#68 BC INTERCOMPANY
Intercompany functionality allows businesses to streamline financial processes between companies within the same organization. It simplifies the creation, posting and tracking of transactions, ensuring data consistency across entities.
How Does Intercompany Work in Business Central?
Business Central facilitates seamless communication between two or more companies, either within the same environment or across different environments. This feature automates the processing and transfer of documents and journal entries between intercompany partners, significantly reducing manual effort.
To enable this functionality, navigate to the Intercompany Setup page and configure the participating companies. Once the setup is complete, you can use the following features:
- Automatic Document Creation
- Purchase-to-Sale Integration: A purchase order or invoice in one company automatically generates a corresponding sales order or invoice in the partner company.
- General Ledger Allocations: Transfer costs and revenues between companies using intercompany journal entries.
- Intercompany Inbox/Outbox
- Each company has an Inbox/Outbox to receive/send intercompany documents.
- Documents can be reviewed, accepted, or rejected before posting, ensuring accuracy and control.
- Transaction History
- Maintain a detailed audit trail of all intercompany activities, promoting transparency and compliance.
With these capabilities, Business Central streamlines intercompany operations, enhancing efficiency and collaboration across organizations.
What’s new:
With the 2023 release wave 2, Business Central introduces new features to enhance intercompany transaction management:
- Cross environment intercompany is a feature that enables intercompany transactions across different environments or databases, ensuring consistency and automated integration of financial records between distinct companies.
- Auto Send and Accept Transactions is a feature that automates the process of transmitting and accepting intercompany transactions through the inbox and outbox functionality.
Example of Intercompany Transactions
Below is an example of an Intercompany Partner receiving a purchase invoice:
Key Features and Benefits
- Automatic Document Exchange: Simplified processes for transactions between companies.
- Centralized Management: Monitor and manage intercompany transactions within Business Central.
- Consistency and Accuracy: Synchronize accounts, currencies, and dimensions between companies for accurate reporting.
- Reduced Manual Effort: Automate transaction postings to minimize the risk of discrepancies and eliminate manual errors.
By leveraging Intercompany functionality, businesses can improve operational efficiency, ensure compliance, and focus on growth.
Other interesting links:
What’s new: Cross environment intercompany posting and approval for IC general journals
