Two Internal Transactions

This task demonstrates how a pair of internal transactions can be used to complete an internal transaction. The two-transaction model of the Internal Transaction Initiator (ITI) to Internal Transaction Agreement (ITA) allows each internal party to be responsible for their information only. Just one of the many delivered event types is used in this task to show an internal purchase where the seller recognizes revenue. Data entry will vary only slightly for the different event types. The task will also show an optional step where the 1st party can lock down the fiscal year/accounting period and budget fiscal year on the ITI.

With the entry of a single transaction 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 Transaction Initiator (ITI) transaction, perform these steps:

Create an instance of the Internal Transaction Initiator (ITI) Transaction Code.

Complete the Header tab.

Initiator: Seller/Provider

Bypass the Vendor tab, where a blank line was automatically inserted.

Navigate to the Accounting tab, where a blank line was inserted, 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 account that match an existing expense budget and any other required fields (This could vary by accounting event)

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.

The buyer is then notified by the seller that the ITI has been completed and needs to be referenced by an ITA to complete the transaction. To create an Internal Transaction Agreement (ITA) transaction, perform these steps:

Locate the ITI on the Transaction Catalog, open it, and copy it forward to an ITA transaction.

Bypass the Header and Exchange Details tabs, navigating to the 2nd Party Accounting tab. Insert a new line and enter the following (assuming interfaces 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 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.