D365 Business Central Intercompany Transactions - Locus IT Services

D365 Business Central Intercompany Transactions

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D365 Business Central Intercompany Transactions

Many organizations consist of more than one company, and these companies often engage in various intercompany transactions. It’s important for an organization to be able to track these transactions with ease and D365 Business Central Intercompany Transactions allows you to do just that.

With Dynamics 365 Business Central, your organization can reduce errors, improve productivity and post transactions across multiple subsidiary companies. Business Central makes it easy for your organizations companies to engage with one another in the same way they would with external customers and vendors.

In this article, we will look at how Dynamics 365 Business Central can help your organization track intercompany transactions, including:

  • Creating a purchase invoice in “Company HQ”
  • Logging in from “Company 1” to approve the transaction
  • Posting the journal in “Company 1”
  • Reviewing the transaction’s impact on the ledger in “Company 1”

D365 Business Central Intercompany Transactions Process

1. Creating a Purchase Invoice in Dynamics 365 Business Central 

Lets begin with a scenario. Consider working within your organizations parent company “Company HQ,” and you receive a purchase invoice from a vendor. Some of these costs will be absorbed by the parent company, while others will be deferred to one of your organizations subsidiary companies, in this example, “Company 1.”

First, log into Business Central as a business manager. From the dashboard, select Purchase Invoice. Choose the appropriate vendor, set your G/L Account as the line type, and choose the relevant item from Description/Comment.

2. Approving the Transaction

Now, it is time to approve the transaction from within Company 1 in Business Central. Initially, log out of Company HQ and into Company 1. Using the search menu, run a search for “Intercompany Inbox Transactions.”

Select this item from the list of results, and you will see the relevant transaction displayed. You can open the transaction details to confirm that it is the correct transaction. To approve the transaction, highlight it in your inbox and click Accept.

3. Posting the Transaction

At this point, we want to post the journal entry. While logged into Business Central as Company 1, use the search functionality to search for “Intercompany General Journal.” Open the general journal, select the relevant transaction and click Post. It is as simple as that.

4. Reviewing the Transaction

Lastly, we want to quickly review the transaction’s impact on your general ledger in Company 1. From within Business Central, you can search for the appropriate account, in this case, “Accounts Payable – Due to Company HQ” or you can set this account as one of your Favorite Accounts on the dashboard for easy access.

In either case, click on the balance associated with the account in order to see the transaction in question. By selecting the transaction and clicking Navigate, you can see all of the ledger entries of the corresponding type (“Consulting Fees”) within your general ledger entries.

With the help of Dynamics 365 Business Central, it is easy to track intercompany transactions. Dynamics 365 allows you to increase productivity by simplifying transactions, all while minimizing potential errors by eliminating the need for multiple line item entry.

Want to learn more about how Microsoft Dynamics 365 Business Central can improve your organizations efficiency and productivity?Contact Locus IT today!

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