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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Intercompany and Drop ...
Small and medium business | Business Central, N...
Suggested Answer

Intercompany and Drop Shipping - Duplicate Posting?

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Posted on by SA-02031158-0 8
Hello,
 
I have just been carrying out some testing using intercompany across 2 environments and 2 localisations. We have a GB and a DE localisation, the DE being the shipping company.
 
The process starts as a Sales Order in GB, and if drop shipping is required, we create an Intercompany PO which we will send to DE. This is then fullfilled in DE and shipped directly to the end customer. I am happy with the process till this point.
 
However, when the shipment is posted in DE, it creates a Purchase Invoice in UK - this PI has no relation to the original PO and if you post the receipt on the PI, then you're left with an open PO or possibly they both get posted and we double receipt the stock.
 
As far as I can tell, this is the standard process for drop shipping an intercompany order - have I missed something in the setup? Or is this standard? If so, can anyone recommend another app which might be able to help?
 
Thanks!
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Dynamics 365 Business Central
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  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 15,719 Super User 2026 Season 1 on at
    Hello ,
     
    Yes, this is basically standard Intercompany behavior: IC doesn’t “send” purchase invoices as documents, so when DE (the selling IC partner) posts its sales invoice, BC creates a purchase invoice in GB based on that posted IC sales invoice — which is why it looks “unrelated” to your original IC PO and why trying to receive/post against both can leave you with an open PO or double-handling; the clean approach is to treat that auto-created IC PI as the settlement document and avoid mixing it with a separate receipt/PO flow for the same transaction (otherwise you need to redesign the process away from drop shipment + IC PO, or go custom/app).
     
    Regards,
    Oussama Sabbouh
  • Suggested answer
    Dhiren Nagar Profile Picture
    Dhiren Nagar 2,886 Super User 2026 Season 1 on at
    Hi,
     
    This is standard process. 
     
    This is because Microsoft allows to Send the Order manually as Intercompany transaction and Invoices are auto created as Intercompany transaction which then results into this type of duplicates.
     
    To keep it clean its better to avoid intercompany orders and directly post the invoices based on the requirement.
     
    If Order is necessary for the process, create orders with the help of Intercompany transaction and when for the Invoice, Outbox transaction is created, you choose to not process it.
     
    Not sure if any add-on app solves this.
     

    ✅ Tick the checkbox below to mark the answer as verified, if it helped resolve your question.

    Regards,
    Dhiren.
     

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