Intercompany Purchases and Returns: Implementation Activity

The following activity will walk you through the configuring branches of two companies within the same tenant for processing intercompany sales and purchases.

Story

Suppose that the Head Office of the Muffins & Cakes company has to purchase juicers from the Service and Equipment Sales Center of SweetLife Fruits & Jams. To avoid the creation of a new customer and vendor to represent the selling and purchasing companies and the processing of a sales transaction by the accounting departments of two branches, 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

For the purposes of this activity, the following features have been enabled:

• Standard Financials
• Multibranch Support
• Multicompany Support
• Advanced Financials
• Inter-Branch Transactions

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, 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

To prepare the system, do the following:

1. Launch the MYOB Acumatica website, and sign in as a system administrator by using the following credentials:
   • Username: gibbs
   • Password: 123
2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that today's date is displayed.

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, 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 (SO201000) form.
4. In the Data Entry Settings section, 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 SWEETEQIP 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, 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 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 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 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, 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 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 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 form.