why Cloud now: intercompany billing

key takeaways

• intercompany billing allows companies to charge expenses to other companies they own, creating invoices and payables automatically
• setup requires creating a "prop management" person record for each company participating in intercompany billing
• corrections to intercompany transactions require careful consideration of impacts on both companies involved
• payroll and other recurring expenses can be efficiently handled through intercompany billing with Excel imports

topics

intercompany billing basics

• adds an extra "Invoice To" column when entering bills
• allows charging expenses to other owned companies, not just offices/agents
• creates invoices in billing company and payables in charged company automatically
• payments between companies often done via bank transfers rather than checks

setup and configuration

• requires creating a "prop management" person record for each participating company
• set up in Application Settings > Intercompany section
• each company needs a person record to send/receive intercompany charges

accounting Implications

• intercompany charges don't appear on P&L of billing company (expense and revenue offset)
• care needed when making corrections to ensure both companies' books remain balanced
• recommended approach: Create negative payables to adjust amounts up/down

payroll and recurring charges

• can use intercompany billing for efficient payroll allocation across multiple companies
• excel imports support intercompany billing for bulk entry of complex allocations
• important to run "invoice now" in each company to ensure agent charges are properly billed

potential improvements

• suggestion made for dashboard item showing unrecovered expenses not yet invoiced

next steps

• investigate adding dashboard item for unrecovered expenses
• users to consider implementing intercompany billing for payroll and recurring charges
• practice creating corrections using negative payables method
• ensure regular "Invoice Now" process in place for all companies using intercompany billing

watch this short video to learn more: