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Administrator Guide
Last Updated: 2023-06-23
Steps: Create Invoices for Direct Intercompany Transactions

Steps: Create Invoices for Direct Intercompany Transactions

  • Set up customers and suppliers for direct intercompany transactions.
  • Security:
    Set Up: Company Accounting
     in the Common Financial Management functional area.
Direct intercompany customer and supplier invoices provide the Accounts Payable and Accounts Receivable documents you need for your global organization. For a use case related to this topic, see Use Case: Create Invoices for Direct Intercompany Transactions in the Use Case Library.
  1. In the
    Customer
     field, select
    Companies as Customers
    .
  2. If you didn’t automate supplier invoices on the Customer Invoice Event business process:
    • Access the
      Supplier Invoice Workbench
      .
    • Select
      Companies as Suppliers
       in the
      Supplier
       field.
    • Click
      Customer Invoices
      .
    • Select the customer invoices you want to include on the supplier invoice.
    • Click
      Add
       and then select
      Intercompany Items
       to find the direct intercompany supplier invoices you want to pay.
    • To limit your search results to direct intercompany transactions, select
      Direct
       in the
      Intercompany Invoice Type
       field.
  4. Access the
    Record Intercompany Receipt
     task.
    Select
    Direct
     in the
    Intercompany Invoice Type
     field. You can only record receipt for 1 intercompany payment at a time.
    The recording of the intercompany receipt acts as payment of the customer invoice for direct intercompany transactions. You won’t use the
    Record Customer Payment
     or
    Apply Customer Payment
     tasks when you process intercompany payments.
    When you record an intercompany receipt:
    • Overpayments post to an account.
    • You can write off short payments.
    • Invoices account for short pay and overpay when an invoice has a different currency than the company currency.
    • You can manage balancing worktag differences to improve reconciling of intercompany payables and receivables. The intercompany receipt posts correctly if a customer invoice has multiple lines using different balancing worktags.
  • The intercompany customer invoice includes the corresponding supplier invoice number.
  • The intercompany supplier invoice includes the corresponding customer invoice number.
  • The intercompany receipt displays on the customer invoice
    Activity
     tab.
Check the payment status on the header of the direct intercompany customer invoice to verify that the transaction is complete.