Allocate the income on an A/R service invoice

Share income booked on an A/R service invoice across companies.

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What it does

Income on A/R service invoices is allocated to branch companies with intercompany postings.

When you need it: Consulting income earned by two companies together.

How it works

In the sending company, display the A/R service invoice (it must be open) and use its "Open Allocation" button.
Choose "Invoice" or "G/L" as the "Allocation Type". The top table shows the invoice lines, of which only the posting date can be changed; select a line to work on its receivers.
Pick "Amount" or "Percentage", list the receivers by "IC Branch Code" (with a "Receiver Branch Code" where they use branches) and, if wanted, an "Allocation Account" each, then choose "Add" and "Allocate".
By invoice: the sender gets one draft A/P invoice per receiver. Adding it from "Draft Documents" creates a draft A/R invoice in the receiver, carrying its default income account, which the receiver accepts or rejects.
By G/L: one journal entry per invoice line in the sender, and in each receiver a journal voucher with the sender's due-from account as debit and an income account as credit.
The sender's lower table shows each receiver's outcome: "Confirmed", document number and posting date, or the document made on rejection.

Set it up

A/R and A/P service invoices share the "Service Invoice Allocation" settings in Administration › Setup › Intercompany › General Settings: "Disable G/L Allocation" (ticked by default), "Disable Invoice Allocation", "Default Allocation Type" (Invoice by default), the three boxes that copy project, distribution rule and dimensions down from the top table, and the two posting schemas, common or differential, that govern distribution rules and project codes. Each receiver needs its receivable and payable accounts for the sender in "Branch Accounts Setup" and a default income account in "Default Accounts Setup". An allocation account named on the row always wins over the default and over any account found by classification.

Since: Version 55 (October 2025): invoice-type allocation from A/R service invoices also runs through the SAP Business One Service Layer.

Good to know

Rejecting the receiver's draft A/R invoice closes it, alerts the sender and cancels the sender's allocation A/P invoice; with G/L type, a reversing journal entry is made instead.
From 2.0 PL30, G/L-type allocations may also go to branches of the sender's own company.
Alerts and emails for this allocation have their own line, "A/R Service Invoice Allocation", in Intercompany Alerts Administration.
The receiving A/R invoice gets a tax code by itself only when that box is ticked in General Settings and code and rate match the sender's.