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How to map chart of accounts for intercompany

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Posted on by Aspen

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Hi I need to understand better on how to do the mapping for intercompany in BC. If I have 2 companies A and B, and the COA are as follows

A: B:

10100 checking account 10101 checking account

13100 account receivable 13101 account receivable 1

14100 inventory-1 13102 account receivable 2

14101 inventory -2 14100 inventory

when Mapping A to B, I could create a new account receivable for A to map to each of B's AR accounts

Or I could create a general mapping to 13101

What are the recommended approach and why?

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Dynamics 365 Business Central

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Khushbu Rajvi. 16,318 Super User 2025 Season 1 on at

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How to map chart of accounts for intercompany

If this helps: https://learn.microsoft.com/en-us/dynamics365/business-central/intercompany-how-setup

https://learn.microsoft.com/en-us/dynamics365/business-central/intercompany-manage
Aspen 280 on at

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How to map chart of accounts for intercompany

The discussion is very helpful. Thanks everyone. I could map the accounts that are used for the purchase and sales transactions, and leave the rest of the coa unmapped, right?
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Jainam M. Kothari 7,921 on at

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How to map chart of accounts for intercompany

Hello,

When mapping intercompany accounts in Business Central, you can either create specific mappings for each account to ensure detailed tracking and reporting or use a general mapping for simplicity and ease of maintenance. The recommended approach depends on your business needs: choose specific mappings for detailed visibility or general mappings for a streamlined process.

May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/intercompany-how-setup

https://learn.microsoft.com/en-us/dynamics365/business-central/intercompany-manage
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Ramesh Kumar 4,051 on at

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How to map chart of accounts for intercompany

intercompany account mapping in Business Central can be done in multiple ways, and choosing the right approach depends on your organization's reporting needs, and volume of transactions between companies.

I agree with Yun Zhu and Valentin

Thanks

Ramesh

If this was helpful, please check the "Does this answer your question?" box and mark it as verified.
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YUN ZHU 82,673 Super User 2025 Season 1 on at

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How to map chart of accounts for intercompany

I totally agree with Valentin.
If your company B has other receivables besides A, and you need to distinguish A, then a separate account may be better.
If it is not necessary, a general account is also OK.

Thanks.

ZHU
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Valentin Castravet 28,145 Super User 2025 Season 1 on at

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How to map chart of accounts for intercompany

It really depends why in company B you have two receivables accounts. If you need to have this differentiation then you would need to create a new receivables account in A to map to each of B's accounts.

If you don't need this differentiation then you can create a general mapping to 13101 as you mentioned. I think this is really company specific to you, if you need this differentiation or not.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/
Aspen 280 on at

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How to map chart of accounts for intercompany

Thanks for the response. If I use company A as parent company and its COA as the intercompany COA, I could create a new account receivable account to map to B.

If I have several companies, the size of the intercompany COA increases significantly.
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Zain Mehmood 3,759 Moderator on at

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How to map chart of accounts for intercompany

Hi,
When setting up intercompany in Business Central, both options are valid — but which one to choose depends on how much control and reporting detail you need.

Option 1: Detailed mapping (A maps to multiple AR accounts in B)
This is best if:

You want granular tracking of transactions by partner, product, or process

You need to reconcile balances across specific accounts

Each account in B has a distinct purpose (e.g., 13101 = sales, 13102 = returns)

Pros: Better audit trail, easier reporting by type
Cons: Slightly more setup and maintenance

Option 2: General mapping (all A AR map to 13101 in B)
This is suitable when:

You don’t need to split transactions across multiple AR accounts in B

Simpler COA is preferred

Volume is low or reporting is not segmented

Pros: Simple to maintain
Cons: Less visibility if B wants to track intercompany flows by type

If company B uses 13101, 13102 for distinct purposes, go with Option 1. If those are just alternate AR accounts without operational differences, Option 2 is fine and easier to manage.

For me, ill choose option 1 over 2. Helps in reconciliation.

Warm Regards,

Zain