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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Intercompany Direct de...
Supply chain | Supply Chain Management, Commerce
Answered

Intercompany Direct delivery Return Scenario

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Posted on by Dewitt 204
Hi. We need to know the return process for intercompany direct delivery (three way). Please kindly guide us.
 
The original sales order is created in legal entity A. The IC PO is created in A and IC SO is created in B.  Few items are stocked and sold directly from entity A. Few items are directly delivered from entity B and the original sales order is invoiced for all items in A. 
 
a) We would like to know how to create return order for the above scenario.
b) For above scenario, two invoices are generated in entity A. we would like to know, if it possible to generate single invoice for the customer. 
 
 
 
 
Categories:
Dynamics 365 Supply Chain Management
I have the same question (0)
  • Suggested answer
    Zain Mehmood Profile Picture
    Zain Mehmood 4,187 Most Valuable Professional on at

    Hi,

    For your intercompany direct delivery (3-way) setup:

    a) Return process:

     

    For items delivered from Entity B, create a return sales order in Entity A.

     

    This will trigger an intercompany return PO in Entity A and a return SO in Entity B.

     

    Process the return from B to the customer, and from A to B in system records.

    b) Single invoice in A:

    By default, D365 creates two invoices in A if there are both stocked and direct delivery items.

    Generating a single invoice isn't supported out of the box — this would require a customization or post-processing logic to consolidate invoice documents at the customer-facing level.

    Hope this helps!
    Zain 
  • Dewitt Profile Picture
    Dewitt 204 on at
    Dear Zain Mehmood,

    Thanks for the feedback.

    For the return order (3- way IC Direct Delivery) when we are trying to invoice the return IC sales order, we are getting the below error 

    Item consumption for item ## for 1.00 cannot be updated because the cost price is known only for 0.00 in stock.

    please suggest any work around.

    Note: F    inancial negative inventory is not used by the customer for existing setup 
  • Verified answer
    Zain Mehmood Profile Picture
    Zain Mehmood 4,187 Most Valuable Professional on at

    Hi,

    This error typically means that the IC return sales order is trying to post inventory consumption for a quantity that doesn’t have a known cost in stock — likely because the item is not available financially in inventory yet.
    Since you're not using financial negative inventory, D365 won’t allow the posting unless there's financially updated stock available with a known cost.
     
    Suggested workaround:
    Ensure the intercompany purchase return (the receiving part of the return flow) is posted first — this will update the cost price in inventory for the return item.
    Then invoice the IC sales return order.
     
    This ensures that stock and cost are in place before consumption occurs.
    Let me know if the return is being handled through standard or customized process flows!
    Warm Regards,
    Zain
  • Dewitt Profile Picture
    Dewitt 204 on at
    Dear Zain Mehmood,

    Thanks for the work around. the invoice button is greyed out in IC PO however we invoiced the original return sales order and then invoiced the return IC Sales order. this process worked as expected. 

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