What is a Intercompany Transactions in Business Central?

Transactions between related legal entities in Business Central, automatically creating corresponding documents in the partner company.

Intercompany Transactions in Business Central allow related companies (subsidiaries, divisions, or affiliates) to trade with each other while automatically creating the corresponding documents in the partner company. A sales order in Company A automatically generates a purchase order in Company B.

This is particularly useful for shared procurement. A central purchasing department in one entity can buy goods and resell them internally to other group companies. BC handles the intercompany posting, creating matching sales and purchase documents across the entities.

The Intercompany Chart of Accounts and Intercompany Dimensions ensure that transactions map correctly between entities, even if they use different GL structures. Consolidation reports can then combine the financials while eliminating intercompany balances.

Related terms

• General Ledger — The core accounting record in Business Central where all financial transactions are ultimately posted and stored.
• Chart of Accounts — The structured list of general ledger accounts in Business Central that categorizes all financial transactions.
• Dimensions — Tags applied to BC transactions for multi-dimensional analysis, such as department, project, or cost center.
• Purchase Order — A formal document sent to a vendor to order goods or services, with agreed quantities, prices, and delivery terms.

How Zentriq helps

Zentriq's AI tools automate many of the manual processes around intercompany transactions in Business Central. Learn about the Zentriq Agent or try Zentriq PunchOut to see how AI simplifies procurement in BC.