Are you running a multi-store repair business? Or have you allowed other repair retailers to use your successful brand name and run a franchise store? If yes, then you must have a repair shop software to manage business franchises.
RepairDesk has come up with an amazing set of features in its latest release. Franchise management and intercompany invoicing is the biggest of them all. Now available in the Enterprise Plan of our POS software for repair shops.
So what exactly is inter-company billing? Here’s the long answer..
Big enterprises like to have a warehouse for better inventory management of their multiple stores. They order and stack the inventory at that warehouse aka the main store and then transfer it to all their other store locations and franchises. In the process of multi-store inventory transfer, the main store owner charges the franchisees for that stock. And that is what we call an intercompany invoicing system.
Since you are a multi-store repair business owner, you must already have such a system in place. Things are going to get easier for you now. You’ll be able to setup and manage the best inter-comapny billing system in your repair shop software. Let’s show you how.
The franchise management settings will ask you about enabling intercompany invoicing. Say yes!
Once you do that, your repair shop software will ask you to configure profit and tax for the billing system. It will add the respective tabs as you agree to the profit margin and tax setups and click save.
Here’s what you need to know about these setups and why are they here.
Profit Margin in Intercomapny Invoicing
The whole point of this billing system is to earn profits while transferring inventory to your franchises, right? So you should first configure the profit margin against each product category. This setup will let you do exactly that.
You can create different price lists for your different franchises as well as create one list and apply it to multiple stores. Similarly, you can set a percentage/currency value for profit and set it for all product categories or add separate value against each category. We’ve got you all covered.
You also have the option of editing the categorical profit margins of these lists later on.
You must be wondering if you can add a special profit value for a particular product? Well lucky for you, the answer is yes! Simply go to that product details from manage inventory and there you’ll see a tab of “franchise profit margin setup“. Now add the profit values for the transfer of that item to all different stores and click save.
Tax in Intercompany Invoicing
Every purchase and sale is entitled to be taxed. As we’re treating the inter-store inventory transfer like a sale, it ought to have a tax class configuration. For that purpose, we have tax setup tab in intercompany invoicing settings.
Pick a tax class from the tab and choose for it to be included within the price or not. The tax settings will be applied on all product categories and their transfers to all franchises.
Once you are done with the profit margin and tax setups, save all the changes and head onto inventory transfer.
Final Pricing of Inventory Transfer
Alright, so you are done with the initial configurations of the intercompany invoicing module on your main store. Let’s test it out and see how the system will price your future inventory transfers.
Follow the drill for creating a normal inventory transfer order. Select the store you want to transfer items to and add an item for transfer. But wait, things look different around here, don’t they? That’s right! You’ll see the additional columns for retail price, discount, tax, and total price in item details. There will also be a new button of “save and create inter company invoice“.
You see, after you enabled inter-company billing and configured the profit margin and tax settings for inventory transfers, the pricing mechanism has been updated. Now the total price of each item is the sum of its cost price, profit margin, tax (if inclusive), and discount.
Isn’t that perfect? You will be able to earn profits on inventory transfers across your business franchises and your repair shop software will make automated pricing calculations, create invoices, and keep complete record of all transfers.
Learn the detailed process of How to Use Franchise Management and Inter Company Invoicing in RepairDesk.
One of our best customers suggested the idea of including an inter-company billing system for smart and profitable inventory transfers to business franchises in our POS system for repair shops. And we are proud to present this super neat and efficient module that our development team has knitted for our enterprise customers. This will take multi-store management to a whole new level.
If you are not using our Enterprise Plan, you can upgrade your account and enjoy the best franchise management feature for your multi-store setup. And if you have other feature ideas for our repair shop software, drop them in this link and we might pick them up. Stay tuned!