Intercompany Sales: To Pay an Intercompany Bill

The following activity will walk you through the payment of an intercompany bill between branches of two companies within the same tenant.

Story

Suppose that the Head Office of the Muffins & Cakes company (MHEAD) that purchased juicer installation services from the SWEETEQIUP branch of SweetLife Fruits & Jams decided to pay for the services on February 15, 2024.

Acting as an accountant of Muffins & Cakes, you have to pay the previously created bill in the amount of $250.

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 and MHEAD branches have been defined.

Process Overview

In this activity, on the Bills and Adjustments (AP301000) form, you will open the bill you are going to pay and click Pay on the form toolbar. On the Checks and Payments (AP302000) form, you will review the created payment and click Print/Process. You will then print the payment on the Process Payments / Print Checks (AP505000) form and release it on the Release Payments (AP505200) form. Finally, you will review the generated GL transaction on the Journal Transactions (GL301000) form.

System Preparation

Before you begin performing the steps of this activity, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant Nenad Pasic by using the pasic username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 2/15/2024. If a different date is displayed, click the Business Date menu button, and select 2/15/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the Muffins Head Office & Wholesale Center branch.
  4. Make sure the SWEETEQUIP branch has been extended as a vendor and the MHEAD branch has been extended as a customer, as described in Intercompany Sales: Implementation Activity.
  5. Make sure the intercompany invoice and an AP bill based on it have been processed, as described in Intercompany Sales: To Process an Intercompany Invoice.

Step: Paying an AP Bill Between Branches of Different Companies

To pay the AP bill that was automatically generated from an AR invoice that recorded an intercompany sales of services, do the following:

  1. Open the Bills and Adjustments (AP301000) form.
  2. In the Reference Nbr. box, select a bill for the SWEETEQUIP vendor and the amount of $250.
  3. On the form toolbar, click Pay. The system navigates to the Checks and Payments (AP302000) form.
  4. In the Summary area, review the settings of the created payment. Make sure that the 10200MF - Muffins Checking account is selected in the Cash Account box.
  5. On the Documents to Apply tab, make sure that the system has added the AP bill in the amount of $250, which you are going to pay.
  6. On the form toolbar, click Remove Hold to give the payment the Pending Print status.
  7. On the form toolbar, click Print/Process.

    The system navigates to the Process Payments / Print Checks (AP505000) form.

  8. Review the details of the payment selected in the row with the unlabeled check box selected for it.
  9. On the form toolbar, click Process.

    A separate browser tab is opened showing the printable version of the payment.

  10. Review the printable version of the payment and close the browser tab. (For the purposes of this activity, you do not need to actually print the check.)
  11. On the Release Payments (AP505200) form, which the system has opened, review the details of the payment you are going to release.
  12. On the form toolbar, click Process.
  13. Open the Checks and Payments (AP3020PL) list of records.
  14. Open the payment you have just released. (It should be the top record in the table and have the Closed status.)
  15. On the Financial tab, click the link in the Batch Nbr. column to review the batch generated by the system.
  16. On the Journal Transactions (GL301000) form that the system opens, review the batch details.

    When the payment was released, the GL account associated with the cash account of the MHEAD branch (10200 - Company Checking Account) was credited in the amount of the payment. The 26010 - Accounts Payable - Related Company account specified in the bill was debited in the total amount of the bill.