Overview:
This feature enables one part of the business to “sell” to another.
Why would you want to use Internal Sales?
Different reasons:
To ringfence packets of work to show Surplus/Deficit for that discreet task.
Different Divisions or Job Managers are interested in showing margin on their work.
If a task is shown separately as an ‘outsource’ you can get more margin when eventually invoiced to the client.
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Internal Sales support Intercompany sales and a typical example would be work done on a Plant Maintenance Log (Plant in one financial company) that needs to be sold to a productive Job in another financial company.
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Quick Setup Guide
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Screen Guide:
To enable Internal Sales, the Charge Type on the Job (or on the Service Log), must have the Allow Internal Sales flag ticked. You can create a new Charge Type or modify an existing one for Internal sales by:
Go Going to Job maintenance.
Select tab ‘Billing and GL’
On the field ‘Charge Type’, click on '…' then create a new charge type of or pick an existing one
Check the check box '‘Allow Internal Sales’
Save and reload the page.
Now whenever you select an Internal sale charge typea Charge Type that allows Inernal Sales, you will see additional fields on the screens for input.
It is good practice to add the Internal Sales words in the Charge Type description field, as a reminder of what this is when you are invoicing.
Charge To Activity must be populated with an Activity with an Activity Type of Internal and must be included in the Job’s Activity Group.
Charge To Job or Charge To Log:
Populate Charge To Job, if you are selling to another Job, or Charge To Log, if you are selling the work to a Service Log.A Charge To Log is also available on Service Logs and Plant Maintenance Logs, so that an internal sale can be raised on a selling log, with the cost recorded against the Charge To log or Charge To Job.
The Charge To Log No is always optional, but if specified it needs to be an unfinalised log on the Charge To Job.
Alternatively, the Charge To Log No may be selected when the Charge To Job is empty, in which case any unfinalised log may be selected, and then the Charge To Job will be populated from the selected log.When creating a new log, the three Charge To fields will default from the job on the log or Chare To Job., as long as the log’s charge type allows internal sales or the Job on the Log allows Internal Sales.
Internal Sales Code on Activities
When you enable Internal SAles, all existing activities must have an Internal Sales populated, besides the Sales Code they already have.
The activities on Job Transactions selected in Get Sales of the Internal Sales must have this Internal Sales Code defined for the invoice to be created. Otherwise it will fail.
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Billing
When creating a new Internal Sales invoice, the only Jobs that can be selected in a new Job Invoice are those that have a charge type that allows Internal Sales.
Then the rest of the process, and how Get Sales will present transactions to be billed, is standard process and depends on the Charge type of the Selling Job.
To create a new Internal Sales invoice, navigate to Job Sales Invoices, and select the New Internal Sale from the drop down menu next to New Invoice. Alternatively, Internal Sales invoices can be created from Service Logs or Plant Maintenance Logs.
Billing Job to Job:
Following the example in the screenshot above, I go to Job Invoices, New Internal Invoice. My Internal Invoice will be on Job Sell-Job, and because it is an Input and Output based job, I will be able to select the transactions I want to include in Get Sales. Once the invoice is approved, these transactions will appear in Job Enquiry on the Charge To Job job 0001002 as an Internal transaction. And in turn, it can be sold to an external client:
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Billing Log to Job:
To invoice a Plant repair job to a productive Job, I create an Invoice from the Log. In my Log I enter a Charge Type with Internal Sales enabled, a Charge To Job and Charge To Activity so I can sell it to a Productive Job in this case, Productive Job 0001002 - Melbourne Freeway Stage 2.
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Workflow support:
Workflow support has been added for Internal Sale with the expected behaviour but specifically:
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The workflow approval steps are an internal decision, however, due to the nature of this process where a Cost is created on the Job the work is being sold to, it is common to have the Charge To Job Manager as the final approver of this invoice. This ensures the Job Manager is aware and approves the costs being added against to their Job.
Enabled by the common ‘AP Invoice ‘Internal Sales Approval Process’ control parameter.
Limits by the common ‘Job Invoice Approvers Limit’ setting.