This is what happens in the video
Working with intercompany orders in Business Central requires a specific setup that links your sales company to your supply company. The key is to create a vendor in your sales company that represents your supply company, and then configure two fields: the IC Partner Code and a purchasing code that handles drop shipment and intercompany processing.
The IC Partner Code on the vendor must match the code set up in the Company Information of your supply company. This is what links the two companies together.
When you set up a purchasing code with the drop shipment and intercompany checkmarks enabled, Business Central automatically creates a purchase order in your supply company whenever you create a sales order in your sales company.
If you use the intercompany setup wizard, the purchasing code is configured for you automatically.
Setting up the vendor for your supply company
To work with intercompany orders, you start by creating a vendor in your sales company that represents your supply company. In this example, the vendor is called IC Supply, since that is the supply company it points to.
On this vendor, you set the IC Partner Code. This tells Business Central that the vendor should be used for intercompany processes rather than treated as an ordinary supplier.
You can view all the intercompany partners you have set up from the list of IC partners. In this case there is only one.
How the IC Partner Code links the two companies
The IC Partner Code on the vendor is the same code that is set up in the Company Information of your supply company. That shared code is what links the two companies together and makes the intercompany flow work.
Configuring the purchasing code for drop shipment and intercompany
On the vendor, scroll down to the intercompany section. Here you find a purchasing code set up for drop IC. If you use the wizard, this is set automatically, but it is worth understanding how it is configured.
The purchasing code has a checkmark in both Drop Shipment and Intercompany. When both are set, creating a sales order in your sales company automatically creates a purchase order for your supply company.
These are the two fields you need in place to work with the intercompany app: the IC Partner Code and the purchasing code with drop shipment and intercompany enabled.
Using a default location for one standard setup
As an alternative, you can set up the configuration by the buy-from vendor location if you prefer to have one standard setup that applies across the board.
Q&A
What do you need to set up to work with intercompany orders in Business Central?
You need a vendor in your sales company that represents your supply company. On that vendor you configure two things: the IC Partner Code and a purchasing code with the drop shipment and intercompany checkmarks enabled.
How are the sales company and supply company linked together?
The IC Partner Code on the vendor in your sales company must match the code set up in the Company Information of your supply company. That shared code links the two companies.
What happens when you create a sales order with the intercompany setup in place?
When the purchasing code has both the drop shipment and intercompany checkmarks set, Business Central automatically creates a purchase order in your supply company whenever you create a sales order in your sales company.
Do you have to configure the purchasing code manually?
No. If you use the intercompany setup wizard, the purchasing code for drop shipment and intercompany is set up automatically.