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Wed, August, 7th 2024
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Jeremy Bull *MUGA
BC:

Forum Question/Topic:

Article:

Intercompany invoices (division A billing division B for services)

Curious to know what we're missing / how others manage this scenario. Scenario is that Division A has provided services to Division B and needs to invoice them for the time and materials (this is not traditional internal invoicing as there's no DO). The perfect end-state would be that after the AR is raised in Division A, a matching AP entry is made in Division B. When Division B runs their next payment proposal, the invoice is picked up and paid (payment would really be a bank account  Read more...transfer).

If I don't think of this as an internal transaction, this is basically a Charge-only customer order type. However, I want to believe there's something fancier in M3 that doesn't necessitate the creation of a dummy Customer (that Division A receives against), or entry of an AP invoice against a dummy supplier in Division B (to pay against). I'd like to involve Division B as much as possible aside from executing the payment proposal. Show less...
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Jeremy Bull
Are we really the only international company here? No one does cross-division payments? (lucky!)
Elise Sheppard
hahaha I'm sure others do. We probably SHOULD--one business unit sends POs to the other, we create COs, send acknowledgements, ship, and invoice. But we didn't split them out as separate divisions. So we are our own customer and our own vendor.
William Bolin
Hi Jeremy, I'm not really an expert on this topic, but I'll take a swing at it if no one else will. I don't think there is anything fancier than what you described. It is an internal transaction via multi-unit coordination functionality, even if it's just a charge CO. That's the mechanism for handling the functional pieces and transferring everything around the AP and AR ledgers. That does necessitate creating "dummy" customer and supplier records, but that's ok since the  Read more...divisions are separate legal entities that do actually have a customer/ supplier relationship with each other. Show less...
Karen LeGeyt
HI we use ARS120 to create manual invoices for the affiliated divisions where we are billing for something other than product -- it works out ok for us. May not be super fancy but it gets it done.

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