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What is the function of Interco code part?

  • 13 September 2021
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Userlevel 5
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Hi,

I am trying to improve on my understanding of IFS fundamentals and have been reviewing teh differences between the following voucher posting fields: company, site & Interco.

I believe “company” determines where exactly the voucher will be posted.

All of our companies only have one site so I usually always let company = site.

But what is the purpose of Interco code part?

 

Best Regards,

Dennis M.

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Best answer by Thomas Peterson 13 September 2021, 22:50

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Userlevel 7
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Hi,

 

That would have been something that was set up as part of your finance solution.  The account (code A) is the only code part that IFS requires.   Normally we would set up  a code part called counter part (or similar) to represent the “other” side of an inter company transaction.   For example assume company A sold to company B. 

In company A we would have a sales and AR transactions and counterpart would list company B. 

On the company B side would would want the payable to include company A  as the counterpart.  

In doing this we only need 1 main intercompany account for the various areas with counterpart providing the “other” party of that transaction. 

I would assume your INTERCO code part may have been intended to do the same - keep the identity of the “other” party in an intercompany transaction.   

IFS  Consultants tend to use the term Counter Part as this is more consistent with the consolidation  functionality - Apple / Apple. Easier to follow how this data is used in Group Consolidation. 

Without seeing how your set up uses INTERCO - I am assuming (educated guess) that this is used for intercompany - the “other” side of the transaction. 

 

Best regards, 

 

Thomas

Userlevel 5
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@Thomas Peterson thank you!