Manage Intercompany sales with Intuit Enterprise Suite

Multi-entity businesses often perform intercompany sales where goods, services, or assets are sold between entities within the same business. These transactions can occur between a parent company and its subsidiary, or between two or more subsidiaries owned by the same parent company.

In Intuit Enterprise Suite (IES), intercompany sales can be automated. This changes a complex and often error-prone process into a streamlined and efficient function that offers the following benefits:

• Increased efficiency and productivity:
  • The reliance on intercompany journal entries (ICJEs) to record intercompany sales is eliminated.
  • Speeds up the time it takes for a transaction to process, while reducing manual effort.
  • Automation lowers the risk of data entry errors, reconciliation, and invoice and bill processing issues across different entities.

• Greater visibility and control:
  • Centralized intercompany transaction data, providing a single source of truth for better understanding of their business.

• Improved decision-making and profitability:
  • Provides real-time insight into intercompany activity without waiting for ICJEs to be recorded.
  • Automation empowers you to make more informed business decisions, ultimately supporting the growth and profitability of your business.

The intercompany sales process involves these steps:

1. Invoice Creation: An Accounts Receivable manager creates an invoice, assigning another entity as the customer. They add important details such as invoice number, terms, dates, and relevant tags or dimensions before sending it to the Accounts Payable manager for review. After the invoice is sent, an intercompany bill will be generated automatically on the receiving entity’s side.
2. Bill Management: The Accounts Payable manager views, finalizes, and accepts intercompany bills via the Expenses tab. Once accepted, the invoice and bill becomes a linked transaction in IES.
3. Reconciliation and Reporting: The Intercompany Transactions tab in the Multi-Entity Hub makes it easier for accountants to review linked transactions and take actions to view, eliminate, and accept bills across entities. This linked transaction automatically flows into consolidated reports, providing users with an exhaustive overview of their business.

Note: Eliminations will be pre-filled so all you have to do is verify the accuracy and accept the bill.

Create, receive, and monitor intercompany invoices

To manage your intercompany invoices, follow these steps:

1. Create an Intercompany Invoice (Selling Company):
   • Go to New, then choose Invoice. 
   • When selecting your customer from the customer list, choose another entity from within your organization. This action will automatically change the invoice into an intercompany invoice.
   • Save your invoice.
2. Review and Accept the Intercompany Bill (Receiving Company):
   After you save the invoice, we’ll automatically generate a corresponding bill on the receiving company's side. To access this bill, follow the steps:
   
   ​Follow this link to complete the steps in product
   
   • Open the bill, categorize it based on the account, and update any necessary dimensions.
   • Select Save or Accept. Confirm that saving has linked the invoice and bill as an intercompany transaction.
3. Monitor and get rid of Intercompany Transactions (Lead Accountant/Controller):
   • Guide the lead accountant or controller to log in to the parent entity (if applicable) and navigate to the Multi-Entity Hub.
   • Direct them to the "Transactions" section within the Multi-Entity Hub. Explain that this unified view lists all intercompany transactions, including invoices, bills, journal entries, and allocations.
   • To review the accounting, instruct them to view the transaction journal across both companies on one screen.
   • Once confirmed, show them how to select the transaction and select "Eliminate."
   • Explain that the system will prefill the values for manual elimination; they should review these and then save.
   • Conclude by explaining that by completing this, their consolidated reports will now be accurately prepared and ready for review.