Intercompany Vendor Payment Question

[jcovept]

Our Accounting Department’s procedure for Intercompany (IC) payments is not very efficient.
After receiving and vouchering, they print dummy (blank paper) checks and then void the checks.
When voiding, they direct the amounts to the proper IC account.
No one is sure why it’s done this way and we’d like to simplify it.
We are not multi-site. These other PCC plants are in the system as vendors.

Can those of you out there that deal with intercompany charges please let us know of a better way?

We’re thinking of controlling this at the vendor level by defining a category for each IC vendor and changing the "Accts Payable" account from our normal trade payable account to the vendor’s IC account. That’s great for when the #’s roll up into the divisional Hyperion consolidation system, but how do we direct SL to skip printing the checks?
We also want the liability to come off of the AP aging report?

SL 5.02.10 / Progress 9.1E.

We really appreciate your help,
Jim

Jim Cove
Business Systems Analyst
Wyman Gordon, A PCC Company

 

[jcovept]

Infor tells us that multi-site would handle this but that going to MS would be huge (require a separate db for each site).
We're doing tests now where the vendors AP accts (via categories) are their IC accts so when vouchering the $'s go to their IC accts (where we want them to stay).
But they'd still be on the aging report unless we modify it to bypass our intercompany vendors.
Then we'd use Manual Checks to process the payment and not print physical checks , but the manual check processing would debit their IC accts and credit the bank acct.
(not what we want). Since we have to processs checks (even manual checks) they suggest adding Bank Codes for each of our intercompany vendors and specifying their cash accts as their IC accts.
This would allow check processing and keep the $'s in the IC acct. But the check printing process would now have to be by Bank Code.

This is getting a bit complicated, but we'd love to be able to run an aging report during the month and not have it include IC's and not have to print/void IC checks.

Do other ProgressTalkers agree with Infor's suggestions?

Thanks, Jim

 

[bond007jlv]

Jim, this is to test if you receive an email.