Multipliers and Intercompany Invoices

If you use Intercompany Billing to transfer cost back to the originating company, you typically also transfer revenue back to the originating company.

When this is true, the multiplier should be greater than 1.00 because the original cost amount is being transferred along with the markup amount for revenue.

When you choose to display multipliers on intercompany invoices, DPS displays the multiplier as:

(multiplier - 1)

on the markup line. The original amount is considered to be part of the invoice total.

However, if you do not transfer cost back to the originating company, the multiplier is not adjusted on the intercompany invoice. This is likely in a case where the multiplier is a percentage of overhead that is being transferred to the company that owns the project being charged.