Intercompany project timesheet in Microsoft Dynamics 365 Finance and Operations One version - part II

Intercompany project timesheet in Microsoft Dynamics 365 Finance and Operations One version - part II

In earlier blog we covered how to setup loaning and borrowing entity for intercompany timesheets

This blog covers the information flow which originates by capturing timesheet in loaning entity but tagging it with the customer and project associated in borrowing entity.

Once the timesheet is ready and submitted to workflow and after necessary approvals happen, the timesheet either gets automatically posted if there are no issues in setup or one needs to correct the setup and then post it.

After posting the timesheet in the loaning entity looks like below.

Next we need to create an intercompany (customer) invoice from loaning entity to the borrowing entity customer.

In our example, being in USMF, we would raise an invoice for USSI by selecting timesheets using filters and grid as shown below.

The intercompany (customer) invoice could be initiated from various places and we used the menu item from project management and accounting module under invoices group.

Behind the scene, D365FO leverages free text invoice to post the intercompany customer invoice from loaning to borrowing entity.

Below is accounting transactions of the intercompany invoice.

This intercompany invoice should create receivables from loaning entity perspective.

However from borrowing entity point of view these intercompany timesheets would only be reflected as pending transactions on project as shown below.

The intercompany (customer) invoice utilizes the intercompany trade relationship between customer and vendor on loaning and borrowing entity to also automatically create a pending vendor invoice as shown below.

Note the project category is the one as defined in intercompany parameters in projects module as explained in earlier blog.

Once the pending vendor invoice is posted, the pending transactions on projects now gets committed and would become posted transactions and start showing in various projects statements and reports

Happy D365FO