In Microsoft Dynamics AX 2012 R2 and AX 2012 R3 many organizations today have multiple legal entities in one instance of AX that lend and borrow their workers to each other to complete work on various projects. The legal entity that provides the worker can use the Project management and accounting Intercompany customer invoice feature to simultaneously create an invoice in the borrowing legal entity when creating the customer invoice for services rendered. Below are the steps to create the Intercompany customer invoice in the lending legal entity, post and pay the vendor invoice in the borrowing legal entity and then post the customer payment in the lending legal entity. In the example shown Contoso Entertainment Germany (DEMF) is invoicing Contoso Entertainment USA (USMF) for project work completed by their DEMF employee.
*Note information in this blog is based on the assumption that the pre-requisite step to setup the trading relationship between the lending and borrowing legal entities has been completed.
In the lending legal entity for whom the worker is an employee navigate to Project management and accounting>Common>Project invoices>Intercompany customer invoices.
In the action pane in the ‘New’ group click the ‘Intercompany customer invoice’ button.
In the ‘Create invoice proposal’ form select the borrowing legal entity, select applicable Project contract id and enter any other applicable criteria, then click ‘Search’. All applicate timesheet project entries will be displayed (I.e. Hour, Fee, or Item). Select the one or more to be included on the Intercompany customer invoice and click <OK>.
The customer invoice that is created will be a free test invoice. As with any free text invoice populate main account on the invoice and if you like update the invoice description as well as any other information that you wish to update. Then in the action pane click ‘Post’.
On the posting form the Posting parameter will default as selected. To print the invoice select Print invoice indicator and click <OK>.
Now open the borrowing legal entity in our example USMF. Navigate to Accounts payable>Common>Vendor invoices>Pending vendor invoices. Click Edit to view the invoice that is in the format of a purchase order purchase invoice. The invoice is created for the Vendor (DEMF in our example) which is configured in intercompany trading relationship on the customer in the lending entity. The processing for the invoice is the same as any purchase order invoice, fill out applicable fields including if applicable select purchase order to associate to the invoice. Click Post in the Action pane.
In the borrowing legal entity (I.e. USMF) create an Accounts payable payment journal for the Vendor and process the payment as you would for any other vendor. In the lending legal entity (I.e. DEMF) create an Accounts receivable payment journal and receive payment as you would from any other customer.
Have other Microsoft Dynamics AX inquiries or needs? Visit our Help Desk for AX page to see how our experts can help!
For more information please contact Ellipse Solutions at info@ellipsesolutions.com or by calling our corporate office at (937) 312-1547.
