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How to support intercompany invoices?

← Billing & Invoice Management FAQ ← Accounting Support FAQ

Your business may be part of a tax group for income tax purposes. Invoices issued to other companies within the tax group – intercompany invoices – are not taxed.

How to support this with JustOn Billing & Invoice Management?

In short, you create a new tax rule to cover this use case and then flag the relevant accounts accordingly so that invoices to these accounts apply the tax rule.

  1. Create the field Account Tax Class on the Account.

    API Name Type Description
    ON_AccountTaxClass Text
    or
    Formula (Text)
    Specifies the criterion to match the tax rule, like Intercompany. If configured as a formula, it can determine the value based on other data.

    JustOn will copy the value of this field to the invoice field Account Tax Class on invoice generation using the ON field mechanism.

  2. Create a tax rule for intercompany invoices.

    Field Value
    Name Intercompany
    Account Tax Class Intercompany
    Tax Rate 0

    JustOn will match this tax rule on invoice generation and, consequently, apply 0% tax to the involved invoice line items.

Info

Be aware that, in addition, you may have to

With this respect, contact your tax consultant.