When you sell to a customer in an intercompany setup, you sometimes need to add costs that go beyond the physical items. A freight charge or another extra expense is typically handled as a G/L account line on the sales order. The question is how that G/L line behaves when the item lines are routed through the intercompany flow to your supply company.
The answer is that the G/L line stays in your sales company. It does not get sent through the intercompany flow to the supply company. Only the item lines you have set up to go to the supply company are transferred to the purchase order that gets created when you release the sales order.
Because the G/L line never leaves your sales company, you cannot ship it from the supply company. You have to post the shipment of the G/L line manually in your sales company before you can invoice the full order.
Adding a G/L account line to an intercompany sales order
Start with a normal sales order for your customer in your sales company. Add the item the customer wants to buy, and then add a G/L account line for the extra expense, for example freight. At this point you have a sales order with both an item line and a G/L line.
What happens when you release the order
When you release the sales order, a purchase order is created for your supply company. Only the item lines that are set up to go to the supply company are included on that purchase order. The G/L line is left out completely. It stays only on the sales order for your customer and is not sent through the intercompany flow.
If you open the purchase order after releasing, you will see only the item line has been transferred.
Shipping the order across the two companies
Go to the supply company and open the order, then ship it. When you go back to your sales company and update the lines, you will see that only the item line has been shipped. The G/L line is still open, because it was never part of the intercompany flow.
Finishing and invoicing the order
To complete the order, you need to post the shipment of the G/L line separately in your sales company. Once both the item line and the G/L line are shipped, you can invoice the order in full.
Q&A
Does a G/L account line on a sales order get sent through the intercompany flow?
No. When you release the sales order, only the item lines set up for the supply company are transferred to the purchase order. The G/L line stays on the sales order in your sales company and is not sent through the intercompany flow.
How do I ship a G/L line in an intercompany setup?
The supply company ships only the item lines, since those are the only lines it receives. You post the shipment of the G/L line manually in your own sales company.
When can I invoice the full sales order?
After both the item line, shipped via the supply company, and the G/L line, shipped manually in your sales company, are posted. Once both are shipped, you can invoice the order.
What kind of expenses would I add as a G/L line on an intercompany sales order?
Extra costs that are not physical items, such as freight or other charges for your customer.