IMOS - Intercompany Payments

Intercompany payments can be configured, with the following capabilities.

Time Charter In (TC In) and Time Charter Out (TC Out) contracts can be made against another internal company, and internal payments are created to settle the books.
An internal company can pay invoices on behalf of another internal company, with the Veson IMOS Platform settling the books.
TC Rebilling can be done between a TC In and a TC Out contract for the same vessel.
Journal Entry can be posted between different companies, using the intercompany account.

Setting Up Intercompany Payments

To set up intercompany payments, follow these steps:

In the Chart of Accounts, enter the new Account Codes to be used for intercompany payments, with a Y in the I/C (intercompany) column.
In Account Periods, enter the account number for the default intercompany account to use.
In the Address Book, enter an internal company as owner, type = O (or charterer, type = C), and select the Internal check box.
Open the Address Book record of a company whose payments are taken care of by another company, and add the other company as the Payment Company.

When TC In Payments/TC Out Bills are posted against internal owners/charterers, the internal payment is automatically created against the default intercompany account.

When a company has a Payment Company set in the Address Book, the payment/receipt form defaults to the Payment Company. The intercompany account is used as the credit account, and a Journal Entry is automatically created for the Payment Company to transfer the amount from the intercompany account to the bank account.

The Transaction Data Entry form has an I/C (intercompany) column for the line items.

Creating a Journal Entry

When you post a transaction with a value in the I/C column, a message asks if you want to create a Journal Entry for the transaction. To do this, there must be an I/C account set up for both companies. The Journal Entry is created in the following format:

Company	Account	Amount
Company A	Account X	USD(1000)
Company A	IC Account B	USD1000
Company B	IC Account A	USD(1000)
Company B	Account X	USD1000

When saving a Journal Entry for a multi-company transaction (a different company per line item) the intercompany lines are automatically added if the accounts are intercompany accounts.

Requires that CFGEnableMultipleBaseCurrencies is set to No. Otherwise, when posting the transaction and on user confirmation on whether to create the intercompany journal, the system generates an error message that Base currencies for the 2 internal companies do not match.

Related Configuration Flags

CFGUseSpecificICAccountOnPaymentsAndReceipts	Sends intercompany payments and receipts to a specific IC account by default. Intercompany payments and receipts are sent to the company account listed in the Intercompany Info section of the payment/receipt by default. The IC account is based on the company's W address book record. If no IC Account is defined, the system will use the IC Account from Account Periods.
CFGActLimitICJournalOnICAccount	Limits the Intercompany Journal to only two lines.
CFGEnableIntercompanySecurity	Enables Intercompany Security, which enables you to establish which of your internal companies can transact with each other. Invoices or journal entries constituting transactions between internal companies not authorized per the setup on the Intercompany Security form cannot be posted.

CFGActAllowIntercompanyJournals: Allows creating a journal that can balance the books automatically for internal companies.