Internal Invoicing

This process is used to carry out internal invoicing of transactions between two or more divisions in a company using multiple unit coordination.

After using this process, payables and receivables from internal deliveries in multiple unit coordination are converted to internal payables and receivables.

Internal invoicing is used when there are two divisions in the same company and when these scenarios occurs:

  • The delivering division supplies goods to either another division that requires them or to an external customer for the account of the other division.
  • The selling division either needs to replenish goods by requisitioning them from the delivering division, using a distribution order, or must fulfill an external order and does not have the goods in stock.

The transactions that are adjusted in this process occur at one of two points – either as an external customer delivery directly from one division for a sale made by another division or as an internal delivery resulting from a distribution order.

It is possible to create a 'Parallel invoice number' for customer invoices according to the rules defined in 'Additional Payment Reference. Open' (CMS090). The only available 'Reference number type' is 1='Parallel invoice number'. The Parallel invoice number can only be added to the XML when an invoice document is created, and it is saved in the FSAPRN table together with the invoice number.

For the internal invoice, the 'Parallel invoice number' is created both for the internal customer invoice and for the internal supplier invoice. For the supplier invoice, the 'Parallel invoice number' is saved in the table FPAPRN.

Before you start

Follow these steps

  1. Delivery

    When deliveries are made, the delivering division incurs a receivable against the selling division. When this transaction is internally invoiced, it becomes a customer invoice. The selling division incurs a payable against the delivering division. This transaction becomes a supplier invoice when it is internally invoiced.

  2. Create internal invoice proposal

    The delivering division creates an internal invoice proposal using 'Internal Invoice. Create' (MFS100). This contains a list of the goods delivered to either each selling division or to each external customer.

  3. Review internal invoice proposal

    You can review the proposals after they are created, either in a report or online in 'Internal Invoice. Create' (MFS100).

  4. Choose one of these options:

    • Change or delete internal invoicing proposal

      If necessary, you can change the proposal in 'Internal Invoice. Create' (MFS100). Examples of changes include stopping the entire invoice for a division, stopping individual invoice lines, or changing the transfer price for an invoice line.

    • Delete proposal

      If the entire proposal is incorrect, you must delete it before you create a new proposal. Do this by selecting option 4='Delete for the proposal' in 'Internal Invoice. Create' (MFS100/B).

  5. Create internal invoice

    When you have reviewed the entire proposal and made necessary changes, you can create internal invoices based on the proposal in 'Internal Invoice. Create' (MFS100/B).

    The proposal becomes the internal invoices and accounts payable of the selling division as well as accounts receivable of the delivering division are updated.

    A journal is printed in each division.

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