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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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Zain Mehmood 4,187 Most Valuable Professional on at

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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

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Aspen 382 on at

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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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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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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/

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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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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Ramesh Kumar 7,527 Super User 2025 Season 2 on at

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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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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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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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Aspen 382 on at

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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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Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

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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

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