Intercompany basic setup
Intercompany is a scenario where an organization have established companies in several different locations, either in the form of a holding company with affiliated production and sales companies, or in the form of production and sales companies that purchase or sell directly between one another.
Microsoft Dynamics AX 2012 includes several new features including a simplified setup.
Microsoft Dynamics AX 2012 introduces a new intercompany setup with the “Intercompany trading relation”, making the connection between a customer and vendor in another entity.
After we complete this review, we will be able to:
- Activate intercompany trading relationship between a customer and a vendor in different legal entities.
- Set up intercompany sales and purchase policies and value mapping.
Vendor setup
Click Procurement and Sourcing, click all vendors. Click the General tab and then click Intercompany in the action pane.
Figure 1 – Vendor action pane
This will open a form where the company and vendor account can be specified and where the entire trading relation (both directions) can be activated.
In the following example, you are in CEE company (that is Contoso Europe), then search in vendors list page for the account Contoso USA which is vendor 9100. When you activate the relationship, you say that in the current company (CEE) the vendor account 9100 corresponds to company CEU and there Contoso Europe is the customer account 9100.
Figure 2 – Trading relationship form
When we active the relationship, we introduce the selling company and what is my account in that company as customer. This will also activate the relationship in the other company.
We can deactivate the relationship just unmarking the Active field; this will keep the entire configuration. If you prefer to delete the relationship completely, setting all parameters to blank, you have to click on Remove relationship button.
As in previous versions, policies define the parameters that control how the purchase orders and information synchronization are handled. In Microsoft Dynamics AX 2009, these policies were defined on the Intercompany action policy form on the Setup tab. The functionality of these policies has not changed between the two versions.
Figure 3 – Purchase order policies
Purchase value mapping
Value mapping defines a common understanding in the company’s specific languages. The trading partners must find a semantic base for their company data.
The purchase value mapping determines how to translate field value from the buying legal entity to the selling legal entity. In Microsoft Dynamics AX 2009, you maintained these values on the Value Mapping form and the functionality has not changed between the two versions.
The Agreements classification field is a new value mapping introduced in Microsoft Dynamics AX 2012 used for Sales and Purchase agreements.
Figure 4 – Purchase value mapping
Due to the new features of Product information management and Global address book; Partner, Address and Item fields do not need to be mapped.
Purchase agreement policies
An action policy that controls whether the buying part in an intercompany trading relationship is allowed to modify certain terms ina purchase agreement. For example, price, discounts and validity period.
Figure 5 – Purchase agreement policies
Customer setup
If instead of activating and setting up the relationship from the Vendor side, we prefer to do it from Customer side, that is also possible. Click Sales and marketing, click All customers. Click the General tab and then click Intercompany in the action pane.
Figure 6 – Customer action pane
It is not necessary to go through both sides to set up the relationship, we can do all the configuration from one side and you will be able to access it from vendor and customer in each company.
As we can see, we get a very similar form to set up the trading relationship. Here we introduce the purchasing company and what is my account in that company as vendor. This will also activate the relationship in the other company.
Figure 7 – Customer trading relationship
Sales order policies
These parameters will determine how intercompany sales behaves in the intercompany flow. In Microsoft Dynamics AX 2009, these policies were defined on the Intercompany action policy form on the Setup tab. The functionality of these policies has not changed between the two versions.
If we activate Unit price equal to cost price, you will not be able to use Intercompany agreements.
Figure 8 – Sales order policies
Sales value mapping
Here you can also find the new Agreements classification field.
Figure 9 – Sales value mapping
Sales agreement policies
An action policy that controls whether the selling part in an intercompany trading relationship is allowed to modify certain terms in a sales agreement. For example price, discounts and validity period.
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