How to create an Interoffice Revenue Share

Automate the process of sharing revenue across offices based on agreed percentages.

Scenario

Office 1 raises an invoice for client A and wants to share (journalize) a percentage of the revenue earned from that invoice with office 2. 

Steps:

1. Navigate to Master Files > Clients.
2. Click Interoffice Revenue Sharing. 
3. Click CREATE A NEW REVENUE SHARE. 
4. Enter or select the following information. 
   
   

   Field	Description.
   Invoicing Office	Enter or select an invoicing office (Office 1).
   Share With Office	Enter or select an office to share with (Office 2).
   Start Date	Enter or select the start date.
   End Date	Enter or select the end date.
   Share %	Enter the % of revenue to be shared with Office 2.
   Client	Enter or select the client that the revenue share relates to (for all invoices), e.g., Client A
   Job	Enter or select a job only if the revenue share applies to a specific job; otherwise, leave it blank.
   Master Job	Enter or select a master job only if the revenue share applies to a master job; otherwise, leave it blank.

5. Click SAVE. 
6. Click Select GL Accounts For Revenue Share.
7. Select the GL account types and click the arrow keys to move the accounts back and forth.  
   
8. Click SAVE or SAVE & CLOSE. 
   

Workflow and postings

When client job invoices are raised matching the defined parameters, an additional set of journals is automatically created.

Let's assume Office 1 earned 10,000 of revenue for a Client A invoice, and 20% of this is to be shared with Office 2.  The journal entries will be:

        In Office 1