Creating Inter Company Invoices for Streamlined Transactions

Guides & Tutorials
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Introduction

As a business user, you will find Inter Company Invoices incredibly useful when dealing with organizations within the same group. These invoices enable you to create interconnected Purchase Invoices or Sales Invoices for multiple companies. This feature is particularly beneficial in tracking transactions and maintaining records between different entities of the same business group.

Getting Started with Inter Company Invoices

To begin using Inter Company Invoices, the system first needs to identify which customers or suppliers belong to the same group. Here’s how to set up:

  1. Navigate to: Accounts > Masters > Customer.
  2. Select the Customer you want to represent in the interlinked invoice.
  3. Check the box labeled Is Internal Customer.
  4. In the Represents Company field, insert the company that the Customer represents. This will be the company for which the Sales Invoice will be created.
  5. In the Allowed To Transact With table, add the company against which you will be creating a Purchase Invoice.

Now, every time you create a Purchase Invoice for company A (where the customer is from company B, and the seller is company A), it will be linked with the Sales Invoice for company A created using this Internal Customer from company B.

Next, set up a Supplier to create interlinked invoices:

  1. Navigate to: Accounts > Masters > Supplier.
  2. Check the box labeled Is Internal Supplier.
  3. In the Represents Company field, add the same company you entered in the Allowed To Transact With table for the Customer.
  4. In the Allowed To Transact With table for the Supplier, add the company which the Customer represents. This is the company against which you’ll make an interlinked Purchase Invoice.

Creating Inter Company Invoices

After setting up the internal customer and supplier, you are ready to create an Inter Company Invoice. Here’s how:

  1. Create a new Sales Invoice and fill in the required fields.
  2. Select the Customer who is an internal customer and the company from which they’re purchasing.
  3. Save and Submit the Invoice.

Before creating an Inter Company Invoice, verify that the selling and buying prices between the companies are consistent. This can be done by creating a new Price List for inter-company transactions under Stock > Price List. Ensure the Price List is set for both Selling and Buying.

Next, navigate to Buying > Supplier > internal supplier and in the currency and price list section, set the price list to the new one just created. Repeat this step for the internal customer.

Now, under the Make button dropdown, you’ll find an option for Inter Company Invoice. Clicking this option will guide you to a new Purchase Invoice form page. The supplier and company will be auto-filled based on the company you selected in the Sales Invoice.

Submit the invoice to link the invoices. If you cancel any of the invoices, the link will disconnect.

Remember, an Inter Company invoice will only influence the accounting ledger and not the stock ledger, as the companies belong to the same group of companies.

To conclude, the Inter Company Invoices feature in Empress streamlines the process of tracking and recording transactions between different companies within the same group. This feature not only enhances business processes but also ensures accuracy and efficiency in your inter-company transactions.

For further assistance or queries, refer to our user-friendly resources or reach out to our support team.