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Interdepartmental Billing

Feb 04 at 08:41 AM


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Former Member

Dear Experts,

We have one customer A to whom we supply Goods and Service and make one(combined) billing.

Cost of Item A = 100

Sales Price for Item A = 130

Cost Price of Service = 70

Billing Price for Service = 90

Total Sales Value to Customer A = 130 +90 = 220

The billing is done from Department A.

Profitability of Department A :

Sales Price = 130 + 90 (220) -

Stock Value = 100+ 70 (170)

Gross Profit = 50

Service has been provided by Department B. How to record revenue and Gross Profit for Department B.

For Department B the Selling price to Department A is 70

and Actual Service Charge 40

Department B should get a Gross Profit of 70 -40 = 30

How to address this scenario

Thanks & Regards


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1 Answer

G Lakshmipathi
Feb 05 at 07:18 AM

Probably, you should have shared your current pricing procedure to show what efforts you made already. You need to have one final step as Profit Margin with routine 11 set under Calculation Type.

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Former Member

Pricing Procedure

Former Member

Currently we don't have any configuration made in system. Department A bills customer in full amount. Latter department B raises a sales order to Department A (Created Department A as a customer).