web
You’re offline. This is a read only version of the page.
close
Skip to main content

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Relationship between C...
Microsoft Dynamics AX (Archived)

Relationship between Centralized Payment and Intercompany?

(0) ShareShare
ReportReport
Posted on by lmai 2,442

Hi All, 

What is the relationship between Centralized Payment and Intercompany?

Intercompany is when we buy or sell between our own legal entities.  So if company A sells product to company B (company A and B are our own legal entities).  Company B needs to pay back to company A.  Cash needs to exchange hands from B to A.  So how does the Centralized Payment impact the intercompany transactions?  I understand that in the Centralized Payment, the Centralized Payment entity would represent other entities to pay rent, for example, then these entities have to pay back to the Centralized Payment entity.  In the Intercompany transactions, company B purchase from company A.  Company C (Centralized Payment entity) represents the company B to pay to A.  Then B pays back to C? It sounds like an extract step for internal process.  Could someone please shed lights to this concept?  Thanks so much!

*This post is locked for comments

I have the same question (0)
  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Kim,

    I would call the intercompany sales order - purchase order process as 'intercompany trade'.

    AX does not only support intercompany trade but also other intercompany transactions, such as centralized (intercompany) payments.

    We also have intercompany time and expense recordings for projects, intercompany expense transactions, etc.

    All of those belong to intercompany transactions but require different setups, affect different modules and users, etc.

    So, intercompany in AX is much more than only intercompany trade.

    Best regards,

    Ludwig

  • lmai Profile Picture
    lmai 2,442 on at

    Thanks, Ludwig, for your prompt response.  In your opinion, is the Centralized Payment a practical process when it comes to the Intercompany transactions?  

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Kim,

    For me centralized payments belong to 'intercompany' and a lot of companies are using those processes.

    Best regards,

    Ludwig

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Introducing the 2026 Season 1 community Super Users

Congratulations to our 2026 Super Stars!

Meet the Microsoft Dynamics 365 Contact Center Champions

We are thrilled to have these Champions in our Community!

Congratulations to the April Top 10 Community Leaders

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics AX (Archived)

#1
CP04-islander Profile Picture

CP04-islander 34

#1
CP04-islander Profile Picture

CP04-islander 34

#3
Jagadabi Profile Picture

Jagadabi 6

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans