02 Oct Advanced Intercompany – a new solution for capital groups

Developing its products in order to meet the specific needs of its customers that operate as capital groups, IT.integro has designed the Advanced Intercompany module.

The module enables Microsoft Dynamics NAV users from multiple companies to send sales and purchase documents in real time. It combines the benefits of a typical EDI system with specific functionality requirements related to intercompany trade i.e. tracking quantities and values of in-transit items.

Managing transactions with the Advanced Intercompany module

The document synchronization process is triggered as soon as a new sales or purchase order is released. Then, the sales /purchase order is automatically sent to a partner company, where it is kept on hold until it is verified. The verification process can include such data as agreed delivery dates, quantities and prices. After the order is approved, the system creates a target document and sends a confirmation of the order receipt to the customer. This way, both companies verify and agree upon essential elements of the document before it is processed.

The system also sends a notification after the order is sent. This way, it keeps the user updated on the status of each intercompany transaction that is processed. After the items are received in the warehouse, the invoice is posted automatically which closes the settlement of the transaction.

In addition, it is also possible to send single documents e.g. service invoices that are not managed within the logistic process.

Benefits

In addition to the benefits related to the reduced risk of making an error when entering an order into an ERP system, the Intercompany Trade module enables companies to monitor value streams for the inventory moved between subsidiaries within their capital group.

If, the process is handled manually, it is difficult to calculate the value of items that have been sent but have not been received at a target location. With the Advanced Intercompany module, when items are sent from a source business entity/subsidiary, the system in the target subsidiary automatically posts the document as a receipt in an “in-transit” location and creates a transfer order between this location and the actual warehouse location.

The use of the Advanced Intercompany module enables business partners to:

• Streamline the creation of consolidated financial statements by simplifying the process of reconciliating the values of in-transit items
• Verify the order document after it is finally approved in the inbound order buffer
• Speed up the processing of sales and purchase transactions in Dynamics NAV, both for business partners and end customers
• Reduce the number of errors due to data entered manually from multiple documents

Despite the fact that the main assumptions for the module have been developed for capital groups, it can also be used in other organizations successfully, for example in a group of business partners that collaborate closely.

Complementary to the MDMS module

The Advanced Intercompany module is usually implemented with the add-on MDMS module that enables the standardization of master data (e.g. item numbers) in all subsidiaries which facilitates the setup and functioning of the Advanced Intercompany module. However, the Advanced Intercompany module can also be implemented as a standalone solution, provided that companies maintain data exchanged in standardized formats.

More information about the Advanced Intercompany module