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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Two Legal Entities - S...
Microsoft Dynamics AX (Archived)

Two Legal Entities - Sales Order Creation - Invoice Posting

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Posted on by Community Member

Hi Everyone,

Can someone help me. We have two legal entities, let say A and B. Entity A is our main entity, this is where we post customers payment.
We have Entity B, in this entity we create sales orders for particular products and the sales order gets invoiced.

.1 Is it possible for invoices in Entity B to be copied/moved in Entity A? 

.2 We want that all invoices will be posted/generated in Entity A whether the SO was created from A or B.

.3 Is the above to be achieved with Inter-company? If it is can you provide a link on how to set this up?

Thank you,

Jesa

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  • Community Member Profile Picture
    Community Member on at
    RE: Two Legal Entities - Sales Order Creation - Invoice Posting

    Hi Ludwig,

    I followed the steps in creating Sales order for external customer in Entity1 but this did not create a intercompany SO and Purchase Order. Do you have a link where I can follow, step by step process? 

    In our case, we have a site (say SITE A) who stores PROD A. PROD A is to be sold for both Canadian and US customers. But if US customer buys PROD A, we have to create SO in Entity B because the Inventory is in Entity B on SITE A.

    What we always do is, when a US customer buys PROD A, this customer is added in Entity B and Sales order is being invoiced in Entity B. But we want the invoice must be posted in Entity A.

    I have tested this scenario. I created a Sales order in Entity A for US customer, PROD A coming from SITE A, I was able to create and post the invoice but it created a negative inventory for PROD A in Entity A. 

    I hope I am making sense and you can help me achieve the goal.

    Thank you,

    Jesa

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Two Legal Entities - Sales Order Creation - Invoice Posting

    Hello Jesa,

    The intercompany functionalities might help in this case.

    I have not setup and tested your scenario but it might be the case that you have to work with 'dummy' intercompany customer and vendor accounts that post on bridging accounts to get this realized.

    Please test this and let us know if you need further assistance.

    What I am interested in is whether entity A and B are really separate legal entities or whether they have been created for other reasons?

    The process that you describe above is this a process that occurs regularly or does it apply only for specific products / customers?

    It would be great if you could provide us some more background information.

    Many thanks and best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at
    RE: Two Legal Entities - Sales Order Creation - Invoice Posting

    Hi Ludwig,

    Warehouse and inventory of the product we want to sell is in Entity B

    How to achieve below scenario:

    CUST A is in Entity A and wants to buy Product A which is in Entity B.

    .1 How can Entity A sell to CUST A if Product A is in Entity B?

    .2 Invoice must be generated in Entity A.

    If I understand it right this can be achieved by inter company since intercompany has Two-level intercompany chain.

    Legal entity A – Sells to external customers, but has no stock. This legal entity buys from Legal entity B.

    Legal entity B – Sells only to Legal entity A.

    Thanks,

    Jesa

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Two Legal Entities - Sales Order Creation - Invoice Posting

    Hi Jesa,

    For 1:

    The standard application does not allow copying invoices from B to A. Implementing a modification for a copy feature needs would need much consideration because of the accounting behind the scenes

    For 2:

    Why do you use entity B then?

    Can't you simply create the SO in entity A?

    What it the reason that a separate legal Entity B has been setup?

    For 3:

    Intercompany will create purchase and related sales orders. From the information provided above I cannot see how this would fit here.

    Best regards,

    Ludwig

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