Dynamics Community Forum Thread Details

D365 F&O IC Direct Delivery Warning – Item not included due to auto invoice

Hi All,

We are encountering the below warning while posting a sales order invoice in an intercompany scenario:

“The item '05-04' will not be included due to intercompany 'Direct delivery' and 'Post invoice automatically' enabled for original sales order.”

Scenario Details

Intercompany flow:

US01 Sales Order → linked to US01 Purchase Order → linked to US02 Intercompany Sales Orde
Direct Delivery is enabled
“Post invoice automatically” is enabled in the intercompany setup
Invoicing is performed using Packing slip

🔹 Behavior Observed

Warning appears during invoice posting
All related documents (SO, PO, IC SO) are successfully invoiced
No blocking error due to this warning

🔹 Questions
Has anyone encountered this specific warning in similar Intercompany + Direct Delivery + Auto invoice scenarios?
Is this warning considered standard system behavior, or could it indicate a configuration/data issue?
Are there any recommended steps to avoid or suppress this warning, without impacting intercompany automation?
Could this be related to invoice matching or inventory/financial alignment across entities.

🔹 Additional Context

This is the first time this warning has been observed in our environment.

Categories:

Dynamics 365 Finance

Hi CU17040811-0,

1) Issue
- Warning appears during invoice posting in an intercompany direct delivery scenario
- Message states "The item '05-04' will not be included due to intercompany 'Direct delivery' and 'Post invoice automatically' enabled for original sales order"
- The invoicing process completes successfully despite the warning
- All related documents such as Sales Order Purchase Order and Intercompany Sales Order are invoiced correctly
- This is the first occurrence of the warning in the environment

2) Reason
- The warning is caused by the system logic handling intercompany direct delivery with automatic invoicing enabled
- In this scenario the originating sales order does not include the item again during invoicing because it is already handled through the intercompany chain
- The system skips the line intentionally to avoid duplicate invoicing across entities
- This leads to a warning when the system detects that a line is not being processed in the current document context
- This can happen due to standard behavior where invoice responsibility shifts to the intercompany order rather than the originating sales order

3) Resolution
- Understand that this warning is standard system behavior in intercompany direct delivery scenarios with automatic invoicing
- Verify that all related intercompany documents are posted correctly and financial postings are complete
- Confirm that no duplicate or missing invoices exist across the involved legal entities
- Review intercompany setup especially Direct delivery and Post invoice automatically parameters to ensure they match business expectations
- Align invoicing processes to rely on the intercompany chain rather than the originating sales order for invoice generation
- If the warning should be suppressed consider reviewing posting profiles or implementing customization to reduce informational warnings
- Monitor future transactions to ensure consistent behavior and no financial discrepancies
- If unexpected posting differences occur investigate inventory and financial updates across entities

For a more detailed answer, please provide more information.

Rg,

Alexander

*Due to the complex and different possibilities of deploying Dynamics 365 I highly recommend not to setup the application without some expert/partner or support. (For more information contact me under anassl@inno-solutions.info or visit www.inno-solutions.de)

*The Information comes directly from the manufacturer or provider and are validated (not guaranteed) up to date of creation of the posting.

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