Intercompany accounting in Microsoft Dynamics 365 Finance

Intercompany accounting in Microsoft Dynamics 365 Finance

Sharing key setup and example with visual on how to leverage Intercompany accounting in Microsoft Dynamics 365 Finance and Operations One version

Note*: Using demo data to represent an example

• Setup to be done in both the companies for USMF and USRT
  • IC journal (Daily type)
  • Due to (credit in liability 2000 series)
  • Due from (debit in asset 1000 series)
• Transactions
  • In USRT, create a general journal
  • Make payment to USMF vendor from USRT petty cash and show the voucher
  • Show voucher in both the companies using audit trail

After the setup is complete for intercompany accounting, you can then create and post intercompany transactions.

D365FO will create intercompany entries automatically using the ledger accounts and journals that are set up.

Ensure a common vendor exists in both the companies. (Use the same vendor name and ensure Party ID is same in both the companies)

Below is the representation of how the T-accounts looks in both companies ledger.