Inter-entity transaction FAQs

In multi-entity companies, it's common for one entity to have transactions with another entity in the same company. This is known as an inter-entity transaction (IET). To enable these transactions, you need to first set up inter-entity account mapping relationships, using the Inter-entity account mapping page (Company > Setup > Configuration > Inter-entity account settings > Inter-entity account mapping).

For details, see Inter-entity account mapping plans.

How do I enable or disable inter-entity transactions?

You can enable and disable inter-entity transactions on the Manage multiple entities page. Enabling or disabling inter-entity transactions is a global setting. That means it applies to all entities within your company. If you have enabled inter-entity transactions but want to be able to avoid them in some instances, set up bank accounts at the entity level.

How do I pay AP supplier invoices with inter-entity transactions?

When paying AP supplier invoices, you can filter for multi-entity AP supplier invoices by going to Accounts Payable > All > Pay AP supplier invoices and selecting the relevant advance filter:

  • Entities to pay: View AP supplier invoices between entities that have a defined business relationship. After you apply this filter, the resulting list includes AP supplier invoices associated with the selected entities. The entire AP supplier invoice is returned in the filter results, not just individual line items associated with the entity.
  • Multi-entity AP supplier invoices: You can opt to include or exclude AP supplier invoices depending on whether they have multi-entity line items.
    • Include: Include AP supplier invoices that have multi-entity line items so long as one line item meets the criteria.
    • Exclude: exclude AP supplier invoices that have multi-entity line items even though one or more line items meet the criteria
    • Only: show only AP supplier invoices that have multi-entity line items; AP supplier invoices with multiple line items for the same entity are excluded.

    After you apply the filter, the Pay AP supplier invoices list displays AP supplier invoices at both the top level and the entity level.

  • Show top-level transactions: Select this checkbox to include AP supplier invoices created at the top level that are tagged to your entity. If this checkbox isn’t selected, you’ll only see AP supplier invoices created at the entity level.

What journals are affected by enabling auto-inter-entity transactions?

  • Journals
  • Adjusting Journals
  • Recurring journals

How many journal entries are booked per IET, and which dimensions are used?

Inter-entity transactions are streamlined by:

  • Booking IETs in one journal entry, rather than multiple.
  • Preventing dimensions, other than the Location dimension, from flowing to IETs.

Inter-entity transaction entries are balanced by entity.

What if I don't see any way to specify a source entity on any of my journal entry pages?

Select Enable inter-entity transactions in Multi-Entity Management. Go to Company > Admin > Subscriptions. On the Subscriptions page, click Multi-Entity Management, then click Configure.

How can I report on inter-entity transactions?

If you subscribe to Customization Services or Platform Services, you can generate a custom report that will give you details of inter-entity transactions at the GL level. You can customize this report to your liking, and also decide how far you want to drill down. The custom report writer leads you through all the steps involved. You can get visibility into each inter-entity transaction, such as:

  • which entity is the payer and which entity is the payee,
  • which supplier or customer the payment was associated with,
  • other source dimension data such as the source department, class, project, and more.
Before you run an inter-entity transaction report, you need to install the report package.
  1. Do one of the following:
    • If you are subscribed to Customization Services, go to Customization Services > Setup > Custom reports.
    • If you are subscribed to Platform Services, go to Platform Services > All Custom reports.
  2. In the Custom reports list, locate the Inter-entity transactions report and click Duplicate next to it.

    The Custom Report Writer opens.

  3. In the Select data source step, select Inter-entity transactions from the drop down menu.
  4. In the Add columns step, select the data columns you want the report to display. Select any columns you want, but be sure to include:
    • Inter-entity transactions
    • Source GL entry

    You can also select Department, GL Account, GL batch, and Location. For details on the available columns, see Custom report objects—Inter-entity transactions and Inter-entity transaction objects.

  5. Follow the steps to finish configuring your report.

See Use Custom Report Writer Wizard—CRWZ for more information about creating and using a custom report.

What does "Not Owned" mean?

In a multi-entity company, shared records such as customers, suppliers, and other items can be edited only at the top level of a company. Some journal transactions, for example, recurring journal entries created at the top level, are also owned at the top and can't be edited from within an entity.

If you display the list of shared records (customer, supplier, or entry) within an entity, you can see the shared records in the list. However, these will be listed as Not owned by the entity and the Edit option won't appear. Move to the top level, which owns the record, to make any changes.