You’re offline. This is a read only version of the page.
487
Hi all,
We have a customer requirement where it is logical to use intracompany trading, whereby we are generating intercompany purchase and sales orders between suppliers and customers of the same legal entity. We are doing this because we are struggling to add charges on transfer orders between different sites. We have tested it and it works financially and logistically with the requirement.
Has anyone ever implemented this method? Have you had any difficulties doing so?
Kind regards
*This post is locked for comments
In terms of customization effort and risk, doesn't it seem like it would be easier to implement the charges into the Transfer order than to implement a new Sales order and Purchase order framework? Off the cuff, it seems like posting a General journal to account for the charge would be easy enough, and then you don't have open A/R and open A/P to contend with.
It is not recommended for a number of reasons:
1. Accounting reporting and the sub-division on these sales and purchases to eliminate them from returns consistently (Financial dimensions can obviously help but can also be manipulated leading to audit and control issues.
2. Legal reporting all needs to be customised to handle VAT, Intrastat, EC Sales and any other form of legal reporting required.
3. Planning setup will not work if you are using it and are envisaging stock replenishment, you are selling it to yourself so still own it and still have stock of it, the chain of demand and supply will be difficult to model.
4. How are you handling subdividsion of bank accounts, debtors and creditors. So for example if you have 3 supplier invoices and run a payment run - AX will not separate out by site, so one payment by bank would pay from site 1 and invoice from site B & C. Therefore TB no longer by site and no longer balances by site. Basically there are no intercompany postings allowing you to distinguish.
There are others, but if you are doing all of this just because you cannot put charges on transfer orders between sites have you not turned on the Indian localization - it has this as standard. I have not looked at it, but the code is there. Also if it really is intercompany then legally and from an accounting perspective it should be setup as intercompany to allow AX to perform and report correctly. If you choose to customize it then you need to tie up all of the elements from processing through reporting.
Hello Thomas,
I have not used this in a live environment yet. What is your major concern? Ludwig
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
291,240
Super User 2024 Season 2
#2
Martin Dráb
230,149
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (