Create an invoice with inter-entity bill back

Related information

Related topics

• About managing invoices—Accounts Receivable
• About customers
• Field descriptions: Invoices—Accounts Receivable

Inter-entity bill back enables handling the following use case:

• One entity provides goods or services to another entity.

• You must generate an invoice and corresponding bill.

When you create an invoice for bill back, select the following:

• A customer that's associated with an entity (in the entity record).

• The Generate matching bill for invoice checkbox.

• A Bill back template from the dropdown menu.

You can use the affiliate entity dimension to auto-tag the customer and vendor in your inter-entity bill back transaction. Ensure that your company is subscribed to Consolidation and the affiliate entity dimension is enabled in your company.

1. Go to Accounts Receivable > All and select Add (circle) beside Invoices.
2. In the Customer field, select the customer associated with a bill back entity.
3. Verify that Generate matching bill for invoice is selected.

   This option only appears when the customer is associated with a bill back entity.

4. Select the template from the Bill back template dropdown.

   Some information is automatically entered in the line item detail of the invoice:

   • invoice GL account
   • Department (if you specified one)
   • Memo entered in the template
5. Enter required information, such as due date, transaction and base currencies, and the amount.

   If the entity that's issuing the invoice uses a different base currency from the billed entity, you need to set the base and transaction currencies in the invoice.

6. Select a Location for each line item.

   Intacct uses this dimension to determine the associated vendor for the bill back bill. The location for all line items must be either the same entity or share the same parent entity.

   If you select a child location or sublocation, Intacct refers to the parent entity of the location to find the associated vendor. The bill that Intacct creates in Accounts Payable shows the entity as the location.
7. Select Post or Post & new.

   What happens next depends on the option you selected in your Accounts Receivable configuration.

   How bills are posted based on bill back configuration

   Inter-entity bill back configuration	Description
   Post bills directly	Posting the invoice automatically creates the bill in Accounts Payable for the invoiced entity, based on the inter-entity mapping from the template.
   Save bills as draft	Posting the invoice creates a draft of the in Accounts Payable for the invoiced entity, based on the inter-entity mapping from the template.

   After the invoice is posted, the following fields in the invoice cannot be edited:

   • Account

   • Transaction amount

   • Base amount

   • Allocation

   • Department

   • Location

Next: If your company uses Taxes, add the tax solution to the bill back bill.

Auto-tag a bill back invoice with affiliate entity dimension

You can use the affiliate entity dimension with inter-entity bill back to auto-tag the customer and vendor in an inter-entity transaction. After you enable the affiliate entity dimension, Sage Intacct automatically records the affiliate entity dimension on invoice and bill detail records. The affiliate entity dimension records carry over to the General Ledger (GL) entries when you post the bill or invoice.

You can use this information throughout your reporting, reconciliation, and consolidation processes. This helps ensure accurate elimination during consolidation.

Use the affiliate entity dimension with inter-entity bill back under the following conditions: 

• Accounting regulations require you to use Accounts Receivable bill back functionality instead of inter-entity transactions.

• You want to track and report on inter-entity transactions using the affiliate entity dimension.

1. Enable affiliate entity dimension on the Multi-Entity Management page.

2. Use the bill back template on an invoice.

   Ensure that the customer and vendor entities are different, as this is the basis for an inter-entity bill back transaction.

3. Enter the relevant entities in the Location column for each line item.
   The bill back template auto-populates the affiliate entity dimension as follows:

   • On the GL entry for the customer invoice, Intacct auto-populates the affiliate entity with the entity that's tied to the customer.

   • On the GL entry for the vendor bill, Intacct auto-populates the affiliate entity with the entity that's tied to the vendor.

Example: Auto-tagged inter-entity bill back journal entries with the affiliate entity dimension

Following is an example of a journal entry for an inter-entity bill back invoice that uses the affiliate entity dimension:

In this journal entry, the affiliate entity dimension indicates that E101 is the customer entity for vendor entity E100.

Following is an example of a journal entry for the resulting bill back bill that uses the affiliate entity dimension:

In this journal entry, the affiliate entity dimension indicates that E100 is the vendor entity for customer entity E101.

Next: If your company uses Taxes, add the tax solution to the bill back bill.