How to Setup and Process Dynamics AX Project Intercompany Transactions and Invoices

The steps below describe the end-to-end scenario for setting up and processing intercompany timesheets and creating intercompany invoices. These features is available in AX 2012 R2 CU7 or higher for Project Accounting. The new features allow you to track resources that are loaned from one legal entity to another. The lending company can charge the borrowing company for the services performed by the resource by creating intercompany timesheets, and then creating an invoice to charge the borrowing company for the hours in the intercompany timesheets. Aside from charging time, you can also create intercompany project transactions for Expense and Vendor Invoices. The Vendor Invoicing capability will be introduced on R3.

Disclaimer: Please note that the requirements of your company might be different from the setup selections in the following steps. The selections in the steps are examples for training and reference purposes only.

Note: If you want to reproduce the same steps, you can use the Demo data. The Demo data can be downloaded on PartnerSource.

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PART I – Setup Intercompany Project Timesheets for Lending Company

1. Log on to USSI Company.
2. Click Organization administration > Setup > Unit > Units.
3. Set up the following: Unit = Hr (Hours); Fixed unit assignment check box=selected; Fixed unit = Hours            
4.  
5.  Click Project management and accounting > Setup > Project management and accounting parameters. 
6. Click the Intercompany link, and then select Enable intercompany resource scheduling and timesheets.
8. Click Project Management and accounting > Setup > Project Management and accounting parameters > Posting > Ledger posting setup
9. Click Revenue accounts.
10. Select WIP - sales value.
11. Click Add and then Enter the following: Valid for = All; Project relation = (blank); Funding Source = (blank); Valid for=All;     Category relation = (blank); Sales Tax Group = (blank); Main Account=160300.

PART II - Setup Intercompany Project Timesheets (Borrowing Company)                                             

1. Login to FRSI Company
2. Click Organization administration > Setup > Unit > Units.
3. Set up the following:  Highlight Unit = Hr (Hours); Fixed unit assignment = (marked); Fixed unit = Hours

4. Click Project management and accounting > Setup > Project management and accounting parameters.
5. Click Intercompany, and then set Enableintercompany resource scheduling and timesheets = (unmarked); and Default category = PAYROLL              

PART III - Setup Intercompany Transfer Price on the Lending Company 

1. Login to USSI Company                                                                               
2. Click Project management and accounting > Setup > Prices > Transfer Price.

            (Note: The user can set transfer and sales prices as well)

PART IV - Create Customers and Vendorsto establish Trading Relationship                    

1. Login to FRSI company (Borrowing company)
2. Click Accounts payable > Common > Vendors > All vendors.
3. Click Vendor > Vendor - New.
4. Enter the following on the General Tab: Record type = Organization; Name = Contoso Consulting USA; Group = 40
5. Enter the following on the Purchasing demographics Fast Tab: Currency = EUR 
6.  Login to USSI company (Lending Company)
7. Click Accounts > Common > Customers > All Customers.
8. Click Customer > Customer – New.
9. Enterthe following: Record type = Organization; Name = Contoso Consulting FR; Customer group = 50; Currency = USD; Country/region = USA
10. Click Save and Close.
11. Highlight name = Intercompany customer.          
12. Click General > Intercompany.
13. Click on Trading relationship and setthe following: Active = (marked); Vendor company= FRSI; My Account = FR_SI_000006 (Contoso Consulting USA)             

PART V– Setup Employee, Create, and Post Intercompany Project Timesheets (Lending Company)                                                       

1. Login to USSI company
2. Open the AOT, and then scroll to Tutorial_WorkflowProcessor. Right-click the item, and then click Start. (Note: This sets the Workflow running in the background)
3. Click Human resources > Common > Workers > Workers.
4. Highlight Worker Name = Ann Beebe
5. Click Project Management > Project Setup. The Project Setup form opens.
6. Enter the following: Period code = EmpWeek; Max Hours calendar = Standard; Monday = 8.00; Tuesday = 8.00; Wednesday = 8.00; Thursday = 8.00; Friday = 8.00; Saturday = 0.00; Sunday = 0.00
7. Click Project Management and Accounting > Common > Timesheets > All Timesheets.
8. Click Timesheets > Timesheet. Enter the following:  Worker = Ann Beebe; Timesheet Period = (Default)
9. Click OK. The Edit timesheet form opens.                                                                                                            
10. Click Submit > Submit.  All timesheet list page activates.  (Note: Wait for 2 to 3 minutes and Refresh the list page by pressing F5.

     Note:  As noted above, intercompany project transactions can be done on Timesheets, Expense, and Vendor Invoices. It will follow the same process as seen on the screen capture below. You just have to remember to change the company or legal entity.

PART VI - Verify Pending Transactions on the Borrowing Company                                                         

1. Login to FRSI Company 
2. Click Project Management and accounting > Common > Transactions > Pending project transactions.
3. You can view the pending transaction for the project for Ann Beebe.     

PART VII - Create Intercompany Customer Invoice on the Lending Company                                                                                      

1. Login to USSI Company
2. Click Project management and accounting > Common > Project invoices > Intercompany customer invoices.
3. Click Invoice > Intercompany customer invoice. The Create invoice proposal form opens.
4. Set the following: Legal entity = FRSI; Invoice date = (current date); Project contract = (blank); Project = (blank); Include subprojects = (marked); Select Transactions - Start date = [Start date from the recent timesheet created for Ann Beebe]; Select Transactions - End date = [End date from the recent timesheet created for Ann Beebe]; Select Transactions – Hour = (marked); Select Transactions – Expense = (marked)
5. Click Search.
6. Select all the transaction available for FRSI. (Last Transaction that were posted from timesheet for resource = Ann Beebe)
7. Click Close. The Intercompany customer invoices list page is displayed.
9. Selecttransactions for Anne Beebe by marking the Selected checkbox on the grid.                                                                         
10. Click OK. The Intercompany customer invoice form is displayed
11. Click Invoice > Post. The Post free text invoice form opens.
12. Set the following: Posting = (marked); Print = Current
13. Click OK and then close the Infolog. (Note: A matching vendor invoice was generated at this point in the borrowing company.)

PART VIII – How to verify and recognize generated Vendor invoice from the Borrowing Company

1. Login to FRSI Company
2. Click Account payable > Vendor invoices > Pending vendor invoices.
3. Select the  vendor invoice just created and verify the information.
4. Click Vendor Invoice > Post > Post. (Note: Recognizing the cost on the borrowing company)

PART IX – How to Settle Payables on the Lending Company

1. Login to FRSI Company
2. Click Accounts Payable > Journals > Payments > Payment journal.
3. Click New and set Name = PaieFour, and then click Lines. The Journal voucher form is displayed.
4. SetAccount = Contoso Consulting USA (FR_SI_000006).
5. Click Functions > Settlement. The Settle open transactions form is displayed.
6. Click Close. The Journal voucher form is displayed.
7. In the Offset account type field and the Offset account field, select values. 
8. Click Generate Payments, andthen Post transactions.

PART X – How to Receive Payments from the Borrowing Company

1. Login to USSI Company
2. Click Accounts Receivables > Journals > Payments > Payment journal.
3. Click New, and then set Name = CustPay. Click Lines. The Journal voucher form is displayed.
4. Set Account = Contoso Consulting FR (FR_SI_0134).
5. Click Functions> Settlement. The Settle open transactions form is displayed.
6. Click Close. The Journal voucher form is displayed.
7. Select the Offset account type and the Offset account.
8. Click Generate Payments, andthen Post transactions.

PART XI – How to verify transactions on the Lending Company                                                 

1. Login to USSI Company
2. Click Project management and accounting > Common > Project invoices > Intercompany customer invoices
3. Double-click the transaction just created. The Intercompany customer invoice form is displayed.             

The following links are sites related to this feature:

http://technet.microsoft.com/EN-US/library/dn528662.aspx

http://blogs.msdn.com/b/bwelcker/archive/2013/12/21/intercompany-project-invoicing-in-ax-2012-r3.aspx

http://blogs.msdn.com/b/bwelcker/archive/2014/01/14/intercompany-project-invoicing-in-ax-2012-r3-part-2.aspx