We have a company that we purchase material from that used to be an external vendor. They are still being processed as an external vendor with POs, GRs and IRs, We are looking for the easiest way to report them as an internal vendor (IC payable). The GR posts to a GR/IR account that is under external payables. I have read the following solution may help with this?
-creating a seperate valuation class for the Inter unit material. You can assign a seperate GL Account based on this valuation class.
Does this sound like it would help with posting to a new internal GR/IR account?
Also we would need to either change the reconciliation account on the vendor to an intercompany payable GL or create a new interco vendor that reconciles under the intero payable GL.
Any advice on this matter would be greatly appreciated.