Dynamics 365 Business Central: Intercompany Transactions (continued)
This is the third video on Intercompany, I felt like we needed to iron out the last pieces. Things like what happens if you don't have the item on the other side, what happen if you have GL account and GL to GL, do we have some mappings? Final Video of intercompany but it's not that, hard right? after you’ve gone through it, it's pretty simple. We are going to keep going on the intercompany transactions, I covered before, setting up the intercompany partners and posting through sales orders, purchase orders.
Intercompany chart of accounts
What about journals? If I go into intercompany here, take a look at the options I have, I have something called intercompany chart of accounts and if I go into that, I’ve actually set a petty cash to be one account that we work within the intercompany chart of accounts. I say that the petty cash account maps to my GL account which is the same number. What I could do is actually click on process and copy from my chart of accounts the entire chart of accounts into this intercompany chart of accounts; I know it's getting kind of complicated; basically, every single company will have a copy of the intercompany chart of accounts which is a ton of accounts that you can set up any way you want, however, it makes most sense just to copy your existing chart account into here or generate a few accounts that you use.
Create a journal entry
If in some weird reason you use a different number in different companies, this becomes really handy because you can map between those numbers. But I’m going to go ahead and just use petty cash and then go ahead and create a journal entry. I’m going into my intercompany general journal, so intercompany transactions happen inside a specific journal for intercompany. I go in here, I have document number ABC2346, I’m going to pick a transaction, what I want to do is move some money from the petty cash account to the other petty cash account.
I’m going to click on petty cash here and say that we paid 500 dollars out of petty cash, but I need to connect this to an intercompany entity in order to do this. I have to go ahead and say, this is for Cronus USA, I am right now in Cronus EU and we are paying to Cronus USA. Moving from the petty cash in Cronus EU to the petty cash in Cronus USA. I must go through the customer card in order to do this, so that’s why I’m selecting a customer here and on top of that I have to specify which account the is on the intercompany side. In this case, it’s going to be the same, this is coming from the intercompany chart of accounts so I’ll click that and now I can go ahead and post this.
If I go into the Cronus database, Cronus USA, I can go ahead and travel into the inbound transactions, intercompany inbound transactions or inbox transactions, and this is very similar to the way we did it before when we had a purchase order, sales order scenario. We get a journal entry in here and we have to take actions on this journal entry. I can go ahead and take a look at the details of this journal entry, so this is going to post on the vendor because we came from the customer side in the EU and it becomes the vendor in the USA company. It’s going to post for vendor and then straight in the Petty cash, so it isn’t going to increase petty cash, but you create a balance on the vendor for -500 and on the customer for +500. I’m going to go ahead and post this, just hit accept.
Create an intercompany template
When I do that, instead of it creating a journal entry immediately, it wants to know where you want to put it, in which journal, and you will have to pick a general journal template that’s intercompany in here, and if you are using Cronus USA, that does not exist out of the box, you will actually have to go into general journal templates and create an intercompany template, but it’s very easy, you just add intercompany and select its type through company. In this case, I’ve done that, I have the default batch. I can replace the posting date if I wanted to, and then just go ahead and hit ok. Now its processed. Then I go into my Intercompany journal. If you are doing load and loads of transactions this, of course, is very helpful and you can push things along, and you can automate some of this with some automation functions.
Here we have the transaction, it’s on vendor 500 dollars two petty cash for 500 and if I’m ok with this, I can just go ahead and hit post. And post it out. Now I have posted my petty cash into petty cash. If I go into the petty cash account, I can see that the transaction is right here. So, it transferred the petty cash over, we, of course, created a balance on the accounts receivable and the accounts payable respectively in the companies. Now just a little bit more on Intercompany. I mentioned this before, if we are posting through the partners, here, for example, I have Cronus EU and things don’t match, especially with the item numbers, so here; it’s important to note this; this option gives you the ability to map the items differently so internal number just means that you are actually going to have the same number in Cronus EU as Cronus USA.
I think the cross-reference is actually very nice because in cross-reference if you don’t have the same item numbers across your companies, you can use cross reference and set up the vendor number inside the cross-reference and we do have a video on cross-reference. There you can specify what the vendor calls it and what the customer calls it. That is how you work with journals and a little bit about mapping out items and I think the rest you can actually map out dimensions as well. So, the dimension gets mapped to a certain dimension by default, which is very nice, there is a couple of other mapping options within Intercompany, it's obviously not extremely automatic, you have to go through the inbox, outbox thing but that is done for a reason. Because there could be a new account set up. For example, one company that’s not set up in the other one and that would be an issue, or an item set up in one and not set up in the other. And they don’t have anywhere to go, so it doesn’t stop form one entity, but it stops in the other entity. In the inbox perse.
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