RisingERP - Inter-Company Invoices

Inter-Company Invoices

An Inter-Company Journal Invoice facilitates transactions between organizations belonging to the same group.

In addition to generating Purchase Invoices or Sales Invoices for a single company, you have the capability to create interconnected invoices spanning multiple companies.

1. How to Create Inter-Company Invoices

1.1 Setting Up

1. Navigate to: Accounts > Masters > Customer.
2. Select the customer intended for the inter-linked invoice.
3. Enable the checkbox "Is Internal Customer"
4. Specify the company represented by the customer in the "Represents Company" field. This is the company for which the Sales Invoice will be generated.
5. In the "Allowed To Transact With" table, add the company against which you will create a Purchase Invoice.

Repeat a similar procedure for setting up a Supplier for inter-linked invoices:

1. Go to: Accounts > Masters > Select the Supplier.
2. Tick "Is Internal Supplier."
3. In the "Represents Company" field, add the company specified in the "Allowed To Transact With" table for the Customer.
4. In the "Allowed To Transact With" table for the Supplier, add the company represented by the Customer. This is the company for which you are creating an inter-linked Purchase Invoice.

1.2 Creating the Invoice

Now, proceed to create a new Sales Invoice and fill in the necessary fields. Ensure you select the internal customer and the company from which the customer is making the purchase. Save and submit the invoice.

Before initiating an Inter-Company Invoice, follow these steps:

1. Ensure selling and buying prices between the companies are synchronized.
2. Go to Stock > Price List and create a new Price List specifically for inter-company transactions.
3. Tick both Selling and Buying in this new Price List.
4. In Buying > Supplier > internal supplier, in the currency and price list section, set the price list to the newly created one.
5. Do the same for the internal customer; set the price list to the new one.

Now, you can proceed to create an Inter-Company Purchase or Sales Invoice:

1. Under the "Make" button dropdown, find the link "Inter-Company Invoice."
2. Clicking the link will redirect you to a new Purchase Invoice form page.
3. The supplier and company will be auto-fetched based on the company selected in the Sales Invoice. Note: There can only be a single Internal Supplier or Customer per company.
4. Submit the invoice, and both invoices are now inter-linked. Cancelling either of the invoices will break the link as well.

Note: An Inter-Company invoice affects only the accounting ledger and not the stock ledger, as the companies belong to the same group of companies.

You can replicate this process to create a Purchase Invoice and subsequently an inter-linked Sales Invoice from the submitted Purchase Invoice.