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Allow an intercompany flow only for invoices and not for orders

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Posted on by GA-07060724-0

Hello,

I would like to set up the intercompany flow. My intercompany code will be used to create purchase orders and also sales invoices. However, I do not want the flow to go through intercompany when I create a purchase order, but only for the sales invoice flow.

Is this possible?

Best regards,
Gaël

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Dynamics 365 Business Central

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Holly Huffman 6,554 Super User 2026 Season 1 on at

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Good morning, afternoon, or evening depending on your location :)
Hope you are well today!

I see this post was from a while ago - so hoping you've resolved already - but incase not :)

In standard Business Central Intercompany (IC) functionality, the system is designed to handle both sales and purchase documents as part of the intercompany flow. However, selectively enabling intercompany for only one direction (e.g., sales invoices only, but not purchase orders) is not supported out of the box.
What Happens by Default

When you create a Sales Invoice or Sales Order for an intercompany partner, BC can automatically generate the corresponding Purchase Invoice or Purchase Order in the partner company.

Similarly, creating a Purchase Order for an IC partner will trigger a Sales Order in the sending company.

Possible Workarounds
1. Custom Logic via AL Extension
You can create a small customization that:

Suppresses the intercompany flow when a Purchase Order is created.

Allows the flow only when a Sales Invoice is posted.

This would involve extending the IC Inbox/Outbox handling codeunits and filtering based on document type or user-defined flags.
2. Manual Intercompany Setup

Use manual intercompany posting for Sales Invoices only.

Avoid using the “Create Intercompany Document” action for Purchase Orders.

3. Use a Custom Field or Flag

Add a custom field (e.g., “Skip IC Flow”) to the Purchase Order.

Modify the IC posting logic to check this flag and skip processing if set.

Recommendation
If your business process requires this level of control, the best approach is to implement a lightweight customization that filters intercompany flows based on document type or user-defined rules.

Note: I collaborated with Copilot to help craft this response for clarity and completeness.
Hope this helps some!

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Jeffrey Bulanadi 9,112 Super User 2026 Season 1 on at

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Hi Gaël,

You're asking whether it's possible to configure BC so that intercompany flows apply only to sales invoices, but not to purchase orders, even though both use the same intercompany code. This is a nuanced scenario, and while standard intercompany setup doesn’t offer a toggle per document type, there are ways to control the behavior.

Here’s how you can approach it:

1. Use Separate Customer/Vendor Records for Intercompany Logic

Assign the Intercompany Partner Code only to the customer used for sales invoices

For purchase orders, use a vendor record without an intercompany code

This ensures that only sales invoices trigger intercompany flows, while purchase orders remain local

2. Control Document Routing via Transfer Type

In the Intercompany Setup, set the Transfer Type to “None” or “Manual” for purchase-related flows

This prevents automatic creation of intercompany documents when posting purchase orders

3. Customize Posting Logic (Advanced)

If both customer and vendor must share the same intercompany code, consider a customization that filters intercompany triggers based on document type

You can subscribe to events like OnBeforePostPurchaseOrder and bypass intercompany logic for purchase orders

4. Use Journals for Intercompany Invoices Only

Post intercompany invoices via Intercompany General Journals

Keep purchase orders outside the intercompany framework by using standard purchasing flow

Here’s a helpful link showing how to configure intercompany transactions and control document behavior:

Manage Intercompany Transactions – Microsoft Learn
Automated Intercompany Setup – ArcherPoint
Intercompany Transactions Overview – D365 Training

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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Mansi Soni 8,951 Super User 2026 Season 1 on at

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Hello,

In Business Central, intercompany transactions are triggered based on the use of Intercompany Partner Codes on documents. If you want to use intercompany only for sales invoices and not for purchase orders, simply avoid setting the Intercompany Partner Code on the purchase order. Instead, manually create the purchase orders without linking them to the intercompany setup. Then, for sales invoices, use the Intercompany Partner Code to trigger the intercompany flow. So yes, it’s possible - just control it by selectively applying the Intercompany Partner Code.

Hope this answer will help you!

Regards,
Mansi Soni

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Kamal Khakhkhar 2,915 on at

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Hii there ,

as per @Mansi Soni suggested you can do setup as per It.

also attaching link for your reference.

https://youtu.be/4Xz5rxk5nIw?si=tmkvc5CS0krLuvk_

If You found answer. Mark It answered.

Thank You.

Kamal Khakhkhar

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Jainam M. Kothari 15,735 Super User 2026 Season 1 on at

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Hello,

you can configure the intercompany setup to apply only to sales invoices and not to purchase orders by adjusting the Intercompany Partner Setup—specifically, by setting the partner only as a customer and avoiding automatic processing for purchase documents.

This ensures that intercompany flows are triggered only when posting sales invoices, while purchase orders remain outside the automated intercompany process, allowing for manual handling or separate workflows.

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

https://www.d365training.com/post/intercompany-transactions

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Jun Wang 8,210 Moderator on at

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For reference

https://learn.microsoft.com/en-ca/dynamics365/business-central/intercompany-manage

https://www.longviewsystems.com/blog/d365-business-central-intercompany-setup/

https://archerpoint.com/automated-intercompany-transactions-in-microsoft-dynamics-business-central/

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