Your business can harness the power of Business Central by using the system to organize and optimize your intercompany transactions. If your business has separate accounting functions for more than one legal entity, you can benefit from using Business Central. Before you start recording your intercompany transactions, there are some key decisions that you will need to make in order to get the most out of Business Central. In this blog, we will discuss these decisions and the options for your business.

Picking the Basis Chart of Accounts

All partners within your intercompany transaction must use the same chart of accounts and map the accounts in their own chart of accounts to it. When setting up intercompany transactions in Business Central, your business will need to decide which chart of accounts to use. If your company defines the intercompany charts, you will need to choose the “IC Chart of Accounts Actions” in “Intercompany Setup”. Then, your business can add accounts.

Deciding Partner Roles- Vendors, Customers, or Both

When you are establishing an intercompany transaction, you will need to decide if your partner will be a vendor, customer, or both within Business Central. To do so, go to the “Intercompany Setup” page, click on the “Intercompany Partners FastTab” and open the card page for your partner. Then, choose the customer or partner in either the “Customer No.” and/or the “Vendor No.” fields.

Specifying Bank Accounts

If your business is looking to increase productivity through faster payments, you can pick bank accounts to use for your intercompany partners. Then, once a partner enters an intercompany transaction, they can specify the bank account on the line. This eliminates the need to manually enter transactions, as this bank account is used as the balancing account. To specify bank accounts, choose “Bank Accounts” on the “Intercompany Partners” page. Enter the account information under “Intercompany Bank Account Card.”

Handling Resources

If your sales transaction involves resources, you can set up your resources and their related costs and prices in Business Central. You can enter discounts, cost factor rules, and job-related prices on the job card. To set up a resource, search and click “Resources.” Then, choose “New,” and enter in the fields as necessary. Fill in the “IC Partner Purch. G/L Acc. No” on the resource card for each resource.

Click here to read more about the key decisions when setting up intercompany transactions.

Next Steps

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