To prepare your organization for intercompany trade, you must define vendors and customers that you want to trade with internally and associate these to the specific items that you want to purchase or sell.

1. Click Accounts payable> Vendorsand select the vendor that you want to define as an intercompany vendor, or alternatively, click CTRL+N to create a new vendor.

2. To define which items you can purchase from this vendor, click Inventory management> Items, and select the items that you want to assign to your vendor, so that the items are available for intercompany trade. In the Itemform, on the Referencestab, in the Vendorfield, type the vendor number.

3. Click Accounts receivable> Customers, and select the customer you want to define as an intercompany customer. On the Customersform, on the Setuptab, select the Autocreate intercompany orderscheck box and, if you want orders to be delivered directly to customers, select the Direct deliverycheck box.

   Note
   If there are some items that your organization stocks and delivers to customers, then you may not want to create intercompany orders automatically, regardless of whether you have the item in stock. To disable the automatic generation of orders for items that you may sometimes have in stock, do not select the Autocreate intercompany orderscheck box.

4. If you want to allow the indirect creation of extra lines on a sales order, select the Allow indirect creationcheck box. This permits a user to add lines to the original sales order from the intercompany sales order. This option is only possible when direct delivery is selected.

If you allow the indirect creation of order lines, you are permitting all additions to the original sales order from the intercompany sales order. Each addition is then processed through to the customer and added to the order and the invoice, and every document involved in the sale is printed and posted automatically, without anyone being made aware of the addition.