Dynamics 365 F&O/AX Dynamics 365 CE / CRM Dynamics GP Business Central / NAV UG Dynamics SL Power Platform Fabric UG MS Copilot UG

[Kelli Reynolds]

Hello Everyone, 

In Business Central, I have several companies established and these companies have Intercompany transactions between them.  

Company A buys supplies and produces finished good and sells to Companies B..F

Companies B..F are the only customers of Company A.

Companies B..F have web sales and other sales sources, sales are primarily web. 

Company B will create a PO (items) for Company A as an IC transaction.  All is good here, the proper document, SO is created in Company A.

Here is the questions:

When I ship from Company A on the SO, which is an IC transaction, in Company B a new PO is created instead of going against the original PO.   
My expectations are the relationship between the two transactions would be connected and the downstream activity (shipping/receiving/invoicing) would be contained to the two documents in the companies A and B.   

What am I missing?  Is this an issue with IC or is my expectations incorrect? 

Your feedback is greatly appreciated.  Thanks.

——————————
Kelli Reynolds
R3 Dynamics Consulting
——————————

[Ben Baxter]

Is it creating a new Purchase Order or a Purchase Invoice?

Typically the information sent through IC is the invoice, which creates a Purchase Invoice.  The invoice would then be applied against the originating Purchase Order.  The Purchase Order does not get received simply because the shipment happens.  The system is assuming there is transit time, and that the receipt will be posted sometime after the shipment occurs.

——————————
Ben Baxter
Consultant
Accent Software, Inc.
carmel IN
——————————
——————————————-

[Kelli Reynolds]

Thanks Ben for your response.  A PO was created.

I think yours and Crystal response has straightened my thinking and expectations.

——————————
Kelli Reynolds
R3 Dynamics Consulting
——————————
——————————————-

[Crystal Tollison]

Hi Kelli,
I think you are expecting more steps out of the IC functionality than what it actually does.  It does not automatically update shipping or receiving in the IC documents that are created nor should it. There is no link between the related companies for these documents like you would see in a Drop Ship order. If it automatically update on shipping or receiving the related documents, that would mean the warehouses could not handle their actual shipments and receipts as they normally would be doing. ?Depending on your setups, this could mean the warehouse does not get a chance to enter serial numbers, bin information, cross doc steps, etc.

The IC functionality provides two things: eliminates double entry of the orders or journal entries and provides easier reconciliation between companies. With all the required setups, you would expect more functionality but it is really that simple. Once the IC process creates the orders, they should be handled like any other order is handled. It does not sound like you are missing out on any functionality.

Hope this helps!

——————————
Crystal Tollison
Consultant
ArcherPoint Inc.
Lawrenceville GA
——————————
——————————————-

[Kelli Reynolds]

Thanks Crystal  for your response.  I agree with the way it works and expanding my vision I see the logistics piece and the need to look at the transactions inline with BC functionality.   

I think yours and Ben’s response has straightened my thinking and expectations.

——————————
Kelli Reynolds
R3 Dynamics Consulting
——————————
——————————————-