Intercompany Automation in AX

Posted on: March 25, 2011 | By: SuperUser Account | Microsoft Dynamics AX/365

As supply chains internal supply chains grow globally, it is very common that a global organization will be required for tax and regulatory purposes to maintain arm’s length transactions with subsidiary companies. In many organizations with an extended supply chain, this may require PO and SO agreements through multiple subsidiary companies, and with that, all of the transaction overhead that comes with it. With Microsoft Dynamics AX, this transaction overhead can be reduced to only the minimum required transactions. For example, by properly defining the supply chain and configuring AX’s Application Integration Framework (AIF) correctly, AX will automatically create an entire chain of purchase orders and sales orders to move the product as desired. Additionally, based on how the AIF is configured, it is possible to reduce the transaction set down to a single shipment transaction at the ultimate source and a single receipt transaction at the ultimate destination, regardless of the number of subsidiary companies involved in the supply chain. Not only does this lower the amount of time and effort spend on transactions, but it also ensures accuracy. It is important to note that this is not custom development, but merely properly configuring the tools that AX provides out of the box.

If you have questions about configuring the AIF or any other general Microsoft Dynamics AX questions, please feel free to contact Logan Consulting at 312-345-8817

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