Single Internal Transaction
This task demonstrates how a single internal transaction can be used to enter account information all internal parties involved in a purchase, transfer, loan, or other internal accounting event. Just one of the many delivered event types is used to show an internal purchase where the seller receives an expenditure credit. Data entry will vary only slightly for the different event types. The task will also show an optional step where the buyer encumbered funds for the purchase beforehand.
With the entry of the Internal Exchange Transaction (IET) by one of the two parties, it is implied that the one party knows how to correctly complete the transaction with the other party’s information. If the seller/provider is completing the transaction, they have to know the COA distribution(s) of the buyer. The seller will know the price and will know how the proceeds should be recognized (event type choice.) If the buyer enters the transaction, the buyer not only has to know the COA distribution(s) of the seller but also how the seller wants to record the proceeds.
To create an Internal Exchange Transaction (IET) transaction, perform these steps:
Create an instance of the Internal Exchange Transaction Code.
Complete the Header tab.
Initiator: Seller/Provider
Navigate to the Exchange Details tab, insert a line, and enter the following:
Line Amount: $1000.00 (the amount of the internal purchase)
Event Type: IN01 (This would vary by accounting event)
COA: Enter chart of accounts that match an existing expense budget and any other required fields (This could vary by accounting event)
Navigate to the 2nd Party Accounting tab, insert a new line, and enter the following (assuming inferences from a referenced transaction, else Line Amount and COA would have to be entered).
Line Amount: $1000.00 (the amount of the internal purchase)
Referenced Transaction Code, Referenced Transaction Department, Referenced Transaction Code, Referenced Transaction Department, Referenced Transaction ID, Referenced Vendor Line, and Referenced Accounting Line of the GAE entered by the buyer to reserve budget for the purchase.
Reference Type: Partial
Validate the transaction.
If errors exist, fix the errors and repeat Step 5. If no errors exist, then continue with Step 7.
Submit the transaction.
