Intercompany Billing Overview

If your firm uses the Multicompany feature, 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. Intercompany Billing makes it possible for you to track these charges.

Until you run Intercompany Billing, the charges are kept in the appropriate Intercompany Suspense accounts. When you run the Intercompany Billing process, Vision creates the appropriate accounts receivable and accounts payable entries, clears the Intercompany Suspense accounts, and makes the appropriate transfer pricing entries you have established.

In addition, you can enable the Detailed Subledgers feature and configure Intercompany Billing to generate intercompany invoices and accounts payable vouchers, which are then available for posting from 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 you establish in Vision. The subledgers are designed to help you track intercompany transactions in detail, reconcile the intercompany accounts and to offer an ”arm’s length” payment and receipt function.

Before you use Intercompany Billing, you must configure Vision 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, if the salaried job cost feature is enabled, Vision displays a warning message in Intercompany Billing if any timesheet postings that are available for intercompany billing have not been adjusted by the Adjust Salaried Job Costing process. If you are not going to adjust the timesheet postings, you can ignore the message.