I want to show you how you can easily create a purchase invoice in Dynamics 365 business Central that allocates costs from one company to another company. In this case I’m going to allocate costs from the parent company to a subsidiary company. It could also be described as charges from Source company to a Distribution Company. So let’s take a look at it.
Personalized Purchase Invoice
This is my purchase invoice form in Dynamics 365 Business Central. I’ve personalized it by adding these three intercompany Fields right here to this screen and that’s easy to do I just go into the personalization function I drag and drop these fields into the screen where I want them and I’ve completed this transaction here.
Purchase Invoice (Parent Co.)
The first line is for life insurance that’s going to be charged to the parent company or the source company. You can see that here the second line is going to be an intercompany transaction. This transaction will charge the intercompany partner code here that’s in my database and this is the GL code from the intercompany chart of accounts we can look that up.
Inbox Transactions (Subsidiary)
Here’s the intercompany chart of accounts and here’s the account number right here. So this invoice is all ready to go. The total that’s going to be paid to the vendor is twenty five hundred dollars one thousand dollars of that will go to the parent company or the source company. The remaining fifteen hundred dollars will be allocated to the subseria company or the Distribution Company.
So let’s take a look at the posting. I can preview posting here. This shows me what’s going to happen when I post this invoice you can see that I’m going to charge to life insurance and the source company for twenty five hundred dollars but I also have a credit down here against that then I’ve got accounts payable to the vendor and I have an intercompany receivable that’s created on the parent company.
Intercompany GJ (Subsidiary)
If I scroll over just a little bit I can see what’s going to happen on the subsidiary company or the Distribution Company it’s going to go to this GL account here and this is the intercompany partner. So let’s go ahead and post this. Let’s now switch to the subsidiary company it’s easy to do. I’ll go to the company picker here pick this one and here we’re logged into the subsidiary company. The intercompany purchase invoice will create an inbox transaction you can see that here I can look at the details of this transaction. I see that right here what I need to do here is I want to accept this transaction and when I do that this transaction will be moved into the intercompany general journal so let’s go ahead and do that – can accept that – can change the posting date if I want to, but I’m going to accept it. I know my inbox transactions have been cleared so let’s take a look at the intercompany general journal here’s the intercompany general journal that was created from the intercompany transaction created in the other company. I have a chance to review it here. If I’m fine with it I’ll just go ahead and post it and I’m done and that’s really how easy it is to create intercompany purchase invoices in Dynamics 365 business Central.
I personalize the purchase invoice form in my system to add the intercompany fields that I wanted I created the purchase invoice and I posted it I went into the subsidiary company or the Distribution Company accepted the inbox transactions that created an intercompany general journal I then went ahead reviewed that and then posted it and it’s that easy.