Infor SyteLine3 min readNetray Engineering TeamUpdated March 4, 2025

How to Set Up Intercompany Transactions in SyteLine

Intercompany transactions in SyteLine manage the buying, selling, and transferring of goods and services between entities within a multi-site or multi-company manufacturing organization. Proper intercompany configuration ensures accurate transfer pricing, automatic elimination entries, and consolidated financial reporting. This guide covers the setup of intercompany trading partners, transaction processing, and consolidation workflows in CloudSuite Industrial.

Configuring Intercompany Trading Partners

Navigate to Finance > Intercompany > Intercompany Parameters to establish trading relationships between SyteLine entities. The SL_IntercompParms IDO manages partner configuration in the intercomp_parms table. Each trading partner pair requires a selling entity (configured as a customer in the buying entity) and a buying entity (configured as a vendor in the selling entity). Define the intercompany GL accounts that capture due-to and due-from balances between entities.

Create intercompany customer records in Entity A representing Entity B as a customer for intercompany sales
Create intercompany vendor records in Entity B representing Entity A as a vendor for intercompany purchases
Configure due-to and due-from GL accounts in Intercompany Parameters for automatic balance tracking
Set the intercompany flag on customer and vendor records to enable automatic transaction matching and elimination

Setting Up Transfer Pricing and Transaction Processing

Transfer pricing rules determine the prices used for intercompany goods and services. Configure transfer pricing methods on the Intercompany Pricing form at Finance > Intercompany > Intercompany Pricing. SyteLine supports cost-plus, market-based, and negotiated transfer pricing methods. The SL_IntercompPrice IDO stores pricing rules that automatically apply when intercompany orders are created, ensuring consistent pricing that meets tax authority transfer pricing requirements.

Select the transfer pricing method: Cost Plus (e.g., standard cost + 10%), Market Price, or Negotiated Price
Configure cost-plus markup percentages on the Intercompany Pricing form for each product group or item
Set up automatic intercompany order generation when one entity creates a purchase order flagged as intercompany
Enable the Transfer Price Audit report to document pricing methodology for tax compliance requirements

Running Intercompany Elimination and Consolidation

At period end, run intercompany elimination to remove intercompany revenue, cost of goods sold, and receivable/payable balances from consolidated financial statements. Navigate to Finance > Intercompany > Intercompany Elimination to generate elimination journal entries. The SL_IntercompElim IDO processes matching transactions between entities and creates offsetting entries. The consolidation process combines financial data from all entities into a single set of consolidated statements.

Run the Intercompany Reconciliation report to verify that due-to and due-from balances match between all entity pairs
Execute the Intercompany Elimination process to generate elimination entries for revenue, COGS, and intercompany balances
Review elimination entries on the Elimination Journal Entries form before posting to the consolidated ledger
Generate consolidated financial statements using the Financial Report Writer with the consolidation entity selected

Frequently Asked Questions

How many intercompany entities can SyteLine support?

SyteLine supports unlimited intercompany entities through its multi-site and multi-entity architecture. Typical implementations range from 2-15 entities. Each entity pair requires bidirectional configuration (customer and vendor records), resulting in n*(n-1) trading partner relationships. A 5-entity organization requires 20 intercompany relationships. Performance remains optimal up to 25-30 entities with proper database indexing and elimination processing schedules.

How does SyteLine handle intercompany inventory transfers?

Intercompany inventory transfers create a sales order in the selling entity and a corresponding purchase order in the buying entity. The transfer can use standard costing, actual cost, or transfer pricing depending on configuration. Inventory moves from the selling entity's warehouse to the buying entity's warehouse with full GL tracking. Transfer lead times of 1-5 days are typical, and in-transit inventory is tracked in a designated in-transit warehouse.

What transfer pricing method is recommended for SyteLine intercompany?

Cost-plus is the most common method for manufacturing entities, typically using standard cost plus a 5-15% markup. This satisfies most tax authority requirements for arm's-length pricing. Market-based pricing is recommended when comparable transactions exist with third parties. Maintain transfer pricing documentation per OECD guidelines. SyteLine's Transfer Price Audit report generates the documentation needed for annual transfer pricing studies required in 80+ countries.

Key Takeaways

1Configuring Intercompany Trading Partners: Navigate to Finance > Intercompany > Intercompany Parameters to establish trading relationships between SyteLine entities. The SL_IntercompParms IDO manages partner configuration in the intercomp_parms table.
2Setting Up Transfer Pricing and Transaction Processing: Transfer pricing rules determine the prices used for intercompany goods and services. Configure transfer pricing methods on the Intercompany Pricing form at Finance > Intercompany > Intercompany Pricing.
3Running Intercompany Elimination and Consolidation: At period end, run intercompany elimination to remove intercompany revenue, cost of goods sold, and receivable/payable balances from consolidated financial statements. Navigate to Finance > Intercompany > Intercompany Elimination to generate elimination journal entries.

Setting up intercompany operations in SyteLine? Netray's multi-entity consultants can configure your intercompany trading partners, transfer pricing, and consolidated reporting for seamless multi-company operations.

Talk to an Expert See a Demo

Related Resources

Infor SyteLine