Processing intercompany payables? We've got an app for that.

Open Door Technology has been selling an intercompany add-on module for Dynamics NAV for longer than this capability has been available for Dynamics NAV and we are now moving the product forward as an app for Dynamics 365 Business Central.

After Microsoft released their intercompany functionality, we reviewed whether there would be any demand for the Open Door version. The review revealed two key differences between them. The first was that the Open Door add-on is available for any level of license and not just the more expensive license.

The second difference was that, while our version did not include the ability to have offsetting purchase and sales orders, it does include the ability to record payable and receivable GL type transactions for any number of companies in one entry screen. Selecting a company on the document lines allows a user to select any available company and utilize the related chart of accounts and dimension values.

 

The Dynamics 365 Business Central InterCompany module runs on classic NAV versions 2.6 and up 

In today’s world of consolidations and mergers, the need for intercompany processing is clear. Even more complex accounting transactions need to be handled in a more efficient manner with accountants spending far too much time reconciling multiple company accounts. For example, one of our customers processes payables for over 40 companies from within one operating company. The InterCompany add-on saves them an immense amount of time each month.

Key Features:
  • Save time with less clicks and steps to get transactions completed
  • Process reconciliations at the end of the month in less time
  • Use ‘Auto Posting’ flag to automatically post pending offset transactions in the recipient company
  • Code each document line to different companies
  • Control access to companies by individual
  • Repeat past transactions with Copy Document
  • Navigation detail includes target company information
Watch an overview video of the InterCompany add-on from Open Door Technology here.

 

Smooth account transactions between companies for GL, AR, and AP

InterCompany Processing allows account transactions to be posted from one company to another company within Dynamics NAV and Dynamics 365 Business Central for the General Ledger (GL), Sales & Receivables (AR), and Purchases & Payables (AP) functional areas. It includes Recurring Journal entries with Allocations and can post taxes to the selected company. It also has full multi-currency intercompany functionality and can account for differences in company exchange rates.

InterCompany transactions are identified when a participating company name is selected from the active intercompany list. When the company name is selected in the source company‘s transaction, the field lookups for “G/L Account No.” and all related dimension codes reference the target company’s records. These accounts and dimensions are then entered directly into the source company transaction.

Posting the intercompany transaction creates related journal entries in the target company and balancing or audit entries in the source company following the rules setup in the intercompany translation, which is used to validate the transaction.

 

A non-invasive, integrated approach

InterCompany Processing relies on the posting of transactions in both companies. The posting of an intercompany transaction in the source company creates journal entries in the target company for review before posting. This process creates a non-invasive approach to performing transaction posting for multiple companies in the NAV and Business Central toolkits.

InterCompany Processing works across companies in one database and has been integrated with the standard Navigate functionality in the source company. Performing a Navigate on a “Document No.” that contains intercompany transactions will display the General Ledger and Tax Ledger Entries created in the target company. This functionality will also allow the user to look directly at those transactions in the target company.

AP and AR Documents with intercompany transactions can be copied in the source company through the standard copy document functionality. Full auditing is also available in the source company for the intercompany account and dimensions used on posted documents.

 

Check out this tutorial where we walk you through how to process a purchase invoice for intercompany expenses.

For more information on the ODT InterCompany app for Microsoft Dynamics NAV or for Microsoft Dynamics 365 Business Central please contact us here.

 

 

 

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