Introduction: Controlling Intercompany projects
A company has an affiliate company that delivers a service to the ordering company during a project. The affiliate company posts expenses and records time on the project. These expenses are transformed into debit memo requests.
An intercompany invoice with reference to the debit memo request is created by the delivering company. The intercompany invoice is also posted automatically to the accounts payables of the ordering company.
The ordering company is DE.
The delivering company is US.
Task 1: Create a project
In this first task, Shubham, our Project Financial Controller, creates an Overhead Project. This project type is used to support the planning and monitoring of project-related costs, in this case an intercompany project.
Task 2-3: Add subordinate WBS elements
Shubbham performs a project planning with subordinate WBS elements for project planning and project execution.
Task 4: Release the project hierarchy
Shubham releases the project and adds actual dates to the WBS elements.
Task 5: Perform a direct activity allocation
In this task Shubham does a direct activity allocation to the intercompany project.
Task 6: Create a supplier invoice for intercompany expenses
When Shubham posted the direct activity allocation, Claire, our accounts payable accountant, posts an intercompany expense to the right WBS element.
Task 7: Create an intercompany Sales Order
In this task, Kate, the internal sales representative creates an intercompany sales order. The ordering company is located in Germany, the delivering company is located in the US.
Pay special attention to the sales order header and the selecting delivery information.
Task 8: Create an intercompany Billing Request
Katherine, the internal Sales Representative for Professional services, creates an intercompany Billing Request.
The result is a debit memo request for intercompany billing for the time recordings and expenses for the intercompany services.
Lionel the Billing Clerk, creates the billing document.
Task 9: Display a Sales Order
Finally Kate, our internal sales representative checks again the sales order. She pays special attention to the document flow.
Now you should have an impression of "How to maintain an Intercompany Project".