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Create intercompany customer and vendor invoices

Applies To: Project Operations Integrated with ERP

A project accountant in a lending legal entity creates an intercompany customer invoice for the project costs that are transferred to the borrowing entity. After the intercompany customer invoice is approved and posted, the lending legal entity sends the intercompany invoice to the borrowing legal entity.

The project accountant for the lending legal entity can set up a batch process to generate intercompany invoices on a recurring basis. The project accountant specifies the criteria, such as specific projects, to create intercompany invoices in a batch.

Enhanced filtering and transaction details

The Enhance intercompany invoicing filters and details feature adds selection, filtering, and traceability capabilities to intercompany invoicing. This feature is newly available with the 10.0.50 release. An administrator can enable or disable the feature in the Feature management workspace.

When the feature is enabled, you can:

  • Use start and end dates in periodic processing, matching the date criteria already available during manual processing.
  • Use Invoicing method to select transactions by amount. The default value is Both, which is the original behavior. Options for selection include:
    • Both includes positive and negative transactions under the normal invoice grouping.
    • Invoices includes transactions whose amount is zero or greater.
    • Credit notes includes transactions whose amount is less than zero.
    • Both but Separate includes positive and negative transactions in separate invoice groupings.
  • Original transaction has been added to the Line details on each line to give you the document number for the originating transaction. You no longer have to navigate by using the button of the same name to get this document number detail.
  • The bookable resource name appears in the new Resource field to identify when work such as expenses or time were logged for a specific worker. The displayed value depends on whether the Use employment default dimensions on integration journals feature and related setup is completed for the worker.
  • Traceability from the original intercompany invoice to a credit or correction intercompany invoice is possible. The original intercompany invoice number is shown and links back to the original intercompany invoice.
  • Creation of intercompany invoices now defaults Project advanced journal line as enabled by default.

Manually create an intercompany customer invoice for project transactions

Follow these steps to manually create an intercompany customer invoice for project transactions.

Perform the following steps in the lending legal entity.

  1. In Dynamics 365 Finance, go to Project management and accounting > Project invoices > Intercompany customer invoices. On the Intercompany customer invoices list page, on the Action Pane, select New.
  2. On the Create intercompany invoice page, in the Legal entity field, select one or more borrowing legal entities.
  3. Optionally, enter a specific project contract and project number.
  4. To limit the results by posting date, enter dates in the Start date and End date fields. Only eligible intercompany transactions within the specified range appear in the results.
  5. Optionally, set Invoicing method to filter the lines based on balance instead of the default value of Both.
  6. Select the transactions to invoice, or select Select all to invoice all the transactions in the list, and then select OK.
  7. Select Search.
  8. In the search results, select the transactions to include in the intercompany invoice proposal, and then select OK. On the Intercompany customer invoice page, you can add or remove lines and review line details before posting:
    1. On the Intercompany customer invoice page, open the invoice details, and then select Add line.
    2. To remove a line, select it, and then select Remove.
    3. Review comments, reasons, financial dimensions, and other information about a selected line in the invoice line details.
  9. To post the intercompany customer invoice, on the Action Pane, select Post.

Note

If your organization requires that intercompany invoices be reviewed before they're posted, a system administrator might set up a workflow for intercompany invoices. If a workflow isn't set up for intercompany invoices, you can post the intercompany invoice.

Create a batch job for intercompany invoices

Create multiple intercompany invoices at the same time for all borrowing legal entities. By using the search functionality, you can, for example, search for all transactions that are posted by borrowed workers and related to projects that other legal entities manage. Then, for each borrowing legal entity, create an intercompany invoice for the transactions provided in the search results.

  1. Go to Project management and accounting > Periodic > Project invoices > Create intercompany customer invoices.
  2. On the Create intercompany customer invoices page, in the Company field, select one or more legal entities to invoice.
  3. In Create one invoice per, select whether to create an invoice for intercompany transactions based on a project or based on a borrowing legal entity.
  4. Enter the Start date and End date, and optionally, set Invoicing method to filter the lines based on balance instead of the default value of Both.
  5. Optional: To filter by project contract, project, or other available criteria, select Select. On the Inquiry page, enter the criteria, and then select OK.
  6. On the Batch tab, set up a batch process to create intercompany invoices on a recurring basis. The start and end dates are saved as batch criteria. Select OK to run or submit the process. For more information, see Submit a batch processing job from a form.
  7. After the process generates the intercompany invoices, select the invoices to post. On the Action pane, select Post.

Note

If your organization requires that intercompany invoices be reviewed before they're posted, a system administrator might set up a workflow for intercompany invoices. If a workflow isn't set up for intercompany invoices, you can post the intercompany invoices.

Review source and original invoice details

On an intercompany customer invoice, select a line. Select the Line details tab and navigate to Intercompany project.

  • For a Project advanced journal line, use Resource name to identify the resource.
  • The Original invoice field identifies the original intercompany customer invoice.

Post the intercompany vendor invoice

A project accountant in the borrowing legal entity can review intercompany pending vendor invoices when the corresponding intercompany customer invoice is posted. In Finance, in the borrowing legal entity, go to Accounts payable > Invoices > Pending vendor invoice. The pending invoice number matches the intercompany customer invoice number. Verify that the invoice is correct and then post the invoice. Posting the intercompany vendor invoice creates a project subledger and a general ledger transaction that reflects the transaction costs in the borrowing legal entity.

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