Configured Hub Intercompany Settlement Method revisited
When I last tried to implement Configured Hub as the Intercompany settlement method, the year was 2005, the latest release of JD Edwards was 8.11 and Configured Hub was just added as new functionality. While the idea of a Configured Hub was attractive, it lacked tight integration in the AP, AR and PO modules. This created too many possibilities for errors and made it impractical to implement. The issue was that in non-GL modules, the system would allow users to enter transactions that crossed hubs. The error would only be pointed out during batch posting. But by then the transaction already existed, and had to be voided.
Fast forward to 2010 and release 9.0 of JD Edwards. I recently re-tested the Configured Hub functionality to see if the integration between the above-mentioned modules has been improved.
The verdict: there has definitely been improvement. Now the system prevents users from crossing hubs during the transaction entry – at least in GL, AP and AR. The Procurement module still let me enter a PO that crossed hubs, but then caught the error during PO Receipt.
The integration between modules is good enough that I can now recommend the Configured Hub as an alternative to the Hub or the Detail methods of intercompany settlements. It’s a great option for multi-national companies where transactions should not co-mingle between certain groups of companies.