How does IntraCompany calculate balancing entries? Journal doesn't seem to make sense
Our intracompany balancing rule is simple, we use a single IntraCompanyAccount and then set the subaccount to be the offsetting company.
So if the original journal debits CompanyL and credits CompanyM
then the balancing entry comes out like this:
credit CompanyL-IntraCompanyAccount-CompanyM
debit CompanyM-IntraCompanyAccount-CompanyL
We have a journal that came out as shown below, and we don't understand how the intracompany entries were calculated. The IntraCo entries don't match the sum of the debits or credits nor to they match the individual lines. Documentation says it should sum by company and then offset the largest credit with the largest debit, and move along through the lines, but it doesn't seem to do that.