Intercompany order processing in Microsoft Dynamics AX 2012

by | Updated August 15, 2016 | Dynamics AX, Procurement and Sourcing

 

Dynamics AX is not limited to handling only one production company and several sales companies. All companies set up for intercompany can be trading companies as well as production companies. If several companies have the ability to deliver the same item, you can choose which company to buy from.

Before we can use the intercompany functionality, we have to make sure the items have been released to each of these companies. We also need to set up customers and vendors to run intercompany trade.

In the example below, USMF is a sales subsidiary, and USSI is a distribution company. We will have a sales order for a customer in USMF and need to purchase this item from our distribution company. From the original sales order, a direct delivery purchase order will be generated. The creation of the purchase order will then initiate the intercompany sales order from our distribution company.

The first step is to create a vendor for our USSI Company in USMF. Create a new vendor record by going to Accounts payable > Common > Vendors > All Vendors > New Vendor. In the Name field, use the dropdown to select USSI (Contoso Consulting USA).

Vendors in AX 2012

Next create USMF as a customer in USSI (Accounts Receivable > Common > Customers > All Customers > New Customer. In the Name field, use the dropdown to select USMF (Contoso Entertainment System USA).

Customer in Dynamics AX

Save and Open the customer record. In the Miscellaneous details Fasttab, mark Create intercompany orders.

Create Intercompany Orders

Next, go to the General tab on the action pane and select Intercompany in the Set up section. Enter into the following fields:

Active = Yes

Vendor Company = USMF

My Account = Contoso Consulting USA

Setup Trading Relationships

In the Intercompany form, there are many other options you can choose for the intercompany relationship such as automatically posting the original sales order invoice when updating the Purchase order. Review the link below for more options with this form.

http://technet.microsoft.com/en-us/library/hh781085.aspx

Once the trading relationship is activated from the customer in USSI, it will automatically setup the trading relationship for the vendor in USMF.

Now we can create our initial sales order to kick off this intercompany process (USMF > Accounts Receivable > Common > Sales orders > All sales orders > New sales order). Select a customer and enter in the item information. Remember, for this to work the item you select will have to be released in both USMF and USSI.

In the action pane in the New section, select Direct Delivery. This will bring up a form where we can select a vendor account. Select the vendor we created for USSI.

Create Direct Delivery

Select OK. Since the trading relationship is setup between the vendor in USMF and customer in USSI, a sales order is automatically created in USSI.

Automatic Purchase Creation

Now you can go into USSI and process the intercompany sales order. If you selected to automatically update the intercompany purchase order

 

 

 

 

 

 

 

 

 

 

Related Posts

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Upcoming Events

july

01jul11:00 am12:00 pmConfab Live with Stoneridge – Dataverse Virtual Entities

14jul12:00 pm12:30 pmBeyond Reporting - What Business Intelligence Can Do For Your Agribusiness

15jul10:00 am11:00 amMastering the Production Floor

21jul10:00 am10:30 amThe Modern Manufacturer: Manufacturing Software in the Real World

21jul12:00 pm1:00 pmIs it Worth it to Upgrade to Dynamics 365 Finance and Supply Chain Management? - Everything AX Users Need to Consider

28jul10:00 am10:30 amLot Management for Batch Manufacturers in Life Sciences, Chemical and Food

28jul2:00 pm2:30 pmConsiderations for Successful Testing Plans for Major Releases of Dynamics 365 Finance and Supply Chain Management

29jul11:00 am12:00 pmConfab Live with Stoneridge – Integration Strategies for End User Success

august

04aug2:00 pm2:30 pmSimplifying Payroll and HR Management with ADP Workforce Now

10aug(aug 10)8:00 am11(aug 11)11:00 amPower BI for Dynamics 365 - Online Workshop

11aug10:00 am10:30 amThe Modern Manufacturer - Enterprise Asset Management

11aug12:00 pm12:30 pmBusiness Intelligence with Dynamics 365 Finance and Supply Chain Management – Game Changing Insights and Analytics

11aug2:00 pm2:30 pmUsing Technology to Manage Complex Sales Pricing, Commission, and Rebate Programs

18aug10:00 am11:00 amTop Five Reasons Why NOW is the Right Time to Move from Salesforce to Dynamics 365 Customer Engagement

18aug10:00 am12:00 pmIntro to Power BI for Dynamics 365 Business Central – Online Workshop

18aug12:00 pm1:00 pmSolving the Biggest Challenges in Agribusiness Through Innovation and Technology

About Stoneridge
Stoneridge Software is a unique Microsoft Gold Partner, with emphasis on partner. With specialties in Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics CRM, we focus on attracting the most knowledgeable experts in the field to our team, and prioritize delivering stellar solutions with maximum impact for your business. At Stoneridge, we are deeply committed to your results. Each engagement is met with a dedicated team, ready to provide thorough, tailored, and expert service. Based in Minnesota, we intentionally “step into your shoes,” wherever you are. We focus on what you care about, and develop trusting, long-term relationships with our clients.

Subscribe To Our Blog

Sign up to get periodic updates on the latest posts.

Thank you for subscribing!

X