Intercompany Sales: Implementation Activity

The following activity will walk you through the process of setting up intercompany sales between branches of two companies within the same tenant.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the Head Office of the Muffins & Cakes company has to purchase juicer installation services from the Service and Equipment Sales Center of SweetLife Fruits & Jams. An accountant of SweetLife Fruits & Jams issues an invoice to the Muffins & Cakes company for the services. The corresponding AP bill needs to be processed in Muffins & Cakes. Two documents have to be created in the system for a single transaction (AR invoice in the selling company and AP bill in the purchasing company), but the accountant does not want to enter both of them manually. To cause the system to create the AP bill automatically based on an AR invoice, the chief accountant of SweetLife has decided to use the intercompany sales functionality.

Acting as a system administrator, you need to extend the SWEEPEQUIP branch of SweetLife to be a vendor and the MHEAD branch of Muffins & Cakes to be a customer.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
    • Standard Financials
    • Multibranch Support
    • Multicompany Support
    • Advanced Financials
    • Inter-Branch Transactions
  • On the Companies (CS101500) form, the MUFFINS and SWEETLIFE companies have been defined.
  • On the Branches (CS102000) form, the SWEETEQUIP (Service and Equipment Sales Center) and MHEAD (Muffins Head Office & Wholesale Center) branches of SweetLife and Muffins & Cakes, respectively, have been defined.
  • On the Vendor Classes (AP201000) form, the INTERCO vendor class for vendors extended from companies and branches has been configured.
  • On the Customer Classes (AR201000) form, the INTERCO customer class for customers extended from companies and branches has been configured.

Process Overview

In this activity, you will review the AP and AR preferences on the Accounts Payable Preferences (AP101000) and Accounts Receivable Preferences (AR101000) forms. On the Branches (CS102000) form, you will extend the SWEETEQUIP branch to be a vendor and the MHEAD branch to be a customer. On the Vendors (AP303000) form, you will update the settings of the new vendor and on the Customers (AR303000) form, you will update the settings of the new customer.

System Preparation

Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as a system administrator Kimberly Gibbs by using the gibbs username and the 123 password.

Step 1: Reviewing the AP and AR Preferences

Before you start configuring the intercompany sales functionality, you need to review the related AP and AR preferences. Do the following:

  1. Open the Accounts Payable Preferences (AP101000) form.
  2. In the Data Entry Settings section on the General tab, review the value in the Use Intercompany Expense Account From box.

    In the box, Vendor Location is specified, meaning that the system will use the expense account specified on the Vendor Locations (AP303010) form for the vendor location selected in an AP document.

  3. Open the Accounts Receivable Preferences (AR101000) form.
  4. In the Data Entry Settings section on the General tab, review the value in the Use Intercompany Sales Account From box.

    In the box, Customer Location is specified, meaning that the system will use the sales account specified on the Customer Locations (AR303020) form for the customer location selected for the AR document.

Step 2: Extending a Branch as a Vendor

To extend the SWEETEQUIP branch as a vendor, do the following:

  1. Open the Branches (CS102000) form.
  2. In the Branch ID box, select SWEETEQUIP.
  3. On the More menu (under Company Management), click Extend as Vendor. The system opens the Vendors (AP303000) form with the appropriate settings copied from the branch to the vendor.
  4. In the Vendor Class box in the Summary area, select INTERCO.
  5. In the warning message that displays, click Yes.
  6. On the GL Accounts tab, review the settings of the MAIN location automatically created by the system.

    The account specified in the Expense Account box is 53100 - Intercompany Expenses, which has been copied from the settings of the selected vendor class. This account will be used by default in generated AP documents.

  7. On the form toolbar, click Save.
    Tip: For a branch that has been extended as a vendor, on the Branches form, the View Vendor command becomes available under Company Management on the More menu. You can click it to review the settings of the vendor created based on this branch on the Vendors form. Similarly, for a company that has been extended as a vendor, the View Vendor command becomes available on the Companies (CS101500) form.

Step 3: Extending a Branch as a Customer

To extend the MHEAD branch as a customer, do the following:

  1. Open the Branches (CS102000) form.
  2. In the Branch ID box, select MHEAD.
  3. On the More menu (under Company Management), click Extend as Customer. The system opens the Customers (AR303000) form with the appropriate settings copied from the branch to the customer.
  4. In the Customer Class box in the Summary area, select INTERCO.
  5. In the warning message that displays, click Yes.
  6. On the GL Accounts tab, review the settings of the MAIN location automatically created by the system.

    The account specified in the Sales Account box is 43000 - Related Company Sales, which has been copied from the settings of the selected customer class. The account specified in the AR Account column is 19010 - Accounts Receivable - Related Company, which has also been copied from the settings of the selected customer class. These accounts will be used by default in generated AR documents.

  7. On the form toolbar, click Save.
    Tip: For a branch that has been extended as a customer, on the Branches form, the View Customer command becomes available under Company Management on the More menu. You can click it to review the settings of the customer created based on this branch on the Customers form. Similarly, for a company that has been extended as a customer, the View Customer command becomes available on the Companies (CS101500) form.