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The Intercompany functionally in Microsoft Dynamics GP allows for the allocation of transactions such as payables invoice expenses, across multiple company databases while automatically creating the corresponding Due To/From transactions. However, this can also be accomplished within a single company database using the Clearing Fund/Central Treasury Method of the Interfund Management functionality included with Intercompany.
For example, you are a company that has several divisions all within one company database. You want to pay all invoices out of one checking account and allocate the expense to one/many divisions while automatically create a corresponding Due/To From transaction. The Clearing Fund/Central Treasury Method will allow you to distribute the expense to one/many divisions while tracking how much each division owes to the central fund. The segment in the chart of accounts that represents the division is used as the “Fund Segment” when setting up Interfund Management. Complete distribution detail, including all Due/To From transactions, can be viewed in the General Ledger Detail Inquiry window.
To find out more about setting up Interfund Management, look in the Not for Profit Online Manual (Printable Manuals) under
By Pat Smith, RSM McGladrey,