Dynamics 365 Business Central: Intercompany Transactions
We are going to keep going on Intercompany. In the beginning, we set up the Intercompany partners and configured things. We didn’t do any transaction and I even got a comment, hey how about doing some transactions first? that is, of course, the way to go. Going to keep that in mind going forward.
Let's take a look at a diagram, with Intercompany with the way we set it up is. When you have a company A you create a card inside Company A for an IC partner, Intercompany Partner. That IC partner connects to company B. It’s inside company A but it is referencing company B. Similarly, in company B you create an Intercompany partner to company A.
In our example, we have USA over here which has an Intercompany partner card for EU. And EU as an Intercompany card for USA. Similarly, if you have company C that is interacting with both company A and company B. Company C then, would have 2 Intercompany partners defined for each one of the A and B.
Sales order to my Intercompany partner
Let’s do some Intercompany transactions, I’m currently logged into Cronus EU and I want to do a sales order, so I go to sales, sales order and this is going to be a sales order to my Intercompany partner Cronus USA. Now I’ve already created the sales order over here called Cronus USA. Just go into that one and take a look at how that confirmed it’s for the customer Cronus USA which we have already configured as an Intercompany Partner and it has the item Inecta coffee mug which also exists in Cronus USA. So, there is no mapping that needs to happen between the item numbers. Now in order to send this over, I will actually have to go into actions, functions, send IC sales order.
If I would have posted this order and it would have become an invoice, the system automatically sends the order. However, if I just created the order and released it, it doesn't send it automatically. You have to actually go into functions, send, sales order. I’m going to do that and now it’s been sent. Where do I see it? If I go here int Intercompany and show all, I have here inbox/outbox transactions.
Then I have handled inbox/Outbox. Let’s take a look at the Intercompany outbox. I have nothing in here, so it's been processed through there Let’s take a look at the handled once again, handled outbox transactions, and there it is. We have a sales order that has been sent to the IC partner. Now we had checked off in our setup to automatically handle the transactions that come into the outbox, so that is why it’s flying out the door basically into the other company. So, since it’s been sent in the outbox, we would imagine it sitting in our inbox on the other side. Let’s go ahead and look at the other company.
Settings, I log into my Cronus USA, hit ok and ok again. Now I am logged in any minute. I want to go ahead and take a look at the Intercompany again, in this company so I go into inbox transactions. And there it is, it’s coming from the EU company. So, I can go ahead here and say I want to accept this transaction and then just hit functions, complete line actions. Which means that it’ll do everything that I said to be done here. I can also just hit accept, that accepts just this particular line or cancel it etc. I’m just going to and complete that. Now it’s done.
So, if everything goes well it should have created a purchase order, let’s go ahead and take a look at that. Here it is, a purchase order form EU, click on that, it’s coming with the Inecta coffee mug and the reason why I figured out this was the item, is because the item exists in both places with the same number. There are ways to actually cross-reference things together and have common item numbers which I might cover in a different video, but this is the essence of how Intercompany works. It works inbox, outbox transactions. So, in essence, if you create a sales order to an Intercompany, you should not have to type in a purchase order in the other side, the system should just figure it out and that is what it does. But It gives you inbox and outbox to make sure things are looking ok. Let's say for example you made a mistake and you don’t want it to happen automatically on the other side.