This document will walk you through the process of setting up your companies for intercompany transactions between different entities in your 365 Cannabis system.

Contents

Intercompany introduction

Intercompany (IC) functions in 365 Cannabis are used to track transactions between different companies within the same database. This will allow you to save time on data entry and reduce the number of errors.

In cannabis, one of the most common examples of when you could use intercompany would be when a company is required to have separate businesses established for different parts of their organization.

Let’s say cultivation is required to be under one business and manufacturing has to be completed under another business entity. If you maintain information for both companies in the same 365 Cannabis database, you can use intercompany to track the movement of products between these two entities.

This document will walk you through the process to set up your companies to complete intercompany transactions and then provide instructions on how to complete the transactions.

You can use intercompany functionality to create some of the following types of transactions:

• When setting up Intercompany it will allow you to send a transaction (such as a sales journal line) from one company and have the corresponding transaction (such as a purchase journal line) automatically created in the partner company.

• Customer or Vendors - You can set up your intercompany partners as customers or vendors (enter the IC Partner Code field on the relevant customer and vendor cards).

• Items - You can create or receive intercompany lines with items. You can either use your own item numbers, or you can set up your partner's item numbers for each relevant item.

  • Vendor Item No. field.

  • Your items need a common number in the No. field on the item card

  • Item Cross Reference Entries window linked to the item card.

• Resources - You can make intercompany sales transactions that include resources, you must fill in the IC Partner Purch. G/L Acc. No. field on the resource card for each relevant resource. This is the number of the intercompany general ledger account that the amount for this resource will be posted to in your partner's company.

Intercompany Setups

Before you can use the system for intercompany transactions, you’ll first need to set up your companies to recognize each other in the system. In order for the system to be able to track intercompany transactions properly, you must agree on an intercompany chart of accounts and intercompany dimensions that will be used as a standard reference to make intercompany transactions.

After you have completed the IC Chart of Accounts, you will need to associate each of the Intercompany Chart of Accounts with one of your Company’s General Ledger Chart of Accounts. You will need to also set up the Chart of Accounts and Dimensions.

You can set up and use intercompany postings to transfer transactions electronically from one partner company to another within the same database. You will need to set up an IC partner code for each partner company that will be used in all transactions and an Intercompany Chart of Accounts and Intercompany Dimensions.

An example of when you might use this is when you have different legal entities that buy and/or sell supplies to/from each other. In order for these transactions to align, the entries being generated must be set up to match each other at specific data points. The company selling items will need to be set up as a vendor for the company that is purchasing their items. The company buying will need to be set up as a customer for the company doing the selling.

Setup Checklist

Intercompany Chart of Accounts

The intercompany chart of accounts can be a simplified version of the parent company's chart of accounts. Each company maps its full chart of accounts to the shared intercompany chart of accounts, and each company maps its dimensions to the intercompany dimensions.

IC Partner Card Setup

You must set up an IC partner code (Intercompany Partner Card) for each partner company.

1. Search for Intercompany partners.

2. Select New in the ribbon to create a card for each company with which you will have transactions.

3. Fill out the following fields on the IC Partner card.

On the General Tab:

• Code - Use ‘ICP or IC’ as a prefix with Company Code ‘IC Company 1”.

• Name - Type in the company name in the Name field.

• Currency Code - Select a Currency Code if necessary. Contains the intercompany partner's home currency code. If you enter the IC partner code on a journal line, the program will automatically enter the currency code on the line, unless the currency is the same as the home currency, then the currency code should be blank.

• Blocked - Specifies that the intercompany partner is blocked. You cannot post a line to a blocked IC partner. If the Blocked field on the customer card contains a check mark, only sales to the customer are blocked. You can still post lines to the intercompany partner.

Sales Transaction Tab:

• Receivables Account – Enter the Intercompany account in the Receivables Account field that will be used when the IC Partner code is used in an entry.

• Payable Account - Enter the Intercompany account in the Payables Account field that will be used when the IC Partner code is used in an entry.

• Outbound Sales Item No. Type Select what type of item number is entered in the IC Partner Reference field for items on sales lines that you send to this IC partner (Internal No., Common Item No., or Cross Reference).

Purchase Transaction Tab:

• Outbound Purch. Item No. Type - Select what type of item number is entered in the IC Partner Reference field for items on purchase lines that you send to this IC partner (Internal No., Common Item No., Cross Reference or Vendor Item No.).

Open

Company Information Card

Once the Inter Company Partner Card setup has been done, you must indicate which Inter Company Partner Card this entity represents.

1. Search for Company Information and select the appropriate option from the list.

2. Select the Communication FastTab and enter the following information:

• IC Partner Code -Enter a code for the company you are in.

• IC Inbox Type - If your partner companies are in the same database as your company, then the box should be Database.

Open

Customer Posting Group

Create a Customer Posting Group that posts to the Intercompany AR account entered in the Partner Card. This will be assigned when creating the intercompany Customer Cards in the next step.

Search for Customer Posting Groups and complete the Posting Group setup.

Open

Customer Cards

Create a Customer Card for each company for which you will have a receivable entry. Create one to represent each of the companies to which you will send an invoice.

1. Search for Customers and select the appropriate option from the list.

2. Select New to get a blank card and enter the code in the header that will be used to represent this IC customer.

3. Complete the following information:

• IC Partner Code - Select the proper code from the IC Partners list.
  
  

  Open

  

• Gen. Bus. Posting Group - Select the Gen. Bus. Posting Group (optional).

• Customer Posting Group - Select the intercompany Invoicing tab and select the intercompany Customer Posting Group created previously.
  
  

  Open

  

• Complete the setup by selecting a Payment Terms Code on the Payments tab. Complete any other setup necessary.

Vendor Posting Group

Create a Vendor Posting Group that posts to the Intercompany account entered in the Partner Card and assign it to the intercompany Vendor Cards on the Invoicing tab.

Search for Vendor posting groups and complete the Posting Group setup.

Vendor Cards

Create a Vendor Card for each company for which you will have a payable entry. Create one to represent each of the companies to which you will receive invoices.

Search for Vendors.

Hit F3 to get a blank card and enter the code in the header for this IC vendor card. (suggest using the prefix ‘ICV’ plus the same identifier as was used in the Customer Card in the previous step.)

Complete the General tab information

• IC Partners - Select the proper code from the IC Partners list.

• Gen. Bus. Posting Group - Select the Gen. Bus. Posting Group (optional).

• Vendor Posting Group - Select the intercompany Invoicing tab and select the intercompany Vendor Posting Group created previously.

• Complete the setup by selecting a Payment Terms Code on the Payments tab. Complete any other setup necessary.

Map the IC G/L Accounts and Default Accounts

You will need to specify how you want your company's chart of accounts to correspond to the charts of accounts of your partners. You will use the intercompany chart of accounts when an intercompany partner sends you an intercompany transaction.

After you fill in the IC COA window with the chart of accounts that you and your intercompany partners have agreed to use, you need to associate each of the intercompany general ledger accounts with one of your company's general ledger accounts. In the IC COA window, you specify how intercompany general ledger accounts on incoming transactions will be translated into accounts from your company's chart of accounts. When you create an intercompany sales or purchase line to send as an outgoing transaction, you will enter an account from the intercompany chart of accounts as a default for which account in your partner's company the amount should be posted to.

You use the IC G/L Account table to define how the account numbers in your Chart of Accounts correspond to the account numbers of your intercompany partners. (In most cases they will be identical but can be setup to correspond to a different account in the IC transaction if needed.)

When you receive an intercompany transaction from one of your IC partners, your partner will have specified account numbers from the master chart of accounts. The program uses the information in the IC G/L Account table to find the corresponding account in your Chart of Accounts.

Additional setup can be used to have the General Ledger information automatically default into the IC entry by mapping the Chart of Accounts to a default G/L Account No.

IC G/L Account:

1. To set up and map the IC G/L Account table, search for Intercompany Chart of Accounts and select the appropriate option.

• Go to the ACTIONS tab and select Copy from Chart of Accounts. This will populate the No., Name, Income/Balance and Account Type fields.

• Go to the Home tab and select Edit List to fill in the Map-to G/L Acc. No. field.

• Select all lines when you highlight the entire window, or you can select one account at a time. Go to the Actions tab and select Map to Acc. with Same No. to populate the Map-to G/L Acc. No. field with the same G/L number as is in the No. field. These can be manually changed or blocked if necessary after running this function.

When completed, the IC Chart of Accounts should look like this:

Map the Dimension Codes

The Dimension Codes and IC Dimension Codes that will be used in the intercompany transaction must be mapped for the system to be able to connect this information in the companies involved in the IC transactions. This mapping is in the Intercompany Postings setup and in the Dimension setup.

Intercompany Dimension Setup:

To set up and map the IC Dimensions, search for IC Dimensions.

• Select Action Tab Copy from Dimensions. This will populate the No., Name.

• Select Home Tab Select Edit List to fill in.

• Select all lines when you highlight the entire window, or you can select one account at a time. Select Action Tab  Select Map-to Dim. With Same Code. to populate the Map-to Dimension Code field with the same Dimension Code as is in the Code field. These can be manually changed or blocked if necessary after running this function.

The IC Journal and Batches:

Your system should have a Journal Template for the Intercompany transactions. If it does not, then you will need to create one with the following setup:

• To create a Journal Template, search for General Journal Template. Select Journal Templates and create one based on the setup above.

• Create a Template Batch for Intercompany. If you need more than one IC Journal Batch, create them with a prefix ‘INTERCO’ as in Interco-1, Interco-B, Interco-CASH, etc. Select Navigate > Select Batches button to create a Batch.

Intercompany Transactions

Intercompany transactions are used to transfer money or product between different companies within the same database.

Intercompany Journal Entry

Intercompany journal entries are used to create intercompany general journal transactions or transfer money from one company to another.

1. Search for IC General Journal.

2. Fill out the journal entry for this intercompany transaction.

   1. Enter the amount.

   2. For Bal. Account Type select IC partner.

   3. For Bal. Account No. select the partner you are transferring money to.

3. Select the Post action in the ribbon at the top..

To view and complete your transaction

1. Search for IC Outbox Transactions.

2. On the column Line Action select Send to IC partner.

3. Go to the Actions tab. Select Set Line Action to open a menu and select Send to IC Partner.

4. Now you can go to the partner company and see the transaction posted in the IC Inbox Transactions.

5. Go to the Actions tab. Select Set Line Action to open a menu and select Accept.

6. Then select Complete Line Actions in the ribbon.

7. Fill out the Complete IC Inbox Action card and select OK.

8. To verify that your entry was processed, search for Handled IC Inbox or Outbox Transactions.

Intercompany Purchase and Sales Orders

With intercompany transactions, you’ll normally be selling from one company and purchasing from another. You’ll need to process a sales order from the originating company and process a purchase order from the company receiving the product.

When you complete the setup for intercompany transactions, you’ll enter information about your IC partner codes. When you select the company on the sales order, the IC code will already be associated with that company.

Create a Sales Order:

1. Search for Sales Order.

2. Fill out and post the sales order as usual. For additional instructions on this process, see the document Create and Process a Sales Order.

After you post the sales order, go to your IC Outbox and process the transaction the same way you did in the View and complete your transaction section above.

Create a Purchase Order from an IC Sales Order:

1. Search for IC Inbox.

2. Select the line for the order that was just sent as a sales order.

3. Accept the transaction by going to the Actions > Set Line Action > Accept.

Your IC PO transaction should now show up and can be processed with your regular purchase.