Analyzing the Intercompany Billing Detail Report

To make sure that intercompany billing methods are set up correctly, preview and analyze the Intercompany Billing Detail report before you process a final run.

As you review the report, consider these questions:

• Are factors reasonable and consistent with policy?
• Have employees charged overhead projects outside their home company?
• Are there employees or projects in the wrong company?

In working with the report, you will see these terms:

• Originating organization: For labor transactions, this is the company to which the employee belongs, via organization codes. For expense transactions, the company that did the expense posting.
• Target organization: This is the company that owns the project charged for the labor or expenses. Ownership of WBS elements is determined by organization codes.

Cash receipts are the exceptions to these organization descriptions. Cash receipts work in the opposite way. The company that posts the cash receipt (the company that receives the cash) has to distribute cash back to the companies (based on the invoices or projects entered) for the cash receipt line items.

Intercompany cash receipt postings are not available in Intercompany Billing from the company that posted the cash receipt. Instead, the cash receipt is available for processing in Intercompany Billing from the various companies involved in the intercompany transaction. This means that the same cash receipt posting log can be processed multiple times (for each of the companies involved) if multiple companies are entered in a single cash receipt posting. Deltek saves the intercompany billing run status of Unprocessed or Processed on a company-by-company basis for cash receipts.

This exception supports the Detailed Subledgers feature. For example, if company A receives cash on behalf of company B, company B should be the company generating the intercompany invoice, not company A (because they posted the receipt).