When attempting to create an Intercompany Journal Entry, an error message appears stating: “Elimination settings for the journal line, account, and name do not match,” even though a vendor and customer have been selected for Accounts Receivable (A/R) and Accounts Payable (A/P) type accounts.
Root Causes:
- The error occurs if there is no intercompany vendor or customer associated with A/R and A/P type accounts set for automatic elimination in intercompany transactions.
- The Represents Subsidiary field on the entity record (Customer/Vendor) is blank. This field is required for the correct processing of intercompany transactions.
Before manually creating intercompany customers and vendors, customize the customer and vendor forms to include the Represents Subsidiary field. This field is mandatory for the setup of intercompany transactions.
- Go to Customization > Forms > Transaction Forms.
- Select the customer or vendor form you wish to customize.
- Add the Represents Subsidiary field to the form and ensure it is marked as a required field.
- Save the changes to the form.
Create Intercompany Customer:
- Go to Lists > Relationships > Customers > New.
- Ensure the Represents Subsidiary field is filled out with the appropriate subsidiary.
- Fill out other necessary details and save the customer record.
Create Intercompany Vendor:
- Go to Lists > Relationships > Vendors > New.
- Ensure the Represents Subsidiary field is filled out with the appropriate subsidiary.
- Fill out other necessary details and save the vendor record.
By ensuring that all necessary fields are filled out and intercompany entities are properly set up, you can prevent the error and successfully create intercompany journal entries.
Additional Notes:
- Ensure that all intercompany accounts (A/R and A/P) are properly configured to include the correct elimination settings and associated entities.
- Regularly verify the Represents Subsidiary field on all intercompany customers and vendors to prevent similar issues in future transactions.
Implementing these steps will help to eliminate the error and ensure that intercompany journal entries are processed smoothly.