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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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Francisco Bedolla 1,123 on at

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Why are you "invoicing"?

Are you going to move money from one dpt to another?

Or you are trying to recognize costs for some sales campaign? Or using mktg, some telemarketing works like phone calls or something related?

I need more data to process an idea

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Hrvoje Kusulja 370 on at

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company has one bank account and no money is moved.

Each department works as its own profit center, working via global dimension 1 as department value.

The goal is that the marketing department has delivered (invoiced) some service to other departments (sales). Different services, telemarketing, spent employee work hours etc.

It is needed when looking at the Power BI reports and filtering by department dimension, to see all costs and revenues by each department...

so, the marketing department needs to send the invoice to the sales department, and the sales department needs to accept it as its own purchase invoice.

i am not sure is the invoicing the proper terminology here and should the sales/purchase invoice entities be used at all.

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Francisco Bedolla 1,123 on at

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Well, let´s see some scenarios using std functionality.

Scenario 1

Mktg purchase some external telemktg services, and receive a purchas einvoice for 1000, we want to distribute 900 for sales and 100 for mktg, so we need to post a purchase invoice like the next one

im distributing 1000 in 2 cost centers or department, i can use this scenario for any type of expense, even using more departments in the lines, logically, dividing the expese in 2 or more lines

Scenario 2

the telemarketinf is internal and the phone operators are employees

well in this case, when you create your payroll journal, you need to split the employees entries (or the total salaries sum) by dimension (department)

with the invoice posting you can obtain

and the posted journal gives you almost the same posting structure

for the power BI you get the next gl entries

and you can get the data

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YUN ZHU 95,381 Super User 2025 Season 2 on at

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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

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Hrvoje Kusulja 370 on at

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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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Hrvoje Kusulja 370 on at

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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?

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Francisco Bedolla 1,123 on at

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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

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Hrvoje Kusulja 370 on at

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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?

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Francisco Bedolla 1,123 on at

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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

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Dallefeld 211 User Group Leader on at

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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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