Intercompany Help and User Guide
Table of Contents
2. Setting Up
2.8. Control Accounts
10.2. Journal Templates
10.3. Maintain Nominal Codes
11. Stock Control
11.2. Batch Stock Transactions
12. Cash Book
12.1. Account Transfer
12.2. Account Transfer Import
13. Job Costing
14. Enable Module
15. Release Notes
16.1. Sicon v18
16.2. Sicon v19
Help and User Guide maintained for Intercompany version v20xx.190.0.0 and upwards
The Sicon Intercompany Module allows for quick and easy transactions from one company, whilst simultaneously posting the corresponding complimentary postings in other Sage companies. This removes the need to double or sometimes triple entering of data when intercompany-billing or exchanging stock. All relevant postings are made instantly, without the need to log out of one company and into another. The module wi
The Sicon Intercompany Module will convert foreign currency as required between the company’s base currency and/or the bank account currency on each side of the transaction. The exchange rate used for the transactions is taken from the currently selected company.
The Sicon Intercompany Help and User Guide will take you through the features and settings for the Intercompany module.
The Sicon Intercompany Module requires Sage 200 Commercials to be installed, and the following details to be configured for setup and training:
- Companies – with Tax Registration details (VAT)
- Bank details – for Cashbook
- Intercompany Customer Accounts
- Intercompany Supplier Accounts
- Nominal Codes
- Stock Internal Area
2. Setting Up
2.1. VAT Registration Numbers
During the processing on intercompany transactions, the VAT registration numbers of the companies are checked. Where companies are within a VAT group, the VAT numbers need to match.
2.2. Creating Nominal Codes
Nominal codes to be used between each intercompany need to be set up in each company.
2.3. Creating Intercompany Customer Accounts
Customer accounts for each of the other companies in the group, need to be created. These are the accounts that the Intercompany module will use for transactions between companies e.g. when posting SL invoices.
You must set the control account currency for the Customer Account to be the same as the Receiving Company. This is checked when configuring control accounts later.
2.4. Creating Intercompany Supplier Accounts
Supplier accounts for each of the other companies need to be created. These are the accounts that the Intercompany module will use for transactions between companies e.g. when posting PL invoices.
2.5. Stock – Internal Area
An internal area should be configured in the standard Sage stock control settings, as it is used by the Intercompany module’s control account configuration.
The nominal set against the internal areas is used when stock is transferred between companies.
2.6. Creating IC Control Projects
If Project Accounting is enabled and you wish to use project accounting across companies, then you also need to create control projects that are used by the module for each company. In this example the project code is IC1, which will be the control code for the target company ‘Demo Data IC1′, as below:
Create a new Project with the Project Accounting Module:
In this example, the project code will be automatically generated when you ‘Create a blank project’.
Press Create Project to proceed to the next step.
Next add a project item to the project, since this is only a control account, it is acceptable to add a single miscellaneous item.
Press Close once this is complete.
This will bring you to the amend project screen shown below:
When moving money between different companies a dummy bank account is required. The intercompany nominal can be set against this bank account, so that nominal postings off the back of cash movements post to the intercompany control account.
2.8. Control Accounts
To configure the intercompany module, select Control Accounts from the Intercompany menu.
Edit each company and set where appropriate nominal, customer and supplier accounts, cash book and a stock control internal area and project accounting details. You cannot edit the codes for the company you are currently working in, as this is not applicable. Once you have saved all the control accounts for the current company you are in, change company and repeat the process for the remaining companies.
Short Name – You can set short names for each company in your list. These are written to ‘Nominal Analysis’ lines to indicate the source of transactions.
VAT Rated – This determines if the company should have VAT included on the SL/PL transactions created with this company.
Tax Reg Number– If the company you are editing has the same tax registration code, then sales and purchase ledger options will not show since they are not required as Intercompany journals are raised instead.
Enter the customer code of the intercompany customer.
Enter the supplier code of the intercompany supplier.
A control nominal code needs to be created for the system to post to when creating transactions, namely journals, invoices and credit notes.
Nominal codes can be created for individual currency codes. When an intercompany transaction is created it will refer to these nominals depending on the currency of the transaction.
Where the tax codes are different, but journals need to be posted instead of sales/purchase invoices then tick the option to force journal postings.
You can also overwrite the cost centre and or department, so this could match that of the desired company using the journal overrides setting.
This setting is looked at when putting on an intercompany journal. In the above example, if a nominal is selected in the sending company, the system will look for a matching nominal with a cost centre of A in the receiving company, see below. Nominal 02100 has been entered in the sending company and nominal 02100 with cost centre A has been selected by the system in the receiving company.
Select an internal area to be used when moving stock between companies.
Select the intercompany cashbook to use when cash book payments and receipts posted from other companies. Different cashbook can be used for different currencies.
If project accounting is enabled, you will also have the option to choose a project account that will used to identify when a transaction needs to apply to a project on this target company. This process is explained later. In this example screenshot below, we have selected the IC1 project account we created earlier to be the control account for the Demo Data IC1 Company:
The Settings page is used to configure additional preferences in the module. Such as creating invoices instead of journals, the default status of the ‘Intercompany Transaction’ tick box on various screens (new purchase invoice, sales invoice etc.).
|Setting||Setting Description||Expected values|
|AllowNominalSelectionForSplitPosting||When doing a split intercompany posting, this will allow you to change the source nominal code at each stage.||True/False|
|BatchStockTransferAnalysisCode||Dictates what stock analysis field to populate when doing a batch intercompany stock transfer.||Number|
|ControlAccountsFollowCurrencyRules||Troubleshooting setting which disables the check for control accounts currency needing to match the base rate. Should always be set to True unless advised by Sicon technical support.||True/False|
|CreateInvCredForAllICJournals||This sets the mode when using Intercompany journals. If set to true, then all transactions will be processed as Invoices rather than Journals.||True/False|
|CreatePOPFromSOP||With this set as True, when putting on a SOP to a customer flagged as an intercompany customer, a POP will be created in the corresponding intercompany.||True/False|
|CreateSOPFromPOP||With this set as True, when putting on a POP to a supplier flagged as an intercompany supplier, a SOP will be created in the corresponding intercompany.||True/False|
|DefaultICPurchaseCreditNote||Defaults the tick status of the Intercompany transaction tick box on Purchase Credit Notes||True/False|
|DefaultICPurchaseInvoice||Defaults the tick status of the Intercompany transaction tick box on Purchase Invoices||True/False|
|DefaultICPurchasePayment||Defaults the tick status of the Intercompany transaction tick box on Purchase Payments||True/False|
|DefaultICPurchaseReceipt||Defaults the tick status of the Intercompany transaction tick box on Purchase Receipts||True/False|
|DefaultICSalesCreditNote||Defaults the tick status of the Intercompany transaction tick box on Sales Credit Notes||True/False|
|DefaultICSalesInvoice||Defaults the tick status of the Intercompany transaction tick box on Sales Invoices||True/False|
|DefaultICSalesPayment||Defaults the tick status of the Intercompany transaction tick box on Sales Payments||True/False|
|DefaultICSalesReceipt||Defaults the tick status of the Intercompany transaction tick box on Sales Receipts||True/False|
|EnableExchangeRateChanges||This setting allows the exchange rate to be set/adjusted from the summary screen. Setting this to false enforces using the correct rates set in Sage.||True/False|
|ICPrefix||Sets the characters leading the Reference of an Intercompany transaction.||Text(Recommended 2 characters)|
|ICPrefixLength||The number of digits for the reference of an Intercompany transaction.||Numeric(Max 20)|
|ProjectAdjustmentsOnly||Disables the Intercompany function from SL/PL transactions, instead the module will only post Intercompany project adjustments if the control code is detected.||True/False|
|Set2ndReferenceAs||Allows the 1st or 2nd Reference from the original invoice to be copied into the invoice created in the receiving company.||2ndReference/1stReference
4. Purchase Ledger Transactions
4.1. Posting Intercompany Purchase Invoices / Credit Notes
With the Intercompany module installed, when entering a purchase ledger invoice or credit note a Create Intercompany Transaction tick-box is available.
With this box ticked, when saving the invoice/credit note, the intercompany allocation screen will appear. Here you can choose to allocate amounts to any other configured companies.
You do not need to allocate the entire value of the purchase invoice on this screen. If you choose to part allocate the value of the invoice, when you click next you will get the following dialogue box – this will allow you to go back if the details are incorrect. Click yes to continue.
Clicking Yes will bring you to the nominal detail screen; one is shown for each company selected on the previous allocation screen. In this screen you can choose to amend the nominal used in the receiving company or add additional lines if required. Where the nominal codes match between companies they system will populate the matching nominal. You can use the next and back buttons to navigate between the target companies.
The details shown in these screens confirms the value of the transfer from the initial company to the target companies and what type of transactions will be created.
Clicking on summary, shows the nominal analysis and what transactions will be posted.
Click Post to generate the transactions, a confirmation message will be displayed.
4.2. Resulting Transactions
Parent company (i.e. the company paying the supplier) transactions
The original supplier purchase invoice transaction is posted to the source company.
A sales invoice is posted to the intercompany customer for the company with a different VAT number.
A journal is posted for the transaction to the company with a matching VAT number.
A purchase ledger invoice is posted in the receiving company with a different VAT number.
A journal is posted in the receiving company within the VAT group.
4.3. SL Transactions to a Customer Set as the Intercompany Customer
If a sales invoice is entered to a customer who has been set as an intercompany customer (within the control accounts), then the system will create a corresponding PL invoice in the matching company.
A purchase invoice has been created in the matching intercompany.
5. Sales Ledger Transactions
There are two options for processing intercompany transactions from sales orders. The first is to use the intercompany tick box on the sales order screen to split the resulting invoice created from the sales order between companies. The second option is to create a matching purchase order relating to the sales order entered.
5.1. Moving Sales Order Income between Companies
When entering a sales order, tick the IC transaction box as shown below and enter items as required.
When you Save the Sales Order you will get an extra window to populate:
Select the receiving company from the drop down list, tab to Currency – this will auto populate, together with the VAT Rate, Type and A/C. Click the ˅ under the NL A/C from to select the line from the Sales order, this will in turn populate the Nominal Code Cost Centre, Department and Name.
Manually enter the NL A/C To (CC, Dept as appropriate) Net amount and select the Tax Code from the drop down list. The Tax amount will be calculated using the tax code selected if tax is required.
Save to complete this allocation.
Intercompany Sales Orders can be amended by selecting the order from the sales order list and clicking amend. Adjacent to the IC transaction tick box, the amend button is now active. Click the amend button to open the Intercompany allocation window.
Make required changes and click Save.
Despatch, Print and Post invoices in the usual manner. The system will post the corresponding invoices/journals in the companies as set up in the allocation screen.
5.2. Sales Order to an Intercompany Customer
When a sales order is put on to a customer that is set as an intercompany customer the system will create a corresponding purchase order in the matching intercompany. Assuming the intercompany setting to allow POP/SOP creation between companies has been enabled.
In this company (Sage 200 Demo) if a sales order is put onto the customer INTC, the system will post a purchase order in IC company C (UK). The supplier to use on this purchase order is set in the control accounts within IC company C (UK), in the example below this is IC_Demo.
When putting on the sales order to the intercompany customer, the IC transaction tick box is greyed out.
On saving the SOP, the system states that PO has been created in the intercompany.
A purchase order is created in the IC Company C.
If the line quantities are amended on the POP/SOP then the related quantity in the SOP/POP are updated.
6. Purchase Order Transactions
With the create SOP from POP setting on, the system can create a matching SOP from an entered POP. If a purchase order is put on to a supplier that is set as an intercompany supplier, the system will create a corresponding sales order in the matching intercompany.
Amending the quantity on the lines of the SOP/POP in each company will update the matching POP/SOP in the corresponding company.
7. Nominal Ledger Transactions
Posting Intercompany Nominal Taxable and Non Taxable Payments and Receipts
As with the Sales and Purchase ledger invoices and receipts, Nominal ledger payments and receipts (both taxable and non-taxable) can be set as intercompany transactions with the module enabled. This is done by ticking the Create Intercompany transaction box as shown below.
NB: project accounting transactions do not need the IC tick box on PL/SL screens to be ticked, as it will be detected by the codes selected in the list upon saving.
Once this transaction is saved, the Intercompany transaction wizard is shown, where you can choose how to split the transaction.
The next steps open a nominal detail screen for each company we have chosen to allocate to. You can choose to allocate the amount between as many nominal codes as you wish, but the balance must match the total amount being allocated. Pressing Next moves on to the next company. On the final company, the next button will change to summary and pressing this goes to the summary screen in which you will confirm the transactions to be posted.
If you are not happy with the transaction, you can press back and amend any of the steps. Pressing post will commit the transactions to Sage. Pressing Cancel will abort the Intercompany transaction.
8. Cash Book Transactions | Sales/Purchase Payments and Receipts
You can post cash book transactions between multiple companies, the following types are supported.
- Purchase Payment [Company A] > Sales Receipt [Company B]
- Purchase Receipt [Company A] > Sales Payment [Company B]
- Sales Payment [Company A] > Purchase Receipt [Company B]
- Sales Receipt [Company A] > Purchase Payment [Company B]
With the Intercompany module enabled, any of the cash book payment or receipt screens will now have a create intercompany transaction tick box available. If an intercompany customer/supplier is selected, then money can be moved between the group companies.
If create intercompany transaction is ticked the user will be prompted to enter Intercompany cash book details when the transaction is saved.
In the above example, a purchase payment has been made in company B with a matching sales receipt in Sage 200 Demo.
9. Split vs. Sequential Transaction
On the intercompany transaction screen, you have the option of a split transaction (default) or a sequential transaction.
- On a split transaction, a payment to/from the source company is split/divided between the other companies by the amounts you specify.
- On a sequential transaction, the payment amount goes from source company to company B, then from company B to company C and so on until all allocations are complete.
10. Inter Company | Nominal Ledger
10.1. Posting Intercompany Journals
To use this feature, first select Intercompany Journal menu option from the Intercompany, Nominal Ledger section in the Sage Menus. The following screen will appear where you can then either enter details of the journal, how much from each nominal code you need to debit/credit, or select from a previously created template.
Pressing next will bring you to the Intercompany allocation screen
You can allocate the amount as you wish between any/all of the other available companies. The total credited to one or more companies must match the amount being debited to the current company. You will receive a warning message if this is not the case and will be unable to proceed. If the VAT number (shown on the top right of each journal section) is the same for both companies, a journal will be produced, if they do not match, then an invoice will be produced instead.
Here you can check/change which nominal codes and amounts you will allocate to. You can press Next to proceed to the next company, once there are no more left to allocate to, press the summary button to bring you to the summary of all the transactions you are about to post to.
If you need to make any changes, you can press back and make changes to previous screens, when you are satisfied the transactions are correct, press post to post the transactions in all companies.
10.2. Journal Templates
Journal templates can be used when a regular Intercompany journal transaction is done to save time when inputting many of the same values. There are 3 types of Journal Template:
- Accounts only – Where the values may always be different, but the nominal accounts themselves are always the same. No values are stored and must be entered.
- Percentage – If you regularly split invoice values between companies, this will pre-allocate the set percentage of the original document to each company. The values can be overridden at point of entry.
- Value – If you regularly post the same values between specific companies, the value can be included in the template, the values can be overridden at point of entry.
The templates are created/maintained in the screen below.
To add a new template, Press the Add button, alternatively, press Edit if working on an existing template.
Click in the template contents section to add a new line, where you can select a company from which you have access to, you can then input a nominal code, add a narrative and values (accounts only will have zero values).
10.3. Maintain Nominal Codes
The Maintain Nominal Codes screen allows for Intercompany specific settings for each nominal. There is the ability to exclude tax from the transactions, any Intercompany transactions on nominal codes with ‘Exclude Tax’ ticked will be set to Tax except and tax will not be invoiced/credited. Authorised PL postings will now follow configured nominal codes.
11. Stock Control
11.1. Intercompany Stock Transfer
Select the Inter Company, Stock Control, Transfer Stock menu option:
The stock transfer screen will appear:
On the left side is the current company, where you select the stock code to be transferred and its warehouse location. On the right side is the target company, stock code and warehouse location. Below these details you can enter the stock quantity to transfer and the date and reference for it.
You can save the transfer to move the stock.
11.2. Batch Stock Transactions
Batch Stock Transactions allows you to allocate transactions prior to actually transferring them. You can edit the list and add items over the course of time and print a report of allocated stock to be used for warehouse picking. Once all the items are allocated and you are ready to do the transfer, you can Post all the transactions on one go.
Setting Up the Analysis Code
Intercompany Module uses an Analysis Code on a stock item to flag items which are part of the batch. This needs to be configured before reporting will work.
Firstly, create an analysis code in the Sage Account System Manager, we have called it “Batch Allocated” in this example:
Next, in the Maintain Analysis codes section on the stock control menu, assign this analysis code to one of the slots starting from 2 onwards, we use slot 2 in this example:
Finally, in the Intercompany settings, change the setting to the number you previously used, in our example, this is “2″:
Adding items to a batch
Open the Batch Stock Transactions from the Intercompany > Stock Control Menu. Any existing batches will also be shown here:
Click the Add button and choose a company you intend to post the transaction to, along with a date and a header text to help you identify the transactions:
To start adding stock items, press the add button and proceed to add stock transfers using the familiar stock transfer screen from the section above. (You can also edit existing entries and remove them from here).
Items for transfer will be added to the list:
Once you are happy with the batch you can press Save & Allocate, which marks all the items on the batch as allocated within Sage stock control.
Printing an Allocation Report
You can choose to print an allocation report for your batches, which effectively gives you a ‘picking list’ where allocated items can be picked from the warehouse ready for transfer. Simply tick the batches you wish to report on and click the ‘Print Allocation Report’ button.
Press Post and the transactions are issued and the relevant financials entries are completed, just as in a normal intercompany stock transfer.
12. Cash Book
12.1. Account Transfer
Select the Account Transfer from the menu option.
The Payment Company details are pre-populated.
Select the Bank Account to transfer from, chose the Receipt Company and Account. Enter a Description, Reference, Payment Value and Transfer Date and click Save.
A window will be shown confirming the transfer details.
Change to the receiving company, select the bank account to verify the transfer as shown below.
12.2. Account Transfer Import
This feature is a quick way to transfer money to accounts in different companies.
Click the Template button to generate an import template.
Populate the template, save as a CSV file.
Find the file and click Check to ensure all details are correct, any errors will be highlighted in Red and will need to be amended prior to Import. When all details are verified you will be able to import.
12.3. Pay & Receive Transactions
This feature enables one company to pay or receive money and allocate the amount to an invoice in one of the other configured companies. For example, where a customer has paid for an invoice for one company, but paid the money into another company.
Once opened you will need to select the relevant ledger, bank account, transaction date and enter references as appropriate.
Choose the company and customer/supplier you want to pick the invoices from.
You have the option to include bank charges in the paying or receiving company. Select the invoice you want to allocate the monies to.
Click on post to process the transaction, if bank charges were ticked to be included, then a bank charge window open. Select the appropriate nominal and put in a value.
Click on save, to process the transactions in both companies.
In the example above a receipt has been put onto customer BET001 in intercompany A
The receipt has been posted to the bank account in the sending company and bank charges have been added.
You can also choose to put on receipt/payment against a customer/supplier that has no outstanding items.
This posts a payment/receipt onto the chosen account in the receiving company.
12.4. Receive, Transfer & Allocate
Select this option to receive, transfer and allocate payments. This is used where money needs to be moved between companies and then allocated to invoices.
Chose the bank account the money is received in to, then select the company and bank account to transfer to together with the transaction details.
Enter Reference, 2nd Reference and change the Transaction date as required.
Click allocate to invoices.
Tick the invoices to allocate to (select all if all invoices are needed), click post to continue.
The dialogue box below confirms the transactions are resolved and allocated.
13. Job Costing
Allows jobs to be copied from one company to another.
14. Enable Module
This screen is used to show all configured Sicon Add-ons and allows the entry of enable strings to allow use of a module. When a new module enable string is provided, copy into the ‘Enable string’ field and then click Apply to save the changes.
If online enable strings have been activated these will self-populate.
15. Release Notes
The release notes page shows which release of the system includes new features or issues resolved.
With the release of the Sicon v19, our version numbering has changed slightly. Previously our add-on versions were numbered in the format 201x.18.0.1. From Sicon v19, our modules will be numbered in the format 201x.190.0.1 This is because we have three Sicon releases planned per year and we will use the second group of digits to reflect these as xx1 and xx2. We use the third set of digits to reflect whether it is a release or a pre-release build and the fourth set then give the build number.
New features detailed in the Release Notes relating to Pre-Release versions will not be detailed in the current Help and User Guide until the end of development phase.Intercompany Release Notes
16. New Features & Important Information
16.1. Sicon v18Sicon Intercompany v18 New Features & Important Information
16.2. Sicon v19
There are no new features in Sicon v19 for Intercompany.