Accounts Payable Certification Practice Test

What two prerequisites are needed to generate intercompany receivables and payables after the Generate Intercompany Allocations process is run?

1. Run the process Transfer Intercompany transactions

2. Assign "Generate intercompany invoice" to Legal Jurisdiction

3. Enable supplier site primary pay flag

4. Allow manual approvals for the transaction type

The correct answer is: Run the process Transfer Intercompany transactions

To generate intercompany receivables and payables after the Generate Intercompany Allocations process is completed, it is necessary to run the process for transferring intercompany transactions. This step is critical because it ensures that the transactions between different entities within the organization are correctly recorded and accounted for in both company ledgers. When intercompany allocations are generated, they create entries that need to be transferred into the financial systems of the respective companies involved. Running the Transfer Intercompany transactions process facilitates this transfer, allowing for the proper tracking of receivables and payables that arise from intercompany dealings. The other options pertain to various configurations and settings that may influence transaction processing but do not directly relate to the specific requirement of generating intercompany receivables and payables following the allocation process. However, they may play a role in the broader context of intercompany transaction management.