How Did That Intercompany Transaction Happen?!
Edward Gutkowski, Chief Architect - Rapid Reconciler
I have written several articles concerning the importance of Distribution Manufacturing Automatic Accounting Instructions (DMAAI’s), and the potential impact on reconciling inventory. Did you know that these tables can be configured to mistakenly cause intercompany transactions?
Below is a screen shot of a DMAAI configuration for freight expense. Notice that there are 5 different companies set up, each with their own business unit to capture the charges:
Pay particular attention to the company 00000 record! This is what I call a wildcard entry, meaning that it will be used in the event there is no explicit entry for the company. Let’s say company 249 ships an order that incurs $100 of freight expense. We want the charge to be posted to account 510.6040. That is exactly what would happen in this set up. Life is good!
But what would happen if the entry for 00249 was not there? Or was accidentally deleted? Would there be an error at sales update saying the entry was missing?
Unfortunately, the answer to that question is no. Because of the company 00000 entry the expense would post to 30.6040 in company 00001! Yikes, I am sure those responsible for the company 00001 financials would not be very happy.
Do you use company 00000 in your DMAAI configurations? Are you sure it is not causing inadvertent intercompany transactions (say that 3 times fast)? Take the time to do a DMAAI review if you have any doubts as it can save you grief in the long run.