Advanced Intercompany - The solution for Capital Groups
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Advanced Intercompany

The solution for Capital Groups

Effective data organization

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.

Advanced Intercompany

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.

Advanced Intercompany

Benefits

In addition to the benefits related to the reduced risk of making an error when entering an order into an ERP system, the Advanced Intercompany 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

Allocation

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.

IC Goods Trade

IC Service Sales

IC Drop Shipment

The D365 Business Central Intercompany module compared to the Advanced Intercompany add-on

FunctionalityD365 Business Central IntercompanyAdvanced Intercompany add-on
Documents exchange: sales order –> purchase orderYESYES
Documents exchange: sales invoice –> purchase invoiceNOYES
Documents exchange: sales credit memo –> purchase credit memoNOYES
Documents exchange: shipment notificationNOYES
Documents exchange: invoice notificationNOYES
Sending G/L postings to an intercompany partnerYESNO
G/L accounts mappingYESYES
Dimensions mappingYESNO [1]
Currency codes mappingNOYES
Resource codes mappingNOYES
Item charges mapping NOYES
Online document statuses (new, open, accepted, confirmed, closed, rejected)NOYES
Verification of the incoming documents: Information [2]NOYES
Verification of the incoming documents: Warnings [3]NOYES
Verification of the incoming documents: Error [4]NOYES
Buffer [5]NOYES
Negotiating the documents [6]NOYES
Support for the drop shipment process NOYES
Support for the pre-invoice process [7]NOYES
Data exchange (companies in the same database)databasewebservices
Data exchange (companies in multiple databases)fileswebservices
Configurable data structure [8]NOYES

[1] The assumption is that the intercompany partners manage their dimensions separately.[2] Information – the document received contains the lines that have been mapped. Sample configuration: item numbers mapped, G/L accounts mapped, etc.

[3] Warning – the document received contains a value that requires attention/verification. Sample configuration: the delivery date earlier than 3 days; the price different from the price for the intercompany partner, etc.

[4] Error – the document received contains an error. Examples: the item has not been found, the G/L account does not exist, etc.

[5] Buffer – if the document does not meet all of the required conditions, it will not be uploaded automatically to the target table (for example, to the Sales Header table), but it will be stored in the buffer. Sample conditions: the documents contain Warnings and Errors.

[6] Negotiations – the intercompany partners agree upon the conditions of a transaction by exchanging the documents multiple times and adding their adjustments regarding the price, availability, discounts, delivery dates, etc.

[7] Pre-Invoice process – goods shipped from one company are automatically received at a virtual location by the other company. This way, when the goods are in transit from one company to another, the value of the goods does not disappear from the books from the group perspective.

[8] Both Standard (Dynamics 365 Business Central) Intercompany and Advanced Intercompany provide initial setup including the fields that will be exchanged between the companies. If it is required to add a new field that will be exchanged, the Standard Intercompany module requires object modifications by a partner (e.g. XML ports, codeunits, etc.). In Advanced Intercompany such a change is configurable and does not require any NAV/BC objects adjustments.