SyteLine Intercompany Accounting Configuration Guide
Intercompany accounting in SyteLine manages financial transactions between separate legal entities operating within the same SyteLine environment. When one entity sells goods or services to another, intercompany transactions must be recorded in both entities and eliminated during consolidation. This guide covers the configuration of intercompany parameters, transaction processing, and elimination workflows.
Intercompany Entity Configuration
Intercompany processing in SyteLine requires each legal entity to be configured as a separate site with its own chart of accounts and GL parameters. The Intercompany Parameters form defines the relationships between entities, including the intercompany AR and AP accounts used for due-to/due-from balances. The SLIntercompany IDO manages the intercompany transaction rules that control how transactions originating in one entity automatically generate corresponding entries in the partner entity.
- Configure each legal entity as a separate site with independent GL parameters and chart of accounts
- Define intercompany relationships on the Intercompany Parameters form linking source and destination entities
- Set up intercompany AR accounts (due-from) and AP accounts (due-to) for each entity pair relationship
- Configure intercompany pricing rules: at cost, standard cost plus markup, or negotiated transfer price
- Enable automatic intercompany transaction generation so that entries in one entity create corresponding entries in the partner
Intercompany Transaction Processing
Intercompany transactions in SyteLine include inventory transfers between entities, shared service allocations, and intercompany sales orders. When Entity A ships inventory to Entity B, Entity A records an intercompany sale (debit IC AR, credit revenue) and Entity B records an intercompany purchase (debit inventory, credit IC AP). The intercompany_trans table tracks these paired transactions to ensure both sides balance before period close.
- Intercompany inventory transfers generate paired sale/purchase entries in both entity general ledgers
- Shared service cost allocations use intercompany journal entries with predefined allocation percentages
- Intercompany sales orders follow the standard CO process but post to intercompany revenue and receivable accounts
- The Intercompany Matching Report verifies that IC AR in Entity A equals IC AP in Entity B for each pair
- Unmatched intercompany transactions must be resolved before period close to ensure balanced consolidation
Elimination and Consolidated Reporting
Consolidation requires eliminating intercompany balances and transactions to present the combined entities as a single economic unit. SyteLine's consolidation process generates elimination journal entries that offset intercompany revenue against intercompany cost, and net the IC AR/AP due-to/due-from balances to zero. The consolidated financial statements combine all entity trial balances with elimination entries applied.
- Run the Intercompany Elimination utility to generate journal entries that offset IC balances across entities
- Elimination entries remove intercompany revenue and cost to prevent double-counting in consolidated P&L
- Due-to/due-from elimination nets IC AR and IC AP balances to zero on the consolidated balance sheet
- Intercompany profit in inventory (markup on IC transfers) must be eliminated from ending inventory balances
- Generate consolidated financial statements using the Financial Reporter with elimination entries included
Set up intercompany accounting correctly in SyteLine—consult with our multi-entity configuration specialists.
Related Resources
SyteLine Multi-Company Setup and Administration
Configure SyteLine multi-company environments. Intercompany transactions, shared master data, consolidated reporting, and site administration.
Infor SyteLineSyteLine Chart of Accounts Design Guide
Design an effective chart of accounts in Infor SyteLine with best practices for account structure, segmentation, and financial reporting configuration.
Infor SyteLineSyteLine Period Close Checklist Guide
Execute month-end and year-end close in Infor SyteLine with a detailed checklist covering subledger reconciliation, accruals, GL close, and reporting.