Intercompany in Business Central

rs 3 August 2020 2 min read

Intercompany in Business Central

About Intercompany functionality

The Intercompany functionality lets you do business with your subsidiary and internal partner organizations in the same way as you engage with your external vendors and customers.

You enter intercompany transaction information only once in the appropriate documents, mapping facilities for the chart of accounts and dimensions help ensure that information appears in the right places.

Main Benefits

Benefits to the Intercompany functionality:

Complete audit trail and full visibility into business activities and transaction histories
Efficient, cost-effective transactions with affiliate and subsidiary companies

Purchase & Sales Documents

After you set up business partners as customers and vendors in the system, and assign them intercompany partner codes, it is possible to exchange intercompany purchase and sales documents, including items and item charges. The Intercompany functionality allows intercompany transactions between multiple databases (for example, in different countries/regions, as well as multiple currencies, different charts of accounts, different dimensions, and different item numbering).

Journal Lines for Balancing

The Intercompany functionality creates general journal lines that result in the balancing of the books of both companies involved in a transaction. In receivables and payables, you assign an intercompany partner code to any customer or vendor. From that moment on, all orders and invoices generated pertaining to transactions with these companies will produce corresponding documents in the partner company, resulting in correct balancing of the accounts.

Full control for documents Transaction

You are in full control of all transaction documents. For example, you can reject a document sent to you and, in this way, Reverse Journal Postings and Undo Receipts/Shipments that were incorrect. Alternatively, when making a purchase from a partner or subsidiary company, you can update the purchase order as long as the selling company has not shipped any goods.

DEMO – SOME SCREENS

IC MENU’ IN BUSINESS CENTRAL