Accounts Payable Module:
1. Voucher Entry & Editing (Task 1); Edit List/Voucher Posting Journal (Sub-tasks 4 & 5)
- Print report, all Intercompany transfer vouchers will show up on the edit list as prepaid with check # 99999 .
- To get actual dollars vouchered on the voucher edit list, take the total and subtract the intercompany prepaids.
- On each Voucher Posting Journal, hand-write a sub-total for the intercompany vouchers and a sub-total for the rest.
2. Check Account (Task 20); Print Selected Check Records (Sub-task 4)
- Print report, the Intercompany vouchers will show up on the prepaid section. They will all have the check number 99999.
- The actual check dollars written will be the totals MINUS the total of the intercompany check # 99999.
- The CREDIT side (Prepaid and Regular Checks) dollar amount INCLUDES the totals of the Intercompany Check #99999.
- Subtract out the dollar value of check numbers 99999 to get the actual dollars paid out of the checking account.
3. Voucher History (Task 19), Print Selected History Records (Sub-task 4)
Print a voucher history for the inter-company vendors only (numbers between 1 - 99), this will give the totals to subtract.
Print a voucher history for Vendor with numbers 101 and up, this will give the "normal" accounts payable totals.
The DEBIT side (Increase in Accounts Payable) dollar amount includes the intercompany amounts. Subtract the dollar value of the intercompany amounts to get the actual increase in accounts payable.
The interface has been programmed so sub-totals will print for the intercompany and "actual" (normal)payable totals, so there is no need to have to figure out the totals separately.
1. Post vouchers every day that there are intercompany transfers.
2. Force a check register every day that there are intercompany transfers.
3. VERY IMPORTANT: The Sales and Cash Posting Journals for each day of intercompany transfer dollar amounts should be exactly equal to the Voucher Posting and Check Register intercompany dollar amounts.
- What this means is : The "other" dollar amounts on the Cash Posting journal should be equal to the total of Check # 99999 that goes in Cash in A/R module comes out as Check # 99999 in the A/P module. The net effect of money going in and out is thus ZERO.
Subject: Performing division transfers and inter-division billing
Company has 2 stores - #1 and #2 (Stores 1 and 2 are division 1 and 2 respectively). Store 1 receives orders for service and repair jobs. Store 1 however, does not have the ability to perform repair. Store 1 forwards the job to store 2 for the work to be done.
What is the right operational process to follow?
Any correct process will involve some amount of additional work. It is important to recognize that both stores should be fairly compensated in terms of revenues and profits and also that inventory should be relieved and applied accurately.
The following process achieves this:
1. On receipt of the repair job, store 1 opens an order (#Order A) for the customer without any line items (or a generic line item) and includes memo notes on the description of repair.
2. Store 1 forwards work order #Order A and the defective equipment to Store 2.
3. Store 2 opens an order (#Order B) on the system and enters '1' for the customer number. The system now recognizes that this is an inter-divisional billing and that the customer on #Order B is Store 1. Store 2 also enters the order number for #Order A provided by Store 1 as the purchase order number on order #Order B.
4. Store 2 then completes the repair and invoices #Order B. By invoicing the order, the computer relieves any inventory from Store 2 and receives it into the inventory of Store 1.
5. Store 1 now enters the line items on #Order A as they appear on #Order B and invoices the order. This further relieves inventory from Store 1, since it is now effectively sold to the original customer.
6. A report can be run at the end of each month to determine the amount of repair work that Store 1 gives to Store 2 and apply any adjustments that is seen fit to recognize the contributions of the individual stores.