GBSI - Borrowing entity
USSI - Loaning Entity
Timesheet posted by an employee in USSI for a project in GBSI. This transaction appears in the 'Pending transactions' in the project in GBSI.
When the 'Voucher' is seen for the above timesheet transaction, the voucher seen is as follows:
Dr Project Cost 190
Cr Payroll Allocation 190
** Cost price is taken from the setup in GBSI
The intercompany invoice is raised from the USSI against GBSI. This posts the free text invoice and the postings are as follows:
Dr Intercompany AR 150
Cr Intercompany Revenue 150
** Sales price is the transfer price setup in USSI
This also creates a pending supplier invoice in the GBSI company, which when posted, following postings happen:
Dr Intercompany Cost 150
Cr Intercompany AP 150
After the supplier invoice is posted in the GBSI company, the hours transaction disappears from the Pending supplier invoice.
The user then creates a project invoice in GBSI to bill to the customer
Dr AR 325
Cr Revenue 325
Intercompany AR and Intercompany AP accounts will be settled by payment between the two.
My question is:
What happens to the postings created while posting timesheet transactions .i.e.
Dr Project Cost 190
Cr Payroll Allocation 190
How are these accounts cleared?
The reason for asking this is, the actual cost consumed on the project in GBSI is the transfer price .i.e. 150. The same cost of 150 is also shown on the project statements as well. So what happens to the 190, where is it consumed and how is it cleared?
Kind Regards
Sarang
