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Administrator Guide
Last Updated: 2023-06-23
Define Intercompany Profiles

Define Intercompany Profiles

Security:
Set Up: Company Accounting
 domain in the Common Financial Management functional area.
You set up intercompany profiles to establish the relationship between companies if 1 or more of these requirements exist:
  • You need to settle Intercompany transactions.
  • You need to create On-Behalf-Of or Indirect Intercompany transactions.
  • You need to record automatically Intercompany Receipts.
  1. Access the
    Edit Company Intercompany Profile
     task.
  2. As you complete the task, consider:
    Option Description
    Initiate Allowed
    Select to enable your company to initiate intercompany transactions with the company on the
    To
     column.
    You don't need to select
    Initiate Allowed
     for a company to initiate a Direct Intercompany transaction. You select it to enable the Intercompany worktag as a valid combination. This check box also allows the line company on an invoice to differ from the header company for On-Behalf-Of transactions.
    If you don't select
    Initiate Allowed
    , you must select the
    Settle Only
     check box to enable Direct Intercompany Invoices settlement.
    Settle Only
    Select to enable your company to settle intercompany transactions with the company on the
    To
     column. The company can't initiate intercompany transactions.
    Payment Types
    Select the allowed payment types in which the current company can settle with the
    To
     company.
    Default Payment Types
    Select the default payment type in which the current company can settle with the
    To
     company.
    Bank Account
    (Electronic payments only) Select the bank account of the
    To
     company that you want the current company to use when you settle with the
    To
     company.
    Workday will default the bank account for the
    To
     company in the settlement process.The
    From
     company, the one initiating the payment, will use the bank account from the bank routing rules.
    Workday doesn't require that the
    To
     company use this bank account when they record the intercompany receipt for the transaction.
    Transfer Asset as Original
    Select to enable transfer of assets between companies. When a company receives the asset, we generate the asset with the same:
    • Accumulated depreciation.
    • In-service date.
    • Total asset cost.
    When you don't enable this option, the receiving company generates the asset with a:
    • Total asset cost equal to the net book value.
    • An in-service date specific to the receiving company.
    Record Intercompany Receipt
    Select to generate intercompany receipts automatically after the current company settles an intercompany transaction from the
    To
     company.
    Workday splits the intercompany transaction if the current company:
    • Enables
      Record Intercompany Receipt
      .
    • Receives an intercompany transaction from the
      To
       company with both matched and unmatched transactions.
    On split intercompany transactions, Workday only generates the receipt for the matched transaction. You need to record the intercompany payment manually for the unmatched intercompany transaction.
    Bank Account for Intercompany Receipt
    Select an active bank account. When you configure
    Record Intercompany Receipt
    , Workday records those automatic receipts with the listed company using the bank account you select.
    Workday doesn't automatically select this bank account when you manually create intercompany receipts.
You can now create or settle intercompany transactions with affiliated companies.
Configure your
Intercompany Payables
 and
Intercompany Receivables
 account posting rules.