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Interested to understand how other Group organisations handle this scenario.

Company A - Parent company of a group, with multiple subsidiaries world-wide. Company A will purchase overhead service items (e.g. software licences) via a Purchase Order, for the whole group. Cost then needs to be reallocated from Company A to companies B, C, D, E, F G etc. 

Currently using APPS10, migration to Cloud underway. 

Was unsure whether to post this in the SC or Finance sub-forum, so apologies if it’s not in the right place!

 

Hi, 

A few options depending on user process. needs. 

A common process would be to use the multi-company allocation where at month end, you can allocate those cost to each company. 

A more direct process would be to have different PO’s per site (driving the company).    AP can then process one or more supplier invoices in company A creating the intercompany due to / due from.  You would essentially process the AP invoice in company A, when the PO’s are matched, this creates the due to / due from. 

Another option is skip the PO.  Process the AP invoice, in company A, In the posting lines you report the cost for the different companies. IFS will create the intercompany transactions (due to / due from). To make AP easier, you could use an invoice template.

Best regards, 

Thomas

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