Inter-Company
Background
Many Workbench clients run more than one business, often as separate legal entities.
A common example is where the plant operations and assets reside in a separate company than the projecting business.
Workbench handles this multi company scenario within a single database by means of Financial Companies (Fincos).
The various entities in Workbench each reside in a specific Finco:
Jobs (through the Profit Centre)
Clients
Suppliers
Plant Items
Employees
Inter company occurs where there is activity across Fincos:
the job on an AP Invoice line is in a different FinCo than the supplier
the job on an Plant issue transaction is in a different FinCo than the plant item
the job on a Timesheet line is in a different FinCo than the employee
In these case both sets of "accounts" need to reflect what has happened, recognise the costs and revenue correctly in the right place, and show how things are between the Fincos.
The approach is to create actual AR and AP invoices in the "selling" and "buying" Fincos, to provide real arms-length transactions between the FinCos.
How to find the inter-co Invoice for a source batch
When inter-co is generated for a source batch, AP and AR invoices are generated for each FinCo that has inter-co. To find those invoices, look at the GL Analysis on the batch report for the source batch. Under the ‘Other Interco Batches' you will see a list of invoice numbers next to the Finco name. The same invoice number is used for both AP and AR.
Below is an example of an AP Invoice Batch as a source batch with intercompany involved where, after the intercompany is generated for this source batch, the end results is two more batches being created by the system:
Source AP Invoice batch (Finco 01)
AR Invoice batch on Finco 01 to record the selling of the AP invoice to Finco 02
AP Invoice batch for Finco 02 with the actual AP Invoice that was sent from the supplier to Finco 01.
Analysis Codes
When exporting inter-co AP Invoices, the Analysis1 and Analysis2 columns are populated from the source transactions.
GST on Inter-Co AP and AR Invoices
The system checks the Use GST flag on the company associated with the inter-co AR and AP Invoices to determine if GST is applied.