Dynamics GP – Payable Inter company Invoice entry example.

In this example an inter company payable transaction is demonstrated.  For this purpose two test companies are used:

Company Id Description
TWO Fabricam
THREE Tree (copy of TWO)

Inter company setup (created at TWO):
Tools >> Setup >> System >> Inter Company
internet

The inter company transaction:
Company TWO records an invoice related to company THREE in its books of accounts and issues payment to the vendor on behalf of company THREE.  Company TWO will record an inter company invoice as follows:

Transaction >> Purchasing >> Transaction Entry:

intercoinvoice

Create the distribution as follows:

icodist

Note for line one of distribution the account number is picked from company THREE.  For Line two the account number is picked from company TWO.  Click OK.

GP will prompt  an alert

icoalert

Click Yes.  Update the corresponding company ID for the second linecorrespondingico

and post the invoice.  The resulting AP  posting journal is as follows:

icojournal

GP has passed the required inter company entries at AP – Good.

Check the Journal entry at TWO:

TWOJOURNAL

Check the GL journal entry passed by GP at THREE

THREEJOURNAL

Looks good!

Cheers!

Sanjay