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Internal invoicing for work

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Posted on by Hrvoje Kusulja

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Hello,

What process inside BC v20 SaaS do you use when one department needs to "invoice" another internal department in same company? ("Marketing" wants to invoice to "Sales" department for spend people work hours).

Department is defined sa Global dimension 1 and used a lot.

Basically, we can do just new General Journal with entry from same G/L Account to same G/L Account with other dimension on Line level.

But is there something better? use Sales / Purchase invoice? Using Items and/or Jobs?

What is your experience, suggestions, and best practices on this?

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Hrvoje Kusulja 370 on at

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RE: Internal invoicing for work

Kim Dallefeld , Thank you, I am looking to start using Jobs, however it seems that for final posting it also needs to go through bill-to-Customer? Is there a way to be posted via general ledger entries (with dimension/profit center) without any "customer" specified in such transactions / internal invoicing? So, how to post from Job , without customer?
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Inge M. Bruvik 32,748 Super User 2024 Season 1 on at

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RE: Internal invoicing for work

There is no dedicated document type for your scenario. I think that using a general journal like you do today is the simplest and most efficient way to handle this.

If there are a lot of transactions each month, you could use a recurring journal.
Hrvoje Kusulja 370 on at

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RE: Internal invoicing for work

You are right. Currently we do not use Jobs as line items, and maybe we should. However still the question remains, which document is used and where is posting setup for this scenario? Thank you
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Dallefeld 11,425 User Group Leader on at

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RE: Internal invoicing for work

That's a lot of invoicing on sales and purchase side and then how are you clearing the customer ledger and vendor ledger? You might consider using jobs to accumulate the time for each sending/receiving department combination and process from there without creating customer and vendor transactions.
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Francisco Bedolla 1,117 on at

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RE: Internal invoicing for work

No, that process doesnt exists in the standard funtionality neither essential or premium versions

if you want a "document" you will need a development.

Best Regards
Hrvoje Kusulja 370 on at

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RE: Internal invoicing for work

Cost accounting is more advanced step, then just playing with dimensions. But also does not resolve this issue/question, which document to use between departments (dimensions).

I do not have issue about line items, and how the split will be done etc.

It is just about a document, or process, where some people will send, and other needs to accept. Having one General Journal for this is not enough for me.

Are there any other documents, maybe in Premium edition, with Manufacturing or Services or something, that I can use between two internal departments?
Francisco Bedolla 1,117 on at

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RE: Internal invoicing for work

im talking about real purchase invoices for services purchased to external vendors for scenario 1

in scenario 2 is general journals are used for payroll, extra hours labour for example.

in any case is a "special document", maybe you can implement an approval workflow, ie, I create the purchas einvoice, then I ask for approval from you because you work in sales dept, then, after you approve then accounting people post the document.

in scenario 2 I create the journal, then you approve in the first step and then accounting people post.

the secret here is that Im using the dimensions to "post" internal services splitting them in the payroll calculation and post distributing my costs from one department to another department, bust this works only for payroll, employees, fo expenses you need scenario 1

BTW, did you check business central cost accounting?

docs.microsoft.com/.../finance-about-cost-accounting
Hrvoje Kusulja 370 on at

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RE: Internal invoicing for work

Currently I am doing a new in general journal, but it is not so luck. I need one departmnet to send (sell) and other to receive (purchase) process. So which document do you suggest to work with?
Hrvoje Kusulja 370 on at

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RE: Internal invoicing for work

Can you please explain more about scenario 2. Which document do you use?

I need something like "transfer order", typically used between multiple internal inventories for items.

One department sends, and other department receives (they need to confirm and post).

i am not sure is sales/purchase invoice good document in BC for internal use.

Any other options instead general journal?
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YUN ZHU 74,141 Super User 2024 Season 2 on at

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RE: Internal invoicing for work

Hi, this approach is much like my old company, for example the Support department needed to transfer sales to the Development department.

I see nothing wrong with what you are doing now, it is very easy and quick to use Global dimension 1 to differentiate the costs of each department.

If you use Sales Invoice, Item, or Job, this is generally for external, you need to create Customer, Item, Resource, etc. first, I personally do not recommend.

Hope this helps.

Thanks.

ZHU