Inter-Entity Transactions

Overview

This feature is available as an add-on to your subscription. Contact sales@versaccounts.com if you want to have this feature enabled.

Versa supports multi-entity which allows you to manage many entities (separate companies or separate legal entities) with one account. You can switch between different entities as a user. Users can be restricted to only access one entities or multiple entities.  With a multi-entity setup, it enables Inter-entity transactions.

Setup Entities

You must have multiple entity defined in Setup Menu, Entities. Each entity would be a separate business you are managing with one Versa account.

Setup Entity Interactions

Go to Setup, Global Settings. Inter-Entity Transactions setting needs to be checked.

Go to Setup, Entity Feature Settings and make sure these 2 settings are checked.

Allow Invoices from One Entity be Automatically created as Bills in another entity.
Allow Purchase Order from One Entity be Automatically created as Sales Order in another entity.

Connecting Customers or Suppliers Between Entities

An entity can add another entity as a customer by clicking on Invoices Menu, Customers, New Customer from Entity. Choose the entity from a list of existing entities, Save and then a new customer is created and link to the entity's party record. If an entity is already created as a customer in the current entity, you would not be able to select it from the list. Once an entity is added as a customer in the current entity, the current entity will automatically be added as a supplier in the other entity. 

An entity can add another entity as a supplier by clicking on Bills, Suppliers, New Supplier from Entity. Choose the entity from a list of entities, Save and then a new supplier is created and link to the entity record. If an entity is already created as a supplier in the current entity, you would not be able to select it from a list. Once an entity is added as a supplier in the current entity, the current entity will automatically be added as a customer in the other entity. 

Inter-Entity Transactions

In an inter-entity transactions, there are 2 parties involved: From Entity and To Entity. From entity is the entity that initiated the transaction. To entity is the entity receiving the transaction.

Invoice To Bills

From Entity creates an invoice, choose the To Entity as the customer. On the invoice page, a checkbox is available "Create as Bills In To Entity When Posted"This checkbox is checked by default but it can be unchecked. If it is checked, then a bill is automatically created in the To Entity once the invoice is posted.  The bill will be unposted in the To Entity. 

If an invoice item has no product or order shipment linked. In the new bill item in the To Entity, the system determine which expense account to use for each new bill item by using a setting "Default Expense Account for inter-entity Bills"in Setup, Entity Feature Settings, Bills. The accounts can be changed by the other entity when they edit the bill.

If an invoice item has a product or an order shipment linked, For the new bill item created in the To Entity, the bill will reference the product. The account used in the bill item is the supplier prepayment account if the PO in the To entity is not received. If the PO in the To Entity is received, the inventory asset account is used.

Purchase Orders To Sales Order

From Entity creates a purchase order, choose the supplier that is linked to the To Entity. After the PO is created, on the purchase order page, There a button at the bottom "Create as Sales Order In Entity xxx"
If the button is clicked, then a Sales Order in the To Entity. Sales order created from Purchase Order cannot be changed in the To Entity and changes must be done on the purchase order in the From Entity. If the purchase order is changed, then the sales order is not changed in the To Entity . User must delete the sales order and create it again from the PO again.
If the initial purchase order is deleted, as long as the linked sales order is not shipped, it can be deleted. 

When the Sales Order is shipped in the To Entity and an invoice is created, when the invoice is posted in the From Entity, a bill is automatically created in the To Entity. The bill is unposted in the To Entity once created.

Bill Back Expense To Other Entities

If you have an entity that pays for a bill with expenses that are shared with other entities, you can use the Rebillable Expense feature in versa to create a bill and then mark the bill line item as a rebillable expense to another customer which is connected to one of your entities. See here for how to use the rebillable expense feature.