How to consolidate intercompany vendor invoices
The intercompany transactions are frequently used between sister companies; at the end of the trading cycle the invoicing should take place.
Let us assume that there is trading relation between two sister companies, in daily business practice company A sells goods to its sister company B. The invoices relation could be one invoice for one intercompany sales order/purchase order or one invoice could consolidate several sales orders/purchase orders. In this post I will talk about how to consolidate intercompany vendor invoice.
In order to achieve the consolidation of intercompany vendor invoices the default summary update for the vendor should be activated for intercompany vendor account.
Go to vendor account then go to Setup group and select Summary update, in default values for summary update mark invoice check box.
I already created two intercompany purchase orders, and hereunder the invoice consolidation process.
Go to Periodic| Maintain vendor invoice. Then retrieve from purchase orders, the system will retrieve the two purchase orders in the lines.
Enter same invoice number, and then go to consolidate invoices.
The system consolidated the two invoices in one line.