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.
There are 4 possible scenarios for Internal Sales:
Job to Job -Work done on one Job, is sold to another Job (they could be in different Profit Centres or Financial companies).
Job to Log - Work done on one Job, is sold to a Service Log (Plant Maintenance Log or Service Log)
Log to Log - Work done on a Service Log or Plant Maintenance Log, is sold to another Log.
Log to Job - Work done on a Log, is sold to another Job.
Use Cases:
Civil division is contracted by the Construction division to complete the subdivision work with agreed scope and budget. (Job to Job)
Roading division is contracted to reinstate the asphalt following a watermain repair by the water division. (Job to Log)
Waste division is tasked with emptying all the skips on a regular basis at agreed rates for other divisions and clients. (Log to Job and Log to Log)
Workshop has fixed a vehicle but the ringfenced costs need to be sold at agreed rates to a productive job. (Job to Job or Log to Job)
Work done on a Job in one Profit Centre that needs to be sold to another Job in another Profit Centre or business unit.
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.
A Charge To Job/Log and Charge To Activity can be specified on any job/log, and when this job is invoiced it is treated as a different kind of invoice, an internal sale. When this internal sale is approved, a cost transaction is created on the Charge To job/ Charge To Log’s Job. Both revenue and cost transactions are attached to a batch with batch type AR Internal.
Internal sales are simply exported as GL Journals to recognise the appropriate revenue and costs against the different business units in the financials - they do not have GST or get posted to Accounts Receivable.
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.
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:
Going to Job maintenance.
Select tab ‘Billing and GL’
On the field ‘Charge Type’, click on '…' then create a new charge type or pick an existing one
Check the check box '‘Allow Internal Sales’
Save and reload the page.
Now whenever you select a 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, as long as the log’s charge type allows internal sales or the Job on the Log allows Internal Sales.
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.
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 Code 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:
Billing Log to Job:
To invoice a Plant repair job to a productive Job, I create an Invoice from the Log. My Log has the Charge To Job and Charge To Activity populated so I can sell to the same Productive Job 0001002 - Melbourne Freeway Stage 2.
Workflow support:
Workflow support has been added for Internal Sale with the expected behaviour but specifically:
Workflow schema definitions under the ‘Internal Sale’ document type
Internal sales workflow supports the following functions:
Charge To Job Manager
Job Manager
Job Account Manager
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 to their Job.
Enabled by the ‘Internal Sales Approval Process’ control parameter.
Limits by the common ‘Job Invoice Approvers Limit’ setting.