Automated Intercompany Cross Charge of Payables Invoices

Intercompany cross charges include the allocation of costs or revenues between different entities within the same corporate group. In a global company, expenses incurred by subsidiaries, like subscription charges, marketing campaign expenses, and so on, are charged and settled through the parent company.

The parent company charges these expenses to the beneficiaries using intercompany transactions. The provider or the entity responsible for paying the supplier, while creating a supplier invoice, should earmark the invoice as a cross charge invoice. You can do this by selecting the Intercompany Cross Charge checkbox in the Invoice Header section on the Create Invoice or Edit Invoice pages.

After the invoice is accounted, the invoice data gets transferred to the Intercompany module for Intercompany processing. This lets you create intercompany transactions directly from Payables invoices for expenses that are recorded and paid by a payee entity for the other entities (beneficiaries) within the company. Intercompany module then automatically generates receivables for the payee and payables for the beneficiary. You can cross-reference between the invoices and intercompany transactions.

You can also mark a supplier invoice created using FBDI, ADFDI or Web Services, as an intercompany cross charge invoice during invoice import.

View Intercompany Cross Charge References from Payables

You can call View Intercompany Cross Charge References task flow from the Invoice Actions menu. After you select the new task View Intercompany Cross Charge References in the Invoice Actions menu, a dialog box appears with Intercompany Multitier references against each of the invoice distributions transferred to FUN. Any Payables user who has the required privileges to access the Create or Edit or View Invoices pages, can view and call the View Intercompany Cross Charge References task flow, if the invoice is already qualified as an intercompany cross charge invoice.