This functionality is available with Xero integration only. Please contact us if you are interested to add it to your integration with Ocerra.
This functionality intends to reduce data entry associate with inter company manual journals. Please note:
In Xero setup, you will create a new account type for each company depending on the scenario. For example, you have two companies, First Company and Second Company. First Company is HQ and makes large purchases for both companies and then splits the bill.
In First Company, you create a new account as Current Asset, in this case, Second Company will own money to this company (Due from).
In Second Company, you create a new account as Current Liability, in this case, Second Company will own money to Company A (Due to).
In practice, it doesn’t matter what you name it, but we are using these names conventions in Ocerra.
Before starting with inter-company, you will need to have at least two entity/company set up in Ocerra.
In this article, we are going to use First Company and Second Company as in the example above.
Setting up inter company in Ocerra
- Go to First Company in Ocerra
- Go to Settings – Inter Company
- Click + New Inter Company button
- Select the company you want to make an inter company transaction with, e.g. Second Company.
- Select Due from Account and Due to Account:
Repeat with the Second Company (Optional):
- Go to Second Company in Ocerra
- Go to Settings – Inter-Company
- Click + New Inter Company button
- Select the company you want to make an inter company transaction with, e.g. First Company.
- Select Due to From Account and Due to Account:
In Action:
- Go to Invoices page in Occera and open an invoice.
- You will see an additional column next to the Accounts
Ocerra data extraction engine will capture data as usual. To split this invoice, you will have to:
- Click + Add Line
- Select company in the inter company Co. column and manually adjust the amount and line information and click save.
- This will create a record in out Second Company. To check it, switch to the Second company, and you will find a new bill record:
This is just a record saying that you owe money due to the first company.
Exporting bill to Xero
You have to export the bill from the First Company to pay (it can be exported automatically too)
This export will create a new bill in Xero in the First Company. You would pay it as normal.
If you go to the Manual Journal, you will find this record:
You will have to export the bill record from the Second company too. It will create the manual journal for the second company only:
By clicking "Go to Ocerra" button on the bill or on the Manual Journal will take you to this invoice in Ocerra.
Credit notes
If you receive a credit note for your inter-company transaction, please adjust it manually using manual journals in the first and second company.