Intercompany feature
Share costs across companies, and pay suppliers from one place
Allocate expenses and income to the companies they belong to, with the intercompany postings made for you, and let head office pay suppliers for the group.
- G/L and service-invoice allocations
- Templates and recurring postings
- From $240 per user a year
| Receiving company | Account | Amount (USD) |
|---|---|---|
| Sample Subsidiary B | Intercompany expense | 250 |
| Sample Subsidiary C | Intercompany expense | 350 |
| Sample Subsidiary D | Intercompany expense | 400 |
| Allocated | 1,000 |
BalancedMonthly template
The problem
Recharges by hand
A management fee, an audit or a marketing campaign is paid by head office and belongs to several companies. Recharged by hand, each company needs its own journal entry, the amounts owed between companies stop matching, and suppliers are paid from five bank accounts.
How it works
One allocation, balanced postings everywhere
Head office records a management fee of USD 1,000 and allocates USD 250, 350 and 400 to subsidiaries B, C and D. Intercompany posts the amounts due from each subsidiary in head office, and the intercompany expense and the amount due to head office in each subsidiary. A subsidiary can also hand a supplier invoice to head office, which pays it; the postings between the two are made automatically.
Payment made centrally
Benefits
Why groups use it
Details
Everything allocations and central payments covers
In Financials › G/L Branch Allocation, each top line (an expense as a credit, income as a debit) is split across receivers by amount or percentage, and a receiver may appear more than once. The sender posts one journal entry per line against the due-from or due-to accounts, and each receiver gets a journal voucher or entry. The receiving account is the row's allocation account, else a classified default, else the default expense or income account.
The "G/L Allocation Posting Templates" window stores a split by percentage under a short code, for allocations where only the amounts change. In "G/L Branch Allocation" you pick the template type and code instead of retyping the receivers.
A recurring posting has a frequency (days, weekday or day of month), a next execution date and an optional end date. Due instances appear in a confirmation list, which can open by itself when the add-on connects, and each one is executed or removed by a user.
Where allocations arrive as journal vouchers, the receiver sets each one to accept or reject. A rejection closes the voucher, alerts the sender and posts a reversing journal entry in the sender, shown against that receiver's row.
Choose "Open Allocation" on an A/P service invoice, then allocate by invoice or by G/L. By invoice, the sender's draft A/R invoice turns into draft A/P invoices in the receivers; by G/L, each receiver gets a journal voucher. General Settings decide which types are offered, and G/L type is switched off until enabled.
The same Allocation window on an A/R service invoice shares income out to other companies. By invoice, the sender's draft A/P invoice becomes a draft A/R invoice in every receiver; by G/L, each receiver gets a journal voucher crediting an income account.
In Outgoing Payments, a subsidiary delegates the payment lines of a global vendor to another company, which finds them under Incoming Delegation and pays the supplier. Postings to the intercompany receivable and payable accounts are made on both sides, and Payment Detail shows the subsidiary what was paid.
A company marked as the treasury company loads the open A/P invoices of a global vendor from every subsidiary in Intercompany Vendor Payment and pays them in one place. Each subsidiary's invoice is closed by an automatic journal entry against the due-to account.
An incoming payment of type Account, with the other company in Receiver IC Branch, credits the due-from account for that company. A draft outgoing payment against the due-to account is then created in the other company, ready to post.
Videos
See it in SAP Business One
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