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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Intercompany Sales
Microsoft Dynamics GP (Archived)

Intercompany Sales

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Posted on by Lydz 60

I am trying to see it is possible to put in intercompany sales and expenses.

Here is the process they are manualling doing now which they want to automate...

The company has a office in the US and India. They give India money each month to pay their expenses. The US comapny records it as a receivable and india as a payable. After they pay their expenses they invoice the US company their expenses plus a small profit percentage. So the India company shows both a Sales and a Receivables on their books. When the US office gets the invoice, they convert the currrency, transfer the amount from the India GP account to an elimination count where it evens out the payables/receivables account. Shows no profit, no income. Then it goes to the US GP account where it is broken down and applied as payable.

They want to see if this can be down through all three companies automatically as can be done with the intercompany payable.

I don't know if this even makes sense. It doesn't really to me so I don't know if I am explaining this right. I have been aissigned to research.

Hope someone may know something.

*This post is locked for comments

  • K Day Profile Picture
    K Day 7,365 on at
    Re: Re: Intercompany Sales

    I'm not following you 100% but I had a similar scenario with a company.  They did not really invoice each other.  Intercompany Accounts are a wash between all (if you keep them in balance). The revenue was recognized in one company as something like "Consulting Revenue" and expensed in another company.  Basically, we created a new GP company called the Elimination Company where they would reverse these transactions via journal entry so that their consolidated financial Statements in FRX would be correct.

  • Chris Isbell Profile Picture
    Chris Isbell on at
    Re: Re: Intercompany Sales

    Just had another thought - I think something like eOne's SmartConnect could perhaps accomplish this.  It has the ability to use a real-time GP trigger (an AR invoice being posted) as a data source, which would then run a job and create a payable in the subsidiary company.  There would probably have to be some scripting to maybe get exchange rates, but SmartConnect supports that.

  • Eric Nixon Profile Picture
    Eric Nixon 120 on at
    Re: Re: Intercompany Sales

    Have not tried Nolans. Just wanted to confirm that GP was not able to do this before considering alternatives.

    I know Essentials can push a third party vendor invoice to another company via an intercompany account but cannot (nor can our GP consultant) see any funtionality where:

    Create an Intercompany invoice in Parent (Receivable in USD on books)

    Push intercompany invoice to Foreign Subsidary (Payable in EURO on books) automatically

    The transaction we are trying to push is a management fee being charged by the Parent to the Subsidary.

  • Chris Isbell Profile Picture
    Chris Isbell on at
    Re: Re: Intercompany Sales

    Have you taken a look at Nolan's Intercompany postings?  It is much more robust than the basic GP intercompany functionality.  I know it can do a lot, but I haven't evaluated this scenario yet.

  • Eric Nixon Profile Picture
    Eric Nixon 120 on at
    Re: Re: Intercompany Sales

    Just following on from above. The above example is similar to a siuation in our company.

    To confirm - within Business Essentials is it possible to:

    Create an Intercompany invoice in Parent (Receivable in USD)

    Push intercompany invoice to Foreign Subsidary (Payable in EURO) automatically

    Is this acheivable without using integration manager or non Business Essentials tools?

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Re: Intercompany Sales

    Hi Ldyz, 

    Is one company´s receivables not just another companies payables? Can you not use the payables in one company to generate the GL postings required in the receivables company? Or do you need to be able to see RM invoices? Just a thought.

  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 4,029 Super User 2024 Season 2 on at
    Re: Intercompany Sales

    Unfortunately, there is no Intercompany functionality in Receivables as there is in Payables.

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