Intercompany Billing Setup Overview
If your firm uses multiple companies, you can share employees among companies while you maintain accounting for both labor and expense charges associated with shared work efforts.
You can share and track:
- Labor Charges — For example, an employee from one company can charge time to another company's project, phase, or task on his or her timesheet.
- Expense Charges — Similarly, the employee can charge travel, meals, and other expenses to another company's project on his or her expense report, or a company could incur a voucher, miscellaneous expense, or some other expense for another company's project.
Intercompany Billing configuration is an enterprise-wide application. You set it up for all companies. See the Concepts section of the help for background information.
Subledger Terms and Taxes
If you use detailed subledgers, you specify the tax codes that apply to intercompany transactions in the Invoice section and Voucher section on the Subledger Terms tab.
Settings on the Tax Codes form () for the tax codes you select in the Invoice section control how DPS applies taxes to intercompany transactions. For each tax code that you use for intercompany transactions, you indicate whether or not it applies to each of these types of transactions:
- Labor transactions
- Expense transactions
- Balance sheet transactions
You can also exempt transactions involving specific non-labor accounts from a tax. For example, if you normally apply a value added tax (VAT) to balance sheet transactions but you do not want to apply the tax to rent transactions between two of your companies, you can set up that tax code so that the tax is not calculated for a transaction that involves the rent accounts. Such an exemption applies to both the cost and any markup for the transaction.