Overview

Inter-Company Invoices handle transactions between companies in the same group—like subsidiaries or divisions sharing goods, services, or funds.

In iVendNext, this feature links Sales and Purchase Invoices across entities, ensuring accurate records and smooth reporting. It’s ideal for businesses with multiple locations or separate units (e.g., manufacturing, retail), helping streamline reconciliation and maintain financial clarity.

Setting Up Inter-Company Invoices

Before you can create inter-company invoices, you need to set up the necessary configurations in iVendNext. Here’s how to do it:

1. Setting Up Internal Customers

1. Navigate to the Customer Master
   Go to: Accounts > Masters > Customer.

2. Select the Customer
   Choose the customer who will act as the internal customer for inter-company transactions.

3. Enable Internal Customer
   Check the Is Internal Customer checkbox. This indicates that the customer represents another company within the same group.

4. Add the Represents Company
   In the Represents Company field, add the company for which the sales invoice will be created.

5. Add Allowed To Transact With
   In the Allowed To Transact With table, add the company against which the purchase invoice will be created. This ensures that the two companies can transact with each other.

2. Setting Up Internal Suppliers

1. Navigate to the Supplier Master
   Go to: Accounts > Masters > Supplier.

2. Select the Supplier
   Choose the supplier who will act as the internal supplier for inter-company transactions.

3. Enable Internal Supplier
   Check the Is Internal Supplier checkbox.

4. Add the Represents Company
   In the Represents Company field, add the company that you added in the Allowed To Transact With table for the internal customer.

5. Add Allowed To Transact With
   In the Allowed To Transact With table, add the company that the internal customer represents. This ensures that the supplier can transact with the customer’s company.

3. Creating Inter-Company Invoices

Once the setup is complete, you can create inter-company invoices. Here’s how:

1. Create a Sales Invoice
   Go to: Accounts > Sales Invoice and create a new sales invoice. Select the internal customer and the company from which they are buying.

2. Save and Submit the Sales Invoice
   Fill in the necessary details and submit the sales invoice.

3. Create an Inter-Company Purchase Invoice
   Under the Make button dropdown, click on Inter Company Invoice. This will redirect you to a new purchase invoice form.

4. Auto-Fetch Supplier and Company
   The supplier and company details will be auto-fetched based on the sales invoice you created earlier.

5. Submit the Purchase Invoice
   Review the details and submit the purchase invoice. The two invoices are now inter-linked.

Key Features of Inter-Company Invoices

1. Automatic Linking
   Sales and purchase invoices are automatically linked, ensuring accurate accounting and easy reconciliation.

2. Price Synchronization
   iVendNext allows you to create a Price List for inter-company transactions, ensuring that selling and buying prices are in sync.

3. No Impact on Stock Ledger
   Since inter-company transactions occur within the same group, they only affect the accounting ledger and not the stock ledger.

4. Cancellation Handling
   If either the sales or purchase invoice is canceled, the link between the two invoices is automatically broken.

Benefits of Inter-Company Invoices in iVendNext

1. Simplified Accounting
   Inter-company invoices streamline the accounting process by automatically linking sales and purchase transactions.

2. Accurate Financial Reporting
   By maintaining clear records of inter-company transactions, businesses can ensure accurate financial reporting and compliance.

3. Improved Reconciliation
   The automatic linking of invoices simplifies the reconciliation process, saving time and reducing errors.

4. Flexible Pricing
   The ability to create custom price lists for inter-company transactions ensures that pricing remains consistent across the group.

Practical Scenarios

Scenario 1: Transferring Goods Between Subsidiaries

A manufacturing company produces goods in one subsidiary and sells them to another subsidiary for distribution. By using inter-company invoices, the company can accurately record the transfer of goods and ensure that both subsidiaries’ financial records are up-to-date.

Scenario 2: Sharing Services Within the Group

A group of companies shares IT services provided by one subsidiary. By creating inter-company invoices, the group can accurately track the cost of services and allocate expenses to the appropriate subsidiaries.