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.