Glossary
a) Intercompany Organization
Intercompany organizations can be considered legal entities
or management entities and they can transact with each other. An intercompany
organization is associated with a legal entity and optionally a receivables and
payables business unit.
b) Legal Entity
Each intercompany organization must be associated with a
legal entity. Multiple intercompany organizations can be associated with the
same legal entity.
c) Receivables Business Unit
The receivables
business unit is used when an
intercompany transaction requires a receivables invoice to be generated. The
invoice is raised in the provider
organization’s receivables business unit. If you do not need to create
receivables invoices for your intercompany transactions you do not need to
assign a receivables business unit to your intercompany organization.
d) Payables Business Unit
The payables business unit is used to record the invoice for the receiver organization. The invoice is recorded in the receiver organization’s payables business unit. If you do not need to record payables invoices for your intercompany transactions you do not need to assign a payables business unit to your intercompany organization.Created by:
Bernardine
Rogers
Bidisha
Silveira
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