Shared Transactions - Crediting an Intercompany Vendor Bill
Overview
The Shared Transactions Vendor Bill Automation feature can automatically create a bill credit when a credit memo is generated from an intercompany invoice. This bill credit is then linked to the corresponding intercompany vendor bill. The walkthrough below outlines this process.
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Key Assumptions
- An intercompany vendor bill has already been generated from an intercompany invoice.
- The vendor bill is still in an open status.
It is important to note that the Shared Transactions Vendor Bill Automation feature creates expenses—not items—on the corresponding intercompany (IC) vendor bill, regardless of whether the IC invoice contains inventory items or other item types. While the feature can automatically generate and associate a bill credit with an IC vendor bill, it does not support inventory items. If inventory items are included in the IC invoice, they will be recorded as expenses on the IC vendor bill rather than as items, preventing them from being credited or returned.
Step-by-Step Process
- On the invoice, click Credit to generate a credit memo for the intercompany invoice:
- On the Credit Memo, select the Auto Apply option to apply the credit memo to the originating invoice:
- Save the Credit Memo. At this point, the Shared Transactions Intercompany Vendor Bill Automation will know to apply it to the IC Vendor Bill that was automatically created from the IC Invoice.
- After this process, the Credit Memo will be marked as Fully Applied:
- The Invoice will be marked paid in full. The IC Vendor Bill automatically created from the invoice will have a Bill Credit automatically created and applied to it marking the IC Vendor bill as Paid in Full. The Bill Credit will also appear under the Related Records subtab on the Vendor Bill:
The bill credit's prefix and suffix will be automatically assigned based on the configuration in the Shared Transactions System Setup.