Checklist: Setting Up Intercompany Billing
Use the checklist to set up Intercompany Billing.
Step | Description |
---|---|
1 | Decide on your Intercompany Billing approach. |
2 | Agree on an internal transfer price. |
3 | Set up new General Ledger accounts, to be used for journal entries (if you plan to move revenue or overhead). |
4 | Create an
intercompany suspense
account. When a transaction involves another company, some time will pass between the transaction posting and the point at which you actually run the intercompany billing process. To support the need to balance
accounts in the meantime,
DPS posts to the intercompany suspense
account.
Running the intercompany billing process and posting the transaction entry files created by intercompany billing clears this suspense account and allocates amounts to intercompany accounts payable and intercompany accounts receivable accounts, according to the setup information that you specify. Depending on your configuration settings, you may also create invoices, vouchers, labor adjustments, journal entries, and/or cost transfers. |
5 | Specify an intercompany organization so that DPS knows how to handle implicit entries. |
6 | Configure the
Select the options that support your intercompany billing approach:
Specify debit and credit account numbers. Select the global rate methods and related settings, such as multipliers, and, if necessary, enter override settings for specific pairs of companies. (You can override these global settings on a project-by-project basis, and you can also override multipliers at the organization level.) |
settings for intercompany billing:
7 | If you select the Create Labor Adjustment to transfer Labor to originating Company and/or Create Journal Entry options for any project types on the tabs of the Intercompany Billing Setup form in Advanced Accounting Settings, you also need to set up "transfer to" and "transfer from" projects, on the Intercompany Billing tab of Individual Organization Setup. |
8 | Create one or more special
projects for use with Intercompany Billing. The journal entry and
labor adjustment transactions use special
projects to direct accounting entries to a company's General Ledger. The special
project's charge type, specified on the Accounting Tab of the
Projects hub, must match the type of entry made for the
project:
Assign each project to a single company; that company is responsible for leading the project even if it does not "own" all the phases and tasks. When labor is posted, the labor cost is charged to this company. You assign projects to companies through your organization structure. |