Allow Interagency

If granted the Apply to General Ledger - Allow Interagency security right, you can add detail lines to a disbursement or voucher that include General Ledger accounts not associated to the bank account being used (i.e. General Ledger accounts that do not share an agency with the designated bank account). This may be necessary for large organizations that encompass multiple agencies, each of which has a separate bank account.

It is important to note the following about the Allow Interagency security right:

It is only valid for detail rows where the Apply To field is set to General Ledger.
This security object only pertains to the association between the bank account and the General Ledger account. All other security checks are still in place. You must be granted rights to the bank account used for the disbursement/voucher as well as the structure associated to the detail row. Additionally, the structure must be valid for the selected General Ledger account and the entity to whom the disbursement/voucher is payable.
Users who are not granted this security right cannot void disbursements or vouchers that have interagency rows.
Users who are not granted this security right cannot edit or to copy default/recurring disbursements/vouchers that include interagency rows.

Adding Interagency Disbursements/Vouchers

Add the disbursement/voucher as you normally would. If you include a detail row applied to a General Ledger account that does not share an agency with the bank account, interagency rows are created. These rows do not display until the disbursement/voucher has been entered. To view them, click Finish and access the disbursement/voucher detail.

You can also create interagency rows by clicking the Get Allocation link label. If you have been granted the Allow Interagency security right, allocation methods and allocation structure groupings that include agencies not associated to the bank account will be available in the dropdown menus in the Get Allocation window (provided you have security access to them and the included structures are associated to the selected General Ledger account).

The following example illustrates how interagency rows are created:

A disbursement is entered for a bank account that is associated to agencies INS and OSU. The bank account's default agency is INS. The offsetting expense is associated to agencies INS, OSU, PEN, and AGN. Notice that PEN and AGN are not associated to the bank account, but the user entering the disbursement has security rights to these agencies, as well as the Apply to General Ledger - Allow Interagency security right.

Rows added to the disbursement:

Account	GL Account #	Agency	Debit	Credit
Bank Account	102	INS		1400
Bank Account	102	OSU		500
Expense Account	603	INS	1000
Expense Account	603	OSU	500
Expense Account	603	PEN	600
Expense Account	603	AGN		200

A bank account row is created for agency OSU because it is associated to the bank account. An offsetting detail row for agency OSU is also created.

A bank account row is created for agency INS because it is associated to the bank account. Additionally, the bank account row for INS covers the activity for PEN and AGN, because these agencies are not associated to the bank account, and INS is the bank account's default agency. This is why the bank account for INS is credited an additional 400 (offsetting the debit of 600 to PEN less the credit of 200 to AGN).

After you click Finish and access disbursement detail again, it will look like this:

Account	GL Account #	Agency	Debit	Credit
Bank Account	102	INS		1400
Bank Account	102	OSU		500
Expense Account	603	INS	1000
Expense Account	603	OSU	500
Expense Account	603	PEN	600
Expense Account	603	AGN		200
Interagency receivables	160 - PEN	INS	600
Interagency receivables	160 - INS	AGN	200
Interagency payables	260 - INS	PEN		600
Interagency payables	260 - AGN	INS		200

Interagency receivables and interagency payables rows are created to bring agencies INS, PEN, and AGN into balance. Notice that because OSU is associated to the bank account, no additional activity is required to balance OSU.

Because PEN was debited, INS has a receivable of 600 from PEN, and PEN has a payable of 600 to INS.

Because AGN was credited, INS has a payable of 200 to AGN, and AGN has a receivable of 200 from INS.

Default/Recurring Entries

Adding interagency rows to default/recurring disbursements/vouchers works in exactly the same way. The interagency receivables and interagency payables rows will not display in the Configure area; they will not be created until the disbursement/voucher is used in the General Ledger. Review the example above to see how the interagency rows are created. When you add a default/recurring entry in Configure that involves interagency activity, you receive the following message: "All interagency receivable and interagency payable detail rows will not be created until the entry is used." Click OK.