How to invoice between companies of the same group

What is it for?

When two companies of the same group work in the same fiscaldoo database and one invoices the other, the sales invoice is recorded in the selling company and the same purchase has to be recorded in the buying company. With the Invoices of the group option turned on in the buying company, fiscaldoo creates that supplier invoice by itself, at the moment the sales invoice is posted: with the same lines, the same amounts, the dates, and the sales invoice number as the reference.

That way, nobody types the same invoice twice and both companies have the same amounts.

When to use it?

• When the group companies are all in the same database and invoice each other (shared services, re-invoicing of costs, sales of goods).
• It is not for companies outside the database, nor for companies that are not Portuguese: in those cases record the supplier invoice as usual.

Where to find it?

It has no menu of its own. You configure it on the form of the buying company: Settings › Users & Companies › Companies, open the company, Accounting tab, Group companies group.

Before you start

• To configure: Administrator (who opens the companies form).
• To issue the sales invoice: the usual profile (in the example, Invoicing).
• Both companies are Portuguese and are in the same database. In the example: Empresa Demonstração, Lda sells accounting services to Empresa Teste Portugal.
• In the selling company, the buying company exists as a customer: it is the company's own contact (in the example, Empresa Teste Portugal).

How to use it

1. Open the form of the buying company (Empresa Teste Portugal), Accounting tab.
2. In Invoices of the group, choose what happens when another group company invoices it:
   • Do not create (the default): nothing;
   • Create as draft: a draft supplier invoice, for the accountant to review;
   • Create and post: the supplier invoice already posted.
3. In Purchase journal of the group, choose the journal where these invoices go (in the example, Purchases). Empty means the company's first purchase journal. Save.
4. In the selling company (Empresa Demonstração, Lda), issue the invoice to the customer Empresa Teste Portugal like any other and confirm it. In the example: FT D26/34, product [SERV] Generic service, “Serviços de contabilidade (outubro)”, €500.00 with VAT at 23%.
5. Switch to the buying company (at the top of the screen) and open Accounting › Record › Purchases › Supplier invoices: the group invoice is there as a draft. Check it and post it.

Expected result

• On the sales invoice FT D26/34, the history says: “Invoice of the group created in Empresa Teste Portugal: Draft supplier invoice (FT D26/34).”
• In Empresa Teste Portugal there is a draft supplier invoice, in the Purchases journal, with the supplier Empresa Demonstração, Lda, the Reference FT D26/34, the same invoice date and the same due date, and €500.00 + €115.00 of VAT = €615.00.
• The lines of both invoices, checked in the ledger:

Company	Account	Debit	Credit
Empresa Demonstração (sale)	21110026 Empresa Teste Portugal	€615.00
Empresa Demonstração (sale)	721 Services rendered		€500.00
Empresa Demonstração (sale)	2433 VAT - Output		€115.00
Empresa Teste Portugal (purchase, when posted)	6221 Specialised work	€500.00
Empresa Teste Portugal (purchase, when posted)	2432 VAT - Deductible	€115.00
Empresa Teste Portugal (purchase, when posted)	2211 General suppliers		€615.00

• The expense and income accounts come from the product configuration in each company. The purchase VAT is the buying company's purchase tax with the same rate and the same code as the sales tax.

Pending validation by a certified accountant: the VAT deduction on a supplier invoice created this way (the buying company must have the invoice issued by the supplier; the document created by fiscaldoo is the record of that invoice, it does not replace it).

Important notes

• Only when the sales invoice is posted. A draft sale creates nothing in the other company.
• Draft is the safest. With Create and post, the purchase goes straight into the buying company's accounting and VAT, without anyone looking at it.

Common problems

The sales invoice was posted but the supplier invoice did not appear

• Cause: the buying company has Invoices of the group set to Do not create, the invoice's customer is not the group company's contact, or one of the companies is not Portuguese. If the option and the customer are right, the sales invoice's history says why the supplier invoice was not created (for example, the buying company has no purchase tax with the same rate and the same code, or has no purchase journal).
• What to do: check the option on the buying company's form and the invoice's customer. For this invoice, record the supplier invoice by hand.