Introduction
In a world where companies increasingly operate with multiple locations, subsidiaries or sister companies, streamlined collaboration between these entities is becoming increasingly important.
With the Intercompany functionality in Business Central, you can easily automate transactions between your different organizations. No more separate spreadsheets or double manual entry, but one integrated solution that ensures efficiency, overview and reliability.
Discover how Business Central takes your intercompany processes to the next level!
What does intercompany processing mean in Business Central?
The Intercompany functionality in Business Central enables you to fully automate transactions between different companies within the same organization.
If you create a sales order for an internal company in one company, a corresponding purchase order is automatically created in the receiving company. This also works the other way around: a purchase order leads directly to a sales order.
These automatic links also apply to purchase and sales invoices.
In addition to order flows, Business Central also supports financial transactions between companies. Through the intercompany diary mutual cost settlements, payments and other journal entries can be posted easily and without errors.
Bookings are automatically synchronized, so both companies always have consistent and up-to-date data.
With intercompany processing in Business Central you not only save time, but also minimize errors and improve collaboration and transparency within your organization.
Key Benefits of Intercompany Processing in Business Central
- Less manual input
- Better data consistency
- Save time at monthly closing
- Fewer errors in intercompany bookings
How does it work in practice?
A simple example:
Company A sells goods to Company B. With one booking in Business Central the sales and purchase invoices are created automatically.
Also watch the video in which the intercompany process is further explained!
Important points to consider when setting up
For a successful application of intercompany processing, there are some crucial things to pay attention to:
- Setting up Intercompany settings
Ensure correct configuration of basic settings and workflows. - Creating and linking Intercompany partners
Correctly link internal companies, including unique codes and settings. - Linking account schemes
Ensure proper reconciliation between local general ledger accounts and intercompany general ledger accounts to avoid errors. - Management of dimensions
Coordinate dimensions well between companies to avoid errors in reporting and analysis. - Creating an Intercompany Journal
Use a special intercompany journal for structured processing of mutual transactions.
A good layout prevents a lot of manual work and minimizes the chance of errors.
Conclusion
With the right setup, the Intercompany functionality in Business Central provides a powerful way to process transactions between different companies efficiently and flawlessly. By paying careful attention to things like partner connections, charts of accounts and dimension management, you can get the most out of your intercompany processes.
Would you like to know more about an optimal setup or do you need support with the implementation?
Please feel free to contact Navige BV — ✉️ ge.baltessen@navige.nl — 📞 +31 6 1865 4300 we are happy to help you!