Product overview

Help and User Guide maintained for Intercompany Transactions version v20xx.15.0.15 and upwards


The SICON Intercompany Module allows for quick and easy transactions from one company, whilst simultaneously posting the corresponding complimentary postings on other Sage companies. This removes the need to double or sometimes triple entering of data when intercompany-billing or exchanging stock. All relevant posting are made instantly, without the need to log out of one company and into another. The module will dynamically create either journal entries or Purchase and Sales invoice/credits depending on the VAT number of the affected companies.

Foreign Currency

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 Transactions Help and User Guide will take you through the features and settings for the Intercompany module:

Sicon Intercompany Help and User Guide - IC Menu


1. Pre-requisites

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

2. Installation

To request a copy of the Intercompany Module Installation video, please contact Customer Services: cs@sicon.co.uk T: 0845 1300 188


3. Setting Up


3.1. Creating Nominal Codes

Before the Control accounts can be configured, the Nominal codes to be used must be setup in each company, for the other companies you will interact with: i.e. if you only have two companies, then you would create a nominal control code for company 2, within company 1, and then change company to do vice versa. If there are 3 companies, then in each company you would create 2 nominal control codes.

intercompany-1

intercompany-2


3.2. Creating Intercompany Customer Accounts

NOTE: 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.

intercompany-3

Next we have to setup the customer accounts for each of the other companies. These are the accounts that the Intercompany module will use for transactions between companies.


3.3. Creating Intercompany Supplier Accounts

NOTE: you must set the Supplier control account currency to be the same as the base rate for the company it is to be used for. This is checked when configuring control accounts later.

Next we have to setup the supplier accounts for each of the other companies. These are the accounts that the Intercompany module will use for transactions between companies.

intercompany4


3.4. Stock – Internal Area

At least one internal area should be configured in the standard Sage stock control settings, as it is used by the Intercompany module’s control account configuration.

intercompany-4


3.5. 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 is will be the control code for the target company ‘Demo Data IC1′, as below:

intercopmany-projects

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’.

intercompany-5

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.

ic-projcet-screen-2

Press Close once this is complete.

This will bring you to the amend project screen shown below:

ic-project-screen-3


3.6. Control Accounts

Once the control accounts have been created in the nominal ledger, these control accounts must then be configured for each company used within this module.

To configure this module select Control Accounts from the Intercompany menu.

NB: If the option is not displayed on your menu, you may need to log in to Sage as a User or Role that has been assigned access rights to this option.

intercompany-control-accounts

Edit each company and set nominal, customer and supplier accounts.  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.

intercompany-change-company

The Accounts used for Intercompany transactions are:
Short Names You can set short names for each company in your list. These are written to ‘Nominal Analysis’ lines to indicate the source of transactions.
Nominal Account Used by intercompany nominal journals and Sales/Purchase Invoices and Credit Notes

Control 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.

Customer Account Used as the intercompany customer account for invoices and credit note transactions posted to/from other companies.
Supplier Account Used as the intercompany supplier account for invoices and credit note transactions posted to/from other companies
Bank Account Used as a default for cash book payments and receipts posted from other companies.
Internal Area The internal stock area to use for intercompany stock transfers
Project Used by Project Accounting for cost and revenue adjustments posted to/from other companies.

From v2015.15.0.15 onwards, Companies can be ticked to enable them for use via the control accounts screen as shown below.  They are also flagged to determine if they should receive VAT.

ic-control-accounts

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. There is also the inclusion of a VAT Rated tick box on this screen to determine if the company should receive VAT.

ic-edit-control-account-a

Where the Tax Reg. No: is different to the company you are working in, you will need to associate the Customer and Supplier accounts created previously.

Control nominal codes can be created for individual currency codes thus allowing different nominal codes to be used for different currencies: When an intercompany transaction is created it will refer to these nominals depending on the currency of the transaction.

Control Bank accounts can also be set up with individual accounts per currency.

ic-edit-control-accounts

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:

ic-edit-control-account-2


4. Settings

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.)

intercompany-settings-for-batched-stock-trf

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 This must be set for batch stock transfer reports. It selects the number of the analysis code which Intercompany Module will use to flag stock which is allocated for transfer. (see Batch Stock Transfers section) Number (1,2,3 etc)
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
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
DefaultICSalesPayment 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

5. Purchase Ledger Transactions


5.1. Posting Intercompany Purchase Invoices / Credit Notes

With the Intercompany module installed, when entering a purchase ledger invoice or credit note a new Create Intercompany Transaction tick-box is available.

intercompany-purchase-invoice

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.

intercompany-allocation
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.

remaining-value-prompt

Clicking Yes will bring you to the nominal detail screen; one is shown for each company selected on the previous allocation screen. 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.

intercompany-hug-nominal-detail-screens

On the final company, a summary button is shown, pressing this will go to the summary screen. Showing the sales invoices from the processing company and purchase invoices in each selected company.journal-transaction-summary

Click Post to generate the transactions on the target companies. A confirmation message will be displayed.

complete-transaction-screen

Automatically generated Intercompany sales and purchase transactions must be paid, allocated and processed using standard Sage functionality from this point onwards.

 


5.2. Resulting PL transactions

Company 1 (i.e. the company paying the supplier) transactions

The original supplier purchase invoice transaction is posted to the source company.

Sales ledger invoices are posted against each target company customer account. First target intercompany sales transaction. (Posted against customer IC_B_EU).

Second target intercompany sales transaction. (Posted against customer IC_B_US).

Company 2 (i.e. the first company being cross-charged) transactions

A purchase ledger invoice is posted against the configured intercompany supplier account.

Company 3 (i.e. the second company being cross-charged) transactions

A purchase ledger invoice is posted against the configured intercompany supplier account.


6. Sales Ledger Transactions


6.1. Posting Intercompany Sales Invoices / Credit Notes

With the Intercompany module installed, when entering a Sales ledger invoice or credit note a new Create Intercompany Transaction tick-box is available.

If you tick this box and save the invoice, the intercompany allocation screen will appear. Here you can choose to allocate amounts to any other configured companies.

sl-ic-allocation
You do not need to allocate the entire value of the sales invoice.

remaining-value-prompt

Clicking next will bring you to the nominal detail screen; one is show for each company selected on the previous allocation screen. You can use the Next and Back buttons to navigate between the target companies.


On the final company, a summary button is shown, pressing this will go to the summary screen. Showing the purchase invoices from the processing company and sales invoices in each selected company.

Press Post to generate the transactions on the target companies. A confirmation message will be displayed.

Automatically generated intercompany sales and purchase transactions must be paid, allocated and processed using standard Sage functionality from this point onwards.


6.2. Resulting SL Transactions

Company 1 (i.e. the company paying the supplier) transactions

The original supplier Sales invoice transaction is posted to the source company.

Purchase ledger invoices are posted against each target company supplier account. First target intercompany sales transaction (posted against supplier IC_B_EU).

Second target intercompany sales transaction (posted against supplier IC_B_US).

Company 2 (i.e. the first company being cross-charged) transactions

A sales ledger invoice is posted against the configured intercompany customer account.

Company 3 (i.e. the second company being cross-charged) transactions

A sales ledger invoice is posted against the configured intercompany customer account.


7. Sales Order Transactions (new feature from v2015.15.0.15)

New enhancement from v2015.15.0.15 to do Intercompany postings from SOP transactions.

Enter a new Sales Order.

Tick the new Intercompany Box as shown below.

ic-sales-order-intercompany-flag-v2015-15-0-15-onwards

Click Add Items – populate the order in the usual manner (stock items or Free Text items).

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.

ic-sop-screen-2-v2015-15-0-15

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.

ic-sop-screen-3-v2015-15-0-15

Save to complete this allocation.

Intercompany Sales Orders can be amended. Select the order from the sales order list and click Amend.

Adjacent to the Intercompany tick box, the Amend button is now active.

ic-amend-sop-screen-1

Click the Amend button to open the Intercompany allocation window.

ic-amend-sop-screen-2

Make required changes and click Save.

Despatch, Print and Post invoices in the usual manner.

Change over to the receiving company, select the Sales Ledger and the Intercompany Control account for the generating company to see the invoice created.

ic-sop-receiving-company-screen-4-v2015-15-0-5


8. 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.

nominal-ledger-transactions

Once this transaction is saved, the Intercompany transaction wizard is shown:

intercompany-nominal-allocation

In this example, we are splitting a £100 (net) transaction between two other companies. here we have allocated £50 to each one.

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.

nominal-detail-screens
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.

intercompany-transaction-summary-payment

complete


9. Cash Book Transactions


9.1. 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.

ic-customer-receipt-v2015-15-0-15

If this is ‘ticked’ the user will be prompted to enter Intercompany cash book details when the transaction is saved.

The target payment/receipt company should be selected from the drop-down list. If selected on the Control Account Settings screen (see above) the default bank account will be selected. Following these intercompany details being saved the related cash book payment or receipt will be generated, on the other company, for the selected bank account.

ic-bank-account-trans-enq-v2015-15-0-15


10. Split vs. Sequential Transaction

On the intercompany transaction screen, you now have the option of a split transaction (default) or a sequential transaction.

split

  • 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.

11. Inter Company > Nominal Ledger


11.1. Posting Intercompany Journals

If the current and target company have matching VAT registration numbers, then this option will create nominal journals between companies. If the VAT numbers differ, then sales or purchase invoices and credit notes are created instead, unless you have ticked Force Journal Postings against the Nominal Ledger on the Control Account Settings.

edit-control-account
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. This is due to tax reasons, and is handled automatically by the Intercompany Module. Once you are done, press Next >> whic

h will bring you to the nominal detail screen for the first company you are allocating to:

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.

 NB: If any of the target companies operate in a different base currency, they will automatically be exchanged at the rates set in the current company.

 


11.2. Resulting NL Transactions

Source Company

A sales credit note was created for each nominal code that was entered, for the amount specified for the amounts going to the first target company control account (Company B) and because the second target company has a matching VAT number, a Nominal Journal entry is created for that amount into the Control Account for Company C.

First Target Company (Company B) This Company has a different VAT number, so a Purchase Credit note (with corresponding tax entries) is created:

Second Target Company (Company C) This Company has the same VAT number, so a nominal Journal Entry gets created:


11.3. 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. i.e. if one transaction is made consisting of 30 different nominal accounts on a regular basis, this can take 5-10 minutes each time, by saving this as a template, this process can then be done in seconds. 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.

intercompany-journal-template

To add a new template, Press the Add button, alternatively, press Edit if working on an existing template:

journal-templates-split-postings

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).

On the Main screen press Delete to delete a line and start again. Press OK to save the changes, or Cancel to leave the template and discard the changes.


11.4. 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.

intercompany-maintain-nominal-code-accounts


12. Stock Control


12.1. Intercompany stock transfer

Select the Inter Company, Stock Control, Transfer Stock menu option:

intercompany-stock-menu

The stock transfer screen will appear:

intercompany-stock-transfer

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.

If the Tax registration number is different in the receiving company, you will get the following message:

intercompany-stock-transfer-invoice

Click Yes to transfer the stock and create an invoice transaction.


12.2. 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:

intercompany-maintain-analysis-codes-asm

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:

intercompany-stock-maintain-analysis-codes

Finally, in the Intercompany settings, change the setting to the number you previously used, in our example, this is “2″:

intercompany-settings-for-batched-stock-trf

Adding items to a batch

Open the Batch Stock Transactions from the Intercompany > Stock Control Menu. Any existing batches will also be shown here:

ic-batch-stock-trf

Click the Add button and choose a company you intent to post the transaction to, along with a date and a header text to help you identify the transactions:

ic-add-batch-stock-trf

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):

ic-batch-stock-item-details

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.

ic-add-batch-stock-save-and-allocate

ic-batch-saved

Printing an Allocation Report

You can choose to print an allocation report for you 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.

ic-batch-stock-trf-print-allocation-report

ic-stock-transaction-history-report

Posting Transactions

Press Post and the transactions are issued and the relevant financials entries are completed, just as in a normal intercompany stock transfer.

ic-post-transaction


13. Cash Book


13.1. Account Transfer

Select the Account Transfer from the menu option.

ic-account-transfer-screen

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.

ic-account-transfer-confirmation

Change to the receiving company, select the bank account to verify the transfer as shown below.

ic-account-transfer-recieving-bank-details


13.2. 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.

ic-account-transfer-import-screen-v2015-15-0-15

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.


13.3. Pay & Receive Transactions

This feature enables the current company to pay invoices on behalf of one of the other configured companies. It is also be able to process credit notes from suppliers, so that the amounts are tallied before a payment is made.

Once opened you will need to select the relevant Ledger, Bank Account, Transaction Date and enter References as appropriate.

ic-pay-receive-transactions-v2015-15-0-15

Click Next.

Choose the company and customer you want to pick the invoices from.

ic-pay-receive-transactions-2nd-screen-v2015-15-0-15

Once selected, a list of outstanding invoices and credit notes will be displayed for that supplier. You can then tick to choose the transactions you wish to pay, and any credit notes to receive against them. In this example, we are going to pay the £1000 invoice minus the £200 credit note we have received.

Click Post to complete the transaction and get the confirmation message below.

ic-pay-receive-transactions-3rd-screen-v2015-15-0-15

Once confirmed, the transactions will be posted in both companies. The created payment in company B will then be allocated to the selected invoices in the previous screen as shown in the Customer Transaction Enquiry screen below.

ic-pay-receive-transactions-4th-screen-v2015-15-0-15


13.4. Receive, Transfer & Allocate

Select this option to receive, transfer and allocate payments.

ic-rec-trf-allocate-screen-1

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 – use Code, Short Name or Postcode to identify the 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.

ic-rec-trf-allocate-screen-2

The dialogue box below confirms the transactions are resolved and allocated.

ic-pay-receive-transactions-3rd-screen-v2015-15-0-15

In the receiving company, select the bank account to verify the transaction.

ic-bank-acc-rec-trf-allocate


14. Enable Module

Each year your Intercompany module will require a new enable string to continue working. When you have been issued with your new key, select this option and enter the code into the New enable string field as shown below (copy and paste is the easiest way).

NB: If the option is not displayed on your menu, you may need to log in to Sage as a User or Role that has been assigned access rights to this option.

ic-enable-windoe


15. Release Notes

The Release Notes document below shows which release of the Intercompany module includes which new features and for which version of Sage these will work.

The version number indicated in the Release Notes includes a full release number and a sub version number; e.g. ’6.1′ indicates the full release version number of the software. Pre-release version builds of the software are available to certain clients requiring new or enhanced features being developed from the wish list. If these versions are installed on your system, you will see an additional number e.g. 39.113 making up a specific database version and interim build number of 6.1.39.113.

It is unlikely that these features will be documented in this Intercompany Transactions Help and User Guide until the end of the development phase.

Intercompany Transactions Release Notes


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