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Interdivisional Billing allows you to bill services provided by the fleet maintenance business to other divisions of the company which are not included in the fleet maintenance product lines. These services are for equipment contracted by fleet maintenance to the other divisions. The divisions can be internal or external.
Services are billed internally, through general ledger journal entries, and do not generate accounts receivable transactions. The journal entries create credit revenue accounts similar to normal billing transactions. The revenue accounts used for interdivisional billing are different from the revenue accounts used for normal billing transactions. Revenue is posted to the location/facility where the contract is based or, in the case of sales and service transactions (shop), where the work was performed. The journal entries debit cost accounts instead of accounts receivable. Cost is posted to the location/facility associated with the division.
Based on the division, the journal entries for cost accounts may be posted to Enrich Financials or externally to a third-party product (e.g. SAP) through an interface file. For cost account entries to be posted externally, the total of the entries is posted to a clearing account in Enrich Financials.
Interdivisional billing transactions are exempt from VAT (value added taxes).
The services affected by interdivisional billing include:
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