Intercompany Balancing (ICO) is used to maintain separately balanced groups of accounts within a single general ledger. A single segment in the account structure is identified as the company segment. The values in the segment create a balanced group of accounts, and are used to generate separate financial statements within Microsoft Dynamics™ GP.

Typically, ICO is used by a company that processes payables and/or payroll on behalf of its subsidiaries. For instance: a company with several subsidiaries selling products can identify a company segment with the subsidiaries beneath them. The amounts paid by the company segment are then charged to the subsidiaries in the form of Due To and Due From accounts. Whether it’s commissions owed or unpaid inventory, the balancing process will eliminate the headaches of managing multiple companies.

Intercompany Balancing is easy to implement and manage. Intercompany transactions are created for all journal entries involving two or more company accounts during general ledger posting including: entries originating from any Dynamics GP series, (Financial, Sales, Purchasing, Inventory, etc.)