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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Intercompany project i...
Finance | Project Operations, Human Resources, ...
Suggested answer

Intercompany project invoice

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Hi All,

We are implementing project accounting module and come across the below scenario. 

Company structure - 

pastedimage1576036578894v1.png

Scenario -

Company A wants to streamline their business processes and engaged company B for this job.

Transactions in Company B–  

  • Create a Time and material project
  • Hour type transactions – 50hr @100/hr (Cost 70/hr) (Billable)
  • Expense type transactions – Travel – 1 X $500 (Cost $450) (Billable)
  • Fee type transactions – Management Fees - $1000 (Billable)

Create invoice proposal - $5000+$500+$1000 = $6500

 

In the above scenario how can we process intercompany invoice / payment in both the companies.

I have the same question (0)
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 299,576 Super User 2025 Season 2 on at
    RE: Intercompany project invoice

    Hi G Sen,

    Intercompany invoicing is supported for hour transactions; not expenses and fees. You can choose to use IC for hours and invoice company A as customer from company B for the other transaction types. Or create one single invoice with all components.

    The purchase invoice in A should then be booked on a project and you can decide to have the PO expenses chargeable on a project or not.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Intercompany project invoice

    Hi G Sen,

    Hours: You can enter a timesheet in company B where you refer to the project the people were working on in company A. This is then picked up in the intercompany invoice process.

    Expense: If you record a travel expense report in the expense module in company B then this expense can be charged to company A via the normal project intercompany invoice process. Please see: docs.microsoft.com/.../intercompany-expense

    Fee: For fees there is no IC project invoice process as fees don't create cost and voucher entries when they are recorded. If you talk about management fees then most companies are simply creating free text invoices in company B. The corresponding intercompany expense invoice from the vendor side can then be entered manually in the other company. An alternative is using flow / power automate to create this invoice automatically. See e.g. dynamicsax-fico.com/.../

    Best regards,

    Ludwig

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