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Intercompany payments

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Posted on by RK-09031215-0

Hello

We are using Microsoft Dynamics 365 Finance (F&O) with standard intercompany accounting and intercompany payments.
Scenario:

Legal Entity A makes a payment that settles an intercompany invoice originating from Legal Entity B.
I am an approver and I want to see the invoice of Legal Entity B by clicking on the link provided, to verify it, but the system does not open the invoice, because the invoice belongs to a different legal entity.

Observation:

The system does not allow drill‑down navigation to the source AP/AR invoice if it is not in the current legal entity.
Our implementation partner advised that this is standard Microsoft behavior and that cross‑legal‑entity invoice drill‑down is not supported out of the box.

Questions:

Is this behavior by design in Dynamics 365 Finance?
Is there any standard configuration, parameter, or security setup that allows users to drill down to the source invoice across legal entities?
If not, is the recommended Microsoft approach to manually switch to the source legal entity and search for the invoice which is a lengthy task?
Has anyone implemented a standard or supported workaround (without heavy customization) to improve visibility for finance users during intercompany settlements?

Appreciate guidance from anyone who has handled this scenario in D365 Finance.
Thank you

Rajesh

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Dynamics 365 Finance

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Paolo Cecchelli 670 on at

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Hi Rajesh,

since thare a are a lot of menus where you can see and approve invoices and payments, can you please provide a screenshot and path where you are trying to drill-down to the invoice? Is it a custom solution or a standard screen? Morevover, the users trying to get access to the invoice in Legal Entity B have the rights to open legal entity B as per security configuration?

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RK-09031215-0 16 on at

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Hi Paolo,

Thank you for your response.

We are utilizing the standard vendor payment journal screen. The navigation path is: Accounts Payable \ Payments \ Vendor Payment Journal \ Marked for Settlement. I have attached a screenshot for your reference. The payment journal is within legal entity DRC, and the payment pertains to an invoice from legal entity TLT. I have access to both of these legal entities. Please let me know if you require any additional information.

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Paolo Cecchelli 670 on at

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Hi Rajesh,

thank you for proving the information. Unfortunately also in my view from that form there is no easy way to go to the invoice on the other company if not copying the invoice and search it on the active invoices on the other company.

Maybe some other community members have better ideas.

Good luck!

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Giorgio Bonacorsi 2,698 on at

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Hello,

You can try to use the centralized payment. You can pay from the legal entity A, invoice present in legal entity B: https://dax365fo.org/2026/02/25/centralized-payment/

Let's me know if this work, we stay available for additional info

Good luck,

Giorgio

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RK-09031215-0 16 on at

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Hi Giorgio,

Appreciate your response. However, I could not see solution for the below listed challenge.

When Legal Entity A submits a payment journal with Legal Entity B's invoices, approvers cannot view invoice details via the provided link due to cross-entity restrictions. This limits invoice review during approval.

Thank you.

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Syed Haris Shah 1,633 Super User 2026 Season 1 on at

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Hi @RK-09031215-0,

This is expected behavior in Microsoft Dynamics 365 Finance.
Although legal entities share the same database, transactions such as AP/AR invoices, payments, and settlements are stored and accessed within the current company context (DataAreaId). Standard drill-down navigation does not automatically switch the user to another legal entity.

Therefore, if a payment in Legal Entity A settles an invoice from Legal Entity B, the link cannot open the invoice while the user is still in Entity A. This design enforces company data boundaries and security controls.

Currently, there is no standard parameter that enables cross-legal-entity drill-down for AP/AR transactions. The usual approach is to switch to the originating legal entity and search for the invoice.

To improve usability, some implementations add the source legal entity to inquiry views or implement a small extension that opens the invoice in the correct legal entity.

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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