Intercompany Contacts
Intercompany contacts represent one organisation within another and allow you to create intercompany transactions and journals between them.
Two contacts become intercompany contacts only when the organisations belong to the same multi-company console.
When you add a subsidiary to the multi-company console:
- Zoho ERP automatically creates a customer and vendor for the subsidiary in all other companies in the view.
- Similarly, all other companies are created as customers and vendors in the subsidiary.
Scenario: Patricia Boyle sets up Zylker Corporation as the headquarters and adds Zylker Inc. and Zylker Manufacturing as subsidiaries in the multi-company console. Each company is then automatically added as a customer and vendor in the other two companies. This enables her to create and manage intercompany transactions between them.
If a company has registered for GST, the contacts representing it in other companies are named after the company followed by the state code of its GSTIN. For example, if a company has a GSTIN registered in Tamil Nadu (33XXXXXXXXX), its contact in other companies will be named Zylker Inc - TN.
Note: Intercompany contacts cannot have opening balances, and you cannot configure the customer portal for them.
Intercompany Contacts With Multiple GSTINs
When a company has multiple GSTINs added in their Zoho ERP organisation, a separate customer and vendor is created for each GSTIN in all other companies. This means each contact represents one specific GSTIN of that company.
Each contact name includes the state code of the GSTIN.
Scenario: Zylker Corporation and Zylker Inc. are companies in the same multi-company console. Zylker Corporation has three GSTINs, one each in Tamil Nadu, Kerala, and West Bengal. As a result, three customers and three vendors are created in Zylker Inc., named Zylker Corporation - TN, Zylker Corporation - KL, and Zylker Corporation - WB, each representing a different GSTIN.
Note: If a company has more than one GSTIN from the same state, the contacts will have the same name. In this case, verify the GSTIN of the contact before selecting it for a transaction.
When you create an intercompany transaction, select the customer or vendor that corresponds to the GSTIN you want the transaction associated with.