Inter-company Activity Capabilities

Issue/Symptom/Question

Does OU enable inter-company activity? 

Applies To

Organization Units 

Inter-company transactions 

Resolution/Fix/Answer

Yes, can charge labor from other companies.  An Employee of Company A can charge a Job created for Company B.  

PENTA does elimination entries during consolidation 

Both Company A and Company B need to have a shared Parent OU.  On occasion, a "Holding Company" as a shared parent, that doesn't really exist, is used to facilitate inter-company transactions.  It also allows for consolidation of companies so they can be reviewed together, even if the "Holding Company" is not a true Legal Entity that reports Financials.