Intercompany Sales: To Pay an Intercompany Invoice

The following activity will walk you through the process of creating a payment for an intercompany invoice.

Story

Suppose that on February 15, 2024, the Head Office of the Muffins & Cakes (MHEAD) branch paid for the juicer installation services that it purchased from the Service and Equipment Sales Center (SWEETEQUIP) branch, and on February 18, 2024, the SWEETEQUIP branch received this payment.

Acting as an accountant of the SWEETEQUIP branch, you need to create an AR payment in the system to record this payment to the branch's cash account.

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, you will open an intercompany invoice on the Invoices and Memos (AR301000) form and create a payment for this invoice. After releasing the payment, 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 2/18/2024. If a different date is displayed, click the Business Date menu button, and select 2/18/2024 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 Service and Equipment Sales 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 an intercompany AR invoice has been processed, as described in Intercompany Sales: To Process an Intercompany Invoice.
  6. Make sure the intercompany AP bill has been paid, as described in Intercompany Sales: To Pay an Intercompany Bill.

Step: Paying an AR Invoice Between Branches of Different Companies

To create an AR payment for an intercompany AR invoice, do the following:

  1. Open the Invoices and Memos (AR301000) form.
  2. In the Reference Nbr. box, select an invoice with the amount of $250 and the MHEAD customer (this is the invoice you created in Intercompany Sales: To Process an Intercompany Invoice).
  3. On the form toolbar, click Pay.
  4. On the Payments and Applications (AR302000) form, which opens, make sure that the following settings are specified in the Summary area:
    • Application Date: 2/18/2024
    • Customer: MHEAD
    • Payment Method: CHECK (inserted automatically)
    • Cash Account: 10200EQ - Equipment Checking (inserted automatically)
  5. On the Documents to Apply tab, make sure that the system has inserted the invoice in the amount of $250.
  6. On the form toolbar, click Remove Hold to give the payment the Balanced status.
  7. On the form toolbar, click Release to release the payment.
  8. On the Financial tab, click the link in the Batch Nbr. box to review the generated GL transaction on the Journal Transactions (GL301000) form.

    When the payment was released, the GL account associated with the cash account of the SWEETEQUIP branch (10200 - Company Checking Account) was debited in the amount of the payment. The 19010 - Accounts Receivable - Related Company account specified in the invoice was credited in the total amount of the invoice.