Intercompany Setup screen

Use the Intercompany Setup screen to establish the rules for creating intercompany transactions within ProContractor. Intercompany transactions allow you to record transactions between two companies while keeping the general ledgers for both companies in balance. You must have at least two companies defined in ProContractor to use intercompany transactions.

Note: To open the Intercompany Setup screen, click Administration > Company & Division > Intercompany Setup in the All Tasks pane.

There are two types of companies involved in intercompany transactions: an asset company and a distribution company. The asset company is the company that holds the asset, such as an employee or warehouse. The distribution company is the company to which the asset is distributed, such as the company for the profit center where the employee or inventory item is used.

The accounts entered for the intercompany setup represent clearing account and should equal zero if consolidated. For example, if company A1 is an asset company with a debit balance of $25,000 in the Asset Company Due From Account, and D1 is a distribution company with a credit balance of $25,000 in the Distribution Company Due To Account, the net effect is a zero balance.

Note: The Intercompany Setup screen is a step in the initial setup process. The next step can vary:
  • If you want to associate your project-related general ledger accounts to a cost type, the Cost Type screen is the next step.
  • Otherwise, the Contact Type screen is the next step.