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MEM Organization Structure Setup

Use this page to set up the organization structure and define when intercompany distributions are created.

Note icon. Note: You might require permission to access the setup pages and perform setup tasks. For assistance, contact your system administrator.

Set Up Parent-Child Relationships

To set up parent and child entity relationships, follow these steps: 

  1. In the Entity Code list (on left), select an entity that you want as a child entity, and select Process > Move up or Process > Move Down.
    You want to move the entity directly below the entity that you want to use as the parent entity.
  2. After the child entity is in the correct placement (below the parent entity), select Process > Indent.
    The child entity become indented below the parent entity.

    If you mistakenly made a entity a child, select Process > Outdent to return the entity to its outdented position.
  3. Repeat these steps, to create the parent and child entity relationships you want.
  4. After the parent-child relationships are created, you can choose to select to process intercompany transactions through the parent entities by specifying the Intercompany Through entities and selecting the Follow Parent check boxes.

Turn Off Intercompany

To turn off intercompany distributions, follow these steps: 

  1. In the Entity Code List (on left), select an entity that you want.
  2. In the Entity Code List (on right), select Disable Intercompany for one or more entities.

Turn Off Intercompany for Specific Transaction Types

To turn off intercompany distributions for several transaction types between two entities, follow these steps: 

  1. In the Entity Code List (on left), select an entity that you want.
  2. In the Entity Code List (on right), select an entity.
  3. Select Process > Advance Disable.
  4. In the Disable Intercompany by Source Code page, select the transaction code types for which you want to disable intercompany distributions between the two entities.
    You can disable intercompany distributions for General Journal, sales, purchasing, inventory, and fixed assets transactions.
  5. Select Close.

Fields

This page contains the following fields: 

Field Description
Entity Code List (Left)
 

Displays a list of all entities. In this list, you create the parent-child relationships between entities.

  • A parent entity has not indent and is in the left most position.
  • A subentity (or child entity) is indented below a parent entity.
Entity Code List (Right)
 

Displays a list of child or other entities based on the entity selected on the left. In this list, the following options are available: 
Disable Intercompany Select to turn off the intercompany distributions for the selected entities
Intercompany Through Select the top entity that is involved in the intercompany transactions.
Follow Parents

This option can be used when Intercompany Through has a value.

  • Selected: Processes intercompany transactions through the parent entities of the parent-child relationships.
  • Cleared: Processes intercompany transactions directly between the entities and bypass the parent entities.
Through Parent-to-Parent

This option can be used when Intercompany Through has a value.

  • Selected: When intercompany transactions are processed through a common parent entity, all child entities are included.
  • Cleared: When intercompany transactions are processed through a common parent entity, only the entities of the transaction are included.

The organization structure of an entity is as follows: 

  • Parent entity: 100; child entities: 300 and 200.
  • Parent entity: 300; child entities: 400 and 500.
  • Parent entity: 200; child entities: 600 and 700.

A transaction is processed where entity 100 pays for an expense for entity 700. The intercompany distribution is as follows: 

Debit Credit     Entity
Expense   100.00   700
  AP   100.00 100
Due from 200   100.00   100
  Due to 100   100.00 200
Due from 700   100.00   200
  Due to 200   100.00 700

Actions

The following actions are available: 

Action Description
Process
Advance Disable Disables intercompany distributions for different transactions types between two entities.
Move Up Moves the entity up in the entity list.
Move Down Moves the entity down in the entity list.
Indent Creates a parent-child relationship between entities. When an entity is indented, the indented entity becomes the child of the outdented entity.
Outdent Removes a parent-child relationship between entities. When an entity is outdented, the outdented entity is not longer a child of the entity that was previously the parent entity.