The intercompany partner setup in Business Central controls how two companies in the same group exchange sales and purchase transactions. When you use the Intercompany app, the partner card gives you extra fields beyond the standard setup, including web service transfer, item number type mapping, automatic release of purchases, and discount handling between companies.
You set the transfer type to web service when you run the Intercompany app. With web service active, you do not need to fill in the company name or activate auto accept transaction, since the app handles the transfer.
You define the customer for sales transactions and the vendor for purchase transactions on the same partner card. You also choose the item number type for outbound documents: internal number, common item number, cross references, or vendor item number.
You can set up a discount percentage between the two companies through the IC discount type, but the discount fields only work if the partner in the supply company is set up to accept prices from your company.
What the intercompany partner setup does
The intercompany partner setup defines how your company exchanges transactions with another company in the same group. What you see and configure on the partner card depends on your role in the intercompany app setup. If you are in a sales company, the fields you work with most relate to purchase transactions from the partner that supplies you. There is a separate video that covers the intercompany app setup in detail.
In this example, we are working in a sales company, and the intercompany partner is the supply company. The card combines standard intercompany fields with extra functionality that comes with the Intercompany app.
Standard fields on the intercompany partner card
At the top of the card you have the standard fields. You give the intercompany partner a code and a name, and you can assign a currency code if you need one.
The transfer type field lets you choose how transactions move between the companies. This is mostly relevant when you do not use the Intercompany app. When you do use the app, you select the web service transfer type by checking the relevant field.
The company name is required when you do not use the web service. If you run the app with web service, you can leave it out.
You can activate auto accept transaction and block the intercompany partner. When you use the Intercompany app, you do not need to activate auto accept transaction, since the app manages the transfer for you.
Sales transaction setup
The sales transaction section is where you configure what happens when you sell to the intercompany partner. You set up the customer name here, which you need if you also want to do sales to another intercompany partner. You can specify the receivable accounts and choose the outbound sales item number type.
For the item number type you can pick internal number, common item number, or cross references. There is a separate video that covers item number types.
You can also activate auto release of outbound purchases, allow an intercompany inventory check, and allow outbound order changes.
Purchase transaction setup
In the purchase transaction section you set the vendor number for your intercompany partner and the payable accounts. As with sales, you choose the outbound purchase item number type: internal number, common item number, cross references, or the vendor item number.
You can specify whether the cost distribution should be in LCY (local currency). You can also choose to transfer the description from the purchase invoice line to the intercompany journal line. If you check this field, the description is sent along with the transaction.
Discount setup between companies
The price setup lets you control discounts between the two companies. With the IC discount type you decide whether the discount applies to your purchase prices or your sales prices. Once you have chosen one of these, you define the discount itself, for example 15% or 20% when you trade between the two companies.
These discount fields only become useful if the intercompany partner in your supply company is set up to accept prices from your company. If that setup is missing on the other side, the fields will not have any effect.
Web service setup for intercompany
At the bottom of the card you have the web service setup, where you configure the web service connection for the intercompany exchange. A separate video describes the web service setup in more detail.
Q&A
Which transfer type should you use with the Intercompany app?
Use the web service transfer type. You activate it by checking the relevant field on the intercompany partner card. With web service active, you do not need to fill in the company name or activate auto accept transaction.
Do you need to activate auto accept transaction when using the Intercompany app?
No. The app handles the transfer, so you do not need to activate auto accept transaction.
What item number types can you choose for outbound documents?
You can choose internal number, common item number, or cross references for sales. For purchases you can also choose the vendor item number.
When do the discount fields between companies actually work?
The discount fields only work if the intercompany partner in your supply company is set up to accept prices from your company. Without that setup on the other side, the fields have no effect.
How do you transfer the line description to the intercompany journal?
Check the field that transfers the description from the purchase invoice line to the intercompany journal line. When checked, the description is sent along with the transaction.