Intercompany transactions

Business Central/NAV User Forum
1

Hi all!

I would to use intercompany transactions to reproduce this scenario:

These are the Steps :
C1 site is in Canada and C2 site is in USA.

  1. Customer ABC from Company C1 places an order → Sales Order and Work order are created in C1
  2. Products are assembled and shipped from C2 inventory (C2 is a Sister company of C1 and all the production is done at C2 site)
  3. After assembled, products are shipped to the Customer ABC from C2 site
  4. Then products are invoiced out of C2 then a PO must be created in C1 to manually adjust inventory.

Questions

  1. How can I make sure that as soon as the Sales order is created for Customer ABC , the interco process begins as I dont create an order directly to customer C1 ? or do I have to that?

Thanks

2

If you define that some items are to be purchased from C2. When a customer places a sales order in C1 requisition worksheet will suggest an action of purchase to C2.
In purchase Oder from C1 you can send an IC Order to C2.
That’s it’s your objective or is missing something to me?

3

hi nuno Maia,

In fact , item are the same in both companies. it is the same person who create sales order in both companies. if the salesperson create a sales order for customer ABC in company C1 , how is it possible to transfer that request to company C2 that must create the related work order and shipped that to the cusomer. i think of using drop ship with intreco but I dont know if and how i can do it???

4

Hi

Intercompany is for reflecting the transactions of one company into another, so you can back-to-back a sales requirement in one company with the purchase requirement in another. My memory (it is a while since I looked at this) that there is nothing produciton related at all, you create the demand and follow normal demand fulfillment procedures in the company. Your issue is here that you are creating the demand in company A and supplying it in Company B - where no demand is seen, so lets start at the beginning - why are you doing this? What is the fundamental reason for having separate companies? If they are legal entities then the sale in one will mean they purchase form another, which creates the sale in another, and then the demand starts. Your first question is - is intercompany required? After this you have to see what it can do by setting up examples and following them through, then decide what to do with all of the processing holes!

5

Has Steve said it’s possible that Intercompany don’t solve all your problems.

Company that manufactures items can ship items to customer. In Sales Order you have the company to invoice (will be C1) and the customer to ship.
Company C1 will invoice to customer.
Company C1 will handle has a drop shipment, since it will not handle items.

But I think it’s that are missing some information in this process.

6

Thanks all of you steve and Nuno.

Yes Company C1 do not handle items. its the company C2 who actually to the production. I think I will use drop shipment for that.

Yes C1 and C2 are legal entities.

My question now is: Do I create a Sales order for Customer ABC or for Customer C2 ( which is an IC partner) and then how can I use drop ship??

Thanks

  • create a Sales order for Custo
7

Hi Steven,

You’re right in the sense that demand is coming from Company C1 and it is Company C2 who can supply that as Production is ONLY done in company C2.

So how can I reproduce the scenario where a customer from C1 places a sales order using interco transactions ( as C1 and C2 are legal entities ??

thanks

8

Hi

I am afraid it is not an area I have really looked at, you will need to look at it and see what can be achieved, but I believe your processing does not match those of the intercompany modules and what it was designed for, essentially a purchase order in C1 will produce the sales order in C2, however you have the sales order in C1 so you need to generate the PO back to back in C1, and then fulfill the sales order to C1 in C2 from the requisition worksheet and a generate workd order.

Ultimately set up Inter Company and see what it can actually do for you.

9

Intercompany it’s designed to be a way of exchanging documents in files in Navision. Consider it has a way to avoid buying an EDI package or something more expensive.
Has Steve and I said you must use requisition worksheet.

10

you should download the white paper on intercompany posting, it will give you a good overview of what it does

it is in the download section

http://dynamicsuser.net/files/folders/documentation/entry287.aspx

11

hi all!

I think i find a way using all your advices:[:D]

In company C1,

  • create a sales order for customer ABC

  • create a purchase order where C2 is the supplier ( an also IC partner) with also ship to is customer ABC

  • create a drop ship btw both orders.

  • create an IC transaction with the created PO

In C2 company,

  • Accept the created IC Sales Order where customer is C1

  • run requisition worsheet to create the work order ( as demand comes from the new created IC Sales Order)

  • process the work order as usual → inventory will be updated in C2

  • process the IC sales order and send that to C1

in C1 company

  • purchase order will be updated by the shipped IC sales order

  • shipping will be done in c1 for customer c1

thanks

12

In C1 you can also run requisition worksheet to create purchase order from C2

13

You’re right Nuno Maia.

Thanks any way for all your input.

14

I have a similar situation but am having problems with the IC sales invoice on the purchasing side. IC partner A sends a PO to IC Partner B. IC Partner B accepts the transaction in its inbox whcih creates a sales order to IC Partner A. Once the order is filled and shipped, IC Partner B invoices IC Partner A and sends the invoice from its outbox. IC Partner A accepts the invoice from its inbox, and NAV creates a purchase invoice that is not hitting the original PO. I have read the technical white paper on intercompany and I am trying to figure out where we are going wrong. Is there a setting somewhere to tell NAV which PO to apply it against? Is there a field on the Sales Order or Invoice that needs to be populated (PO automatiaclly displays on the sales order in the PO field, but displays in external document number on the invoice).

Any help would be greatly appreciated. I am really stuck.