How to set up intercompany invoicing

Welcome to Intercompany Invoicing in VOGSY! This feature automates the invoicing process between your internal companies or departments.

Intercompany transactions occur between legally separate companies under the same parent or corporate group.

By setting it up, you can automatically generate invoices for hours tracked on projects by employees from different parts of your organization, saving you time and reducing manual errors.

Let's get everything configured!

Make sure you have created a "customer" record in VOGSY for each of your internal companies or departments that will receive an intercompany invoice. This customer record will be used to address and send the invoice correctly. The VAT/GST/Sales tax on the intercompany invoice is set with this "customer".

First, you'll need to activate the feature in your accounting settings.

• Navigate to the back office and go to Accounting settings.

• Find the toggle for Use intercompany invoicing and set it to Yes.

• Once enabled, a few new configuration options will appear.

Now, you can define the rules for how your intercompany invoices will be calculated and processed.

1. Set the Intercompany Rate: Under What intercompany rate should be used, choose one of the following:

   • Employee: The system will use the intercompany rate defined on the employee's profile.

   • Activity: The system will use the intercompany rate defined on the specific activity that was tracked.

2. Set the Invoice Currency: Under What currency should be used, decide how the invoice currency is determined:

   • The currency of the company that sends the invoice: The invoice will be in the currency of the company whose employee performed the work.

   • The currency of the company that receives the invoice: The invoice will be in the currency of the company that is being billed.

3. Configure Ledger Accounts: To ensure your accounting is seamless, map the journal entries to the correct ledgers:

   • Account receivable ledger account IC: Enter the ledger account for tracking money owed from other internal companies.

   • Ledger account for IC revenue: Enter the ledger account for recognizing revenue from intercompany work.

This crucial step connects your internal company/department to its corresponding customer profile for billing.

1. Navigate to your Companies/departments settings in the back office.

2. For each company that will receive intercompany invoices, select it and assign the internal "customer" record you created earlier.

You're all set! With this configuration complete, VOGSY is now ready to automatically generate intercompany invoices.