Shared Transactions - Intercompany Invoice to Bill Automation
Overview:
The Intercompany Invoice to Bill Automation feature in Netgain Shared Transactions is designed to support clients requiring intercompany "arm's length transactions" by automating the generation of intercompany vendor bills from intercompany invoices. This functionality reduces the need for manual intervention, making it particularly valuable for businesses managing large volumes of intercompany transactions across subsidiaries. By leveraging this setup, organizations can efficiently manage vendor billing for goods or services exchanged between subsidiaries within NetSuite’s intercompany framework.
Prerequisites:
Intercompany Vendors and Intercompany Customers must be set up in the subsidiaries.
Setup:
Navigate to Lists > Accounting > Items. Select Edit next to the item record that will be used in the intercompany invoice to bill automation.
The item record will include a new field labeled "Netgain Intercompany Expense Account." Enter the expense account to be used on the intercompany bill in this field.
On the invoice, select the item that has been set up with the Intercompany Expense Account. If there is a desired destination location to be sourced on the intercompany bill, select the proper Destination Location. Details on set up for this field can be found in this article - SOURCE LOCATION TO INTERCOMPANY BILL. The other native segments will source automatically to the bill.
Upon saving the invoice for an item associated with an intercompany expense account, a corresponding bill is automatically generated. This bill can be accessed through the "Intercompany Billing" tab on the invoice record.
The vendor bill will be created with expenses associated with the items from the invoice rather than inventory items. Users will still need to create any relevant inventory transfers. Credit memos will not be able to be created from intercompany invoices that include inventory items. Credit memos will only be able to be created for intercompany invoice and intercompany vendor bill combinations that include items and services other than inventory items.
On the bill that was created, under the "Custom" tab, the originating invoice the bill was created from can be found.
Vendor bill naming preferences:
Users can set the prefix and/or suffix that should be added to any intercompany vendor bills that are created automatically from the intercompany invoice. The prefix and suffix are set using the Intercompany Vendor Bill Prefix and Intercompany Vendor Bill Suffix fields under the Intercompany Billings Preferences section of the System Setup page.