must create an approval hierarchy and define your approval authorization limits. First we'll create a hierarchy of their proven and also appropriate limits the limit is mandated limit face amount limit amount limit Okay, so as a manager how much how much amount they are going to approving means maybe it's a one lakh or two lakhs or three lakhs okay. So you must change and mention the limits on So, you must mention mentioned then limits also okay based on the limit only the manager are going to approve in the documents. The process is created by the HR people in hrms model not in the general ledger okay.

And also we assign the amount limit to the particular position people on it. Okay, so the same type of dentists out there. So you must enter that pool all the time. Before going to the account balances so it's a point maybe actually system defined processes there. Maybe we have to use a sometimes a system defined, but if you don't want to use a system defined when if you want to create a new one, you can create you can customize the process. Okay, you can customize the process submitted for approving process, the approver are going to check the total entered process if it is okay.

That monthly amount is within that limit. So they are going to approving the process on it are they have to send the notifications to that user how we can see the notifications because we are going to log into the system Come admin and then we'll see that notification the approver got to send the notification to the specified user on this first we have to create a user with help of the system admin responsibility and we are going to register the user after that go to the hrms and then define this hierarchy job hierarchy position hierarchy and also assign the amount limit this all the processes then by that HR people in heteronomous module Okay, so whenever we submitted general approval by default the default hierarchies get enabled as a approver. Let's suppose that the limit is 10 lakh rupees, the manager are going to approving that generous okay.

So this is a general approving process. Because the setup we have to do it within that hrms mode. Okay. In the next video we'll see budgets. This is important when budget. What is a budget budget is nothing but a projection of revenues.

The budgets are created by the financial consultant in the hitter, you know, sorry, GL model is a projection of revenues. Okay, we'll see that that gets into next session.