Intercompany Funds Transfers: General Information

It may happen that you need to transfer funds from one company to another one within one tenant. When you enter an intercompany funds transfer on the Funds Transfers (CA301000) form, you perform the same steps as you do when you add a funds transfer of a single company, specifying the correct source account and destination account.

On posting of an intercompany transaction related to a funds transfer, an intercompany transfer, the system adds balancing entries to the batch according to the account mapping rules that have been specified in the system. For details, see Interbranch Account Mapping: General Information.

Learning Objectives

In this chapter, you will learn how to process a funds transfer between companies.

Applicable Scenarios

You create intercompany funds transfers in the following cases:

• If you want to redistribute funds among companies of your organization. For example, at the end of the financial period, the companies reconcile their due-to and due-from amounts to pay each other. This process is described in Intercompany Funds Transfers: Process Activity.
• If you want to transfer funds between companies that use different base currencies. In this case, you process two payments: an outgoing payment in the source company and an incoming payment in the destination company.