Inter Company Invoices

An Inter Company Journal Invoice is done between organizations that belong to the same group.

Along with creating Purchase Invoices or Sales Invoices for a single company, you can create inter-linked invoices for multiple companies.

For example, you can create a Purchase Invoice for a company say 'Company ABC', and create a Sales Invoice against this Purchase Invoice for another company say 'Company XYZ' and link them together.

How to create Inter Company Invoices

Setting up

• Go to: Accounts > Masters > Customer .
• Select the Customer who you would want to choose for the inter-linked invoice.
• Enable the checkbox, Is Internal Customer shown as follows:
• Add the company which the Customer represents in the Represents Company field. This the company for which the Sales Invoice will be created.
• In the Allowed To Transact With table, add the company against which you will be creating a Purchase Invoice.
• Now, when you create a Purchase Invoice against company A (customer is from company B, the seller is company A), it'll be linked to the Sales Invoice for company A created using this Internal Customer from company B.
• Now, you need to follow a similar procedure for setting up a Supplier for inter-linked invoices.
• Go to: **Accounts > Masters > *Select the Supplier***
• Tick on Is Internal Supplier.
• In the Represents Company field, add the company which you added in the table Allowed To Transact With for the Customer.
• In the table Allowed To Transact With for the Supplier, add the company which the Customer represents. This is the company against which you are going to make an inter-linked Purchase Invoice.
• Here is a screenshot of the Supplier company to avoid any confusion:

Creating the Invoice

• Now, create a new Sales Invoice, fill up the fields.
• Remember to select the Customer who is an internal customer and company from which he's buying.
• Save and Submit the Invoice. Inter company invoice
• Before you make an *Inter Company Invoice* you need to do the following:
• The selling and buying price between the companies should be in sync.
• Go to Stock > Price List , create a new Price List for inter company transactions.
• Tick both Selling and Buying in this new Price List.
• Go to **Buying > Supplier > *internal supplier***, in the currency and price list section, set the price list to the new one just created.
• Do the same for the internal customer, i.e., set the price list to the new one.
• Now, you can make an inter company Purchase or Sales Invoice.
• Under the Make button dropdown, you will find a link Inter Company Invoice , on clicking the link, you will be routed to a new Purchase Invoice form page.
• Here, the supplier and company will be auto-fetched depending on the company you selected in the Sales Invoice.

Remember: There can only be a single Internal Supplier or Customer per company. >

• Submit the invoice, done! Now, both the invoices are inter-linked. *Also, on canceling any of the invoices, the link will break as well.*

Note: An Inter Company invoice will only affect the accounting ledger and not the stock ledger. This is because the companies belong to the same group of companies. >

You can follow the same process to create a Purchase Invoice and then an inter-linked Sales Invoice from the submitted Purchase Invoice.

Related Topics

• Sales Invoice
• Purchase Invoice
• Inter Company Journal Entry