Inter-company Cost Transfer Customization in Microsoft Dynamics GP

Posted By
BDO

Larger enterprises generally tend to set up separate Microsoft Dynamics GP solutions for each business unit. In day-to-day operations, individual resources are often employed across projects specific to more than one company.

To track project costs, a traditional approach would require an employee to be set up in each company, adding subsequent labour time into these entities as a result. This presents a degree of redundancy, which goes against keeping with the lean-centric methodology.

Tasked with an objective to eliminate redundancy in logging project costs, BDO IT Solutions designed a feature to transfer labour costs for individuals that work on projects belonging to different companies. This requires employees to be set up in a single company where all project costs are entered.

Application

We designed and developed a customization to facilitate the transfer of labour costs from one company to another. This included a user interface component to establish a link between an intercompany job, as well as a cost code in the source company and corresponding job, and a cost code in the destination company (Figure 1).

An integration console provides the ability to execute the intercompany job transaction process (Figure 2).

 

With the baseline setup, the components mentioned above are utilized to transfer costs between companies. Required setup included:

  1. Configuration of intercompany jobs in the source company following a specific naming convention.

Format: [Company id] INTERCO

Example: TTWO INTERCO

The Company ID portion represents the destination company in which the job transactions are created.

  1. Jobs created in step 1 must be in an open state. Closed jobs are not considered for the intercompany job transactions process.
  2. Dynamics GP Intercompany set up – an intercompany relationship must be established between the source company and the destination company (Figure 3).

 

  1. Intercompany Job lookup on the BDO Integration will only present jobs that meet the requirements outlined in step 1 above.

 

Below, we outline the steps carried out to successfully transfer job transactions entered in a source company to transactions in respective destination company.

  1. For each intercompany job, collect job transactions for a date range specified on the BDO Integration Console.
  2. Create a job transaction batch in the source company. Reversing transactions in the source company will be associated with this batch.
  3. Create a job transaction batch in each destination company. All job transactions created in the destination company will be associated with these batches.
  4. For each job transaction, create a reversing job transaction in the source company in the same amount as the original transaction. The transaction is associated with the batch created in step 2 above.
  5. For each job transaction, create a job transaction in the destination company in the same amount as the original transaction. The transaction is associated with a batch in the respective destination company created in step 3 above.
  6. For each successfully processed job, create a period history log. Once a log is created, the intercompany job and its associated transactions are no longer available for processing for the dates within the recorded range.

With successful implementation of the customization designed and built by BDO IT Solutions, you can effectivity cut down on the duplication efforts required in tracking project costs, furthering the ROI in selecting Microsoft Dynamics GP as the ERP of choice for  your complex enterprise.


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