Using Distribution Sets in Inter-Entity Trade

Inter-Entity Trade supports the use of A/P Distribution Sets and A/R Distribution Codes in AP-AR Trade Setup > Account Maps. This allows users to spread one inter-company entry across multiple cost centres in the target company more easily. This setup is particularly useful for A/R Invoice to A/P Invoice mappings.

For general information, refer to AP/AR Trade Setup - Partner Mapping.

Example A/R invoice to A/P Invoice

In this example, we are going to post an A/R Invoice in ORCLTD, and have it create an Inter-company A/P Invoice in ORCIN2. The amounts are to be distributed to multiple cost centres in ORCIN2 for the bookkeeping fees.

Step 1: AP/AR Trade Setup in ORCLTD.

We have the source G/L Account 4222-1 in ORCLTD mapped to the target G/L Account 6600-2 in ORCIN2 (one-to-one map) and the source G/L Account 4232-1 in ORCLTD mapped to the target AP Distribution Set INTENT (one-to-many map)

Step 2: A/P Distribution Set in ORCIN2:

Any amount sent to this A/P Distribution Set will be split in the ratio 50%, 25% and 25% to Division 100, Division 200 and Corporate respectively.

Step 3: Posting the following Inter Company A/R Invoice in ORCLTD for Customer 9992

A/R Invoice is split over two Revenue accounts.

Step 4: Inter-Entity Trade creates the following A/P Invoice in ORCIN2 for vendor 9991

  • The single $300 entry in the source company has been distributed to all (3) departmental accounts in the target company, following the spread defined on the AP Distribution Set in the target company.

  • The other $200 entry in the source company is allocated to the Telephone GL Account as per the G/L Expense/ Revenue mapping.