Set Up Invoice Terms Between Two Companies

If you use detailed subledgers, you must establish invoice terms between the two companies involved in the intercompany billing process.

You set up invoice terms twice for each pair of companies that you expect to generate intercompany invoices and accounts payable vouchers

.For example, to establish terms between Company A and Company B, you first set up terms with Company A as the company running intercompany billing for Company B. Then you set up terms a second time with Company B as the company running intercompany billing for Company A.

To set up invoice terms between two companies:

1. On the toolbar of the Intercompany Billing form, click Invoice Terms.
2. In the Company Running Intercompany Billing field on the Invoice Terms dialog box, select the identifier for the company that generates the intercompany invoices.
3. In the Company Receiving Intercompany Voucher field, select the identifier for the company for which the intercompany accounts payable voucher is generated to pay the intercompany invoice.
4. To complete the invoice section, specify the intercompany invoice project in the Project field and then complete the remaining fields in the section.
5. Complete the accounts payable voucher section:
   1. In the Project field, select the intercompany voucher project.
   2. In the Tax Expense Account field, specify the tax expense account for intercompany accounts payable vouchers.
   3. In the Bank field, specify the bank on which the intercompany voucher accounts payable check is to be drawn. If you also use multiple currencies, this code determines the payment currency.
   4. In the Accounts Payable Liability field, specify the accounts payable liability code to use for the intercompany accounts payable voucher. You must select a liability code that is mapped to the intercompany accounts payable account.
6. Click Save.