Set up inter-entity bill back

With inter-entity bill back, you can handle the following situation:

  • One entity provides goods or services to another entity.

  • You must generate an AR sales invoice and corresponding AP supplier invoice.

To set up inter-entity bill back, first enable the functionality. Then, add customers and suppliers to associate with the entities you want to use bill back for. Finally, associate each entity with a bill back customer and supplier.

Subscription

  • Accounts Payable

  • Accounts Receivable

  • Company

User type Business user
Permissions

Company

  • Entities: Edit

Accounts Receivable

  • Customers: List, View, Add, Edit

Accounts Payable

  • Suppliers: List, View, Add, Edit

 

Configuration		 Multi-entity company
Restrictions

  • Account labels not supported.

  • Avalara and Advanced Tax not supported.

  • Order Entry and Purchase Order AR sales invoices do not support inter-entity bill back functionality.

Step 1: Enable inter-entity bill back

Enable inter-entity bill back from the Configure Accounts Receivable page, then select how Intacct generates the bill back AP supplier invoice. After this preference is set at the top level, it cannot be overridden at the entity level.

  1. From the top level, go to Company > Admin > Subscriptions.
  2. Select Accounts Receivable, and then select Configure.

  3. In the Enable functionality section, select Enable inter-entity bill back.

  4. Select an option for the system-generated bill back AP supplier invoices:

    • Bill created as draft. Required for VAT enabled companies.: Save the system-generated AP supplier invoice as a draft. This is the default option for companies subscribed to the Tax application so you can add a tax solution.

    • Bill posted directly: Post the system-generated AP supplier invoice directly to the General Ledger. This option is unavailable to companies who use Taxes.

  5. Select Save.

Step 2: Create suppliers and customers to associate with entities

Create the suppliers or customers to associate with bill back entities. Each entity is associated with one bill back customer and one bill back supplier. After you associate a supplier and customer to each entity (in the next step), inter-entity bill back automatically generates AP supplier invoices using the supplier and customer records you mapped for each entity.

You can associate with an existing customer and supplier to an entity. If you plan to use an existing customer and supplier, skip this step.

We recommend setting up suppliers and customers to use exclusively for inter-entity bill back transactions only. This will help when reconciling your end-of-month reports.
  1. Go to Accounts Receivable > All and select Add (circle) next to Customers.
  2. Enter information to identify the entity as a customer, and select Save.
  3. Repeat the process until you’ve added all customers needed for association with entities.
  4. Create suppliers in the same way by going to Accounts Payable > All > Suppliers.

Step 3: Associate a supplier and customer to each entity

After you add a customer and vendor for each entity, associate them with your entities. Each entity is associated with one bill back customer and one bill back supplier.

  1. Go to Company > Setup > Entities.
  2. Find the appropriate entity and select Edit for the first entity with which you want to establish a bill back relationship.
  3. Select the Additional Information tab.
  4. For Supplier and Customer, select the records you created to identify this entity.
    It's often easiest to set up an entity as both a supplier and a customer, to support future inter-entity transactions. However, if the entity will be referenced only as a supplier, or only as a customer, you can leave the other field empty.
  5. For Customer, select the supplier record you created to identify this entity.

  6. Select Save.

  7. Repeat this process for each entity that you want to use with inter-entity bill back.

You'll end up with customer and vendor associations similar to the following: 

Entity A Entity B
Associated supplier Supplier A Associated supplier Supplier B
Associated customer Customer A Associated customer Customer B

Next: Create bill back templates to provide AR sales invoice and AP supplier invoice line item information.