Question

Your customer is having issues transferring intercompany transactions to General Ledger.Identify three reasons for this.

a) The intercompany period is closed.
b) The intercompany transaction is not approved.
c) If they are different, then the exchange rate is missing between the intercompany and general ledger currency.

Answer 1

Transferring intercompany transactions to the General Ledger may be hindered by a closed intercompany period, lack of approval for the transaction, or the absence of a necessary exchange rate between differing currencies.

Step-by-step explanation:

The student is experiencing issues with transferring intercompany transactions to the General Ledger. There are several potential reasons for these problems, three of which could be:

1. The intercompany period is closed, preventing any new transactions from being recorded in that period.
2. The intercompany transaction is not approved, meaning it has not gone through the necessary review process to be deemed accurate and ready for posting to the General Ledger.
3. If the intercompany's operational currency differs from the General Ledger's currency, then the necessary exchange rate might be missing, impeding the transaction's transfer and conversion into the appropriate currency.

Understanding these potential issues will help ensure that intercompany transactions are properly recorded and transferred to the General Ledger.