intercompany/”>Intercompany invoicing in Business Central lets you create a purchase invoice in one company and forward it to an intercompany partner for re-invoicing. When you post the invoice, Business Central creates two lines in your intercompany journal, ready to handle in the partner company.
To send a purchase invoice to an intercompany partner, you fill in the intercompany partner code, choose the partner reference type, and enter the intercompany G/L account on the invoice line. The intercompany G/L accounts come from your intercompany chart of accounts.
After posting, you move to the supply company to process the two journal lines that the posting created.
Creating a purchase invoice for intercompany re-invoicing
When you want to send a purchase invoice to an intercompany partner for re-invoicing, start by opening Purchasing, then Purchase Invoices, and click New.
Choose the vendor for the invoice and type in the vendor invoice number. Then add your purchase invoice lines with the relevant amount and price. A single line is enough to set this up.
Filling in the intercompany specific fields
Once the line is in place, you reach the intercompany specific fields. Here you choose the intercompany partner that the invoice should be sent to, for example your supply company.
You then select the intercompany partner reference type. In this example the type is G/L account, so you enter the intercompany G/L account in the corresponding field.
The intercompany G/L accounts are set up in your intercompany chart of accounts. That setup is covered in a separate guide.
Posting the invoice and what happens next
With the intercompany fields completed, the invoice is ready to post. When you post it, Business Central creates two lines in your intercompany journal for you to handle in the supply company.
After posting, the invoice is done on your side. The next step is to process the lines that were created in the intercompany journal, which is handled in the supply company.
Q&A
What happens when you post an intercompany purchase invoice in Business Central?
Posting creates two lines in your intercompany journal. You then handle these lines in the supply company to complete the re-invoicing.
Which intercompany fields do you need to fill in on a purchase invoice?
You choose the intercompany partner the invoice should go to, select the intercompany partner reference type, and enter the intercompany G/L account on the line.
Where do the intercompany G/L accounts come from?
They are set up in your intercompany chart of accounts. You select the relevant account when filling in the invoice line.