Inter Company Invoices
Inter Company Invoices
An Inter Company Journal Invoice is done between organizations that belong to the same group.
Along with creating Purchase Invoices or Sales Invoices for a single company, you can create inter-linked invoices for multiple companies.
For example, you can create a Purchase Invoice for a company say 'Company ABC', and create a Sales Invoice against this Purchase Invoice for another company say 'Company XYZ' and link them together.
1.1 Setting up
- Go to: Accounts > Masters > Customer.
- Select the Customer who you would want to choose for the inter-linked invoice.
- Enable the checkbox, Is Internal Customer shown as follows:
- Add the company which the Customer represents in the Represents Company field. This the company for which the Sales Invoice will be created.
- In the Allowed To Transact With table, add the company against which you will be creating a Purchase Invoice.
- Now, when you create a Purchase Invoice against company A (customer is from company B, the seller is company A), it'll be linked to the Sales Invoice for company A created using this Internal Customer from company B.
- Now, you need to follow a similar procedure for setting up a Supplier for inter-linked invoices.
- Go to: Accounts > Masters > Select the Supplier
- Tick on Is Internal Supplier.
- In the Represents Company field, add the company which you added in the table Allowed To Transact With for the Customer.
- In the table Allowed To Transact With for the Supplier, add the company which the Customer represents. This is the company against which you are going to make an inter-linked Purchase Invoice.
- Here is a screenshot of the Supplier company to avoid any confusion:
1.2 Creating the Invoice
- Now, create a new Sales Invoice, fill up the fields.
- Remember to select the Customer who is an internal customer and company from which he's buying.
- Save and Submit the Invoice.
- Before you make an Inter Company Invoice you need to do the following:
- The selling and buying price between the companies should be in sync.
- Go to Stock > Price List, create a new Price List for inter company transactions.
- Tick both Selling and Buying in this new Price List.
- Go to Buying > Supplier > internal supplier, in the currency and price list section, set the price list to the new one just created.
- Do the same for the internal customer, i.e., set the price list to the new one.
- Now, you can make an inter company Purchase or Sales Invoice.
- Under the Make button dropdown, you will find a link Inter Company Invoice, on clicking the link, you will be routed to a new Purchase Invoice form page.
- Here, the supplier and company will be auto-fetched depending on the company you selected in the Sales Invoice. > Remember: There can only be a single Internal Supplier or Customer per company.
- Submit the invoice, done! Now, both the invoices are inter-linked. Also, on canceling any of the invoices, the link will break as well.
You can follow the same process to create a Purchase Invoice and then an inter-linked Sales Invoice from the submitted Purchase Invoice.
Updated on: 27/03/2023
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