Intercompany Billing
If you use multiple companies, you can share employees among companies and maintain accounting for both labor and expense charges associated with shared work efforts.
For example, an employee from one company can charge time to another company's project on a timesheet or charge travel expenses to another company's project on an expense report. Use intercompany billing to track these charges.
Until you run the intercompany billing process, the charges are kept in the appropriate intercompany suspense accounts. When you run the process, Deltek does the following:
- Creates the appropriate accounts receivable and accounts payable entries
- Clears the intercompany suspense accounts
- Makes the appropriate transfer pricing entries that you have established
In addition, you can enable detailed subledgers and configure intercompany billing so that it generates intercompany invoices and accounts payable vouchers, which are then available for posting in the Transaction Center.
These intercompany invoices and accounts payable vouchers do not affect the general ledger, but they will reconcile to the intercompany accounts receivable and intercompany accounts payable accounts that you establish. The subledgers help you track the intercompany transactions in detail, reconcile the intercompany accounts, and offer an ”arm’s length” payment and receipt function.
Before you use intercompany billing, you complete configuration steps to support its processes.
If you bill timesheet postings in intercompany billing and later adjust the original cost basis of those postings by running the adjust salaried job costing process on the timesheet postings, it results in intercompany reconciliation problems. To help avoid such reconciliation problems, a warning message displays in intercompany billing if salaried job costing is enabled and any timesheet postings that are available for intercompany billing have not been adjusted by that process. If you are not adjusting the timesheet postings, you can ignore the message.